If you’re interested in becoming a part of this trillion dollar industry and looking into franchising a hotel and resort, Westin Hotels & Resorts is one of the most recognized luxury hotels in the world. They’re owned by Marriot International Inc. and have been in business since the 1930s, growing around the United States and internationally.

How much does it cost to open Westin Hotels & Resorts? The estimated initial investment range to open a Westin Hotel and Resort is an eye-popping $74,778,340 to $121,432,140. As for the application fee, this varies depending on the setup and number of rooms. As you can see, you’ll need very deep pockets to make this level of investment.

Keep on reading to know more about Westin Hotels and Resorts, what advantages and challenges you can expect in running this franchise, and whether or not it’s the business for you. Take our 7-minute quiz to find out if this hotel franchise is right for you.

Financial Requirements and Fees

These are the financial requirements to franchise Westin Hotels and Resorts:

The total investment cost stated above excludes the cost of real estate, building permits, impact fees, tap, insurance, contingencies, and other related costs. The investment also only covers a 250 guest room hotel.

For the application fee, if you are planning to franchise a New-to-System Westin Hotel which also means converting a non-Company Brand Hotel to a Westin Hotel, the fee is $100,000 for a 250 guest room hotel. An additional $400 is paid per guest room if you have more than 250 guest rooms.

For an Existing Westin Hotel or if you’re converting a hotel that is managed by Westin or any of their affiliates to a Westin Hotel, the application fee is $150,000 or $500 per guest room, whichever is greater.

If you wish to operate a Heavenly Spa in your franchise application request, the additional application fee is $27,000. Do note that the spa cannot be operated independently and will only be developed with a Westin Hotel.

It is also important to note that hotel application fees are non-refundable.

As for the franchise fees, this depend on the room sales. For instance, the franchise fee for Westin Hotels is 7% of gross room sales and 3% of gross food and beverage sales.

Average Sales / Revenue per Year

According to a report by Axios, Westin Hotels and Resorts’ most recent revenue recorded is from their 2nd quarter of 2022 which is $184.25 million.

Westin Hotels & Resorts Franchise Facts

Westin Hotels was born in 1930 when two hotel competitors Frank Dupar and Severt W. Thurston met in Yakima, Washington. Their conversation led to them forming an alliance wherein Westin Hotels was established although at that time, it was called Western Hotels. The name was changed to Western International Hotels in 1963 when it expanded outside the United States until it finally settled on Westin Hotels, a combination of Western and International, in 1981.

Westin Hotels and Resorts have over 234 units globally. They operate in Asia, Africa, Australia and Pacific, Central America and Caribbean, Europe, Middle East, North America, and South America. They belong to Marriott International Inc.’s Premium brand of hotels under their Distinctive category.

Westin Hotels are mostly known for their signature wellness programs. They offer wellness menus for their customers, Heavenly Bed, Heavenly Spa, and have workout fitness studios that customers can enjoy during their stay.

To franchise Westin Hotels and Resorts, you can complete the form here. The form includes your contact details as well as information you will have to provide regarding your planned Westin Hotel location.

After answering the form, you’ll be able to discuss with Marriott International Inc.’s Market Development Lead your interest in franchising Westin Hotels. You’ll also get to read their Franchise Disclosure Document (FDD) which contains all the details you need regarding franchising their hotels such as the full financial requirements and expenses. You may also read this beforehand here.

You Might Like: How Much Does it Cost to Open a Curves / Jenny Craig Franchise? 

Once you’ve gone through the Franchise Disclosure Document and you’re still willing to push through with developing a Westin Hotel and Resort, your proposal and deal will be subject to review and approval by the Marriott team. And once everything is approved, you can move on to the site development and hotel opening details.

The qualities that Marriott looks for in their Westin Hotel franchisees is that they the appropriate real estate net worth, an entrepreneurial spirit, strong associate engagement, a commitment to a culture of excellence, and that the franchisee’s core values align with their brand.

Westin Hotels and Resorts are known to be very luxurious and are rated as 4 to 5 star hotels all over the globe. They have approximately 100 to 1,350 guestrooms

At present, the Director and Chief Executive Officer of Mariott International Inc. is Anthony Capuano.

How Much Does Westin Hotels & Resorts Make in Profit?

Westin Hotels and Resorts reported an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1,019 million in the second quarter of 2022.

Advantages of a Westin Hotels & Resorts Franchise

A 4 to 5 star hotel like Westin has a number of advantages when you decide to franchise with them. Here are just some of a few you can expect:

Brand

Westin Hotels and Resorts have been known to be a high class brand especially because they are a Marriott owned hotel and Marriott is ranked by Forbes in its “Global 2000” list of the largest companies worldwide by market value. Being associated with such brand makes Westin Hotels credible.

So if you franchise a Westin Hotel, know that you belong to the Marriott group of hotels that are known for their exceptional service all around the globe.

Global Presence and Concept

Westin Hotels are found worldwide. As mentioned above, they’re located in Asia, Africa, Australia and Pacific, Central America and Caribbean, Europe, Middle East, North America, and South America. Every hotel focuses on providing wellness programs which means that most of their locations are a traveler’s dream of rest and relaxation.

You would be proud to franchise a hotel that’s known for such luxury and concept.

Looking Beyond

Westin Hotels seem to be looking beyond just being a hotel. According to their Franchise Disclosure Document, they’ll be offering franchises for multi-unit family dwelling rental businesses that offers long-term and short-term apartment rentals through their loyalty programs, reservation and distribution channels. This type of marketing strategy can get previous customers to keep on coming back to stay at Westin.

Having a marketing strategy that looks beyond the usual hotel and resort is a great advantage once you become a franchisee.

Challenges of a Westin Hotels & Resorts Franchise

Even a top luxurious hotel chain like Westin can bring challenges when you franchise with them. Here are a few to expect:

Expensive

According to the HVS Global Hospitality Services’ 2013 U.S. Hotel Franchise Fee Guide, initial franchise fees depend on the minimum dollar amount based on a hotel’s room count. But for Westin, it depends on the room sales and food and beverage sales. What’s more is that Westin is not your ordinary hotel. They are considered a premium brand so fees can be quite expensive.

That’s not all. Even on the guests’ side, staying at Westin doesn’t come cheap. So if you franchise Westin, make sure you have a good location that is frequented by travelers and have enough amenities that promote wellness living.

Competition

Even a luxurious brand like Westin Hotels and Resorts has a number of competitors such as the Hyatt, Hilton, Wyndham, and more. There are many hotels and resorts that guests can choose that has the same service, amenities, and programs that Westin Hotels offer. So if you plan on franchising Westin, you’d need to have a marketing strategy that’s consistently updated as well as offer new features frequently so as to get more guests and have your previous customers return.

Is the Westin Hotels & Resorts Franchise Right For You?

Did you know the market size of the hotel and resort industry worldwide is forecast to reach $1.06 trillion this year? With so many people around the world feeling starved for travel and starting to vacation again the entire industry is positioned for a major increase in demand.

If you’re going for a luxurious brand of hotel to franchise, then Westin Hotels are the one for you. This has been reported by media as one of the most profitable luxury hotels so if you have the financial means to franchise Westin and are committed to creating unforgettable lodging experiences then go for it!

What is an alternative Westin Hotels and Resorts franchise?

A top travel hotel brand that’s well known globally is Hilton Hotel. The Hilton brand has been around for almost a century offering world-class amenities and services to their guests and they’re also open for franchising.

To franchise a Hilton Hotel, expect the investments to reach around $33,709,705 to $140,694,073 with an initial franchise fee of $75,000.

Are you ready to own a Westin Hotel? I hope this guide was able to help you in deciding whether or not this brand of hotel for your market.