The Luxury Collection
Marriott International, Inc.
Company Information
7750 Wisconsin Avenue
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.
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Franchise Rating
Franchimp Summary Rating
7/10
Earning Transparency
7/10
Franchise System Development
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Distribution of The Luxury Collection Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $310,200 Maximum: $423,500
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $143,995,890 Maximum: $234,025,390
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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