Everhome Suites Development Cost and Financing in 2026: What the Choice FDD Says and What Lenders Need to See

An Everhome Suites costs $13,408,150 to $16,917,330 to build for the 120-room prototype, excluding land. That is the Item 7 range in the franchise disclosure document Choice issued April 1, 2026. Per room, the FDD states it as $111,735 to $140,978. Construction is $11.6 million to $14.1 million of the total and FF&E is $1.17 million to $1.34 million. The brand charges a $50,000 affiliation fee and a 9% bundled franchise fee that folds the royalty, marketing, distribution and loyalty costs into one line. Choice pays qualifying veteran and underrepresented owners $3,000 per room up to $300,000 as a 10-year forgivable note, the richest per-room incentive in its system.

Owners finance a build with a construction loan at 55% to 70% of cost from a bank, a hotel debt fund or Bridge, a C-PACE layer, and 25% to 35% equity. Owner-operators can use SBA 504 at 20% equity on a new business; the brand is on the SBA Franchise Directory as code S5097. Everhome is Choice's midscale extended-stay answer to the economy WoodSpring, and it is still young. There were 25 hotels open at year-end 2025, 30 by June 30, 2026, 33 agreements signed and not yet open, and no financial performance representation in the FDD. Lenders therefore size an Everhome on segment comparables and give the brand credit for Choice's own money in it. On a 120-room build at $16.5 million all-in, the worked example below lands a $10 million senior loan at 61% of cost. Choice owners get Bridge's 50-basis-point placement fee on $10 million-plus loans; the terms are on Bridge's Choice owner page.

Key takeaways

• 2026 FDD: $13.4M to $16.9M for 120 rooms before land, $111,735 to $140,978 per room as stated.
• Fees: $50,000 affiliation (120-room prototype) plus $300 per room above, 9% bundled fee, 20-year term.
• 25 open at year-end 2025, 30 by mid-2026, 33 signed; no Item 19 yet.
• Choice pays $3,000 per room up to $300,000 to qualifying owners and owns Everhomes itself.
• SBA approved as code S5097; the $5.5M debenture cap fits builds at or below about $15.7M.

What does an Everhome Suites cost to build?

From the Everhome Suites 2026 FDD, issued April 1, 2026 and amended May 20, 2026, Item 7 for the 120-room prototype, land excluded.

The construction line is about $97,000 to $117,000 per room. That places Everhome between WoodSpring ($72,421 to $119,401 per room all-in before land in the same 2026 filing season) and the Hilton and Marriott midscale extended-stay prototypes (StudioRes at $113,000 to $149,600, LivSmart at $134,700 to $198,700). All of them sit under HVS's $170,000 to $197,000 median for limited-service and midscale extended-stay hotels. The FDD does not state the prototype's acreage or stories, however, so the stated range is not the project budget. A two-acre site at $800,000 to $2 million, contingency and an interest reserve take most projects to $125,000 to $160,000 per key all-in.

What are the Everhome fees?

The bundle compares with WoodSpring's 8.5% (6% royalty plus 2.5% marketing), StudioRes's 9% bundle and ECHO's 8.5% to 9%. Choice's full schedule across brands is in the best financing options for Choice owners.

How is the brand performing, and how big is the pipeline?

There is no Item 19; the FDD says Choice makes no representation. Item 20 counts 25 hotels open at December 31, 2025 (10 franchised, 15 company-owned including joint ventures and affiliates; the 10-K says Choice wholly owns four). It lists 33 agreements signed but not open, and projected 2026 openings of 4 franchised and 8 company-owned. Choice announced its 25th Everhome with openings in Texas, Kentucky and New Jersey on February 2, 2026, and its second-quarter 2026 release counts 30 hotels and 3,451 rooms.

With no Item 19, lenders build an Everhome pro forma from the segment data on either side of it.

A midscale Everhome underwrites between the two published brands. The segment comparison is in the cost per key of an economy extended-stay hotel.

What does Choice put in?

More than for any other brand except Cambria. Three programs matter:

• The Incentive Program. Veterans and underrepresented owners holding at least 51% get $3,000 per room up to $300,000 on Everhome as a 10-year forgivable note, or a five-year note at half the amount.
• Selected Capital Support. Discretionary key money on strategic properties, funded after opening and forgiven straight-line over the term. Choice's franchise-agreement acquisition costs were $83.4 million in 2025.
• Ownership and joint ventures. On its second-quarter 2026 call, management said about $650 million sits on the balance sheet across its incentive, ownership and financing programs, about $450 million of it in owned hotels. Net hotel-development outlays of $20 million to $45 million are planned for 2026, after $103.4 million in 2025.

Choice's 10-K says its development and ownership efforts "primarily focus on" Cambria and Everhome through owned, joint-venture and guaranty-support structures. That is why Everhome is the brand where a developer should expect Choice to co-invest.

Is Everhome SBA approved?

Yes. Everhome Suites is on the SBA Franchise Directory effective October 15, 2026 as code S5097, listed since April 2020, with the hotel manager-affiliation condition. Unlike most extended-stay listings it carries no transient-revenue test in the directory, though the lender still applies SBA's general rule. A 7(a) runs to $5 million at a rate capped at 10.00%, which is prime plus 3.00 points. A 504 pairs a bank first mortgage with a 6.97% fixed 25-year debenture capped at $5.5 million; a new-build hotel needs 20% equity because the business is new. The two combine to $10 million since July 2026, and every owner must be a U.S. citizen or national since March 1, 2026. On a $16.5 million Everhome the debenture would be $5.8 million, over the cap, so the 504 fits a build at or below about $15.7 million all-in, the low end of Item 7 plus land. The rules and brand table are in the SBA Franchise Directory check for hotel brands.

Who finances an Everhome build?

Bridge closed more than $500 million of hotel loans in 2025 and charges a 50-basis-point placement fee on acquisitions and refinances of $10 million or more. Market terms for rows 2 and 3 are from the Crittenden 2026 hotel lending survey.

How do lenders size an Everhome construction loan?

Off a segment-anchored NOI. In the example, a 120-room Everhome runs 76% occupancy and an $88 ADR, about $67 of RevPAR. The stack from there:

• Room revenue: 120 rooms at about $67 of RevPAR is about $2.93 million a year.
• Total revenue with other income: about $3.0 million.
• Deductions: the 9% bundled fee, a 4% FF&E reserve, extended-stay payroll and property taxes.
• NOI at a 40% margin: about $1.2 million.

That is a better result than LivSmart's 48% at the same NOI on a $21 million cost and close to StudioRes's 59%. It is the Everhome case: a midscale ADR on a near-economy cost basis. The requirements every construction lender runs are in hotel construction loans in 2026.

Worked example: a 120-room Everhome Suites

Building cost $15 million (mid-range of Item 7), land $1.5 million, $16.5 million all-in, about $137,500 per key.

Permanent debt service of about $848,000 on the senior loan and $178,000 on the assessment gives 1.17x on the combined stack at $1.2 million of NOI. Most lenders accept it with a 24- to 36-month ramp covenant, or trim the senior loan to about $9.2 million for 1.25x. At $75 of RevPAR, NOI rises to about $1.4 million and the full stack covers 1.36x.

Everhome or WoodSpring?

Both are Choice extended-stay prototypes of about 120 rooms on two acres. WoodSpring costs $8.8 million to $14.6 million before land, charges 6% plus 2.5% in fees and, per Choice's 2026 FDD Item 19, earns $47 to $52 of RevPAR with a 53% to 55% GOP margin on a 176-hotel stabilized track record. Everhome costs $13.4 million to $16.9 million per its 2026 FDD, charges a 9% bundle, targets $60 to $72 of RevPAR and has no Item 19 but Choice's own capital behind it. The lender's view: WoodSpring at $100,000 per key all-in and $965,000 of NOI is a 71% loan; Everhome at about $137,500 and $1.2 million is a 61% loan with a $300,000 incentive. Build Everhome where the market's midscale extended-stay ADR clears $85 and Choice will co-invest; build WoodSpring where it does not. The WoodSpring numbers are in how to finance a WoodSpring Suites.

When is an Everhome the wrong build?

• Avoid it with a bank that wants Item 19 data. The brand will not have it until 2027 at the earliest; use Bridge, a debt fund or the SBA route.
• Avoid a pro forma above $75 of RevPAR unless an ESA Premier or Home2 comp set supports it.
• Avoid SBA 504 above about $15.7 million of cost. The debenture cap binds.
• Avoid counting the $3,000-per-room incentive without qualifying. It requires 51% ownership by a veteran or underrepresented owner.
• Avoid a market where a WoodSpring already captures the extended-stay demand at a $65 ADR; Everhome needs the $20 premium to carry its cost.