From the filings

+13.793% units YoYHQ-led decisions

Element Hotels

Lodging

Element 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

Total units
102
99 franchised
Unit growth YoY
+13.793%
vs prior filing
AUV
Item 19, 2026
Royalty
5.5%
of gross sales
Ad fund
1%
national + local
Initial fee
$75K
per unit
Investment range
$1.51M–$3.27M
all-in, Item 7
Procurement
Approved supplier
from the filing
Item 19
Claims
from the filing

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)

Ongoing fees: 6.5% of gross sales (FY2026)Royalty 5.5%, Ad fund 1%. Total 6.5% of gross sales. Drawn against a 15% reference scale.

15% reference

Royalty 5.5%Ad fund 1%

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.

AmadeusAmadeus
BookingItem 3

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.

CoStarCoStar
Industry softwareItem 3

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.,

LightspeedLightspeed
POSItem 6

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

OpenTableOpenTable
BookingItem 8

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

SabreSabre
BookingItem 8

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

STRCoStar
Industry softwareItem 19

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

TripAdvisorTripAdvisor
Industry softwareItem 6

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

TwitterX
MarketingItem 2

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

YahooYahoo
MarketingItem 6

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?

Yes

Item 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?

Yes

Franchise 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?

Yes

Franchise 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?

Yes

Item 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?

Yes

Item 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?

11250060

Item 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?

Yes

Item 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?

46

Item 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?

Yes

Franchise 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 11

We may change the standards at any time.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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

The officers named in the FDD are Marriott's top corporate leadership: Anthony Capuano (Director, CEO and President) and David S. Marriott (Chairman of the Board) sit at the top of the org chart a vendor would need to work through.
Lightspeed, OpenTable and Yahoo (Items 6 and 8) are in use — the filing describes them in use or charges a fee for them, but does not make them contractually required. Amadeus, CoStar, Sabre, STR (by CoStar) and TripAdvisor are named only, not required.
102 total units — 99 franchised and 3 company-owned — up 13.8% year over year, one of the faster-growing brands in the corpus.
Item 8 sets an approved-supplier list for FF&E and OS&E meeting Marriott's standards. Some items require a single designated manufacturer or supplier; franchisees can request approval for alternative sources.
Item 17 of the FDD sets Element Hotels' renewal, transfer and termination terms. With a 20-year initial term and the network expanding 13.8% year over year, new properties are steadily entering their first contract cycle.
The filing was submitted to state franchise regulators in 2026. Use the embedded PDF viewer below to read it directly.
Source

Read the filing itself

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Element Hotels2026 FDDView only

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FDD alert

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The brands you can actually sell into, from the filings.

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

Single-unit13

Top states by locations

TX6
MA3
NV1
CA1
NE1

Related Lodging brands

Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.