Franchise Deep Dive: Candlewood Suites Franchise Costs, Fees, Profit and Data

LAST UPDATED: September 2024

FRANCHISE WEBSITE: https://development.ihg.com/hotel-brands/candlewood-suites 

NUMBER OF LOCATIONS: 380+

REPORTED COST TO GET IN: $12,217,200 - $18,328,830

REPORTED ROI (Item 19): See below

Candlewood Suites is a mid-scale hotel franchise that offers both regular and extended-stay accommodations. As part of the InterContinental Hotels Group system, the brand benefits from a combined decades of hospitality expertise and the economies of scale that come with a multi-brand global company.

How Many Candlewood Suites Locations Are There?

There are currently over 380 Candlewood Suites hotels worldwide and another 170-plus in development. While the brand continues to grow, its flexible prototype and streamlined construction process allows franchisees to build and open their businesses even more efficiently, driving the system to continue expanding rapidly.

What Is the Candlewood Suites Business Model?

Candlewood Suites is a modern hotel offering an upscale, but still affordable, option for guests seeking apartment-like hotel accommodations for either short or long-term stays. With laundry rooms, fitness centers and a pet-friendly policy, Candlewood Suites can appeal to consumers with a range of needs.

Because many Candlewood Suites guests are seeking extended stays, franchise owners can reduce labor costs and run on a smaller staff-to-guest ratio as the frequency of cleanings and check-ins are reduced.

How Much Can Candlewood Suites Franchise Owners Make?

Candlewood Suites does not have a set number of guest rooms per franchise, so profits vary. According to the brand’s 2023 Franchise Disclosure Document, top performing hotels saw a revenue per available room of $156.05 and average daily room rate of $202.59.

How Much Does It Cost To Open a Candlewood Suites?

The estimated initial investment required to begin operation of a Candlewood Suites franchise is $12,217,200 - $18,328,830, or about $113,122 - $169,711 per guest room. This amount includes:

• Application Fee: $50,000
• Property Improvement Plan Inspection and Report: Up to $7,500
• Building Construction: $10,019,100 - $15,248,600
• Furniture, Fixtures and Equipment: $1,395,600 - $1,814,300
• Operating Supplies and Equipment: $255,200 - $331,800
• Primary Identification Sign: $33,000 - $55,000
• Property Management System Equipment, Configuration, Installation, Software and Training: $83,000 - $96,000
• Guest Internet Access Hardware: $22,750 - $49,000
• Key Card System: $10,000 - $15,000
• In-Room Entertainment: $10,000 - $12,000
• Employee Safety Devices: $16,000 - $20,000
• Technology Systems: $55,800 - $64,180
• Public Access Computers: $4,900 - $6,000
• Market Feasibility Study: $15,000 - $30,000
• Openings Preopening Support Fee: $6,000
• IHG Learning Program, Core Subscription: $2,000
• Opening Date Extension Fee: Up to $5,000 plus expenses
• Professional Fees: $115,000 - $275,000
• Security Deposits: $2,600 - $26,250
• Insurance: $35,000 - $100,000
• Hotel Photography: $3,500 - $6,200
• Additional Funds (3 Months): $78,750 - $105,000

What Is the Franchise Fee for Candlewood Suites?

Candlewood Suites assesses a franchise fee of $145,000 - $170,500.

Who Is the Leadership of Candlewood Suites?

• Elie W. Maalouf — Chief Executive Officer
• Julienne Smith — Chief Development Officer, Americas
• Jason M. Caiafa — Chief Operating Officer, Americas
• Eric Frye — Vice President, Development & Owner Support
• David Comai — Head of Strategic Market Planning & Feasibility

What Helpful Articles Can I Read To Learn More?

• A Quick Guide And Comparison To All 19 IHG Brands
• IHG Opens Candlewood Suites in Quebec
• IHG Opens First avid-Candlewood Dual-Branded Property
• IHG Hotels & Resorts and NOVUM Hospitality Sign Agreement That Doubles IHG’s Hotel Presences in Germany, Launches Holiday Inn – the niu Collaboration, and Debuts Garner and Candlewood Suites Brands

Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our Power Rankings to read more on brands making moves. 

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Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.

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