on to dismiss the latest complaint was fully briefed as of January 6, 2026, and is pending with the court. MII intends to defend vigorously against plaintiffs’ claims. 2. Segal v. Amadeus IT Group, S.
From the filings
Element Hotels
LodgingElement Hotels operates 102 units, 99 of them franchised, as part of the Marriott portfolio out of a Maryland headquarters. Lightspeed, OpenTable and Yahoo are in use across the brand without being contractually mandated, and the officers named in the filing are Marriott's top corporate leadership.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
6.5%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
2025, the parties entered into a settlement pursuant and the parties filed a stipulated dismissal of the lawsuit, fully resolving the case. C. Other Pending Actions 1. Portillo v. CoSTAR Group, Inc.,
you select. Transaction-Based Media 8% of applicable gross room On demand You pay only if the guest Program14 revenues, not to exceed $200 stays at the hotel. per stay Technology5 LightSpeed $15,000 t
e allowances if certain volume thresholds are met. In 2025, we and our affiliates received $130,000 as a result of this arrangement. We and our affiliates have an arrangement with OpenTable Inc. (“Ope
y rebates, commissions, and markups are subject to change. We and our affiliates pay Sabre Inc. (“Sabre”) a fee for each transaction that is delivered from travel agencies through Sabre’s global distr
h the results were achieved, as published by the United States Department of Treasury. The data in this Item 19 regarding reservations and the loyalty programs was not provided by STR, but instead was
nd paid ads in search engines (such as Google, Yahoo, and Bing), AI engines (such as Google, OpenAI, Anthropic), through advertising networks and direct referral partners (such as TripAdvisor, Google
rry Group plc. since October 2019, and Procter & Gamble since August 2020. She previously served as a director of AT&T Inc. until April 2022, WGL Holdings, Inc. from 1999 to 2018, Twitter, Inc. from M
per month. 14 Through the Transaction-Based Media Program, we develop advertising materials and pay third parties to place listings and paid ads in search engines (such as Google, Yahoo, and Bing), AI
Franchisor behaviours
What the franchisor requires
23 requirements the franchisor states in this filing, each in its own words; 6 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We have independent access to the system databases at your hotel.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
For each full or partial calendar or fiscal year (whichever is used by Franchisee for income tax purposes), Franchisee will prepare and provide to Franchisor a complete statement of income and expense from the operation of the Hotel for the preceding year.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesFranchise agreement
Franchisor may designate suppliers, including Franchisor, for certain items related to FF&E, Inventories and Fixed Asset Supplies.
Is there a franchisee advisory council, association or committee?
YesItem 20
There is a franchisee advisory council (“FAC”) for the Element by Marriott hotels system that we created.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may modify our standards and specifications in our sole discretion, and you must comply with such changes at your expense.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
11250060Item 8
The total amount of revenue that we and our affiliates received in 2025 as a result of franchisees’ required purchases, including any unrestricted rebates that we retained and did not distribute, and other fees or payments that we charged for providing procurement services on behalf of franchisees or otherwise…
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
Suppliers may pay to MIP Americas various fees and commissions.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
46Item 8
(ii) 46% to 60% of the total cost of purchases and leases you will incur to operate a typical Element by Marriott hotel2 on an annual basis.
Can a franchisee propose a new supplier for the franchisor's approval?
YesFranchise agreement
Franchisee may propose new suppliers by delivering sufficient information and samples for Franchisor’s confirmation that such item meets the Standards and the proposed supplier is capable of providing such item in accordance with the Standards.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 11
You must comply with all rules and regulations promulgated by the credit card companies and associations, including current PCI data security standards and our PCI compliance standards.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 6
You must also allow us to conduct on-site visits, at your expense.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may change the standards at any time.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
Your franchise agreement will permit you to operate one hotel of a specific size at a specific site selected by you and approved by us.
Marketing
Is a minimum grand opening advertising spend required?
YesItem 7
In conjunction with the initial opening or conversion of your hotel, you must conduct a marketing and advertising campaign in accordance with our standards.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 6
You are required to participate in any other guest loyalty program or special marketing program we create for Company Brand Hotels (or any subset thereof applicable to your hotel system) and honor all program rules and policies.
Operations
Must equipment be purchased from designated or approved suppliers?
YesItem 8
Additionally, we may specify that certain food products, FF&E, OS&E, communication systems (including internet access, see Item 11), and other goods and services be purchased only from us or sources designated or approved by us.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
You must also use our preferred providers in connection with processing credit cards, including authorizations and settlements.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We will require franchisees to submit payments due to us, our affiliates, and certain approved vendors such as travel intermediaries via ACH (Automated Clearing House) bank transfer or other methods of electronic funds transfer.
Must the franchisee participate in a gift card program?
YesItem 11
We may provide, and you must participate in (at your cost), sales and marketing programs and activities that are not funded by the Marketing Fund, such as email marketing, internet search engine marketing, transaction-based paid media programs, sales lead referrals and bookings, cooperative advertising programs…
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must use one of the POS systems that we designate.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have independent access to the system databases at your hotel.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may require additional training programs and courses when systems and operating standards change.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
During years in which we hold an educational General Managers Conference, the general manager of your hotel will be required to attend.
The filing answers no to 6 questions
- Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Franchise agreement
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Franchise agreement
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Franchise agreement
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Must the franchisee buy products from a designated distributor?Item 8
The vendor opportunity at Element Hotels
Element Hotels runs 102 units out of Maryland, 99 of them franchised, as one of several brands inside the Marriott portfolio alongside St. Regis Residences, City Express by Marriott, The Luxury Collection, Postcard Cabins, SpringHill Suites and Tribute Portfolio. The FDD sets a 5.5% royalty and a 20-year initial term, and the network is growing fast — unit count is up 13.8% year over year, and the FDD makes a financial performance representation.
Who controls software purchasing
Item 2 names Marriott's top corporate leadership rather than brand-specific executives: David S. Marriott (Chairman of the Board), Anthony Capuano (Director, CEO and President), Isabella D. Goren (Director), Deborah Marriott Harrison (Director) and Frederick A. Henderson (Director). A vendor pitch to Element Hotels is, in practice, a pitch into Marriott's corporate structure.
Tech named in the FDD, and what is actually required
Lightspeed, OpenTable and Yahoo (Items 6 and 8) are in use — the filing describes them in use or charges a fee for them, which is not the same as a contractual requirement. Amadeus and CoStar (Item 3), Sabre (Item 8), STR by CoStar (Item 19) and TripAdvisor (Item 6) are all named in the filing without any requirement to use them.
Procurement, renewals, and timing
Item 8 requires franchisees to buy FF&E, OS&E and other goods and services that conform to Marriott's standards and specifications. The franchisor may specify a particular model or brand available from only one manufacturer or supplier, or require purchase only from the franchisor or a designated source; franchisees can request approval of an alternative by written submission. Item 17 sets the brand's renewal, transfer and termination terms; with a 20-year initial term and a fast-growing base, new locations are continuously entering their first contract cycle.
How to read the Element Hotels FDD
The full filing, submitted to state franchise regulators in 2026, is embedded below. Talk to FranCloud for a ranked target list across the rest of the corpus.
Questions vendors ask
Element Hotels, answered from the filing
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Element Hotels files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
13 operators run 13 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| TX | 6 |
|---|---|
| MA | 3 |
| NV | 1 |
| CA | 1 |
| NE | 1 |
Ownership
The portfolio behind Element Hotels
strategic_multibrand of Marriott.
Sibling brands
Related Lodging brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.