How Much Does It Cost to Build a Fairfield by Marriott in 2026, Is It SBA Eligible, and How Is It Financed?

A new Fairfield by Marriott costs $12,289,300 to $27,222,300 for an 80- to 110-room hotel and $16,984,400 to $34,537,000 for 120 to 150 rooms, excluding land, permit and impact fees, insurance and contingency, according to Marriott's franchise disclosure document dated March 31, 2026. That is about $154,000 to $247,000 per key on the smaller prototype. Fairfield is SBA eligible, listed on the SBA Franchise Directory as code S0620. Owners finance a build with a construction loan at 55% to 75% of cost from Bridge, a bank or a hotel debt fund, a C-PACE layer on the mechanical scope, and 25% to 35% equity. An owner-operator under about $15 million of cost can use SBA 504 at 15% to 20% equity.

The number that sizes the loan is not the cost but the NOI. Fairfield's 2025 system performance in the same FDD was a $135.01 ADR, 67.7% occupancy and $91.44 RevPAR, a 107.4 RevPAR index; on a 96-room build at $200,000 per key all-in that NOI supports about $9.8 million of senior debt, 51% of cost, so the equity on a Fairfield runs higher than its cost per key suggests. This guide gives the Item 7 line items, the fees, the prototype, the SBA facts, the lenders, the sizing math and a worked stack. Bridge lends directly on construction from $10 million to $50 million; the program is on its hotel financing page.

Key takeaways

• 2026 FDD: $12.3M to $27.2M for 80-110 rooms before land, $154K to $247K per key; 120-150 rooms $17.0M to $34.5M.
• Fees: $75,000 application, 5.5% franchise fee, 3.85% program services, 1.55% loyalty, 20-year term.
• 2025 performance: $135.01 ADR, 67.7% occupancy, $91.44 RevPAR, RevPAR index 107.4.
• SBA eligible: Franchise Directory code S0620; 7(a) to $5M, 504 at 15-20% equity, $10M combined.
• At the brand's 2025 average NOI a 96-room Fairfield supports about 50% to 55% senior leverage; the site has to out-earn the system.

What does it cost to build a Fairfield?

From the Fairfield by Marriott 2026 FDD, Item 7, which puts a typical new suburban hotel of 80 to 110 rooms at $12,289,300 to $27,222,300 and 120 to 150 rooms at $16,984,400 to $34,537,000 before land, and reports a $135.01 ADR, 67.7% occupancy and $91.44 RevPAR for 2025. The table excludes real estate, building permit, tap and impact fees, insurance and contingency. Per-room lines multiply by the room count, and the FDD totals carry further lines not shown here.

The 2025 FDD put the same hotel at $12,021,800 to $26,659,200, so the 2026 budget rose about 2%, well under the 15% jump in Hilton's Home2 and below HVS's 4.8% trailing construction-cost increase. Add the land: the 80- to 110-room prototype is 37,000 to 61,000 square feet on about 1.85 acres, and the 120- to 150-room prototype 55,000 to 84,000 square feet on about 2.1 acres, which in a suburban market is $1 million to $2.5 million. Add 10% to 15% contingency and an interest reserve of 4% to 6% of the loan, both excluded from the table, and most Fairfield builds land at $190,000 to $280,000 per key all-in.

What are the Fairfield franchise fees?

The 2026 FDD sets a franchise fee of 5.5% of gross room sales, a program services contribution of 3.85% and a loyalty charge of 1.55%, on top of the application fee.

A Fairfield and TownePlace dual-brand signed by March 30, 2027 pays one $100,000 application fee plus $400 per room over 140. On a 100-room hotel at the system RevPAR the total recurring fee load is about 10.9% of room sales; the full schedule across Marriott's brands is in Marriott franchise fees by brand.

How does a Fairfield perform?

Item 19 of the 2026 FDD reports 2025 results for the STR-included Fairfield hotels: a $135.01 ADR, 67.7% occupancy, $91.44 RevPAR and a 107.4 RevPAR index. Marriott's second-quarter 2026 release put U.S. and Canada Fairfield systemwide RevPAR at about $105, up about 3.9%, on 1,205 hotels and 114,262 rooms, with 1,403 hotels worldwide. A single quarter is not a full year, however: the second quarter is seasonally strong for the brand, so $105 is the ceiling of a pro forma, not a like-for-like comparison with Item 19's full-year $91.44. New-build Fairfields range from 83 to 141 rooms with about 25% suites, and Marriott no longer franchises new-build Fairfield Inn or Fairfield Inn & Suites under the old names; the brand has been Fairfield by Marriott since 2018. For a lender, $91.44 is the floor of the pro forma and $105 the ceiling without a market study that justifies more.

Is Fairfield SBA eligible?

Yes. Fairfield by Marriott, including the Inn and Inn & Suites marks, is listed on the SBA Franchise Directory effective October 15, 2026 as code S0620, with the standard hotel condition that any third-party manager be unaffiliated with Marriott. The 2026 rules that apply:

1. A 7(a) loan up to $5 million at a variable rate capped at 10.00%, which is prime plus 3.00 points with prime at 7.00%.
2. A 504 with a 6.97% fixed 25-year debenture and 15% equity because a hotel is special-purpose property, or 20% if the business is also new.
3. The two combinable to $10 million since July 4, 2026.
4. Every owner a U.S. citizen or national since March 1, 2026.
5. A 1.15x historical coverage test on the 504, which on a new build means the interim construction lender funds the build and the debenture takes it out.

The 20-year Marriott term against a 25-year SBA amortization is documented in the credit memo. The brand table and rules are in the SBA Franchise Directory check for hotel brands.

Who finances a Fairfield build?

Market terms are from the Crittenden 2026 hotel lending survey: banks at 65% around 6.75% with coverage from 1.25x, debt funds at 70% near 10%. Bridge closed more than $500 million of hotel loans in 2025 and lends on construction from its own balance sheet.

How do lenders size a Fairfield construction loan?

Off the stabilized NOI. A 96-room Fairfield at the 2025 system RevPAR of $91.44 books about $3.2 million of room sales and $3.35 million in total; after the fee load of about 10.9%, a 4% FF&E reserve and operating costs, NOI at a 35% margin is about $1.17 million.

At $105 of RevPAR (the brand's Q2 2026 systemwide figure), NOI rises to about $1.5 million and the loan to $12.5 million, 65% of cost. That gap, $2.7 million of debt on a $14 swing in RevPAR, is why Fairfield developers underwrite the market study harder than the budget. The full requirements and draw mechanics are in hotel construction loans in 2026.

Worked example: a 96-room Fairfield new build

Building cost $17.5 million ($182,000 per key, inside the 80- to 110-room range), land $1.7 million, $19.2 million all-in, $200,000 per key. The market study supports $100 of RevPAR for this hotel, NOI about $1.4 million at a 38% margin.

Permanent debt service of about $992,000 on the senior loan and $205,000 on the assessment gives 1.17x on the combined stack at $1.4 million of NOI, which is why the senior lender will hold the loan near $11 million for 1.25x combined, pushing equity to $5.9 million. For an owner-operator, the SBA 504 route on the same project fails the $5.5 million debenture cap (35% of $19.2 million is $6.7 million), so the 504 fits a smaller Fairfield of 80 rooms at the low end of Item 7, about $14 million all-in. Fairfield key money is rare: Marriott's contract acquisition costs were $434 million in 2025 but per-deal amounts on select brands remain below 2019 levels.

When is a Fairfield build the wrong tool?

• Avoid it on a site under about $95 of RevPAR. At $200,000 per key the senior loan is half the cost at the brand average.
• Avoid the 120- to 150-room prototype without a market study that supports it. The larger building saves $12,000 per key but needs a quarter more demand.
• Avoid SBA 504 above about $15 million. The debenture cap binds.
• Avoid budgeting from the 2025 FDD or without the excluded items. Permits, impact fees, insurance, contingency and the interest reserve add 15% to 20%.
• Avoid a TownePlace dual-brand after March 30, 2027 expecting the single fee. The incentive is dated.