Hawthorn Extended Stay and ECHO Suites: How Wyndham’s Extended-Stay Brands Are Financed in 2026 and What Lenders Need to See

Wyndham's two extended-stay brands finance like the two ends of the segment. ECHO Suites Extended Stay by Wyndham is a new-construction economy brand with a 124-room, 50,090-square-foot prototype on 1.8 acres. Its build cost is $11,506,418 to $17,258,078 in the FDD dated March 31, 2025, about $93,000 to $139,000 per key, and the 2026 FDD is summarized at $11.6 million to $17.4 million. The fees are a $40,000 initial fee, a 5% to 5.5% royalty and a 3.5% marketing fee. Hawthorn Extended Stay is the midscale brand, with a new build summarized at about $12.3 million to $14.3 million, a $40,000 fee, a 5.5% royalty and a 2.5% marketing fee. Both are on the SBA Franchise Directory with the extended-stay transient test, ECHO as S8867 since June 29, 2026 and Hawthorn as S0793. Both are financed with a construction loan sized on stabilized NOI at 55% to 65% of cost, a C-PACE layer, Wyndham's development advance notes where granted, and 24% to 35% equity.

What lenders see differs by brand. ECHO is young and growing fast: 20 hotels open by April 2026, hotels open six months or more running above 70% occupancy and the established ones above 80%, more than 70% of stays over seven nights, about 275 hotels in the pipeline and a target of 300 open or under construction by 2032. Hawthorn is small and proven: 82 U.S. hotels with a 135% RevPAR index among qualified franchisees in 2025 and 44% of revenue from stays of seven nights or more. On a 124-room ECHO at $16.4 million all-in, the worked example below lands a $9.8 million senior loan at 60% of cost.

Key takeaways

• ECHO Suites: 124 rooms, $11.5M to $17.3M before land per the 2025 FDD, $40,000 fee, 5% to 5.5% royalty.
• Hawthorn Extended Stay: about $12.3M to $14.3M before land per a third-party summary, $40,000 fee, 5.5% royalty, 2.5% marketing.
• ECHO hotels open six months or more run above 70% occupancy, in Wyndham's April 2026 release.
• Hawthorn ran a 135% RevPAR index among qualified franchisees in 2025 on 82 U.S. hotels.
• Both are SBA eligible with the extended-stay transient test; Wyndham deployed $105M of development advances in 2025.

What do ECHO Suites and Hawthorn cost to build, and what are the fees?

The fee figures are from the Lodging 2026 Guide to Franchising, which prints Wyndham's schedule as of March 31, 2026. The ECHO cost is the primary 2025 FDD on the Minnesota registry and the Hawthorn cost a third-party summary, so get the 2026 FDDs from Wyndham before the pro forma is final. ECHO's per-key cost sits between WoodSpring ($72,400 to $119,400) and Everhome ($111,700 to $141,000), and below HVS's 2026 median of $170,000 to $197,000 for limited-service and midscale extended-stay hotels. The cheaper build is the obvious pick on paper, but ECHO is the wrong brand where the market's extended-stay ADR runs above about $95: a Hawthorn at a $95 ADR carries nearly the same loan on 96 suites, and the midscale rate is what pays for its extra $30,000 per key. The segment-wide comparison is in the cost per key of an economy extended-stay hotel.

How is ECHO Suites performing, and how fast is it growing?

Fast enough that lenders now have comparables. Wyndham marked the 20th ECHO Suites opening in Bozeman in April 2026 with about a dozen more under development. In the same April 2026 announcement Wyndham reported more than 60 extended-stay executions in 2025 including 20 for ECHO, and said hotels open six months or more were running above 70% occupancy, with most established hotels above 80% and more than 70% of stays exceeding seven nights. Wyndham set a target of 300 ECHO hotels open or under construction by 2032, and its brand page counts about 275 hotels in the pipeline and an extended-stay pipeline of about 45,000 rooms. On its third-quarter 2026 call Wyndham reported three more new-construction ECHO openings in the quarter and a pipeline of 264,000 rooms, 78% of it new construction, with domestic RevPAR up 6% in Wyndham's 2026 third-quarter figures. There is no ECHO Item 19 yet (the 10-K marks the brand "still in ramp up"), so lenders underwrite the occupancy Wyndham reports against a WoodSpring or Everhome ADR.

Are ECHO and Hawthorn SBA eligible?

Yes. ECHO Suites was added to the SBA Franchise Directory on June 29, 2026 as code S8867, and Hawthorn has been listed as S0793 since October 2017; both carry the hotel manager-affiliation condition and the extended-stay transient test, which requires more than 50% of revenue from guests staying 30 days or less (shown in projections for a new build). A 7(a) runs to $5 million at a rate capped at 10.00%; a 504 pairs a bank first mortgage with a 6.97% fixed 25-year debenture capped at $5.5 million and 15% equity on a hotel (20% if the business is new), combinable to $10 million since July 2026. On a $16.4 million ECHO the debenture would be $5.7 million, just over the cap, so the 504 fits ECHO builds at or below about $15.7 million and most Hawthorns; every owner must be a U.S. citizen or national. The rules and brand table are in the SBA Franchise Directory check for hotel brands.

Does Wyndham help finance ECHO and Hawthorn?

Yes. Wyndham deployed $105 million of development advance notes net in 2025 and expects about $110 million in 2026, per its 2025 10-K; its second-quarter 2026 10-Q carries a $374 million balance at June 30, 2026. The notes are forgivable if the hotel stays in compliance, and the same filing also describes mezzanine and subordinated financing and a program that guarantees a portion of franchisee loans on certain new-construction projects. ECHO, as the brand Wyndham is building fastest, is where a developer should expect the conversation to start. Bridge lends directly on construction from $10 million to $50 million, and on acquisitions and refinances of $10 million or more it structures the loan and runs the process through closing for a 0.50% fee.

Who finances an ECHO or Hawthorn build?

Bridge closed more than $500 million of hotel loans in 2025. Market terms for rows 2 and 3 are from the Crittenden 2026 hotel lending survey.

How do lenders size an ECHO Suites construction loan?

Off a segment-anchored NOI using Wyndham's reported occupancy. Say your 124-room ECHO runs 77% occupancy and a $72 ADR ($55.40 of RevPAR). It books about $2.51 million of room revenue and $2.57 million in total; after a 9% fee load, a 4% FF&E reserve, payroll for a small extended-stay staff and property taxes, NOI at a 44% margin is about $1.13 million.

Your Hawthorn at a $95 ADR and 76% occupancy on 96 suites earns about $1.1 million of NOI on a $15.5 million project, a $9.6 million loan at 62%. Both of these stacks bind on debt yield at those rates, and both reach 65% loan-to-cost with a $5 lift in ADR.

Worked example: a 124-room ECHO Suites

Building cost $14.9 million, the mid-range of the 2025 FDD, land $1.5 million, $16.4 million all-in, $132,000 per key, on 1.8 acres.

Permanent debt service of about $831,000 on the senior loan and $178,000 on the assessment gives 1.12x on the combined stack at $1.13 million of NOI. The lender holds the senior piece near $9.2 million for 1.20x combined with the Wyndham note counted as equity, or keeps $9.8 million against an $80 ADR comp set (NOI about $1.25 million, 1.24x). On the Wyndham occupancy claims, an established ECHO above 80% with the same ADR produces about $1.2 million of NOI and covers the full stack at 1.19x in year two.

When are ECHO and Hawthorn the wrong builds?

• Avoid an ECHO pro forma above a $75 ADR unless a WoodSpring, Everhome or ESA comp set supports it; the brand has no Item 19.
• Avoid a bank that wants ECHO Item 19 data. Use Bridge, a debt fund or the SBA route.
• Avoid budgeting Hawthorn from the 2013 prototype. The 2023 Hawthorn Extended Stay prototype replaced it; get the current plans and FDD from Wyndham.
• Avoid SBA 504 on an ECHO above about $15.7 million. The debenture cap binds.
• Avoid a site inside five miles of a WoodSpring, ECHO or StudioRes opened in the last three years without a demand study; Wyndham alone has about 275 ECHOs in the pipeline.