Franchising Status
Email Address
Phone Number
Unit Location
Email Address
Phone Number
5/10

Franchimp Summary Rating

2 /10
Higher than 84% of peers
0 /10
Higher than 100% of peers

Franchise Summary

Description
The franchisee will establish and operate a full-service hotel that will be designated as a member of "The Luxury Collection. "
Company Background
The Luxury Collection is a collection of the finest luxury hotels in the world, each with its own distinct personality. The Luxury Collection offers an unforgettable experience to travelers seeking uncompromising service and authentic experiences while on their journeys around the globe. With over 200 years combined operating expertise, our teams are guided by passion, dedication and personal attention to detail that has become our signature. We invite you to be part of this extraordinary legacy - one which honors tradition while embracing change for future generations.
Franchise Opportunity
Establishing and operating a full-service hotel can be difficult, especially if you're not familiar with the industry. Operating a full-service hotel can be difficult, time consuming, and expensive. There are many things to consider when opening a hotel, such as the location, design, staffing, and marketing. The Luxury Collection is a prestigious group of hotels that provides its franchisees with access to world-class training and support. Our team of experts will help you every step of the way so that you can open and operate your luxury hotel with ease.
Corporate Structure
The Sheraton LLC is a limited liability company organized under the laws of the State of Delaware in 2006. They were incorporated on June 10, 1974 under the name The Sheraton Corporation. On October 24, 1989, they changed their name to ITT Sheraton Corporation. On December 31, 1999, they changed their name to The Sheraton Corporation, and on April 10, 2006, they changed their name and organizational form to The Sheraton LLC. They are a wholly-owned subsidiary of Starwood Hotels & Resorts Worldwide, LLC, f/k/a Starwood Hotels and Resorts, Inc. Maryland. Their principal business address is 10400 Fernwood Road, Bethesda, Maryland 20817. On September 23, 2016, Starwood was acquired by and became a wholly owned subsidiary of Marriott International, Inc.

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Franchisee Attrition

2 /10
This franchise's rate of attrition in 2020 of 9.09% was Slightly Higher than the 4% in the Lodging industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year. It is a strong indicator of the strength of the underlying operating model

Franchise Types Available

# Type Investment Fees

Franchise Disclosure Documents

FDD Effective Date

Distribution of The Luxury Collection Franchisees

The Luxury Collection Franchise System Development in 2020

FAQ

How much investment do I need to start my own The Luxury Collection business?
Franchisees typically require at least $804,802 to $201,818,890 investment to get their The Luxury Collection business started
What are the initial franchise fees for The Luxury Collection?
Franchisees typically need to pay at least $64,350 in fees directly to The Luxury Collection in order to earn the right to launch their business
How much money can I make with a The Luxury Collection franchise? What are the average revenues for a typical The Luxury Collection business?
We haven’t done the math on how much revenue a typical The Luxury Collection brings in each year. We estimate that other franchisees in the Lodging & Leisure industry generate $0 revenue, so we would expect The Luxury Collection to generate a similar amount
How long do I need to commit to running a The Luxury Collection unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

0 /10
The Franchisor's investment costs ranges from $804,802 to $13,290,714 which is Much Lower than the $12,405,748 to $23,788,760 average in the Lodging industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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