Sheraton Inn
14 locations
The total investment to open a Sheraton Inn franchise ranges from $562,000 - $5M. Sheraton Inn currently operates 14 locations (14 franchised). The top SBA 7(a) lenders for Sheraton Inn are SBA Enforcement Action - DelVa, Illinois Business Financial Se and Preferred Lending Partners. PeerSense FPI health score: 30/100. Data sourced from the 2024 Franchise Disclosure Document.
$562,000 - $5M
14
14 franchised
Proprietary PeerSense metric
LimitedActive capital sources verified for Sheraton Inn financing
SBA
7(a) Eligible
21d
Avg Funding
P+2.25%
Best Rate
No retainers · Referral fee at closing
FPI Score Breakdown
Growing (10-24 loans)
SBA Lending Performance
SBA Default Rate
17.6%
3 of 17 loans charged off
SBA Loans
17
Total Volume
$43.8M
Active Lenders
16
States
13
Top SBA Lenders for Sheraton Inn
What is the Sheraton Inn franchise?
The Sheraton Inn franchise presents a compelling opportunity within the expansive Hotels (except Casino Hotels) and Motels category, representing a focused presence with 16 total units currently operating. Headquartered in Tallahassee, Florida, this brand offers prospective franchisees a chance to engage with a recognized name in the hospitality sector. While specific historical dates for the establishment of the Sheraton Inn franchise as a distinct entity with 16 units are not provided, the brand’s association with a heritage of guest satisfaction and service excellence is broadly understood within the lodging industry. Sheraton Inn typically caters to a diverse clientele, including both business travelers seeking convenience and amenities for productivity, and leisure guests desiring comfort and reliability during their stays. The operational model for a Sheraton Inn franchise is designed to deliver a consistent and appealing guest experience, often characterized by comfortable accommodations, essential services such as breakfast offerings, and a welcoming atmosphere. The relatively concentrated network of 16 total units suggests a strategic and perhaps specialized market approach, allowing for focused brand development and adherence to quality standards across its footprint. Engaging with a Sheraton Inn franchise means aligning with a brand that aims to provide dependable lodging solutions, a critical factor for attracting and retaining a loyal customer base in various market segments. The emphasis on delivering value and a pleasant stay positions a Sheraton Inn franchise as a strong contender for investors looking to enter or expand within the hospitality sector, leveraging a known identity to attract travelers seeking reliable and comfortable accommodations in diverse locations. The brand’s market position is fortified by its ability to offer a balanced proposition of quality and accessibility, appealing to a wide spectrum of hotel guests across its distinct operational sites.
The broader hotel industry landscape, in which a Sheraton Inn franchise operates, continues to demonstrate remarkable resilience and dynamic growth, driven by an array of global economic and social factors. The hospitality sector, encompassing hotels, motels, and various accommodation types, is a multi-billion-dollar global market, characterized by continuous innovation and adaptation to evolving consumer preferences. Key drivers for this robust growth include increasing global travel and tourism, the resurgence of business travel, and a rising disposable income in many regions, which collectively fuel demand for diverse lodging options. The market is highly segmented, ranging from economy and mid-scale properties to upscale and luxury establishments, each catering to specific guest needs and price points. A Sheraton Inn franchise would typically compete within the mid-to-upscale segments, where guests often seek a blend of convenience, comfort, and value-added services. Technological advancements play a pivotal role in shaping the industry, with digital booking platforms, mobile check-in capabilities, smart room technologies, and sophisticated revenue management systems becoming standard. Furthermore, sustainability and responsible tourism practices are increasingly influencing consumer choices, prompting hotels to adopt eco-friendly operations and design. The competitive environment is intense, but branded properties like a Sheraton Inn franchise benefit from established recognition, centralized reservation systems, and marketing support, which are crucial for maintaining market share. The steady demand for accommodation, coupled with ongoing trends in travel and consumer behavior, ensures that the hotel industry remains a vibrant and attractive sector for strategic investment and operational development.
Investing in a Sheraton Inn franchise requires a significant capital commitment, with the total initial investment estimated to fall within a substantial range of $562,000 to $5.00 million. This wide financial spectrum reflects the inherent variability in hotel development, encompassing factors such as property size, location, whether it's new construction or a conversion/renovation, and the scope of amenities offered. The initial investment typically includes a multitude of critical components essential for establishing and operating a fully functional hotel. These often comprise the initial franchise fee, which grants the franchisee the rights to use the brand name and system; real estate acquisition or leasehold improvements, which can be a major cost driver depending on the market; construction costs for new builds or extensive renovation expenses for existing structures to meet brand standards. Further significant expenditures include the procurement of Furniture, Fixtures, and Equipment (FF&E), encompassing everything from guest room furnishings and bedding to kitchen equipment, lobby décor, and operational technology. Additionally, pre-opening expenses, which cover initial marketing, staff recruitment and training, and grand opening events, are crucial. Working capital is also a vital component, ensuring sufficient funds are available to cover initial operating costs before the business achieves positive cash flow. The range of $562,000 to $5.00 million for a Sheraton Inn franchise underscores the capital-intensive nature of the hotel business, requiring prospective franchisees to possess robust financial capabilities and a clear understanding of the project’s full scope. This investment level is indicative of a commitment to developing a quality lodging establishment designed to meet brand specifications and guest expectations within the competitive hospitality market.
The operating model and support system for a Sheraton Inn franchise are designed to equip franchisees with the necessary tools and guidance to run a successful hotel operation, although specific details regarding the training duration, curriculum, or ongoing support structure are not explicitly provided. Typically, a reputable hotel franchise like Sheraton Inn would implement a comprehensive operational framework to ensure consistency and adherence to brand standards across all its 16 units. This would involve detailed operational manuals covering all aspects of hotel management, from front desk procedures and housekeeping protocols to maintenance schedules and guest service standards. Franchisees would generally benefit from access to a centralized reservation system, designed to drive bookings and maximize occupancy rates. Marketing and advertising support, including national campaigns and localized strategies, are also common features, leveraging the brand's recognition to attract guests. Furthermore, ongoing training and development programs for hotel staff, covering customer service, operational efficiency, and compliance with industry regulations, are usually part of a robust support system. Quality assurance programs, regular property inspections, and performance reviews would also be instrumental in maintaining the brand's reputation and ensuring high guest satisfaction. While specific figures or dates for these support mechanisms are not detailed for the Sheraton Inn franchise, the expectation within the hospitality industry is that a branded hotel opportunity includes substantial assistance in these critical areas, helping franchisees navigate the complexities of hotel ownership and operations, from revenue management strategies to guest relations management, thereby fostering a consistent and high-quality guest experience across the entire network.
The financial performance of a Sheraton Inn franchise is a critical consideration for any prospective investor, and while specific revenue and profitability figures are not publicly disclosed, the brand does carry an FPI Score of 30. The FPI Score is an independent metric designed to provide a comparative assessment of a franchise’s overall financial health and potential, based on a comprehensive analysis of various factors. An FPI Score of 30 suggests specific insights are available through detailed research platforms like PeerSense, offering a nuanced perspective on the brand’s economic viability relative to its peers. Without explicit Item 19 disclosures of average unit revenues, gross sales, or net profits for the 16 Sheraton Inn franchise locations, potential franchisees must rely on comprehensive due diligence to project financial outcomes. However, general factors influencing hotel profitability are universally applicable. These include occupancy rates, which measure how many rooms are sold; the Average Daily Rate (ADR), representing the average revenue earned per occupied room; and Revenue Per Available Room (RevPAR), a key industry metric combining occupancy and ADR to indicate overall financial performance. Operational efficiency, encompassing labor costs, utilities, maintenance, and supply chain management, significantly impacts the bottom line. Furthermore, market demand, seasonality, local economic conditions, and effective sales and marketing strategies are all crucial determinants of a Sheraton Inn franchise’s financial success. Prospective franchisees are encouraged to conduct thorough market analysis and engage with existing operators to gain a clearer understanding of potential earnings, understanding that profitability is a function of meticulous management, strategic pricing, and an unwavering commitment to guest satisfaction.
The growth trajectory for the Sheraton Inn franchise, with its current count of 16 total units, indicates a deliberate and possibly strategic approach to market penetration within the Hotels (except Casino Hotels) and Motels segment. While specific expansion plans or historical growth rates are not provided, the presence of these 16 units suggests a foundation upon which future development could be built. Competitive advantages for a branded hotel like a Sheraton Inn franchise typically stem from several key areas. Foremost among these is brand recognition, which significantly reduces the marketing burden for individual franchisees and instills a sense of trust and familiarity among travelers. This recognition often translates into higher occupancy rates and a greater ability to command competitive pricing. Another crucial advantage lies in centralized reservation systems and global distribution channels, which provide extensive reach and facilitate bookings from a wide array of sources, significantly boosting the sales potential for each Sheraton Inn franchise. Furthermore, branded properties often benefit from established loyalty programs, which incentivize repeat business and foster a dedicated customer base. Operational efficiencies, derived from standardized procedures, bulk purchasing power, and shared best practices across the 16 units, can also contribute to cost savings and improved profitability. The collective expertise and ongoing support typically offered by a franchise system also represent a significant competitive edge, allowing franchisees to leverage proven business models and industry insights. These factors together enable a Sheraton Inn franchise to compete effectively in diverse markets, leveraging its established identity to attract travelers and maintain a strong position against independent hotels and other branded competitors.
The ideal candidate for a Sheraton Inn franchise would typically possess a robust blend of financial acumen, strong leadership skills, and a profound commitment to customer service, although specific franchisee profile requirements are not detailed. Experience in business management, particularly within the hospitality, real estate, or service industries, would be highly beneficial, providing a solid foundation for overseeing a hotel operation. Prospective franchisees must demonstrate sufficient liquid capital and net worth to meet the substantial investment range of $562,000 to $5.00 million, ensuring the financial stability required for development and sustained operation. A passion for providing exceptional guest experiences and a dedication to upholding brand standards are paramount, as the success of each of the 16 Sheraton Inn franchise locations relies on consistent quality. The ability to manage a team, navigate operational complexities, and engage effectively with local communities are also critical attributes for a successful hotel owner. Regarding territory, while specific criteria for site selection are not publicly available, successful hotel development typically hinges on strategic location. Ideal territories for a Sheraton Inn franchise would likely include areas with high visibility, easy accessibility, and proximity to key demand generators such as corporate business parks, major transportation hubs, tourist attractions, convention centers, or medical facilities. Market analysis to assess local competition, demographic trends, and economic stability is crucial to identifying viable opportunities for a new Sheraton Inn franchise, ensuring a strong potential for sustained occupancy and profitability within the chosen market.
The Sheraton Inn franchise presents a noteworthy investor opportunity for individuals or groups looking to enter or expand within the resilient and dynamic hotel sector. With 16 total units currently operating, and an investment range between $562,000 and $5.00 million, this brand offers a chance to own a piece of the Hotels (except Casino Hotels) and Motels market. The FPI Score of 30, while not a direct indicator of profitability, signals an independent assessment of the franchise system's overall health and potential, providing a valuable data point for comparative analysis. Investing in a Sheraton Inn franchise means leveraging a recognized brand name to attract a broad base of travelers, from business professionals to leisure guests, all seeking dependable and comfortable accommodations. The hospitality industry continues to show robust demand, supported by global travel trends and a consistent need for quality lodging options. Prospective franchisees should approach this opportunity with a comprehensive understanding of the capital requirements, operational demands, and the critical role of market dynamics in determining success. The potential for long-term growth and stable revenue streams in the hotel sector makes the Sheraton Inn franchise an attractive proposition for those with the financial capacity and operational expertise to manage a significant hospitality asset. Comprehensive due diligence, including market research and detailed financial projections, is essential for making an informed investment decision. Explore the complete Sheraton Inn franchise profile on PeerSense to access the full suite of independent franchise intelligence data.
FPI Score
30/100
SBA Default Rate
17.6%
Active Lenders
16
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Sheraton Inn based on SBA lending data
SBA Default Rate
17.6%
3 of 17 loans charged off
SBA Loan Volume
17 loans
Across 16 lenders
Lender Diversity
16 lenders
Avg 1.1 loans per lender
Investment Tier
Premium investment
$562,000 – $5,000,000 total
Sheraton Inn — Deep SBA Data
Brand-specific metrics derived directly from SBA 7(a) approval records — peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2012
5 approvals — best year on record for Sheraton Inn.
Top SBA State
Florida
3 SBA-financed Sheraton Inn locations — the densest operator footprint.
Average Loan Size
$2.6M
Median $2.0M — use as a sizing anchor when modeling your own $Sheraton Inn unit.
Lender Concentration
23.5%
Moderately Spread
Share of Sheraton Inn approvals captured by the top 3 SBA lenders.
Sheraton Inn's SBA lending pipeline peaked in 2012 (5 approvals). Operator density is highest in Florida with 3 SBA-financed locations. Average funded ticket sits at $2.6M, with the median at $2.0M. Lender mix is moderately spread: the top three SBA lenders account for 23.5% of approvals — borrowers have leverage to shop multiple credit boxes.
Payment Estimator
Estimated Monthly Payment
$5,818
Principal & Interest only
Locations
Sheraton Inn — unit breakdown
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