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Candlewood Suites Franchise Fees 2024: Royalty, Marketing and Initial Fee
Candlewood Suites is an extended stay brand from IHG. Here is what it charges to join and to stay in the system, where the numbers come from, and how they compare with similar brands.
Candlewood Suites fees at a glance
| Initial fee | $500 per suite, minimum $50,000 |
|---|---|
| Royalty | 5.5% of gross suites revenue |
| Marketing or program fee | 2.5% (Services Contribution) |
| Royalty plus marketing | 8% of rooms revenue |
| Franchisor | IHG |
| Segment | Extended stay |
| Disclosure year | 2024 |
Note: Amended 2024 FDD (issued March 28, 2024, amended June 28, 2024) on file with the Minnesota Department of Commerce; IHG has not filed a newer FDD there. Also a loyalty program contribution on member stays.
Source: Read in Candlewood Suites’s 2024 Franchise Disclosure Document (FDD). Source 1
How Candlewood Suites compares
Candlewood Suites’s royalty and marketing fees add up to 8% of rooms revenue. That is below the 8.4% average for the 16 extended stay brands in our table with a comparable headline figure, the 3rd-lowest of the 16.
| Extended stay brand | Franchisor | Royalty | Marketing | Headline |
|---|---|---|---|---|
| stayAPT Suites | stayAPT Suites | Greater of $2,500 per month or 5% | 2% (marketing fee; can rise to 3%) | 7% |
| Apartment Collection by Hilton | Hilton | 5% | 2.5% | 7.5% |
| Staybridge Suites | IHG | 5.5% of gross suites revenue | 2.5% (Services Contribution) | 8% |
| Atwell Suites | IHG | 5% of gross suites revenue | 3% (Services Contribution) | 8% |
| Hyatt Studios | Hyatt | 5% | 3% (Commercial Services Fee) | 8% |
| Hawthorn Extended Stay by Wyndham | Wyndham | 5.5% | 2.5% (marketing and reservation contribution) | 8% |
| LivSmart Studios by Hilton | Hilton | 6% | 2.5% | 8.5% |
| Hyatt House | Hyatt | 5% | 3.5% (Commercial Services Fee) | 8.5% |
| MainStay Suites | Choice Hotels | 6% | 2.5% (Marketing and Reservation Fee) | 8.5% |
| Suburban Studios | Choice Hotels | 6% | 2.5% (Marketing and Reservation Fee) | 8.5% |
What the headline number leaves out
Royalty and marketing are only the start. Most brands also charge for reservations and distribution, loyalty-program assessments on member stays, required technology and property-management systems, training and quality assurance. Brands also negotiate: ramp-up royalty discounts, key money and conversion incentives are common. Ask IHG for its estimate of total fees as a share of rooms revenue, and read Items 5 and 6 of the current FDD before you sign. Our analysis of what owners really pay a brand puts the typical all-in bill at 10% to 13% of rooms revenue.
Other IHG brands
Holiday Inn Express · Holiday Inn · Staybridge Suites · Crowne Plaza · Atwell Suites · Garner · voco · Hotel Indigo · EVEN Hotels · Kimpton · InterContinental · Vignette Collection · Noted Collection · avid hotels
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The Hotelier Times is a publisher, not a franchise adviser. Fees change; confirm every figure in the brand’s current Franchise Disclosure Document. Spot an error? Email nathan@hoteliertimes.com.