HAWTHORN SUITES HOTELS AND HAWTHORN SUITES

Item 7 details the steep initial investment of $12,274,670 to $14,268,857, covering land, building, FF&E, and pre-opening costs for a typical 80-120 suite property. The $40,000 franchise fee unlocks Wyndham's reservation system and brand power, but ongoing fees bite: 5.5% royalty on room revenue, 2.5% marketing fund, plus $1,400 monthly remote sales, $734-$1,050 PMS, and $100 continuing education. Item 19 discloses average gross sales around established units (specifics vary by location maturity), offering a glimpse into topline potential in a market where occupancy drives profits—think 65-75% rates yielding strong cash flow after fixed costs.

System metrics paint a steady but not explosive picture: 71 U.S. locations as of 2024 FDD, up 4% from 68 in 2023, with 25 new units projected and just 3 terminations alongside 2 transfers. Backed by Wyndham's global muscle since 1996, growth feels deliberate amid hospitality headwinds. Litigation centers on contract breaches and fee disputes (e.g., LuxUrban, Pooniwala cases), a common flag in hotels but worth vetting. For deep-pocketed investors eyeing 15-20% ROI post-ramp-up, Hawthorn's data suggests viability if you nail location and ops—otherwise, the scale could swamp returns.