Integration Update | FDD Framework Coordination
U.S. & Canada Franchisees | As we begin to integrate Starwood brands into the Marriott portfolio, we wanted to highlight certain changes to our Franchise Disclosure Documents (FDD) that may impact your hotel(s). These changes are immediately effective for all new development and relicensing deals.
Relicensings
Change of Ownership – Application fees for relicensings/changes of ownership for Starwood-brand hotels can be found below, and the franchisee will be responsible for applicable charges for outside counsel fees in papering the new agreement.
| Brand | Application Fee |
| Aloft | The greater amount of U.S.$125k or U.S.$400/room |
| Element | The greater amount of U.S.$125k or U.S.$400/room |
| Four Points | The greater amount of U.S.$125k or U.S.$400/room |
| Le Meridién | U.S.$120k + U.S.$400/room over 250 rooms |
| The Luxury Collection | U.S.$125k + U.S.$300/room over 250 rooms |
| Sheraton | U.S.$120k + U.S.$400/room over 275 rooms |
| Tribute Portfolio | U.S.$125k + U.S.$300/room over 250 rooms |
| Westin | U.S.$120k + U.S.$400/room over 275 rooms |
Property Improvement Plan (PIP) Fee
Select Service & Extended Stay – Change from U.S.$5k to U.S.$8k (relicensings, changes of ownership, and renewals) and from U.S.$5k to U.S.$10k (development-conversions)
Full Service – Change from U.S.$7.5k to U.S.$20k (for relicensings, changes of ownership, renewals, and development-conversions)
*These new PIP fees include the Fire Life Safety review, which was previously a separate U.S.$4-6k fee, and will be credited toward the application fee, if the application is approved.
Re-inspections
PIP Noncompliance Re-inspection – If your hotel does not pass inspection after initial PIP completion, you will be responsible for a U.S.$2.5k re-inspection charge and U.S.$5k for any necessary subsequent re-inspection(s).
Food Safety Re-inspection – U.S.$600 will be assessed for failure of the food safety audit.
FLS Re-inspections – U.S.$600 will be assessed for any Fire Life Safety inspection failure.
Renovation Schedule
PIPs – For owners and franchisees of Starwood properties, PIPs were required at the 6th and 13th anniversaries with work to be completed by the 8th and 15th anniversaries. Renovations must now be completed in accordance with Marriott standards. Currently, Marriott standards require renovations to be completed no later than the 7th and 14th anniversaries.
Owner/Operator Screens
Operator Screens – Marriott will charge U.S.$5k for any operator screen that is conducted after the initial operator screen that is included in your application fee (new development or relicensing/change of ownership).
Post-approval Owner Background Check – Marriott will charge a fee to cover third-party costs it incurs for background checks, performed after approval of your application, due to proposed ownership changes.
Territorial Changes
Term Changes – Territorial rights will not be granted in connection with changes of ownership, relicensings or renewals. For new development projects, territorials will be for a set number of years; no longer for the term of the agreement and no longer with a termination right in connection with a chain acquisition.
We remain steadfast in our commitment to protecting your investments. Should you have any questions regarding these changes, please contact Marriott Owner & Franchise Services.
