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Courtyard by Marriott hotels

Courtyard by Marriott hotels

The total investment to open a Courtyard by Marriott hotels franchise ranges from $14.1M to $38.3M. The initial franchise fee is $90,000. Ongoing royalties are 6% plus a 2% advertising fee.

What is the Courtyard by Marriott hotels franchise?

Courtyard By Marriott Hotels is a franchise brand within Marriott International, serving business travelers, families, and leisure guests. The brand began in 1983 with a focus on quality service, comfort, and reasonable pricing as an alternative to more traditional and often higher priced hotels. Marriott International traces its history to May 1927, when J. Willard and Alice Sheets Marriott opened an A&W Root Beer franchise in Washington, D.C. The company is headquartered in Bethesda, Maryland, and is currently led by President and CEO Anthony Capuano. Marriott invested $2 billion in the mid 1980s to expand Courtyard, helping the brand grow from three test sites in 1983 to over 90 hotels by 1987. As of June 30, 2020, Courtyard Marriott Hotels had 1,254 hotels worldwide with 187,095 rooms, plus 288 hotels and 49,335 rooms in development. The 2020 Franchise Disclosure Document reported 734 franchised Courtyard by Marriott locations across 49 states, including 364 locations in the Southern region. Updated 2026 data reported 1,066 total U.S. locations, consisting of 901 open franchises and 165 corporate locations, along with 108 franchised units in the provided franchise data. Courtyard By Marriott Hotels is Marriott's most widely distributed brand and the 8th largest lodging brand overall. Its offer has expanded beyond business travel through amenities such as swimming pools, fitness centers, in room microwaves, and mini refrigerators.

The Hotels except Casino Hotels and Motels category serves a large global market for accommodations. As of November 2025, Marriott International had over 9,300 properties under more than 30 brands across 144 countries. During 2025, Marriott recorded net room growth exceeding 4.3%, adding more than 700 properties and nearly 100,000 rooms worldwide. Organic deals represented over 630 properties and more than 89,000 rooms. Marriott ended 2025 with approximately 610,000 rooms in its development pipeline, a 5.7% year over year increase. Demand is supported by the return of business and leisure travel after global disruptions, interest in value oriented accommodations with useful amenities, and customer preference for recognized brands that provide consistent service. Courtyard's reasonable pricing, comfort, swimming pools, fitness centers, in room microwaves, and mini refrigerators fit those preferences and broaden its appeal to families and leisure travelers. Hotels also attract franchise investment because the underlying assets may appreciate over time and guest stays can create recurring revenue. Competition remains intense among global brands and independent operators, although the market is concentrated among large companies such as Marriott International. Global mobility, higher middle class disposable incomes, and changing travel patterns create opportunities for established brands with broad recognition and efficient operations.

A Courtyard By Marriott Hotels project generally requires a substantial capital commitment because hotel ownership involves more than the franchise itself. Total costs may include land acquisition, construction or extensive renovation, and a complete property fit out. The amount can vary with geographic location, property size, local construction costs, and whether the project is new construction or a conversion of an existing property. Marriott International provides the parent company backing behind the brand. Its history dates to 1927, and its Courtyard expansion included the $2 billion investment made in the mid 1980s. The company is headquartered in Bethesda, Maryland, and as of November 2025 operated a portfolio of over 9,300 properties under more than 30 brands across 144 countries. Marriott has franchised brands since 1960, giving it a long history with franchise relationships and support systems. The scale of Courtyard and the financial resources of its parent may be relevant when a qualified buyer discusses commercial financing with an independent capital advisor. PeerSense introduces franchise buyers to SBA and conventional lenders, but PeerSense is not a lender and does not approve or provide loans.

A Courtyard By Marriott Hotels franchise is designed to deliver a consistent guest experience for business travelers, families, and leisure guests. Depending on the property, the operation may be full service or select service and can include front desk work, housekeeping, maintenance, guest services, and food and beverage activities. Staffing may include managers, front line service associates, and specialized personnel responsible for amenities such as swimming pools and fitness centers. The standard hotel format can fit urban centers, suburban hubs, and airport vicinities. In room microwaves and mini refrigerators are part of the guest experience and require ongoing oversight. Marriott's network and operating history support training for key management personnel, continuing operational guidance, proprietary reservation and property management technology, and marketing programs connected to the broader Marriott brand. The company added over 700 properties and nearly 100,000 rooms globally in 2025 and had approximately 610,000 rooms in its development pipeline at the end of that year, showing continued investment in its system. Courtyard had 734 franchised locations across 49 states in 2020 and 1,066 total U.S. locations by 2026. The number of franchised units supports multi unit ownership as a common model for experienced hospitality operators. Owners may use an owner operator structure or hire professional hotel management companies, depending on the property and the owner's operating approach.

Buyers therefore need to assess the opportunity through corporate reporting, industry benchmarks, development activity, and the brand's market position. Marriott International's $2 billion investment in Courtyard during the mid 1980s helped the brand grow from three test sites in 1983 to over 90 hotels by 1987. The system later grew from 582 franchise locations in 2013 to 734 in 2017 and 2020, and then to 901 open franchises within 1,066 total U.S. locations by 2026. As of June 30, 2020, the global system included 1,254 hotels and 187,095 rooms, with 288 hotels and 49,335 rooms in development. Marriott's 2025 results included net room growth exceeding 4.3%, nearly 100,000 added rooms, and a development pipeline of approximately 610,000 rooms. Courtyard, as Marriott's most widely distributed brand and the 8th largest lodging brand overall, represents an important part of that system. The Loan Activity Score of 54 is categorized as Moderate and provides an independent indication of franchisee satisfaction and system health. These figures show sustained development, although they do not replace property specific financial analysis.

Courtyard By Marriott Hotels has expanded steadily since its founding. Marriott's $2 billion investment in the mid 1980s supported growth from three test sites in 1983 to over 90 hotels by 1987. Franchise locations increased from 582 in 2013 to 734 by 2017, with the 2020 Franchise Disclosure Document showing 734 franchised locations across 49 states. Updated 2026 data reported 1,066 total U.S. locations, including 901 open franchises and 165 corporate locations. Worldwide, the brand had 1,254 operating hotels and 187,095 rooms as of June 30, 2020, with another 288 hotels and 49,335 rooms in development. Marriott added over 700 properties and nearly 100,000 rooms globally in 2025, including more than 630 properties and over 89,000 rooms through organic deals. Its development pipeline ended 2025 at approximately 610,000 rooms after a 5.7% year over year increase. Courtyard's competitive position rests on its connection to Marriott International, its broad recognition, and its operating scale. The brand moved beyond its original business traveler focus by adding features suited to families and leisure travelers, including swimming pools, fitness centers, in room microwaves, and mini refrigerators. Its status as Marriott's most widely distributed brand and the 8th largest lodging brand overall can support purchasing reach, marketing exposure, and participation in guest loyalty programs. Continued system growth and Marriott's organic development activity have helped the brand respond to changing travel demand.

A prospective Courtyard By Marriott Hotels franchisee generally needs business management experience, financial judgment, and the ability to oversee a large and complex operation. Hospitality experience can be useful, as can a record of managing substantial assets and leading diverse teams. The system had 901 open U.S. franchises in 2026 and 1,254 hotels worldwide in 2020, which indicates that multi unit ownership is a common path for experienced developers and operators. In 2020, the brand's 734 franchised locations covered 49 states, with 364 in the Southern region. Marriott International's portfolio of over 9,300 properties in 144 countries also creates potential for international development by qualified candidates. A hotel project requires planning, permitting, construction, and pre opening work, and can span several years. Franchise agreements and renewal provisions govern the relationship, while transfer and resale provisions establish a process for exiting an investment and protecting brand standards. Because hotel ownership requires substantial capital and ongoing oversight, buyers should be prepared for a long term commitment. They may operate the property directly or retain an experienced third party management firm. Courtyard By Marriott Hotels merits detailed review by buyers who understand the capital, staffing, development, and management requirements of a hotel franchise. The brand combines a 1983 founding, Marriott's $2 billion expansion investment, a broad U.S. and global presence, and continued parent company growth. Those facts support further evaluation, but buyers still need property specific projections, development assumptions, and financing analysis before making a decision.

Loan Activity Score

54/100

SBA Default Rate

0.8%

Active Lenders

73

According to its Franchise Disclosure Document or public business records, Courtyard by Marriott hotels has 109 locations, all owned by franchisees. Public SBA loan records show 73 lenders made 120 loans to franchisees of Courtyard by Marriott hotels. PeerSense calculates Courtyard by Marriott hotels's score as 54 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2024 Franchise Disclosure Document.

Franchising since 1960 · 109 locations

Investment

$14.1M to $38.3M

Franchise Fee

$90,000

Total Units

109

109 franchised

Loan Activity Score
Very high
54
SBA Lending
25
Lender Quality
7
Transparency
8
Reach
10
Momentum
4

Proprietary PeerSense metric

Moderate
Capital Sources
73SBA lenders

Distinct lenders in public SBA records for Courtyard by Marriott hotels

120

Total SBA loans

$3.2M

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for Courtyard by Marriott hotels

Loan Activity Score Breakdown

Major Brand (100+ loans)

Very High Confidence
54out of 100
Moderate
Market Momentum4/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety25/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence7/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency8/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint10/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

0.8%

vs 10.3% peer avg

SBA Loans

120

Total Volume

$380.9M

Active Lenders

73

3 selective

States

32

vs. SBA Sector Average

+9.5%lower default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Low SBA default rate (0.8%)
Item 19 financial data disclosed
109 locations nationwide

Data Insights

Key performance metrics for Courtyard by Marriott hotels based on SBA lending data

SBA Default Rate

0.8%

9.5% below peer avg

SBA Loan Volume

120 loans

Across 73 lenders

Lender Diversity

73 lenders

Avg 1.6 loans per lender

Investment Tier

Premium investment

$14,087,810 to $38,276,610 total

Payment Estimator

Loan Amount$11.3M
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$145,834

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Courtyard by Marriott hotels, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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Courtyard by Marriott hotels

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman