ECHO Suites franchise cost
ECHO Suites (Wyndham Hotels & Resorts) charges a royalty of 5.5% of gross room revenue plus a further 3.5% in marketing, reservation or system fees, according to its franchise disclosure document issued March 31, 2025. The franchisor estimates the total cost of a new-build hotel at $11,506,418 to $17,258,078, not counting land.
- Royalty
- 5.5%of gross room revenue
- Marketing
- 3.5%of gross rooms revenue
- Fee to take over on a purchase
- None statedItem 5 lists no separate transfer fee. Ask Wyndham Hotels & Resorts what it charges on a change of ownership.
- Fee for a new franchise
- $35,000Item 5 formula at 60 rooms. Fees actually charged can be lower; see the notes below.
- Total investment
- $11.5M to $17.3MItem 7 estimate for a new-build hotel
Recurring fees in the 2025 FDD
| Royalty | 5% to 5.5% of GRR: 5.5% base, with a possible 0.5% annual "Royalty Credit" for any full calendar year in which the facility meets the average minimum length-of-stay requirement (currently 14 days) and is in full compliance |
|---|---|
| Marketing or brand fund | System Assessment Fee 3.5% of GRR |
| Reservation, loyalty and technology | GDS fee $1.98 per reservation; third-party channel and internet booking fees $1.98 per reservation. We did not find a separate central reservation or loyalty program charge in Item 6; confirm with Wyndham before relying on that. |
| Initial fee (Item 5) | $2,500 non-refundable Application Fee (credited); Initial Fee (new construction) "is $35,000 for a Chain Facility of 124 rooms or fewer. For each additional guest room, the Initial Fee increases by $400 per room." |
| New build (Item 7) | $11,506,418 to $17,258,078 |
| What Item 7 assumes | One table: 124-room new construction (no conversion table). Excludes land. |
From the filing: 2024 Initial Fees ranged $25,000-$35,000. Cost per room $92,794-$139,178. Item 7 tables state they do not include the cost of purchasing or leasing real estate.
This is the newest Wyndham FDD a state regulator publishes. Wyndham claimed an exemption in Minnesota in 2026, so the 2025 filing there is the latest public copy; the 2026 fees may differ.
What the fees cost a 60-room hotel
Take a 60-room ECHO Suites 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 9%, or $135,000 a year. That is $135,000 a year, about $11,250 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, $135,000 of fees is $108,000 a year of payment you can no longer borrow against, or about $990,000 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 ECHO Suites fees filled in.
Financing an ECHO Suites
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
ECHO Suites Franchise Disclosure Document, issued March 31, 2025, as filed with the Minnesota Department of Commerce (CARDS). Item 5 p.26, Item 6 p.29, Item 7 p.39-43. View the filing record. Fees change every year and the franchise agreement you sign controls. Read on 2026-10-24.
Other Wyndham Hotels & Resorts brands
- AmericInn: royalty 5%, all percent fees 8.25%
- Baymont: royalty 5%, all percent fees 8.5%
- Days Inn: royalty 5.5%, all percent fees 9.3%
- Hawthorn Suites: royalty 5.5%, all percent fees 8%
- Howard Johnson: royalty 5%, all percent fees 8.5%
- La Quinta: royalty 6%, all percent fees 9.5%
- Microtel: royalty 6%, all percent fees 8%
- Ramada: royalty 5%, all percent fees 8.5%
- Super 8: royalty 5.5%, all percent fees 8.5%
- Trademark Collection: royalty 5.5%, all percent fees 7.5%
- Travelodge: royalty 5%, all percent fees 8.5%
- Wingate: royalty 5.5%, all percent fees 8.5%
- Wyndham Garden: royalty 5%, all percent fees 8%
Buying or building an ECHO Suites?
Send the deal to Janover Capital, which runs this site and arranges hotel financing through lenders.