Sheraton

Sheraton

Information based on 2024 FDD

Lodging & Hospitality · Hotels, Resorts

Investment min
$79M
Total: $79M–$128M
Avg gross revenue
N/A
Unit-level, 2024
Franchise fee
$100K
Per current disclosure
Royalty
6%
of gross revenue
Locations
142
Franchising since 1963

Description

What is Sheraton?

Sheraton, established in 1937, stands as one of the world's most prestigious and recognizable hotel brands, offering exceptional hospitality experiences across its global network of properties. As part of Marriott International's premium portfolio, Sheraton hotels combine sophisticated comfort with modern amenities to create memorable stays for both business and leisure travelers.

Each Sheraton property is thoughtfully designed to serve as a gathering place where guests can connect, collaborate, and experience the local culture. The brand is renowned for its distinctive blend of contemporary style and traditional hospitality, featuring elegant lobbies, well-appointed rooms, and signature amenities that cater to the needs of today's global travelers.

Sheraton's commitment to culinary excellence is evident through its diverse dining options, from rooftop bars with panoramic city views to sophisticated restaurants offering international cuisine. The brand's properties typically include premium facilities such as state-of-the-art fitness centers, luxurious spas, and versatile meeting spaces that accommodate both intimate gatherings and large-scale events.

What sets Sheraton apart is its dedication to creating meaningful guest experiences through personalized service and attention to detail. The brand's 'Gather' concept transforms hotel spaces into vibrant social hubs where travelers can work, meet, and relax. With properties strategically located in prime urban centers, business districts, and resort destinations worldwide, Sheraton continues to uphold its legacy of providing sophisticated, welcoming environments that serve as gateways to local communities and cultures.
  • Marriott Bonvoy loyalty system integration with global reach
  • 87 years of established hospitality heritage since 1937
  • Global brand recognition and prestige positioning
  • Premium full-service hotel market positioning
  • Comprehensive operational support within Marriott ecosystem
  • 168-unit selective franchise network ensuring market exclusivity

Location Analysis

Where Sheraton wins

Sheraton maintains a strategic presence across multiple states with numerous locations, demonstrating strong market penetration in both coastal and inland regions. The franchise shows notable concentration in California, Ohio, and the Northeast corridor, particularly New Jersey and Pennsylvania, suggesting successful adaptation to diverse market conditions. The brand's strong customer satisfaction ratings across thousands of reviews indicates consistent service quality and guest satisfaction.

The franchise's geographic distribution reveals a sophisticated market strategy, targeting high-traffic business centers and tourist destinations. Strong presence in California and the Northeast leverages robust business travel and tourism sectors, while significant coverage in the Southeast captures growing markets. This distribution pattern suggests successful positioning in both established and emerging hospitality markets.

Ideal locations typically feature proximity to business districts, airports, or tourist attractions, with strong demographic indicators including high disposable income and substantial business activity. Growth opportunities exist in underserved markets, particularly in the Mountain West and Upper Midwest regions, where economic growth and tourism development present expansion potential. Success factors include locations with steady corporate travel, convention facilities, and robust leisure tourism infrastructure.
Total US locations
168
Franchise units
142
Corporate locations
26
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Sheraton

Avg gross revenueN/A
Investment range$78,667,490 – $128,442,890
Investment midpoint$103,555,190
Brand fund2.02%
Royalty6%
Franchise fee$100,000
Min. net worth
Min. liquid capital
Sheraton represents a **premium-tier hotel franchise opportunity** within Marriott International's portfolio, requiring substantial capital investment typical of full-service hotel properties. **Sheraton-specific investment and revenue data are not publicly disclosed**, however subsector averages for Hotels, Resorts indicate **$8.4-$9.3 million** in total investment requirements. This investment level typically encompasses property acquisition or construction, extensive renovations to brand standards, furniture/fixtures/equipment, and substantial working capital requirements.

**Important data limitation**: The subsector average gross revenue figure of **$1,502** appears inconsistent with multi-million dollar investment requirements and may indicate data reporting variations or measurement methodology differences across the 109 franchises in this subsector. Prospective investors should conduct independent due diligence on revenue potential.

The **lodging industry** benefits from recovering travel demand post-pandemic, with business and leisure segments showing resilience. Sheraton's **168-unit system** reflects selective growth within Marriott's broader strategy, suggesting careful market positioning rather than aggressive expansion.

Established in **1937**, Sheraton brings **87 years** of hospitality expertise and brand recognition. Integration within Marriott Bonvoy's loyalty ecosystem provides significant competitive advantages through cross-brand synergies and customer acquisition channels. **Ideal investors** require substantial liquid capital, hospitality management experience, and long-term investment horizons.

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$79M–$128M
Most common
$78,667,490
Minimum
$103,555,190
Midpoint
$128,442,890
Maximum

Per FDD Item 7, total initial investment ranges from $78,667,490 to $128,442,890. The midpoint $103,555,190 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

Growth over time

Franchise footprint

-2% YoY
250200150100500
2017
2018
2019
2020
2021
2022
2023
2024
168 units open as of 2024 FDD-4 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Sheraton's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Sheraton franchise typically ranges between $78,667,490.00 and $128,442,890.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Sheraton
Sheraton
N/A avg revenue · 142+ US franchises

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