How to Finance a Series by Marriott Franchise: Conversion Costs
By Marc Cornella
A Series by Marriott franchise loan usually finances an existing hotel, often part of a regional portfolio, that joins a global collection brand while keeping its own name. Instead of building a new prototype, most owners convert a property they already own or are buying, so the financing centers on the purchase price, the conversion work and the cash flow the hotel can support.
This article explains what the brand is, what Marriott has disclosed about it, how its SBA Franchise Directory listing and management agreement note work, and how owners assemble acquisition, renovation and working capital financing.
US Professional Funding is not affiliated with, sponsored by or endorsed by Series by Marriott; the name is used only to describe the business. Figures from the franchisor’s disclosure document and the company’s public materials 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 Franchise Disclosure Document (FDD) and franchise agreement with a qualified hospitality attorney and accountant.
Series by Marriott Franchise Loan at a Glance
- Brand type: a global collection brand Marriott International announced on May 22, 2025, for the midscale and upscale segments, built to bring regional brands and independent hotels into Marriott Bonvoy.
- How hotels join: through long-term franchise agreements with each hotel’s owner, according to Marriott’s launch announcement.
- System size: Marriott’s 2025 annual report lists 39 properties with 2,761 rooms at year-end 2025, including 2 properties with 164 rooms in the U.S. and Canada.
- U.S. growth: Marriott reported signing 13 agreements in 2025 for the U.S. and Canada and opening two of those hotels in the fourth quarter.
- Franchise fees: Marriott says its franchise fees across brands typically range from four to seven percent of room revenues, plus up to four percent of food and beverage revenues for certain brands. Series by Marriott’s own fees are in its FDD.
- Agreement length: Marriott says its franchise agreements generally run 10 to 25 years.
- SBA Franchise Directory: listed under code S8685, with a management agreement note explained below.
What Is Series by Marriott?
Marriott International launched Series by Marriott in May 2025 as a regional collection brand. Rather than imposing one design and name on every property, it lets owners keep a portfolio’s independent identity while gaining access to Marriott Bonvoy, Marriott.com and the Bonvoy app. Marriott’s brand page sums it up as “Regionally Created. Globally Connected.”
Positioning. Marriott places the brand in its select-service and midscale tiers. The guest promise is simple: clean, comfortable rooms, free Wi-Fi and daily coffee or tea with breakfast, with fitness centers and meeting space at certain properties, while meeting Marriott’s global safety and cleanliness standards.
Where the brand started. The launch was anchored by a founding multi-unit deal in India, where Marriott reported 37 open properties, with approximately 2,600 rooms, in 23 cities by year-end 2025. In 2026 Marriott announced launches in Europe and Japan and an agreement to introduce the brand in Greater China.
Why lenders view it the way they do. Lenders see a large hotel company with a loyalty program of nearly 237 million members at launch, which can support occupancy and rate. They also see a collection brand whose first U.S. and Canada hotels opened only in late 2025, so they lean on each hotel’s own history and the owner’s track record rather than systemwide results.
How a Conversion Brand Changes the Financing
Most U.S. deals are conversions: an owner signs a franchise agreement, completes the work Marriott requires, connects to Marriott’s reservation and loyalty systems and reopens in the collection under its own name. That shapes a Series by Marriott franchise loan in several ways:
- The hotel already exists, so lenders can underwrite actual occupancy, rate and expenses instead of a ground-up projection.
- The upside is the affiliation, and lenders will test any assumed lift carefully because the brand’s U.S. history is short.
- Conversion work is the main new cost, usually financed alongside or after the acquisition.
- Fees replace some independent costs, such as marketing and distribution the hotel previously paid for itself.
For more on that trade-off, read our comparison of branded versus independent hotels.
Series by Marriott Franchise Costs
Marriott discloses brand fees and investment estimates in each brand’s FDD. Because every Series by Marriott deal starts from an existing hotel in its own condition, the total investment varies widely.
Initial and application fees. Marriott brands generally charge an application or initial fee when the agreement is signed. Confirm the amount and any portfolio terms in Item 5 of the current FDD.
Acquisition price or existing equity. If an investor is buying the hotel, the purchase price of land, building and furniture, fixtures and equipment (FF&E) is usually the largest number. If the owner already holds the property, existing debt may be refinanced as part of the conversion.
Conversion renovations. The franchisor identifies work the hotel must complete to meet brand standards. For a collection brand that preserves each hotel’s identity, that list may focus on rooms, bedding, breakfast areas, life safety, accessibility and technology rather than a full rebrand. Our article on financing a property improvement plan explains how this work is scoped and funded.
Opening costs and working capital. Plan for systems integration, signage, training, insurance and cash reserves to cover the transition while the hotel moves onto Marriott’s platforms.
Total investment. A hotel brand’s Item 7 table typically groups costs into categories like these:
- Application or initial franchise fee
- Land, building or acquisition cost (where applicable)
- Renovation and conversion work
- Furniture, fixtures and equipment
- Technology, systems and signage
- Pre-opening training, inventory, insurance and professional fees
- Additional funds for the initial operating period
Read the full table in the current FDD and get contractor estimates for your hotel before sizing a loan.
Ongoing Fees and How They Affect Your Loan
Royalty. Marriott’s 2025 annual report says franchise fees across its brands typically range from four to seven percent of room revenues, plus up to four percent of food and beverage revenues for certain brands. The Series by Marriott rate and any ramp-up schedule appear in Item 6 of its FDD.
Program charges. Marriott franchisees also reimburse centralized programs and services such as the loyalty program, reservations and marketing, and many of these rise with revenue.
Reinvestment. Hotel franchise agreements typically require owners to keep the property at current standards over the term, which means periodic renovations and FF&E replacement.
How lenders factor these costs in. Lenders start with the hotel’s actual results as an independent, then layer in brand fees, program charges, a replacement reserve and management fees before measuring debt service coverage. A hotel that works as an independent can look very different after fees.
Franchisor Requirements for New Owners
Marriott has not published fixed net worth or liquidity thresholds for Series by Marriott owners. Hotel franchise approval typically weighs:
- The property’s location, condition and fit with the brand’s quality expectations
- The owner’s hotel experience, or that of the management company the owner hires
- The owner’s capacity to fund conversion work and support the transition
- For portfolios, how the owner’s regional brand fits the collection
The approval process. Marriott describes each hotel joining after discussions with its owner and execution of a long-term franchise agreement. Expect a property review, an application, negotiation of the agreement and conversion scope, and coordination of the opening date with your lender’s closing. Our overview of hotel loan requirements covers what lenders ask for in parallel.
Ways to Own a Series by Marriott Hotel
Converting a hotel you own. Financing usually covers the conversion work and sometimes a refinance of existing debt.
Buying and converting. An investor acquires an independent hotel and converts it at closing, and lenders underwrite the purchase and conversion together. See our hotel acquisition financing page.
Converting a regional portfolio. The brand was designed for owners of several hotels under their own regional name, financed hotel by hotel or as a portfolio.
Buying an existing Series by Marriott hotel. As the U.S. system grows, resales will become possible, subject to franchisor approval of the transfer.
New construction. Because the brand is built around conversions, ground-up projects are less typical; confirm with Marriott whether that path is available. Our hotel start-up financing page covers new builds in general.
Financing Options for a Series by Marriott Franchise
SBA 7(a) loans. The SBA 7(a) loan program can combine a hotel purchase, conversion work, FF&E, eligible refinancing and working capital in one loan for smaller properties. The program maximum is currently $5 million, though program rules can change.
SBA 504 loans. Hotels are owner-occupied real estate businesses, so an SBA 504 loan can fit when the deal is mostly real estate and long-lived improvements, pairing a first mortgage with a second loan through a Certified Development Company.
Conventional term loans. Larger conversions and portfolio deals often use a conventional business loan sized to cash flow and collateral. Terms and covenants vary, and every request is subject to underwriting.
Equipment and FF&E financing. Guest-room furniture, mattresses, breakfast equipment, fitness equipment, laundry machines and property technology can be financed separately to keep the main loan focused on real estate.
Working capital and lines of credit. Conversions can temporarily reduce revenue while rooms are out of service or systems change over. A line of credit or reserve covers payroll, utilities and fees in that window; see our hotel working capital options.
Seller financing. A seller may carry part of the price in some acquisitions. Any seller note must be acceptable to the senior lender and is typically subordinate to it, and loan programs may restrict seller notes.
SBA Loans for Series by Marriott Franchisees
SBA lenders use the SBA Franchise Directory to confirm a brand’s franchise agreement has been reviewed for eligibility. A listing does not approve any borrower; each owner and property still goes through full underwriting.
Series by Marriott is listed under code S8685. The listing notes that if the applicant also operates under a management agreement with a third party, the lender or Certified Development Company must review that agreement under the SBA’s standard operating procedures (SOP 50 10) 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 the note means. Hiring an outside management company is generally acceptable, but the lender must check the agreement for control, ownership links or fee terms that could create affiliation. If Marriott or one of its affiliates would manage the hotel, SBA financing is off the table. Share the full management agreement early. Our article on SBA loans for hotels covers other hotel-specific rules.
Application tips. Provide the franchise agreement or term sheet, the conversion scope, contractor bids, several years of financial statements and monthly operating reports, a pro forma with all brand fees, and any management agreement. Our SBA loan calculator can estimate payments for planning only; estimates are not an offer or approval.
How Lenders Evaluate a Series by Marriott Deal
Personal credit and financial history. Lenders review credit, tax returns and personal financial statements for significant owners and typically require personal guarantees.
Net worth and liquidity. Conversions call for meaningful equity and post-closing reserves to absorb cost overruns or a slower ramp.
Hotel experience. Prior ownership or a strong, unaffiliated management team matters more for a young brand.
Business plan and projections. Start from trailing results and explain how loyalty and distribution should change occupancy and rate, net of brand fees, management fees, reserves and rooms out of service during renovation.
The FDD and franchise agreement. Lenders read the term, termination rights, transfer provisions and reinvestment requirements, and watch for loan maturities that outlast the franchise term.
The real estate and historical financials. Expect an appraisal, environmental review and property condition assessment, plus several years of profit and loss statements so lenders can compare independent and projected branded performance.
Conversion Work, FF&E and Technology
The conversion scope is the biggest variable in most requests. Because each hotel keeps its personality, the work is often less about changing the look and more about meeting standards for comfort, cleanliness, safety and service: beds and bedding, bathroom fixtures, lighting, life-safety systems, accessibility, breakfast equipment, Wi-Fi, property management systems and signage. Get the requirements in writing, collect bids, add a contingency, and expect lenders to fund renovations through draws tied to completed work.
Multi-Unit Growth and Portfolio Conversions
Series by Marriott was built with regional portfolios in mind, and its founding deal was a multi-unit agreement. Lenders may finance several converting hotels together with cross-collateralization, or separately so one can be sold or refinanced later. An owner who converts one hotel successfully can use its branded results to support the next financing, backed by consolidated financial statements.
Real-World Scenarios
An independent owner converting one hotel. An SBA 7(a) loan refinances existing debt and funds bedding, technology and life-safety upgrades, while the owner keeps a separate reserve for the transition.
An investor buying and converting. The lender underwrites the purchase and conversion together on trailing results plus a conservative branded pro forma, with a renovation draw schedule.
A regional portfolio joining the collection. A family that owns several hotels under its own name brings them in together, and a conventional lender finances the conversions with consolidated reporting.
A management agreement under SBA review. An owner with an outside manager applies for an SBA 504 loan, and the lender confirms the manager is not connected to the franchisor before approval.
Common Mistakes to Avoid
- Underestimating conversion work because the hotel keeps its name
- Projecting brand-driven gains without support from the hotel’s own market
- Leaving brand fees, program charges and management fees out of the pro forma
- Sharing the management agreement with an SBA lender too late
- Closing without reserves for rooms out of service during renovation
- Signing a loan that outlasts the franchise agreement without a plan
For more lodging pitfalls, read the hotel loan mistakes that cost owners the most.
Next Steps to Finance Your Series by Marriott Franchise
Step 1: Assess the hotel. Gather financials, operating data and a property condition report.
Step 2: Start the brand conversation. Request the current FDD from Marriott and learn the required conversion work.
Step 3: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19, the franchise agreement and any management agreement.
Step 4: Build a branded pro forma. Layer fees, reserves and the renovation timeline onto trailing results.
Step 5: Compare structures. Weigh SBA 7(a), SBA 504 and conventional options with a financing specialist.
Step 6: Apply and close. Submit the package, align closing with Marriott’s approval and fund the conversion through draws.
Series by Marriott Franchise Loan FAQs
How much does it cost to open a Series by Marriott hotel?
It depends mostly on the hotel. The total combines any purchase price, conversion work, fees, technology and working capital. Item 7 of the current FDD gives the franchisor’s estimate; contractor bids give the real number.
What is the franchise fee?
Marriott sets each brand’s application or initial fee in Item 5 of its FDD. Review the current Series by Marriott FDD for the amount.
What royalty does Series by Marriott charge?
Marriott says its franchise fees across brands typically range from four to seven percent of room revenues, plus up to four percent of food and beverage revenues for certain brands. The brand’s own rate is in Item 6.
Can I get an SBA loan for a Series by Marriott hotel?
Yes, the brand is on the SBA Franchise Directory under code S8685. If a third party manages the hotel, the lender must review that agreement for affiliation, and a manager that is or is affiliated with the franchisor makes the applicant ineligible.
Can I keep my hotel’s name?
Yes. Marriott says the brand lets owners keep a portfolio’s independent identity while gaining Marriott Bonvoy and Marriott’s booking channels.
How many Series by Marriott hotels are there?
Marriott’s 2025 annual report lists 39 properties with 2,761 rooms at year-end 2025, including 2 in the U.S. and Canada.
Can I finance conversion work and FF&E separately?
Often, yes. Conversion work can sit inside an SBA or conventional loan, and furniture, equipment and technology can be financed on their own.
Can a first-time hotel owner get a Series by Marriott franchise loan?
It is possible, but hotel experience weighs heavily. First-time owners usually strengthen a request with an experienced, unaffiliated management company and substantial reserves.
Does Marriott offer financing?
Review Item 10 of the current FDD. Most owners arrange their own acquisition and renovation financing.
How long is the franchise agreement?
Marriott says its franchise agreements generally run 10 to 25 years. Confirm the brand’s term and renewal conditions in Item 17.
Final Thoughts
Series by Marriott lets regional and independent owners plug into a global loyalty and booking platform without giving up their identity. The financing follows the same logic: lenders start with the hotel you have, test how much the brand can add after fees, and size the conversion budget and reserves around that. Owners who document their history, scope the work carefully and handle the SBA management agreement review early give their Series by Marriott franchise loan the best chance at a smooth closing.
US Professional Funding helps hotel owners and buyers finance acquisitions, conversions, renovations, working capital and refinancing for branded properties. Learn more about our franchise financing and hotel and motel financing solutions.
