How to Finance a My Place Hotels Franchise: Extended-Stay Builds
By Chris Cornella
A My Place Hotels franchise loan usually pays for a ground-up extended-stay hotel: land, a three- or four-story building, kitchen-equipped units and the cash needed to carry the property until occupancy builds. Because the brand grows mainly through new construction on standardized prototypes, the financing looks more like a small commercial real estate development than a typical franchise start-up.
Below we cover the brand’s prototypes, what to pull from the Franchise Disclosure Document (FDD), the SBA Franchise Directory management agreement note and the main financing routes.
US Professional Funding is not affiliated with, sponsored by or endorsed by My Place Hotels; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice; review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
My Place Hotels Franchise Loan at a Glance
- Franchisor: My Place Hotels of America, LLC, an extended-stay hotel franchisor based in Aberdeen, South Dakota.
- System size: 73 open hotels across 30 states with more than 120 in the pipeline, according to the company’s September 2024 announcement; its 2026 announcements cite a presence in 31 states and more than 120 hotels in the pipeline.
- Prototypes: a three-story, 64-unit design, a four-story, 87-unit design and the four-story, 71-unit My Place 3.0 introduced in 2024.
- Brands offered to owners: the My Place Hotels brand for new construction, plus a second brand the company offers for existing hotels.
- Fees and investment: not posted on the franchising pages; see Items 5 through 7 of the current FDD.
- SBA Franchise Directory: listed as My Place (code S8873), with a note about management agreements explained below.
What Is My Place Hotels?
My Place Hotels of America is an extended-stay franchisor headquartered in Aberdeen, South Dakota. It describes its focus as clean, comfortable hotels with modern rooms at affordable prices. It offers owners two branded options: the My Place Hotels brand and a second brand aimed at existing hotels.
The product. My Place hotels are kitchen-equipped extended-stay properties for guests such as traveling work crews, contractors and teams who need a kitchen and a longer stay.
The company’s second brand. The company launched a second brand in 2020 for existing upper-midscale and upscale hotels, initially those opened in 2005 or later, while My Place itself is mainly built new. Confirm current eligibility in that brand’s own FDD.
A vertically integrated system. The company’s franchising page lists affiliated companies that provide hotel construction, hotel management and the technology behind every My Place property. That integration also matters for SBA financing, as explained below.
Why lenders view the brand the way they do. Lenders see a focused extended-stay concept with standardized designs, which makes construction budgets easier to benchmark for a My Place Hotels franchise loan. They also weigh smaller unit counts and reliance on local workforce and project demand, so the market study for each site carries extra weight.
My Place Hotels Prototypes and Why They Matter for Financing
In September 2024 the company announced My Place 3.0, a four-story, 71-unit prototype with flexible exterior finishes and optional masonry. It still offers an updated four-story, 87-unit prototype and its foundational three-story, 64-unit design.
It also introduced the My Place Business Suite, a king room of approximately 470 square feet positioned as an upgrade for business travelers and small families.
For a borrower, the prototype choice drives almost every number in the loan request. A four-story design can place more units on similar land, unit count and exterior finishes change the hard cost, and furniture, fixtures and equipment (FF&E) scale directly with the number of kitchen-equipped units. More units raise revenue capacity only if the market study shows the demand to fill them.
My Place Hotels Franchise Costs
Initial franchise fee. Item 5 of the FDD lists the initial fee and any per-unit component; ask whether multi-hotel commitments change it.
Building and opening costs. Land, site work and construction make up most of the budget, and local labor, impact fees and the prototype move the total more than any franchise fee. FF&E covers in-unit kitchens, furnishings, laundry equipment and signage, and pre-opening costs include hiring, training, insurance and a reserve while occupancy ramps up.
Total investment. Item 7 gives the estimated initial investment range and its assumptions. Expect line items such as:
- Initial franchise and application fees
- Land purchase or ground lease
- Architecture, engineering, permits and impact fees
- Site work and building construction
- FF&E, including in-unit kitchens
- Technology and property management systems
- Signage
- Training, pre-opening expenses and opening supplies
- Additional funds for the initial operating period
Lenders compare your bid-based budget with the Item 7 range.
Ongoing Fees and How They Affect Your Loan
Royalty and system fees. Item 6 of the My Place FDD sets the royalty, typically a percentage of gross room revenue in hotel franchising, along with fees for marketing, the Stay Rewarded loyalty program, reservations and technology. Many move with occupancy and rate. If you hire a management company, its fees are another expense; read the SBA section before choosing one.
Renovations. The franchise agreement can require updates as brand standards evolve. Our article on paying for a property improvement plan explains how owners fund required upgrades.
How lenders factor these in. A lender builds a pro forma from projected occupancy and average daily rate, subtracts fees, payroll, utilities, taxes and a replacement reserve, and tests whether the remaining cash flow covers debt service with a cushion. For extended stays, lenders also weigh how dependent a market is on a few employers or projects.
Franchisor Requirements for New Owners
My Place does not publish a minimum net worth or liquid capital requirement on its franchising pages. Owners need equity for land, construction and pre-opening costs plus reserves, and hotel experience or a qualified manager strengthens both approvals.
The approval process. Prospective owners work with a regional development team, apply for a specific site and go through market review before signing an agreement with construction and opening deadlines.
Ways to Own a My Place Hotel
New construction. This is the main path into the brand. A construction loan funds the build and later converts to permanent financing. See our page on hotel start-up financing.
Buying an existing My Place hotel. A buyer gets operating history, but the franchisor must approve the transfer and may require upgrades. Our hotel acquisition financing page covers purchase loans.
Converting an existing hotel. Owners of newer independent or branded hotels may look at the company’s second brand rather than the My Place brand itself. Read about conversion franchise financing.
Multi-hotel development. The company has announced several multi-hotel agreements, including a 2026 agreement for 10 new hotels across the Midwest over five years.
Financing Options for a My Place Hotels Franchise
SBA 7(a) loans. The SBA 7(a) program can fund land, construction, FF&E, franchise fees and working capital in one loan for an eligible hotel. The program maximum is currently $5 million, and program rules can change.
SBA 504 loans. Because a My Place hotel is a long-lived real estate asset, the SBA 504 loan program can be a strong fit for land and construction.
Conventional construction and term loans. Experienced hotel developers, or projects that exceed SBA limits, often use a conventional business loan, with terms based on experience, liquidity and projected cash flow.
Equipment and FF&E financing. In-unit kitchen appliances, furnishings, laundry equipment, room climate units and technology can be financed separately from the building, preserving cash for construction contingencies.
Working capital and lines of credit. A new hotel needs cash for payroll and debt service before occupancy stabilizes. Explore hotel working capital options.
Seller financing on resales. A seller may carry part of the price on a resale; seller notes are typically subordinate to the senior loan, and SBA programs may limit them.
SBA Loans for My Place Hotels Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. A listing does not approve any borrower.
My Place is listed (code S8873). Its directory note matters for hotel owners. If the applicant will also operate under a management agreement with a third party, the lender or certified development company must review that agreement under SBA rules to determine 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. Because My Place’s franchising page lists an affiliated hotel management service, owners who want SBA financing need to think carefully about who will manage the hotel. Self-management, or an independent management company that is not tied to the franchisor, keeps the SBA route open, subject to the lender’s review of the agreement. Hiring a management company that is part of or affiliated with the franchisor would make the applicant ineligible for an SBA-guaranteed loan, and a conventional loan would be the likely alternative. Settle this question before you sign a management agreement.
SBA application tips. Confirm the directory listing and code with your lender and provide the franchise agreement and any management agreement early. Our article on SBA loans for hotels covers program basics.
How Lenders Evaluate a My Place Hotels Deal
Credit, net worth and liquidity. Expect a review of credit, tax returns and a personal financial statement, personal guarantees, and proof of reserves left after the equity injection to absorb overruns or a slow ramp-up.
Hotel experience. Prior hotel ownership or a qualified independent manager is often central to approval of a My Place Hotels franchise loan.
Feasibility study and projections. Projections should reflect local extended-stay demand from project crews and employers, the prototype and a realistic ramp-up.
The FDD and franchise agreement. Lenders read the term, renewal, transfer and development deadlines. Check Item 10 for any franchisor financing and Item 19 to see whether the FDD includes financial performance representations.
Site and construction. Appraisals, environmental reports, zoning and a fixed-price or guaranteed maximum price contract with a qualified builder all feed the decision, including when an affiliated builder is used.
Multi-Unit Growth and Development Agreements
My Place has grown through owners who commit to several hotels at once. Its 2026 agreement for 10 Midwest hotels over five years, at about two properties a year, shows the kind of pacing a multi-hotel schedule can involve.
Financing a second or third hotel. After the first hotel stabilizes, its cash flow and equity can support the next project, through a new construction loan or a refinance that releases equity.
Planning the schedule. Line up land, equity and lender interest before committing to deadlines. Our article on financing a development agreement walks through the capital planning.
Real-World Scenarios
A first-time hotel owner in a growing industrial market. A local business owner plans a 64-unit My Place near a new plant, hires an independent manager to keep the SBA route open, and uses an SBA 504 structure plus separate FF&E financing.
A buyer of an existing My Place. A buyer acquires an established hotel from a retiring owner; the lender underwrites its history, and a line of credit covers the transition.
A developer weighing management options. A developer planning two hotels learns that franchisor-affiliated management would rule out SBA financing and compares both routes before signing.
Common Mistakes to Avoid
- Signing a management agreement with a franchisor-affiliated manager before confirming how it affects SBA eligibility
- Budgeting from a prototype without site-specific land, site work and contractor quotes
- Choosing the largest prototype without a market study that supports the unit count
- Underestimating the reserves needed during the ramp-up to stabilized occupancy
- Committing to a multi-hotel schedule without the equity to meet each deadline
Read the hotel loan mistakes that sink deals for more pitfalls across the industry.
Next Steps to Finance Your My Place Hotels Franchise
Step 1: Talk with franchise development. Contact the regional development team and request the current FDD.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 and the franchise agreement with a franchise attorney and accountant.
Step 3: Secure a site and feasibility study. Confirm zoning and commission a market study that supports your prototype.
Step 4: Decide how the hotel will be managed. Choose self-management or an independent manager versus the franchisor’s affiliate, with SBA eligibility in mind.
Step 5: Build the budget and estimate payments. Gather bids, then use our SBA loan calculator for early payment estimates, which are for planning only and are not an offer or approval.
Step 6: Apply for financing. Submit financial statements, tax returns, projections, the budget and franchise documents.
Step 7: Close, build and open. Coordinate construction draws, FF&E delivery, hiring and the brand’s opening process.
My Place Hotels Franchise Loan FAQs
How much does it cost to build a My Place hotel?
The current FDD’s Item 7 gives the estimated initial investment range. Actual costs depend on land, local construction prices and the prototype chosen, whether the 64-unit, 71-unit or 87-unit design.
What is the My Place Hotels franchise fee?
My Place does not publish its initial fee on its franchising pages. Item 5 of the current FDD lists it.
How much net worth or liquid capital do I need?
The company does not post a minimum. You will need enough equity for land, construction and pre-opening costs plus reserves, and both the franchisor and the lender will review your financial strength.
Can I use an SBA loan for a My Place Hotels franchise?
Yes, the brand is listed on the SBA Franchise Directory as My Place (code S8873). The applicant is not eligible if the hotel’s management company is, or is affiliated with, the franchisor, and any third-party management agreement will be reviewed.
Can a first-time hotel owner get a My Place Hotels franchise loan?
It is possible. Lenders want a strong plan for operations, often an experienced independent manager, plus solid liquidity and a feasibility study.
Does My Place offer financing?
Check Item 10 of the current FDD for any franchisor financing. Most owners arrange their own construction and permanent financing.
Can I buy an existing My Place hotel?
Yes, with franchisor approval of the transfer. Lenders underwrite the hotel’s operating history and any required upgrades.
How long is the franchise term?
Item 17 of the current FDD sets the term, renewal and transfer conditions. Lenders generally want the term to extend beyond the loan.
Can I develop more than one My Place hotel?
Yes. The company signs multi-hotel agreements, and each project is usually financed on its own as earlier hotels stabilize.
What documents will a lender ask for?
Personal financial statements, tax returns, a resume, the FDD and franchise agreement, a feasibility study, a construction budget, projections and any management agreement.
Final Thoughts
Financing a My Place hotel comes down to a well-supported construction budget, a realistic ramp-up plan and an early decision about management that keeps your financing options open. Pick the prototype your market supports and line up equity before you commit.
US Professional Funding helps hotel owners and franchise developers finance construction, acquisitions, equipment, working capital and refinancing. Learn more about our franchise financing programs and hotel and motel financing.
