Franchising Status
Eligibility for SBA Loan

Overall Rating

Franchise Summary

Business Opportunity

The franchisee will establish and operate a Luxury Collection hotel or resort under a franchise agreement with The Sheraton LLC.

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.

Investment and Franchisee Fees

The total investment necessary to begin operation of a 250 guest room conversion Luxury Collection Hotel franchise is approximately $1,659,600 to $36,468,000, which includes $355,600 to $591,500 that must be paid to the franchisor or its affiliates. The total investment necessary to begin operation of a 250 guest room new build Luxury Collection Hotel franchise is approximately $71,004,600 to $103,233,000, which includes  approximately $335,600 to $571,500 that must be paid to the franchisor or its affiliates. These sums do not include any costs for real estate.

Estimated Franchisee Revenue & Profit

No Data Available

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Franchise Types Available

# Type Investment Fees

Management Team

# Name Position

Franchise Disclosure Documents

FDD Effective Date

Franchisee Financial Performance

Average franchisee revenue and gross profit relative to industry peers

Accessibility

Net wealth and liquid capital requirements relative to industry peers

Franchisor Reputation

Number of lawsuits and bankruptcies relative to industry peers

Franchisor Financial Health

Revenue and cash of franchisor relative to industry peers

Franchise System Health

Franchisee termination and cessation rate relative to industry peers

Affordability

Investment and franchise fees relative to industry peers

Distribution of The Luxury Collection Franchisees

The Luxury Collection Franchise System Development in 2017

Historical The Luxury Collection System Growth

Data not yet available

Historical Franchisee Revenue

Data not yet available

Historical Franchisee Gross Profit

Data not yet available

Average Franchisee Revenue vs. Lodging & Leisure in

Data not yet available

FAQ

How much investment do I need to start my own The Luxury Collection business?
Franchisees typically require at least $70,896,500 to $102,984,000 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 $85,000 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 general 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

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