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Membership Hotel Organization
Membership Hotel Organization LLC (MHO) franchises hotels operating under brands like MHO Hotel, MHO Suites, MHO Inn, and Powered by MHO, which appeal to leisure and business travelers in economy, mid-scale, and full-service markets. Franchisees convert existing hotels or operate new ones using MHO's standardized system, including design, procedures, and marks, with the business model centered on royalty fees and initial franchise investments. The target market is the general public seeking lodging services in a highly competitive hospitality industry.
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Franchise Costs
Royalty of $26.95 per room/mo or $2.00 per occupied room night + $26.95 per room/mo technology fee + brand fund currently not assessed (up to 5%)
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataMembership Hotel Organization Franchise Analysis
Imagine snapping up a hotel franchise spot in America's cutthroat lodging wars with a franchisor that's barely out of the gate. Membership Hotel Organization, launched in 2021, pitches a membership-driven model across economy to full-service brands, perfect for converting existing properties. But with FDD Item 19 absent and growth flatlining at zero percent, does this Bordentown, NJ-based upstart hide breakout potential or early red flags? Unlock the data to see if it's your next hospitality play.
Item 7 lays out a massive initial investment range of $71,595 to $1,244,695, skewed low for conversions of existing hotels under MHO Hotel, Suites, Inn, or Powered by MHO banners—ideal for operators dodging full builds. The franchise fee is a steal at $9,995, but ongoing royalties hit $26.95 per room per month or $2.00 per occupied room night, plus a matching $26.95 tech fee; a brand fund caps at 5% but isn't collected yet. No Item 19 earnings disclosure means no hard revenue or profit benchmarks, a gap that screams caution in a sector where averages hover around $1M+ AUVs for midscale—buyers must dig into private financials to gauge ROI, especially with just 3 franchise units and 1 corporate location as of 2024.
System maturity is the real wildcard: zero net growth from 3 locations in 2023 to 2024, yet FDD projects 7 new units, signaling franchisor ambition amid hospitality's post-pandemic rebound. FDD Item 20 shows stability with no terminations or transfers noted, but the tiny footprint (franchising since 2021) amplifies risks like unproven scalability. For deal-makers eyeing conversions, probe validation docs and speak off-record with the few owners—the low entry belies dependency on your hotel's existing performance to offset fees and hit breakeven fast.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Membership Hotel Organization Compares
Key Insights
- One of the lowest investment costs in Hotels (ranked #1 of 34)
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Membership Hotel Organization Current | $72K – $1.2M | $10K | N/A | 3 |
| SUPER 8 | $4.7M – $6.9M | $25K | 5.5% | 1,375 |
| DAYS INN, DAYS HOTEL AND DAYS INN & SUITES | $7.6M – $9.4M | $35K | 5.5% | 1,235 |
| LA QUINTA INN & SUITES | $12.8M – $17.2M | $55K | 5.5% | 884 |
| RED ROOF PLUS AND SUITES | $7.3M – $8.9M | $27K | 5.0% | 596 |
| BAYMONT INN & BAYMONT INN & SUITES | $7.6M – $10.5M | $26K | 5.0% | 547 |
Hotels Average 34 franchises | $8.7M – $22.2M | $48K | 5.3% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 34 Hotels franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
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Unlock location growth dataFranchisee Contacts
8 franchisee contacts on file from official FDD filings.
8 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Membership Hotel Organization franchise ranges from $71,595 to $1,244,695. This includes a franchise fee of $9,995.