How to Buy a Hilton, Marriott, IHG, or Choice Franchise: Brand-Specific Financing (2026)

Buying a hotel franchise is really two decisions stacked on top of each other. First you pick the flag. Then you finance it. Both matter, and the second is where most deals get complicated. Learning how to buy a hotel franchise means understanding that the brand you choose and the capital you secure are separate problems that have to be solved in parallel.

Each of the Big Four hotel companies (Hilton, Marriott, IHG, and Choice) sets a different fee structure, a different investment range, and a different set of brand-specific programs. What none of them do is lend you the money. All four operate an asset-light model. They earn royalties and program fees on your revenue; they do not put debt on your balance sheet. You secure your own capital from third-party lenders.

What the brands do offer is more useful than most buyers expect: ownership pathways, furniture and equipment programs, co-lending partnerships, and informal networks of lenders who already understand each flag’s underwriting.

This guide walks through each brand’s fees, investment range, brand-specific program, and the lender types that actually fit, so you can align brand approval and financing from the start. Fee and royalty figures below reflect each brand’s published Franchise Disclosure Document (FDD). Confirm current numbers in the specific brand’s FDD before you commit.

What Every Hotel Franchise Purchase Has in Common

Before the brands diverge, they share a common financial architecture. Understanding it first makes the brand-by-brand differences easier to weigh.

The asset-light model. All four brands earn money the same way: a royalty on gross rooms revenue, plus a program or marketing fee, plus reservation and distribution charges. Combined, the brand load typically runs 7 to 13 percent of gross rooms revenue, based on published FDD data across the Big Four. The franchisor collects fees; the franchisee owns the real estate and funds the construction or renovation.

The universal financing toolkit. Regardless of flag, hotel deals get financed through the same set of structures. SBA 7(a) and SBA 504 loans fit owner-operators. Conventional bank debt and CMBS financing fit stabilized assets. Bridge and transitional loans fit value-add and renovation-heavy deals. C-PACE covers energy and building-systems scope. Your brand does not change the toolkit; it changes which tool fits best.

The change-of-ownership PIP. When a franchised hotel changes hands, the brand issues a property improvement plan (PIP) to bring the property up to current standards. In our experience packaging hotel deals, this is the cost buyers most often underestimate. According to Hunter Hotel Advisors, PIPs recently ran roughly $35,000 to $40,000 per key for a midmarket property, and PIP financing should be budgeted before you sign, not after.

SBA Franchise Directory eligibility. For any SBA loan, the franchise brand must appear on the SBA Franchise Directory, which the SBA reintroduced effective June 1, 2025. All Big Four brands are eligible, but individual brand codes carry different conditions, so confirm your specific flag’s entry before you count on SBA financing.

Brand-fluent lenders. These are not published “approved lists.” No Big Four brand publishes a preferred-lender roster. What exists instead, based on our experience packaging hotel deals at Bridge, is a set of lenders these franchisees actually close with: SBA specialists like Live Oak Bank, Peoples Bank, and Byline; construction and transitional lenders like AVANA Capital; and CMBS conduits like Wells Fargo and JPMorgan for stabilized assets.

Hilton Franchise Financing: Fees, Programs, and Lender Fit

Hilton franchise financing pairs one of the strongest brand-affiliated capital programs in the industry with a fee structure typical of the upper end of the Big Four. Using Hampton by Hilton as the reference brand, Hilton’s FDD lists an initial franchise fee of $75,000 to $100,000 (varying by deal type), a 6 percent royalty on gross rooms revenue, and a 4 percent program fee.

Investment ranges vary widely by tier:

• Tru by Hilton: roughly $13 million
• Hampton by Hilton: about $7 million to $22 million
• Home2 Suites and Embassy Suites: $20 million to $60 million and up
• Full-service Hilton Hotels & Resorts: $160 million and up

Hilton’s brand-specific programs. Hilton launched Unlocking Doors at the Americas Lodging Investment Summit (ALIS) in 2024 to support new and aspiring hoteliers with education, networking, and access to capital. A defining feature is an exclusive financing partnership with Bridge, reachable at hilton.bridge.co, which is one of the only formal brand-financing arrangements among the Big Four.

To see which structures fit your Hilton deal, start with the right financing through that partnership. Hilton also offers Hilton Supply Management for furniture, fixtures, and equipment purchasing, and AAHOA-member franchisees can access AAHOA Lending, powered by Bridge.

Lender types that fit Hilton deals. SBA 7(a) works for smaller Hampton and Tru acquisitions with owner-operators. CMBS conduits fit stabilized limited-service assets like Hampton, Tru, and Home2. Transitional lenders fit value-add or PIP-heavy repositionings. C-PACE is a strong fit for Hilton’s Connected Room technology and HVAC scope, which qualify as eligible energy improvements.

Marriott Franchise Financing: Fees, Programs, and Lender Fit

Marriott franchise financing spans the widest brand range of the four, from select-service Fairfield to Ritz-Carlton, so the right capital structure depends heavily on tier. Marriott’s franchise fees run roughly $75,000 to $100,000 depending on brand, per published FDD data, with royalties of 5 to 6 percent of gross rooms revenue and program or marketing fees between 1 and 4 percent.

Investment ranges by tier:

• Fairfield: roughly $8 million to $15 million
• Courtyard: roughly $15 million to $25 million
• Autograph Collection and full-service: roughly $40 million and up
• Ritz-Carlton: $100 million and up

Marriott’s brand-specific programs. Marriott offers Marriott Select PIP financing, a franchise-sponsored program for furniture, fixtures, and equipment tied to renovation compliance. Marriott also maintains approved vendor and general-contractor lists, so contractor selection becomes part of the compliance process.

Design submissions are often due within 90 days of a PIP notice per Marriott’s franchise agreement terms, which compresses the financing timeline and makes early lender engagement important. Marriott does not publish a preferred-lender roster.

Lender types that fit Marriott deals. SBA financing fits owner-operators on smaller deals, which usually means Fairfield rather than Courtyard. CMBS fits stabilized limited-service and larger full-service assets. Transitional lenders fit repositioning and conversion plays. For trophy Marriott assets, life-insurance lenders such as MetLife, PGIM, and Northwestern Mutual are common sources for the largest deals.

IHG Franchise Financing: Fees, Programs, and Lender Fit

IHG stands out for having one of the few genuine brand-affiliated construction lending channels in the industry. Per published FDD data, IHG’s franchise fees run roughly $40,000 to $75,000, with royalties around 5 percent of gross rooms revenue and a system fund contribution near 3 percent.

Investment ranges:

• Holiday Inn Express: roughly $7.5 million to $15 million
• Holiday Inn and Staybridge Suites: $15 million to $30 million
• Crowne Plaza and Hotel Indigo: $30 million to $60 million and up
• Across the full portfolio, ranges reach up to about $98.5 million

IHG’s brand-specific programs. IHG offers equipment financing for furniture, fixtures, and equipment at IHG-branded properties. The standout is the co-lending construction program IHG launched with AVANA Capital in January 2025, committing $250 million to build and convert properties primarily across EVEN Hotels, avid hotels, Atwell Suites, and Holiday Inn. For those brands, this is one of the few brand-affiliated construction routes available. IHG does not publish a preferred-lender roster.

Lender types that fit IHG deals. SBA works for Holiday Inn Express deals with owner-operators under the SBA size cap. The AVANA co-lending program is the primary construction route for EVEN, avid, Atwell, and Holiday Inn projects. Transitional and mezzanine lenders fit public-space and food-and-beverage-heavy IHG renovations. CMBS fits stabilized limited-service assets.

Choice Franchise Financing: Fees, Programs, and Lender Fit

Choice carries the lowest entry cost of the Big Four, which makes it the most common first flag for owner-operators. Per published FDD data, Choice’s franchise fees run roughly $25,000 to $60,000, with royalties around 5 percent of gross rooms revenue and system or marketing fees of 2 to 3 percent.

Investment ranges:

• Comfort Inn and Sleep Inn: roughly $2 million to $8 million
• Quality Inn: roughly $2 million to $6 million
• Cambria Hotels (upscale, design-intensive): $15 million to $40 million
• Ascend Hotel Collection (soft brand): varies by property

Choice’s brand-specific programs. Choice University runs Special Ops Projects, which provides financing guidance and renovation support to franchisees. For Cambria specifically, Choice has periodically offered key money and development incentives to accelerate the upscale brand’s growth. Choice does not publish a preferred-lender roster.

Lender types that fit Choice deals. SBA 7(a) is the dominant channel, because most Choice deals fall under the SBA size cap. SBA 504 fits larger Cambria acquisitions or multi-unit operators. Transitional lenders fit Cambria and Ascend repositioning. Conventional bank debt, driven by existing relationships, is common for multi-unit Choice operators.

Big Four Hotel Franchise Comparison

Fee and royalty figures reflect published Franchise Disclosure Document data; verify current terms in each brand’s FDD before signing.

How to Buy a Hotel Franchise, Step by Step

Once you understand the brands and the capital, the process itself follows a clear sequence. Work it in order.

1. Pick your brand tier by capital and operating capacity. Choice at $2 million to $8 million suits first-time owner-operators. Marriott and IHG select-service at $10 million to $25 million suit experienced operators. Hilton full-service and other flagship assets above $30 million suit seasoned sponsors with a track record.
2. Request the FDD directly from the brand. The Franchise Disclosure Document verifies fees, PIP obligations, and territorial rights before you commit.
3. Confirm the SBA Franchise Directory listing for your target brand code if you plan to use SBA financing.
4. Line up brand approval and financing in parallel. Most deals fail on one of the two, not both. Brand approval alone can take 60 to 90 days, so running them together protects your timeline.
5. Use brand-specific programs first where they fit. Start with Hilton Unlocking Doors, Marriott Select, or IHG’s AVANA co-lending, then layer conventional debt around them.
6. Budget for the PIP. Plan for a change-of-ownership renovation and get the estimate from the brand, not the seller, so the number reflects real brand standards.

Start With the Right Financing

Learning how to buy a hotel franchise comes down to a single discipline: treat the brand decision and the financing decision as one coordinated process, not two sequential ones. No Big Four brand will lend you the money, but each offers programs, incentives, and networks that shape which capital structure fits. Match your flag, deal size, and project stage to the right lender early, and confirm your SBA eligibility and PIP budget before you sign.

That is where one financing partner earns its place. Through the Hilton Unlocking Doors partnership and its broader hospitality platform, Bridge helps owners package a deal to today’s underwriting standards, compare structures across a wide lender network, and manage execution through closing. Ready to move? Start with the right financing and align your capital with your brand from the first step.

FAQs

What are Hilton hotel financing options for owners?

Hilton does not lend directly. Owners typically use SBA 7(a) for smaller Hampton or Tru acquisitions, CMBS for stabilized flagged limited-service assets, transitional loans for larger or PIP-heavy deals, C-PACE for Hilton’s Connected Room and HVAC scope, and Hilton Supply Management for furniture, fixtures, and equipment. Hilton’s Unlocking Doors program with Bridge is a formal financing pathway built specifically for new and expanding owners.

How much does it cost to buy a hotel franchise?

Franchise fees range from about $25,000 for Choice economy brands to $100,000 or more for Marriott luxury flags, per published Franchise Disclosure Document data. Total project investment runs from roughly $2 million for a Choice economy property to $160 million and up for a full-service Hilton. Ongoing brand load is roughly 7 to 13 percent of gross rooms revenue across the Big Four, and a change-of-ownership PIP adds a significant renovation cost on top.

Do hotel brands offer financing directly?

No. All Big Four brands operate an asset-light model, earning royalties and fees rather than lending. What they do offer are brand-specific furniture and equipment programs such as Marriott Select and IHG equipment financing, co-lending partnerships such as IHG with AVANA Capital, and ownership pathways such as Hilton Unlocking Doors with Bridge.

Do hotel brands publish approved lender lists?

No, not publicly. None of the Big Four publishes a preferred-lender roster. Franchisees instead rely on brand-fluent lenders: SBA specialists such as Live Oak Bank, Peoples Bank, and Byline; construction and transitional lenders such as AVANA Capital; and CMBS conduits such as Wells Fargo and JPMorgan for stabilized assets.