Best Western franchise cost
Best Western charges a royalty of 5% of gross room revenue plus a further 2.1% in marketing, reservation or system fees, according to its franchise disclosure document issued February 27, 2026. The franchisor estimates the total cost of a new-build hotel at $6,130,275 to $12,658,075, not counting land; converting an existing hotel runs $581,925 to $2,557,075.
- Royalty
- 5%of gross room revenue
- Marketing
- 2.1%of gross rooms revenue
- Fee to take over on a purchase
- None statedItem 5 lists no separate transfer fee. Ask Best Western what it charges on a change of ownership.
- Fee for a new franchise
- $59,000Item 5 formula at 60 rooms. Fees actually charged can be lower; see the notes below.
- Total investment
- $6.13M to $12.7MItem 7 estimate for a new-build hotel
Recurring fees in the 2026 FDD
| Royalty | Monthly fees of "3.5% or 5% of Property Room Revenue" under the Membership Agreement. The 3.5% rate is limited to members at least 50% owned by people who were Best Western members on July 1, 2016, so a new owner should plan on 5%. |
|---|---|
| Marketing or brand fund | Marketing and Technology Fees: 2.1% of gross room revenue; Advertising Assessment $16.86 per room per month; Annual Dues $2,345.45 for 20 rooms plus $78.85/room for rooms 21-50, $30.66/room for 51-400, $3.07/room for 401+ |
| Reservation, loyalty and technology | Distribution commissions pass-through on system-delivered reservations; Best Western Rewards fees (e.g., 2.75% of PRR for newly enrolled BWR members at Executive Residency/@Home); see Item 6. |
| Initial fee (Item 5) | The Affiliation Fee for a System Hotel is $45,000, plus an additional $200 per guest room over 50 guest rooms; Entrance Fee = Evaluation Fee ($4,000, non-refundable) + Affiliation Fee. Affiliation Fee for 90-room BW Plus $53,000; 120-room BW Premier $59,000. |
| New build (Item 7) | $6,130,275 to $12,658,075 |
| Conversion (Item 7) | $581,925 to $2,557,075 |
| What Item 7 assumes | Item 7 tables for a 75-room Best Western System Hotel: new construction and conversion. Others (cover): 90-room BW Plus new $7,795,575-$15,802,375 / conversion $671,325-$3,209,625; 120-room BW Premier new $17,000,975-$32,499,275 / conversion $962,225-$7,441,025. Excludes land. |
From the filing: Membership structure, not a conventional franchise agreement (Membership Agreement; Board approval of applications).
What the fees cost a 60-room hotel
Take a 60-room Best Western with $1,500,000 of rooms revenue a year. The royalty and the marketing or system fees that apply to every room night come to 7.1%, or $106,500 a year, and per-room fees add $12,139 ($16.86 per room per month, before the FDD's minimum and maximum). That is $118,639 a year, about $9,887 a month, before payroll or utilities. Fees charged only on some bookings, such as loyalty-member stays, central reservation bookings and online commissions, come on top.
Those fees come straight off NOI. At 1.25x coverage, $118,639 of fees is $94,911 a year of payment you can no longer borrow against, or about $870,000 of loan at 10% over 25 years.
Fees billed per reservation, per transaction or as a fixed amount are not in this total; they are listed in the table above as the FDD states them. Run your own numbers with Best Western fees filled in.
Financing a Best Western
Lenders read the franchise agreement as closely as the appraisal. On a purchase, expect the brand to require a change-of-ownership application, a new franchise agreement on current terms and often a property improvement plan (PIP), and expect the lender to fold the PIP cost into the project. For a new build, the Item 7 range is the starting point for the construction budget a lender will test.
Most owner-operators finance a branded hotel with an SBA 7(a) or 504 loan. Read SBA 7(a) for hotels and SBA 504 for hotels, or send the deal to Janover Capital.
Source
Best Western Franchise Disclosure Document, issued February 27, 2026, as filed with the Minnesota Department of Commerce (CARDS). Cover p.1; Item 5 FDD pp.14-17 (PDF p.21+); Item 6 FDD p.18 (PDF p.25); Item 7 FDD p.24. View the filing record. Fees change every year and the franchise agreement you sign controls. Read on 2026-10-24.
Buying or building a Best Western?
Send the deal to Janover Capital, which runs this site and arranges hotel financing through lenders.