Sheraton
Hospitality · Hotels & Extended Stay
- Active units
- 140
- Royalty
- 6.0%
Franchised, year-end 2024
of weekly Net Sales
About Sheraton
Sheraton is a renowned brand that connects millions of travelers in destinations worldwide. With over 400 hotels and resorts in more than 70 countries, Sheraton brings people together, offering an exceptional stay experience. Whether you're traveling for business or leisure, Sheraton provides international hotels that cater to your needs. As a pioneer in the hospitality industry since 1937, Sheraton has been at the heart of communities, acting as a point of connection for travelers globally. The brand is deeply rooted in over 400 communities, making it a preferred choice for millions of travelers like you. With a wide array of amenities and services, Sheraton ensures that you stay productive and connected throughout your travels. From spacious meeting rooms to flexible event spaces, Sheraton offers venues that cater to various occasions. Join the Sheraton community and discover the world, as Sheraton hotels are located in prime locations, allowing you to explore countless destinations and make unforgettable memories. Book your stay at one of our international hotels today and experience the renowned Sheraton hospitality firsthand.
Key terms
- Exceptions to standard application fees
We may consider exceptions to our standard application fees and other initial fees in certain circumstances.
- Brand fund
1.0% of Net Sales
- Footprint
163,000 – 199,000 sq ft
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2025 filing); filings on file: 2024, 2025.
Growth
- Total locations140
Franchised units open at year-end
- New openings1
Gross new units opened during the calendar year
- 1-year unit growth rate-1.4%
Net unit growth versus prior year
- 3-year unit CAGR-2.4%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio0.5×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$106.6M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open21 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate6.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.