How to Finance an EVEN Hotels Franchise: Wellness Hotel Costs
By Chris Cornella
An EVEN Hotels franchise loan finances an upscale, select-service hotel built around guest wellness: an athletic studio, rooms with built-in fitness options, a focused restaurant and bar, and a 24/7 market. Those features shape the construction budget, the equipment package and the way lenders read projections, and fees and investment estimates are disclosed in the Franchise Disclosure Document (FDD).
US Professional Funding is not affiliated with, sponsored by or endorsed by EVEN Hotels; the name is used only to describe the business. Figures from the franchisor’s disclosure document and the parent company’s reports can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current FDD and franchise agreement with a franchise attorney, an accountant and a hotel consultant before you commit.
EVEN Hotels Franchise Loan at a Glance
- Concept: an upscale, select-service hotel brand with wellness at its core, according to the parent company.
- History: the brand launched in 2012 and its first hotel opened in Norwalk, Connecticut, in June 2014.
- System size: 48 open hotels with 7,258 rooms and 24 hotels in the pipeline as of June 30, 2026, according to the parent company.
- Development paths: the current prototype is designed for new construction, conversions and renovations.
- Fees and investment: stated in Items 5 through 7 of the current FDD, which the franchisor provides during the application process; the parent company does not publish them on its brand pages.
- SBA Franchise Directory: listed as EVEN Hotels (code S5499), with a note about third-party management agreements explained below.
What Is EVEN Hotels?
EVEN Hotels was introduced in 2012 as a hotel brand for travelers who want to stay healthier while away from home. The first property, a 129-room hotel in Norwalk, Connecticut, opened in June 2014 with a three-zone gym, an athletic studio and a market and bar. The parent company now describes EVEN as one of the only hotel brands built with wellness at its core, with the tagline “Where wellness is within reach.”
The evolved prototype. In 2022 the parent company introduced an updated EVEN prototype that it says was developed with franchisees to be more efficient to build and operate. It includes three room types with in-room fitness options ranging from light equipment to fitness walls or spin bikes, the EVEN Kitchen & Bar with a focused service model and a 24/7 market. Guests also get on-demand workout content, laundry for workout gear and a signature sleep setup. The company has said the prototype suits new builds, conversions and renovations and lowers build and operating costs compared with the earlier model.
Why lenders view EVEN the way they do. Lenders see a smaller, specialized brand backed by a large global reservation, sales and loyalty platform. Because the system is compact, lenders lean on the local market study and the sponsor’s hotel experience.
EVEN Hotels Franchise Costs
The parent company does not publish EVEN’s fees or development cost estimates on its brand pages, so every EVEN Hotels franchise loan budget should start from the current FDD.
Application and initial fees
Item 5 of the FDD states the application fee and how it is calculated, typically with a per-room component, and whether fees differ for new construction, conversions and changes of ownership. Plan to pay these from equity.
Land, construction or purchase price
For a new build, land and construction are the largest costs, including the athletic studio, fitness room types and kitchen and bar. For a conversion, the purchase price plus the renovation to brand standards drives the budget.
Furniture, fixtures and equipment
Furniture, fixtures and equipment (FF&E) include guest room furniture and sleep systems, in-room and studio fitness equipment, kitchen and bar equipment, market fixtures and technology.
Opening costs and working capital
Pre-opening payroll, training, opening inventory, marketing and ramp-up reserves all belong in the budget.
Total investment
Item 7 of the FDD gives the estimated initial investment for an EVEN hotel along with its assumptions, such as room count and whether land is included. When you review it, look for these categories:
- Application or initial franchise fee
- Land acquisition or the purchase price of a conversion property
- Construction, site work and architectural fees
- FF&E, including in-room fitness and athletic studio equipment
- Kitchen, bar, market and technology equipment and signage
- Pre-opening training and opening inventory
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Hotel franchise agreements typically charge a royalty based on gross room revenue plus a system or marketing fee, loyalty program charges, reservation and technology fees and, in some cases, fees on food and beverage revenue. The exact rates for EVEN appear in Item 6 of the current FDD.
Renovation obligations. Hotel brands generally require periodic refreshes and may issue a property improvement plan (PIP) when a hotel changes ownership or renews. Our article on funding a property improvement plan explains how owners pay for that work.
How lenders factor these fees in. A lender deducts franchise fees, management fees and an FF&E reserve before measuring debt service coverage, then stress-tests at lower occupancy and rates.
Franchisor Requirements for New Owners
The parent company does not publish a minimum net worth or liquidity figure for EVEN on its brand pages. Expect the franchisor to review the ownership group’s hotel experience, financial capacity, site and plan, and to approve any third-party manager.
The approval process. A typical path runs from an inquiry and site review to a franchise application, franchisor approval, signing and then design review and construction. Line up lender conversations early so financing and franchise approval move together.
Ways to Own an EVEN Hotel
New construction. Building from the ground up gives you the full prototype but carries the longest timeline and the greatest lender scrutiny. See our hotel start-up financing page for how construction projects are structured.
Conversion or adaptive reuse. The parent company says the current prototype works for conversions and renovations. An owner or buyer of an existing hotel may convert it, financing the purchase together with the studio, fitness rooms and kitchen and bar.
Buying an existing EVEN hotel. A purchase lets a lender underwrite actual operating history. The franchisor will usually require a new franchise agreement or transfer approval and may issue a PIP. Learn more about hotel acquisition financing.
Financing Options for an EVEN Hotels Franchise
SBA 7(a) loans. An SBA 7(a) loan can finance a hotel purchase, a conversion, FF&E and working capital. Because EVEN is on the SBA Franchise Directory, a franchisee may qualify if the borrower and the project meet program rules, including the management rule described below.
SBA 504 loans. For new construction or the purchase of an existing hotel building, an SBA 504 loan pairs a first-lien bank loan with a second-lien loan through a certified development company.
Conventional term loans and construction loans. For an EVEN Hotels franchise loan that falls outside SBA rules, larger projects or sponsors who prefer not to use SBA programs often turn to conventional business loans, including construction loans that convert to permanent financing once the hotel stabilizes.
Equipment financing. Spin bikes, fitness walls, studio equipment, kitchen equipment, market coolers and guest room technology can sometimes be financed separately from the real estate.
Working capital and lines of credit. New hotels ramp up and conversions lose revenue while rooms are offline, so reserves and a line of credit help cover payroll and inventory. Explore our hotel working capital options.
Seller financing on resales. When buying an existing EVEN hotel, a seller may be willing to carry part of the price. A seller note is typically subordinate to the senior lender, and SBA programs may limit how it can be structured.
SBA Loans for EVEN Hotels Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility; a listing clears the franchise relationship but does not approve any borrower. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
EVEN Hotels on the SBA Franchise Directory. EVEN Hotels appears under code S5499. Its note says that if the borrower also uses a third-party management agreement, the lender or certified development company must review it under SBA rules for affiliation. The note adds that the borrower is not eligible if the management company is, or is affiliated with, the franchisor.
What that means in plain English. You can self-manage or hire an independent management company, but the lender will check that the manager does not effectively control your business. If the hotel would be managed by the franchisor or a company tied to it, SBA financing is not available for that deal, and you would need a conventional structure. Our overview of SBA loans for hotels covers hotel-specific program rules.
How Lenders Evaluate an EVEN Hotels Deal
Credit, net worth and liquidity. Lenders review each guarantor’s credit and tax returns. Hotel loans require meaningful equity, and lenders want reserves left over after closing. Our article on hotel loan requirements outlines what is usually asked for.
Hotel and management experience. Prior hotel ownership, especially in upscale or select-service properties with food and beverage, strengthens an application.
Feasibility study and projections. Projections should model a ramp-up in occupancy and rate, the cost of staffing the kitchen, bar and market, franchise fees and an FF&E reserve that reflects the faster wear of fitness equipment.
The FDD and franchise agreement. Lenders look at the term, renewal and transfer provisions, termination rights and any required renovations. Item 19 shows whether the FDD includes financial performance representations.
The site or existing property. Expect an appraisal plus either a construction budget review or a property condition report.
The Wellness Build: Fitness, Food and FF&E
EVEN carries more fitness and food and beverage infrastructure than many select-service brands, and each piece has its own equipment, design and staffing costs.
Planning for replacement. Fitness equipment may need replacement sooner than guest room casegoods, so build a realistic FF&E reserve into projections and staff the kitchen and bar as a real cost center.
Multi-Unit Growth and Development Agreements
Once a first EVEN hotel is stabilized, an owner can use its performance and equity to support a second project. Lenders generally finance each hotel separately, looking at combined guarantor liquidity and the first property’s track record. If a multi-hotel development arrangement is offered, review the schedule and the consequences of missing it.
Real-World Scenarios
A developer building a new EVEN hotel. An experienced hotel developer secures land near a medical and university district, completes a feasibility study and finances construction through an SBA 504 structure, adding a working capital line for the ramp-up period.
An owner converting an independent hotel. An owner of an older independent hotel adds an athletic studio, converts several room types to fitness rooms and installs a kitchen and bar, financing the renovation and FF&E alongside a refinance of the existing debt.
A buyer acquiring an existing EVEN hotel. A buyer with select-service experience purchases a stabilized EVEN hotel, hires an independent management company and uses an SBA 7(a) loan after the lender confirms the management agreement does not create affiliation.
Common Mistakes to Avoid
- Choosing a management company before confirming how the SBA affiliation review applies
- Budgeting the athletic studio and in-room fitness as minor add-ons
- Underestimating the staffing and inventory needed for the kitchen, bar and market
- Leaving out a realistic FF&E reserve for fitness equipment replacement
- Overlooking PIP requirements when buying an existing hotel
For more pitfalls that apply to lodging deals, read our breakdown of hotel loan mistakes.
Next Steps to Finance Your EVEN Hotels Franchise
Step 1: Talk with the development team. Confirm site availability, the development path that fits your property and the franchisor’s owner criteria.
Step 2: Get the current FDD and a feasibility study. Review Items 5, 6, 7, 17 and 19 with your advisors and base projections on the local market.
Step 3: Decide on management. Choose between self-management and an independent manager, keeping the SBA directory note in mind.
Step 4: Estimate payments. Use our SBA loan calculator for early planning; results are estimates only, not offers or approvals.
Step 5: Assemble your loan package. Include personal financial statements, tax returns, the construction budget or purchase agreement, the FDD and the management agreement.
Step 6: Coordinate approvals and close. Align your EVEN Hotels franchise loan approval with franchisor approval, design review and construction timelines.
EVEN Hotels Franchise Loan FAQs
How much does it cost to open an EVEN Hotels franchise?
The estimated initial investment is stated in Item 7 of the current FDD and depends on the room count, land and whether the project is a new build or a conversion. The parent company does not publish the range on its brand pages.
What is the EVEN Hotels franchise fee?
The application and initial fees are disclosed in Item 5 of the current FDD and are often calculated in part per room.
What royalty does EVEN Hotels charge?
Royalty, system, loyalty and technology fees are listed in Item 6 of the current FDD. Hotel royalties are usually based on gross room revenue.
Is EVEN Hotels eligible for SBA loans?
Yes. EVEN Hotels is listed on the SBA Franchise Directory under code S5499, subject to a review of any third-party management agreement. A borrower is not eligible if the management company is, or is affiliated with, the franchisor.
How many EVEN hotels are there?
The parent company reports 48 open hotels and 24 in the pipeline as of June 30, 2026.
Can I finance the fitness equipment separately?
Often, yes. Fitness, kitchen and technology equipment can sometimes be financed apart from the real estate.
Can I convert my existing hotel to EVEN?
The parent company says the current prototype is designed for conversions and renovations as well as new builds. The franchisor reviews each property.
Can I buy an existing EVEN hotel?
Yes, subject to franchisor approval. Expect a transfer process and possibly a PIP, and plan financing for both the purchase and any required work.
Does the franchisor offer financing?
Check Item 10 of the current FDD for any financing the franchisor offers. Most owners arrange their own construction or acquisition loans.
Can a first-time hotel owner get an EVEN Hotels franchise loan?
It is possible, but lenders and the franchisor weigh hotel experience heavily. First-time owners often partner with experienced operators or hire an independent management company.
Final Thoughts
EVEN Hotels offers a distinct wellness position, but its fitness and food and beverage features make it more equipment- and staff-intensive than many peers. A realistic budget, a management plan that fits the SBA note and early lender conversations make financing smoother.
US Professional Funding helps hotel owners and developers finance acquisitions, construction, renovations, equipment and working capital. Learn more about our franchise financing programs and our hotel and motel financing solutions.
