How to Finance an Everhome Suites Franchise: Midscale Long Stays
By Chris Cornella
An Everhome Suites franchise loan usually funds a hotel that does not exist yet. Choice Hotels International introduced Everhome Suites as a new-construction, midscale extended stay brand, so most owners are financing land, a ground-up building, apartment-style suites with full kitchens and the months it takes to build a base of long-stay guests.
Below we cover the development budget, the brand’s SBA Franchise Directory note on management agreements, and how lenders view both new hotels and open properties that come up for sale.
US Professional Funding is not affiliated with, sponsored by or endorsed by Everhome Suites or Choice Hotels International; the name is used only to describe the business. Figures from the franchisor’s disclosure document and company materials can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice; review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Everhome Suites Franchise Loan at a Glance
- Concept: a midscale extended stay brand that Choice Hotels International describes as a value-engineered new-construction prototype for entry into major markets.
- Launched: introduced by Choice Hotels International in January 2020; the first hotel, with 98 apartment-style rooms, opened in Southern California in 2022.
- System size: 25 hotels with 2,870 rooms at the end of 2025, all in the U.S., according to the company’s annual report. The company reported 27 open hotels and about 40 more in the development pipeline in February 2026.
- Prototype: a redesigned prototype introduced in 2026 with approximately 120 suites, which the company says lowers average development cost per room by approximately 13% compared with the previous design.
- Fees: the company’s annual report says its U.S. franchise agreements typically carry a royalty of 5% to 6% and a marketing and reservation fee of 3% to 4% of gross room revenues. Everhome-specific fees and the Item 7 investment range are in the current FDD.
- Owner requirements: no minimum net worth or liquidity figure is published in company materials we could verify.
- SBA Franchise Directory: listed as “Everhome Suites ES” (code S5097), with a note on third-party management agreements.
What Is Everhome Suites?
Choice Hotels International, headquartered in North Bethesda, Maryland, franchises more than 7,500 hotels across 22 brands. It introduced Everhome Suites in January 2020 for guests on longer stays. The launch announcement said developers could build new or convert an existing asset, under a single franchise agreement or a multi-unit development agreement.
The suites. Rooms are apartment-style studios and one-bedroom suites. Kitchens include a full-size refrigerator, dishwasher, stovetop and microwave, and the larger one-bedroom suites have in-unit washers and dryers. Suites also have movable workstations and full-size closets.
Public spaces. Hotels offer a self-service marketplace, a fitness center open around the clock and guest laundry, with weekly housekeeping and lean staffing.
Why lenders look at it the way they do. A large franchisor stands behind a young brand, and a standardized prototype makes budgets easier to compare. But most deals are new construction with no operating history, so lenders lean on the developer’s record, local long-stay demand and the construction budget.
Everhome Suites Franchise Costs
We could not verify a published cost per key, so rely on Item 7 of the current FDD and your own contractor’s bids.
Initial franchise fee
Item 5 of the FDD sets out the application or affiliation fee. The company’s annual report notes that it may discount initial, royalty or marketing fees for some hotels, so confirm your terms in writing.
Land, site work and construction
For a ground-up hotel of roughly 120 suites, the building is usually the largest line. Land, site work, design, permits, insurance, construction interest and a contingency all belong in the budget, along with pre-opening payroll and an operating reserve for lease-up. Confirm whether Item 7 includes land.
Furniture, fixtures and equipment
Every suite has a full kitchen, so FF&E is heavier than at a typical select-service hotel: appliances and cabinetry in each room, washers and dryers in one-bedroom suites, case goods, guest laundry, fitness equipment and technology.
Typical Item 7 categories for a new-build hotel include:
- Application or affiliation fee
- Land acquisition or ground lease costs (if included)
- Site work and building construction
- Architecture, engineering, permits and impact fees
- Furniture, fixtures and equipment, including in-suite kitchens
- Training, travel and pre-opening expenses
- Insurance, deposits and professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
According to the company’s annual report, its U.S. franchise agreements typically charge a royalty of 5% to 6% of gross room revenues and a marketing and reservation fee of 3% to 4% of gross room revenues. These are company-wide ranges, not Everhome-specific numbers, so read Item 6 of the FDD for the exact rates, plus any technology, loyalty program, training, transfer and renewal charges.
How lenders factor them in. A lender sizes an Everhome Suites franchise loan on projected net operating income after franchise fees, labor, utilities, taxes, insurance and a reserve for replacing furniture and equipment. Extended stay hotels sell longer stays at lower nightly rates, so steady occupancy and controlled labor are central to the debt service case.
Franchisor Requirements for New Owners
Choice Hotels International has not published minimum net worth or liquidity requirements for Everhome Suites in materials we could verify. Based on the brand’s new-construction model, owners generally need:
- A site in a market with demand from long-stay guests such as project workers, relocating employees and travel nurses
- Enough equity and liquidity to fund a ground-up hotel and carry it through lease-up
- Hotel development and operating experience, or an experienced management company
- The ability to build to the prototype’s plans and pass the brand’s opening review
The approval process. Expect a franchise application, a review of the site and market, plan approval and a signed franchise agreement before construction financing closes.
Ways to Own an Everhome Suites
Building a new hotel. This is the main path. Financing covers land, construction, FF&E and opening costs, often through a construction loan that converts to permanent financing once the hotel opens.
Converting an existing building. The launch announcement allowed conversions of existing assets. Lenders will want a detailed renovation budget and brand approval of the plans.
Buying an open hotel. The company’s annual report states that it owned four open Everhome Suites hotels at the end of 2025, that it does not anticipate owning hotels permanently, and that it expects to sell them to franchisees under long-term franchise agreements. A buyer can present actual operating results, which usually makes underwriting easier. Our overview of hotel acquisition financing explains how these purchases are structured.
Financing Options for an Everhome Suites Franchise
SBA 7(a) loans. An SBA 7(a) loan can fund land, construction, FF&E, a hotel purchase and working capital for an eligible owner. The program maximum is currently $5 million, though program rules can change, so a ground-up hotel of this size may combine 7(a) with other financing.
SBA 504 loans. Because an Everhome Suites project is mostly land and building, the SBA 504 loan program can be a strong fit for owner-occupied hotel real estate and long-lived equipment when the project meets eligibility rules.
Conventional construction and term loans. Larger projects often use conventional business financing, typically a construction loan with a planned refinance after the hotel stabilizes. Equity, recourse and covenants vary by lender and project.
Equipment financing. In-suite kitchen appliances, washers and dryers, fitness equipment, marketplace coolers and technology can sometimes be financed separately, preserving cash for contingencies. Kitchens and laundry equipment wear faster in long-stay hotels, so plan a replacement reserve as well.
Working capital and lines of credit. A new extended stay hotel needs money for pre-opening payroll, supplies and the period before occupancy stabilizes. See our hotel working capital options.
Seller financing on resales. When buying an open hotel, part of the price may sometimes be carried by the seller. Any seller note must be acceptable to the senior lender, is typically subordinate to it, and may be limited under SBA rules.
Franchisor support. The company’s annual report describes an investment, financing and guaranty support program it may offer to qualified franchisees. Check Item 10 of the FDD and ask how any support would interact with your other financing.
SBA Loans for Everhome Suites Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower or project.
Everhome Suites is listed. The directory shows the brand as “Everhome Suites ES” under code S5097. Its note says that if the applicant also operates under a management agreement with a third party, the SBA lender must review that agreement under SBA rules to decide whether the applicant and the management company are affiliated. The applicant is not eligible if the management company is, or is affiliated with, the franchisor.
What that means in plain English. If you hire a management company, the SBA lender will read the management agreement to confirm the manager does not control the business and is not tied to the franchisor. Settle who will manage the hotel before you apply, especially when buying a company-owned hotel.
Application tips. Bring a long-stay market study, a construction budget, your hotel experience, the franchise agreement and any management agreement. Our article on hotel loan requirements lists the documents most lenders request, and our SBA loan calculator can help with early payment estimates for planning only.
How Lenders Evaluate an Everhome Suites Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require personal guarantees.
Net worth and liquidity. Expect to show equity and post-closing liquidity to absorb overruns or a slow lease-up.
Industry and management experience. Prior hotel ownership, extended stay operations or a qualified management company strengthen any request. First-time owners can read our first-time hotel buyer article.
Business plan and projections. Projections should model the ramp-up month by month, the expected mix of weekly and monthly guests, lean staffing assumptions, franchise fees and an FF&E reserve.
The FDD and franchise agreement. Lenders check the agreement’s term, termination rights and any liquidated damages. The company’s annual report says its agreements generally run 10 to 30 years and can include termination rights at designated anniversaries, so match your loan term to your franchise term. See how lenders read a Franchise Disclosure Document.
Site and real estate. Lenders value the land and completed hotel and review title, zoning, environmental reports and the construction contract.
Historical financials for resales. For an open hotel, expect to provide several years of operating statements, occupancy and rate reports and tax returns.
Multi-Unit Growth and Development Agreements
According to Choice Hotels International’s annual report, developers pay a non-refundable fee for geographic exclusivity under a master development agreement, and that fee is applied to affiliation fees on future franchise agreements in the territory. If development schedules are missed, the company can end exclusivity.
Financing more than one hotel. Each hotel is usually financed separately as it reaches construction, and a track record from the first helps with the second. Our article on multi-unit franchise financing and our hotel real estate and expansion financing page cover how growth is typically funded.
Real-World Scenarios
An experienced hotelier building a first Everhome Suites. An owner of two select-service hotels secures a site near a large employment center. The lender reviews a long-stay market study, the construction contract and the owner’s existing hotels, then approves an Everhome Suites franchise loan structured as construction financing that converts to permanent debt.
A buyer acquiring a company-owned hotel. A buyer purchases an open Everhome Suites that the franchisor is selling. Because the hotel has operating history, the lender underwrites actual results. The buyer hires an unaffiliated management company so the SBA management note is not an obstacle.
A developer with territory rights. A developer under a master development agreement finances its first hotel, then arranges separate financing for each later site as it is approved.
Common Mistakes to Avoid
- Assuming company-wide fee ranges are the exact rates in your Everhome Suites agreement
- Underfunding the lease-up period before long-stay occupancy builds
- Choosing a management company affiliated with the franchisor for an SBA loan
- Ignoring the FF&E replacement reserve for kitchens and laundry equipment
- Mismatching the loan term with the franchise term and termination rights
For more pitfalls, read the hotel loan mistakes that cost owners the most.
Next Steps to Finance Your Everhome Suites Franchise
Step 1: Study the market. Confirm long-stay demand near your site.
Step 2: Request and review the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Build the budget. Compare land, construction and FF&E bids with the Item 7 range.
Step 4: Decide on management. Self-manage or hire an unaffiliated management company.
Step 5: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional options before you commit to a structure.
Step 6: Apply. Submit the franchise agreement, budget, market study and projections.
Step 7: Close and open. Fund your working capital reserve and pre-opening hiring.
Everhome Suites Franchise Loan FAQs
How much does it cost to build an Everhome Suites?
No cost per key is published in materials we could verify. See Item 7 of the current FDD; actual cost depends on land, construction pricing and suite count.
What is the Everhome Suites franchise fee?
The affiliation or initial fee is disclosed in Item 5 of the FDD. The company may discount fees for some hotels, so confirm your terms in writing.
What royalty does Everhome Suites charge?
The company’s annual report says its U.S. franchise agreements typically charge a royalty of 5% to 6% and a marketing and reservation fee of 3% to 4% of gross room revenues. Check Item 6 for Everhome-specific rates.
Is Everhome Suites eligible for SBA loans?
Yes, the brand is listed on the SBA Franchise Directory under code S5097. Each borrower and project still has to meet SBA and lender requirements, including the management agreement rule.
Can I buy an existing Everhome Suites?
Yes, when one is available. The company says it expects to sell its owned hotels to franchisees, and franchisee-owned hotels may be resold with franchisor approval.
Does the franchisor offer financing?
The company describes an investment, financing and guaranty support program it may offer to qualified franchisees. Review Item 10 of the FDD for details.
How long is the franchise term?
The company’s annual report says its franchise agreements generally run 10 to 30 years. Check Item 17 of the FDD for Everhome Suites terms.
Can a first-time hotel owner get an Everhome Suites franchise loan?
It is possible, but lenders generally want hotel experience on the team, such as a partner or management company, plus strong liquidity.
Final Thoughts
Financing an Everhome Suites hotel is mostly a development exercise: a solid budget, a realistic lease-up plan, the right management structure and financing matched to a long franchise term.
US Professional Funding helps hotel owners and franchise buyers finance construction, acquisitions, equipment and working capital. Learn more about our franchise financing programs and hotel and motel financing.
