How Do You Finance Building a WoodSpring Suites in 2026?

You finance a WoodSpring Suites the way lenders size every economy extended-stay build: off the stabilized net operating income, not off the cost. A 122-room WoodSpring costs $8,835,420 to $14,566,908 to build before land in 2026, or $72,421 to $119,401 per room per Choice's franchise disclosure document. The purpose-built prototypes in the system earned an average hotel-level gross operating profit margin of 54.6% on $51.89 of RevPAR in 2025. That NOI supports a senior construction loan of about 60% to 65% of cost from a bank or a direct lender, a C-PACE layer covering another 10% to 15% of cost, and 25% to 30% equity. An SBA 504 structure at 15% to 20% equity works when the cost lands near the low end of the range.

On a real site: $11.0 million of building cost plus $1.3 million of land is a $12.3 million project, about $101,000 per key. An $8.0 million senior loan, a $1.2 million C-PACE assessment and $3.1 million of equity fund it, and the prototype-average NOI of about $965,000 covers the permanent debt service 1.23 times. This guide walks the budget, the fees, the FDD's performance data and all three stacks; the loan sizes by deal type sit on Bridge's hotel financing page.

Key takeaways

• 2026 FDD: a 122-room WoodSpring costs $8.8M to $14.6M before land, $72,400 to $119,400 per room.
• Purpose-built prototype WoodSprings ran 77.5% occupancy, $51.89 RevPAR and a 54.6% average GOP margin in 2025.
• Lenders size the loan off NOI: about $965,000 supports $7.5M to $8M of senior debt.
• Base stack: 60-65% construction loan, 10-15% of cost in C-PACE, 25-30% equity; SBA 504 cuts equity to 15-20%.
• Construction runs about 14 months; stabilization six to eight months more.

What does a WoodSpring Suites cost to build?

The 2026 WoodSpring FDD, issued April 1, 2026 and amended May 20, 2026, budgets the 122-room prototype as follows, excluding real estate. The 2024 FDD put the same hotel at $8,461,190 to $11,236,342, so the high end rose 30% in two years as Choice widened the range for high-cost markets.

The construction line excludes site work, project management fees, general contractor profit, permits and other soft costs in some markets, so read the low end as a flat site with cheap utilities. The prototype is a four-story, roughly 48,000 to 51,000 square foot building on a minimum of two acres with parking for about 125 cars; the FDD calls it the purpose-built WoodSpring prototype developed since late 2015, as distinct from the older Value Place-era buildings. Land for two acres runs $600,000 to $2 million depending on the market, and an interest reserve adds 4% to 6% of the loan.

For scale, HVS's 2026 development cost survey puts the median limited-service and midscale extended-stay hotel at $170,000 to $197,000 per room, so a WoodSpring at $100,000 all-in is roughly half the cost per key of the typical new hotel, which is the whole investment thesis.

What are the WoodSpring Suites franchise fees?

The affiliation fee is $50,000 for a hotel of 122 rooms or fewer, plus $300 for each additional room. Ongoing fees are a 6% royalty and a 2.5% marketing and reservation fee on gross room revenue, 8.5% in total. The term is 20 years after opening with no renewal provision. Item 10 of the FDD also discloses a capital support program under which Choice may fund a note shortly after opening on properties it considers strategic, forgiven straight-line over the franchise term.

How does a WoodSpring Suites perform?

Item 19 of the 2026 FDD gives 2025 results for 176 stabilized franchised hotels: 76.8% average occupancy (78.5% median), $61.30 ADR, $47.01 RevPAR, $2,078,220 of average room revenue, $2,144,155 of total revenue and $1,163,271 of gross operating profit, with an average hotel-level GOP margin of 53.3%. Guests staying seven nights or longer filled 85.4% of occupied rooms and the average stay was 12.2 nights. Payroll ran 17% of revenue, which is what a 122-room hotel with six to eight full-time employees and no food and beverage looks like.

The 102 purpose-built prototype hotels did better in Choice's 2025 Item 19 data: 77.5% occupancy, $67.13 ADR, $51.89 RevPAR and $1,314,833 of GOP, an average hotel-level margin of 54.6%. The 74 legacy Value Place-era hotels ran $40.27 of RevPAR. Underwrite a new build to the prototype table, then haircut it for ramp.

The brand is also growing faster than any other Choice flag. WoodSpring opened 28 hotels and signed 50 franchise agreements in 2025, reaching 284 hotels and 34,176 rooms at year end and 298 hotels by June 30, 2026. Choice opened its 600th extended-stay hotel in October 2026 with nearly 30,000 extended-stay rooms in the pipeline, so lenders see the brand often enough to have a credit box for it.

How do lenders size a WoodSpring construction loan?

Off the stabilized NOI. Start from the prototype table for your hotel. At $51.89 of RevPAR on 122 rooms, room revenue is about $2.31 million and total revenue about $2.37 million. A 54.6% GOP margin leaves about $1.29 million. After property taxes and insurance of about $230,000 and a 4% FF&E reserve of about $95,000, your NOI is roughly $965,000. Lenders then apply three tests and take the smallest answer:

The loan lands at $7.5 million to $8.0 million regardless of which lender you use; what changes is the equity, the rate and the recourse. The checklist every construction lender runs, from the franchise agreement to the bonded GC, is in the hotel construction loan requirements for 2026.

Which capital stack fits a WoodSpring Suites?

The project in all three stacks: $11.0 million of building cost plus $1.3 million of land, $12.3 million in total, $100,800 per key.

Stack 1: direct or bank construction loan plus C-PACE (base case)

Permanent debt service is about $678,000 on the senior loan and $107,000 on the C-PACE assessment, $785,000 in total, against this deal's $965,000 of NOI: a 1.23x DSCR and a 12.1% debt yield on the senior loan. Most lenders will trim the senior piece to about $7.5 million to reach 1.30x with the assessment included, which raises equity to $3.6 million. The 1-month Term SOFR index behind the floating rate was 3.92% on October 23, 2026. Bridge lends directly on hotel construction from $10 million to $50 million and closed a $10.45 million construction loan on a 122-key WoodSpring Suites. C-PACE is enabled in 40 states plus the District of Columbia and the senior lender must consent, so bring the provider in before the senior term sheet is final; the five worked stacks in C-PACE for hotels show how the consent and the sizing interact.

Stack 2: SBA 504 (lowest equity)

The debenture sits under the $5.5 million SBA 504 cap and the equity drops by more than $1.2 million against the base case. The cost is coverage: debt service rises to about $885,000, a 1.09x DSCR at prototype-average NOI, below the 1.15x floor the October 2026 SOP 50 10 8.1 applies to 504 projects of $5 million or more. SBA 504 works on a WoodSpring when the build lands near the low end of Item 7 (about $9.5 million all-in, where the same NOI covers 1.35x) or the market's ADR runs above $70. Every owner must be a U.S. citizen or national under the March 2026 rules; the details are in Bridge's SBA hotel loan benchmarks.

Stack 3: debt fund or stretch senior (highest leverage)

Hotel debt funds lend 70% to 75% of cost near 10%, with stretch-senior structures to 80% at SOFR plus 500 to 800. On $12.3 million that is $8.6 million to $9.8 million of debt and $2.5 million to $3.7 million of equity, but the perm takeout still sizes off the $965,000 of NOI, so the extra proceeds have to be repaid from the sale or from equity at refinance. Use it when speed or a thin equity partner matters more than the all-in cost.

When is a WoodSpring Suites the wrong build?

• Avoid it on a site under two acres or with a steep grade. The prototype needs the footprint; site work is excluded from the FDD's construction line and is where budgets break.
• Avoid it if local ADR for economy extended-stay is under $55. The sizing math above uses the $67 prototype average; at $55 the senior loan shrinks to about $6.5 million.
• Avoid SBA 504 at the high end of the cost range. Coverage fails above about $11.5 million all-in at brand-average NOI.
• Avoid building where a WoodSpring already sits inside the trade area. The segment's 2025 supply grew about 4.9% and extended-stay RevPAR fell about 2.2% in the 100 largest markets; lenders discount a pro forma that ignores the sister property.
• Avoid it if you need a hotel that sells on brand cachet. WoodSpring's 12-night average stay is a residential model, and the exit buyer is an extended-stay specialist, not a generalist.