* Additional Franchises Will Be Included on an Ongoing Basis
Starwood Hotels
As described in the offering circular, the franchisee will operate either a LE MERlDIEN Hotel or a LE MERIDIEN Resort, which we may refer to herein as either a LE MERlDIEN Hotel, a LE MERlDIEN Resort, or a Brand Hotel.
The offering circular states that the initial franchise license fee is $85,000, plus $300 per guest room in excess of 200 guest rooms. In addition, the franchisee will pay a PIP fee of $6,500. The franchisor estimates that the initial investment required for a 250 guest room LE MERlDIEN Hotel ranges from approximately $743,000 to $19,635,000 to convert an existing facility, and from approximately $25,765,000 to $73,298,000 for a new build facility. These sums do not include any costs for purchasing or leasing the real estate for the hotel.
