Candlewood Suites Franchise Deep Dive: Units, Costs and Earnings

The hotel franchise, which focuses primarily on extended stay offerings, requires a substantial initial investment but can offer incredible returns over time.

Candlewood Suites is a mid-scale hotel franchise that offers both regular and extended-stay accommodations. As part of the InterContinental Hotels Group system, the brand benefits from a combined decades of hospitality expertise and the economies of scale that come with a multi-brand global company.

There are currently over 380 Candlewood Suites hotels worldwide and another 170-plus in development. While the brand continues to grow, its flexible prototype and streamlined construction process allows franchisees to build and open their businesses even more efficiently, driving the system to continue expanding rapidly.

Candlewood Suites is a modern hotel offering an upscale, but still affordable, option for guests seeking apartment-like hotel accommodations for either short or long-term stays. With laundry rooms, fitness centers and a pet-friendly policy, Candlewood Suites can appeal to consumers with a range of needs.

Because many Candlewood Suites guests are seeking extended stays, franchise owners can reduce labor costs and run on a smaller staff-to-guest ratio as the frequency of cleanings and check-ins are reduced.

Candlewood Suites does not have a set number of guest rooms per franchise, so profits vary. According to the brand’s 2023 Franchise Disclosure Document, top performing hotels saw a revenue per available room of $156.05 and average daily room rate of $202.59.

The estimated initial investment required to begin operation of a Candlewood Suites franchise is $12,217,200 - $18,328,830, or about $113,122 - $169,711 per guest room. This amount includes:

• Application Fee: $50,000

• Property Improvement Plan Inspection and Report: Up to $7,500

• Building Construction: $10,019,100 - $15,248,600

• Furniture, Fixtures and Equipment: $1,395,600 - $1,814,300

• Operating Supplies and Equipment: $255,200 - $331,800

• Primary Identification Sign: $33,000 - $55,000

• Property Management System Equipment, Configuration, Installation, Software and Training: $83,000 - $96,000

• Guest Internet Access Hardware: $22,750 - $49,000

• Key Card System: $10,000 - $15,000

• In-Room Entertainment: $10,000 - $12,000

• Employee Safety Devices: $16,000 - $20,000

• Technology Systems: $55,800 - $64,180

• Public Access Computers: $4,900 - $6,000

• Market Feasibility Study: $15,000 - $30,000

• Openings Preopening Support Fee: $6,000

• IHG Learning Program, Core Subscription: $2,000

• Opening Date Extension Fee: Up to $5,000 plus expenses

• Professional Fees: $115,000 - $275,000

• Security Deposits: $2,600 - $26,250

• Insurance: $35,000 - $100,000

• Hotel Photography: $3,500 - $6,200

• Additional Funds (3 Months): $78,750 - $105,000

Candlewood Suites assesses a franchise fee of $145,000 - $170,500.

• IHG Hotels & Resorts and NOVUM Hospitality Sign Agreement That Doubles IHG’s Hotel Presences in Germany, Launches Holiday Inn – the niu Collaboration, and Debuts Garner and Candlewood Suites Brands

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