How to Finance a Hawthorn Suites by Wyndham Franchise: SBA Rules
By Anthony Cornella
A Hawthorn Suites by Wyndham franchise loan finances a midscale extended-stay hotel: the land and building, suites with kitchens, the furniture and fixtures, any renovation the brand requires and the working capital to operate. Because extended-stay hotels serve guests for longer periods, the brand’s SBA Franchise Directory listing carries a revenue test that every borrower should understand before applying.
This article covers what the franchisor and its parent company publish about the brand, how hotel costs and property improvement plans shape a budget, which loan programs fit new construction, conversions and acquisitions, and what the SBA directory note means. US Professional Funding is not affiliated with, sponsored by or endorsed by Hawthorn Suites by Wyndham; the name is used only to describe the business. Figures from the franchisor’s disclosure document and the parent company’s materials can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Hawthorn Suites by Wyndham Franchise Loan at a Glance
- Franchisor: Hawthorn Suites Franchising, Inc., whose development site cites a Franchise Disclosure Document dated March 31, 2026
- Brand names: the franchisor also markets the brand as Hawthorn Extended Stay by Wyndham
- Segment: midscale extended stay, offered for new construction and high-quality conversions
- System size: 107 hotels with 8,860 rooms as of December 31, 2025, including 82 hotels with 6,126 rooms in the U.S., according to the parent company’s annual report
- Royalty: the parent company says direct franchisees generally pay approximately 5% of gross room revenue; the Hawthorn rate is in Item 6 of the disclosure document
- Marketing and reservation fees: generally 2% to 4% of gross room revenue across the parent company’s system
- Agreement term: the parent company’s franchise agreements are typically 10 to 20 years
- Initial fee and total investment: disclosed in Items 5 and 7 of the current disclosure document, which we could not review
- SBA Franchise Directory: listed under code S0793, with notes on management agreements and transient revenue
What Is Hawthorn Suites by Wyndham?
Hawthorn Suites by Wyndham is an extended-stay brand in the midscale segment. Its tagline is “Stay Longer. Stay Better.”, and the franchisor describes a welcoming, home-like feel aimed at extended-stay, business, group and leisure guests. Hotels operate in suburban and airport locations in North America and in Europe, the Middle East and Africa.
The guest offer. The franchisor highlights free Wi-Fi, on-site laundry, healthy breakfast options and fitness centers. Its prototype includes kitchens and a range of suite configurations, with four-level floor plans that offer single-bed, queen, king, studio queen and studio king layouts, plus business-oriented amenities.
Development paths. The brand is franchised and is offered for new construction and for conversions of existing hotels that meet its standards.
Why lenders view the brand the way they do. Lenders value the distribution, reservation and loyalty systems of a large franchise company and the steadier occupancy that longer stays can provide. They also know that extended-stay revenue mixes vary by hotel, that conversions can need substantial upgrades, and that a smaller brand footprint means each deal rests heavily on the individual property and market.
Hawthorn Suites by Wyndham Franchise Costs
The size of a Hawthorn Suites by Wyndham franchise loan depends on whether you build, convert or buy, the number of suites, land and construction costs in your market and the improvements the franchisor requires. Item 7 of the disclosure document is the starting point, but lenders build the budget around your property.
Initial franchise fee
The application and initial franchise fees, including any per-room component, appear in Item 5 of the current disclosure document. The franchisor’s public development pages do not publish them.
Land, construction or acquisition
For new construction, land, site work and the building make up most of the budget, and a four-level prototype with suites and kitchens sets the scope. For an acquisition, the purchase price replaces land and construction, but a property improvement plan may add significant renovation costs.
Furniture, fixtures and equipment
Extended-stay suites carry more FF&E than standard rooms. Each suite with a kitchen needs appliances, cabinetry, cookware and dining furniture, along with beds, seating, lighting and technology. Common areas add the breakfast area, fitness center, guest laundry, lobby and signage.
Opening costs and working capital
Pre-opening payroll, training, opening supplies, sales and marketing, insurance and an operating reserve all belong in the budget, particularly for a new hotel ramping up occupancy.
Item 7 line items to expect
The current disclosure document gives the estimated initial investment and its assumptions. For a hotel, expect categories such as:
- Application and initial franchise fees
- Land purchase or ground lease
- Site work and building construction, or the acquisition price
- Architecture, engineering and permits
- FF&E, including in-suite kitchen equipment
- Technology and property management systems
- Signage
- Pre-opening expenses and training
- Opening inventory and supplies
- Additional funds for the initial operating period
Make sure the sources and uses statement you give a lender ties to the total.
Ongoing Fees and How They Affect Your Loan
Royalty. The parent company reports that its direct franchisees generally pay a royalty of approximately 5% of gross room revenue. Confirm the Hawthorn rate in Item 6 and your franchise agreement.
Marketing and reservation fees. The parent company reports marketing and reservation fees generally of 2% to 4% of gross room revenue. Loyalty, technology and other service fees may also apply.
Property improvement plans. At a sale, conversion or renewal, the franchisor typically issues a property improvement plan listing the upgrades required to meet current standards. That cost belongs in the loan request from the start.
How lenders factor them in. Lenders deduct franchise, marketing and reservation fees from projected room revenue along with payroll, housekeeping, utilities, insurance, property taxes and a reserve for furniture and equipment replacement. What remains supports debt service, so every Item 6 fee must appear in the pro forma.
Franchisor Requirements for New Owners
The franchisor’s public development pages do not list minimum net worth or liquidity requirements. Ask the development team for current qualifications, and expect the franchisor to review your hotel experience or your plan for professional management, your financial capacity, the site or existing property and the market.
For conversions and transfers, the franchisor will inspect the property and set the improvements required to join or remain in the system. The franchise agreement is typically not signed until the franchisor approves the property and the owner.
Ways to Own a Hawthorn Suites by Wyndham
Buying an existing hotel. Many owners enter by acquiring an operating Hawthorn property. Lenders underwrite its historical performance, the market and the cost of any property improvement plan. Our page on hotel acquisition financing explains how purchases are structured.
Converting a hotel to the brand. The franchisor accepts high-quality conversions. Conversion budgets usually include renovations and, for extended stay, adding or upgrading in-suite kitchens. Our article on financing a franchise conversion covers the process.
Building a new hotel. New construction follows the brand prototype and typically involves a construction loan that converts to permanent financing. Our page on hotel start-up and construction financing covers ground-up projects.
Financing Options for a Hawthorn Suites by Wyndham Franchise
SBA 7(a) loans. The SBA 7(a) loan program can finance a hotel acquisition, conversion or construction, combining real estate, renovation, FF&E and working capital in one loan. The 7(a) program maximum is currently $5 million, and program rules can change, so larger projects often pair 7(a) with other financing.
SBA 504 loans. The SBA 504 program is designed for owner-occupied real estate and long-lived equipment, which makes it a frequent fit for hotels. It can provide long-term fixed financing on the property alongside a first mortgage from a bank.
Conventional term loans. Experienced hotel owners with strong cash flow and equity often use conventional commercial real estate loans for acquisitions, refinancing or larger projects. Terms vary by property and borrower.
Construction financing. A new-build hotel typically uses a construction loan during the build and a permanent loan afterward. Lenders review the budget, contractor, timeline and the owner’s equity and reserves.
Renovation and PIP financing. Property improvement plans can be financed within an acquisition loan or separately. Our article on financing a hotel property improvement plan explains the options.
Equipment financing. In-suite kitchen appliances, laundry equipment, fitness equipment, technology and other FF&E can sometimes be financed or leased separately to preserve cash. The primary lender will count those payments.
Working capital and lines of credit. Hotels need cash for payroll, supplies and seasonal swings. Hotel working capital and credit lines can cover ramp-up periods and slower months.
Seller financing on acquisitions. A seller may agree to carry part of the purchase price. Seller notes are typically subordinate to the primary loan, and SBA rules and lender policies may limit how they are structured.
SBA Loans for Hawthorn Suites by Wyndham Franchisees
SBA-backed loans are made by participating lenders, with the SBA guaranteeing a portion of each loan. For a franchise, the lender relies on the SBA Franchise Directory to confirm that the franchise relationship leaves the owner in control of the business.
The directory listing. The brand appears under code S0793, which covers Hawthorn, Hawthorn Suites by Wyndham, Hawthorn Suites, Hawthorn Extended Stay and Hawthorn Extended Stay by Wyndham. The listing carries two notes.
Note one: management agreements. If the borrower also operates under a management agreement with a third party, the lender must review that agreement under SBA rules to decide whether the borrower and the management company are affiliated. The borrower is not eligible if the management company is, or is affiliated with, the franchisor. In plain English, you can hire an outside hotel management company, but not one that is the franchisor or tied to it, and the agreement will be reviewed closely.
Note two: transient revenue. The lender must review the borrower’s revenue or projected revenue. The borrower is eligible only if more than 50% of revenue for the prior year came from guests staying 30 days or less at a time, or, for a start-up, if projections show that mix. This matters for an extended-stay hotel, because a property that relies heavily on guests staying more than a month can look more like a residential rental, which SBA rules treat differently.
What to prepare. For an existing hotel, ask for reports showing revenue by length of stay. For a new hotel, build projections that show the expected mix of short and long stays, and be ready to explain your sales strategy. Our article on SBA loans for hotels covers other hotel-specific rules.
A listing does not approve any borrower or guarantee a loan. The borrower, the hotel and the project must still meet every program requirement.
How Lenders Evaluate a Hawthorn Suites by Wyndham Deal
Personal credit and financial history. Lenders review each owner’s credit, tax returns, existing hotel debt and other obligations. Owners with significant stakes typically sign personal guarantees.
Net worth and liquidity. Lenders look at your equity injection and the reserves left after closing, including funds for the property improvement plan, ramp-up and capital needs.
Hotel experience and management. Prior hotel ownership or management strengthens an application. Owners without it often hire a qualified management company, which, under the directory note, cannot be the franchisor or affiliated with it.
Business plan and projections. Projections should reflect the local market, competing hotels, demand from employers, hospitals and project-based work, length-of-stay mix, average daily rate, occupancy, every franchise fee and staffing.
The disclosure document and franchise agreement. Lenders review the term, renewal, termination and transfer provisions, the property improvement plan and any franchisor rights that could affect the collateral. The franchisor’s development site cites franchisee performance data drawn from the March 31, 2026 disclosure document; review Item 19 for the representations it includes, and expect lenders to rely on your property’s figures.
Real estate and site. Lenders order an appraisal and environmental report and evaluate the demand drivers that feed the hotel.
Historical financials on acquisitions. For an existing hotel, lenders study tax returns, profit and loss statements, monthly operating reports and length-of-stay data.
Extended-Stay Suites, FF&E and Renovation Cycles
Kitchens are what set an extended-stay hotel apart, and they are also where costs concentrate. Refrigerators, cooktops, microwaves, dishwashers, cabinetry and cookware wear out with heavy use and must be replaced on a schedule, alongside soft goods, carpeting and technology.
Lenders typically expect a reserve for furniture, fixtures and equipment replacement in the pro forma. When you buy an existing property, compare the age and condition of in-suite kitchens with the property improvement plan, because kitchen upgrades can be one of the largest items in a conversion or change-of-ownership budget.
Growing to a Second or Third Hotel
Owners often add hotels once the first is stable. Lenders review global cash flow across all properties, remaining liquidity and management depth, and they look at how each new hotel affects the overall debt load. Our article on financing your first hotel covers the foundations that make later deals easier.
Each additional hotel usually needs its own franchise agreement and, where relevant, its own property improvement plan.
Real-World Scenarios
A first-time owner buying an existing hotel. A buyer with a management background acquires an operating Hawthorn near an airport. An SBA 7(a) loan funds the purchase and the property improvement plan, and the lender reviews length-of-stay reports to confirm the transient revenue test.
An owner converting an independent hotel. An owner of an independent suites hotel converts to the brand. An SBA 504 loan refinances the property and funds kitchen upgrades and new FF&E.
An experienced developer building new. A hotel developer builds a four-level prototype in a suburban corridor with a construction loan that converts to permanent financing, and keeps reserves for ramp-up.
Common Mistakes to Avoid
- Assuming every extended-stay hotel passes the SBA transient revenue test without checking length-of-stay data
- Hiring a management company tied to the franchisor on an SBA-financed hotel
- Underestimating the cost of in-suite kitchen upgrades in a property improvement plan
- Leaving marketing, reservation and loyalty fees out of the pro forma
- Skipping a furniture and equipment replacement reserve
- Relying on general brand data instead of the property’s own figures
For more, read about the hotel loan mistakes that cost owners the most.
Next Steps to Finance Your Hawthorn Suites by Wyndham Franchise
Step 1: Request the current disclosure document. Review it with a franchise attorney, focusing on Items 5, 6, 7, 10, 17 and 19.
Step 2: Choose your path. Decide whether you will buy, convert or build, and identify the property or site.
Step 3: Get the property improvement plan or prototype budget. For an existing hotel, request the plan early; for new construction, price the prototype in your market.
Step 4: Check the revenue mix. Gather or project revenue by length of stay to confirm the SBA transient test.
Step 5: Build your budget. Combine the purchase or construction cost, renovation, FF&E, fees and working capital. Our SBA loan calculator can give rough planning estimates, which are not an offer.
Step 6: Assemble documents and coordinate approvals. Prepare financial statements, tax returns, a hotel resume or management agreement, projections and the franchise application, and keep the franchisor, seller and lender on compatible timelines.
Hawthorn Suites by Wyndham Franchise Loan FAQs
How much does a Hawthorn Suites by Wyndham franchise cost?
The total depends on whether you build, convert or buy, the number of suites and your market. Item 7 of the current disclosure document gives the franchisor’s estimate.
What is the Hawthorn Suites franchise fee?
The application and initial fees appear in Item 5 of the current disclosure document. The franchisor does not publish them on its development pages.
What royalty does Hawthorn Suites charge?
The parent company says direct franchisees generally pay approximately 5% of gross room revenue, plus marketing and reservation fees generally of 2% to 4%. Check Item 6 for the Hawthorn rates.
How much net worth and liquidity do I need?
The franchisor’s public pages do not list minimums. Ask the development team, and expect lenders to look for a meaningful equity injection plus reserves.
Can I get an SBA loan for a Hawthorn Suites by Wyndham hotel?
Possibly. The brand is listed on the SBA Franchise Directory under code S0793. More than 50% of revenue must come from stays of 30 days or less, and the management company cannot be the franchisor or affiliated with it.
Can I hire a management company?
Yes, but for an SBA loan the lender must review the management agreement, and the borrower is not eligible if the management company is, or is affiliated with, the franchisor.
Can I convert my hotel to Hawthorn Suites?
The franchisor accepts high-quality conversions. Expect an inspection and a property improvement plan, often including in-suite kitchen work.
Does the franchisor offer financing?
The parent company’s annual report says it provides development advances or loans to help generate new business. Review Item 10 of the disclosure document for what applies to this brand.
How long is the franchise agreement?
The parent company’s franchise agreements are typically 10 to 20 years. Check Item 17 for the Hawthorn term and renewal conditions.
What documents do I need for a Hawthorn Suites by Wyndham franchise loan?
Expect to provide personal financial statements, tax returns, a hotel resume or management agreement, the purchase contract or construction budget, the property improvement plan, length-of-stay data or projections and, for acquisitions, the hotel’s operating history.
Final Thoughts
A Hawthorn Suites by Wyndham franchise loan works best when it accounts for what makes extended stay different: suites with kitchens, longer guest stays, renovation cycles and an SBA listing that tests both the revenue mix and the management arrangement. Start from the current disclosure document, check your length-of-stay data and keep reserves.
US Professional Funding helps hotel owners finance acquisitions, conversions, new construction, renovations and working capital. Learn more about our franchise financing programs and our hotel and motel financing solutions.
