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Fairfield Inn & Suites by Marriott®

It’s Right. It’s Easy. It Works.

Fairfield Inn & Suites by Marriott is an established leader in the moderate tier segment, offering value and consistency to business travelers across North America. For owners and franchises, it’s an appealing choice, given a proven investment model that’s fueled by the reach and breadth of Marriott’s services and support.

Target Guest: Resourceful Achiever

The Fairfield Inn & Suites target guests are the most productivity-oriented of the select-service/extended-stay brands and are seeking confidence that they will have a positive travel experience. They are looking for:

• Confidence they will experience a “problem free” stay
• Respect, courtesy and reliable service
• Exceptional value
• Everything in working order
• Ability to keep their routine intact
• Straightforward and uncomplicated communication

Brand Positioning: Confident Travel

Only Fairfield Inn & Suites provides you with everything you need at an exceptional value. We give you the confidence that your trip will succeed, because we know you well enough to consistently deliver a hotel experience that’s just right.

Flexible Designs for Evolving Markets

Fairfield Inn & Suites prototype provides owners and investors with options and flexibility to meet specific market needs. Whether the hotel is located in an urban, secondary or tertiary market, the innovative design allows owners to adapt the model based on location and site requirements.

Experience the Fairfield Inn & Suites customer brand site

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Fairfield Inn & Suites Proto-Model Design Brochure [pdf]

Brand Performance    
Occupancy(1,3) 67.7%   
ADR(1,3) $98.62  
RevPAR(1,3) $66.76  
RevPAR Index(1,3) 109.4%  
Channel Contribution(2,3) 57.6%  
Marriott Rewards Paid Room Nights(2,3) 57%  
     
Global distribution(4) Units Rooms
Open 715 65,580
Pipeline 249 25,383

 


(1) As of December 31, 2013, there were 705 North American (U.S. and Canada) open and operating System hotels; of these, 701 were franchised. There were 653 North American franchised hotels for which Smith Travel Research, Inc. data was available and which, as of December 31, 2013, were open and operating as franchised System hotels at least 2 years and in the case of U.S. hotels, satisfied each of the following conditions (the “Conditions”). They did not undergo at any time during the preceding 2 years: (1) a rooms renovation that resulted in 5% or more of the total number of available rooms at such hotel being taken out of service for the year in which the renovation occurred; (2) a public space renovation that resulted in revenue displacement during the year in which such renovation occurred of 5% or more of the annual available room nights at the average daily rate of the most recent year prior to the renovation during which the hotel satisfied each of the Conditions; and (3) an expansion that resulted in an increase in revenues of 5% or more of the annual available room nights (before the expansion) at the average daily rate of the most recent year prior to the expansion during which the hotel satisfied each of the Conditions. Such hotels are referred to as “Smith Travel Included Franchised Hotels (STIFH).” For the 1 year period ended December 31, 2013, STIFH achieved an average occupancy rate of 67.7%. The occupancy rate for STIFH ranged from a high of 96.9% to a low of 43.2% and 327 of STIFH (67%) achieved an average occupancy rate equal to or greater than 67.7%. The “average occupancy rate” is the total occupied rooms reported divided by total available rooms for the entire period. For the 1 year period ended December 31, 2013, STIFH achieved an average daily room rate of $98.62. The average daily room rate for STIFH ranged from a high of $259.53 to a low of $60.78 and 221 of STIFH (34%) achieved an average daily room rate equal to or greater than $98.62. The “average daily room rate” is the gross room sales divided by total occupied rooms. For the 1 year period ended December 31, 2013, STIFH achieved an average revenue per available room (“RevPAR”) of $66.76. The RevPAR of STIFH ranged from a high of $242.35 to a low of $32.42 and 246 of STIFH (38%) achieved or exceeded the average RevPAR of $66.76. The “average RevPAR” is the gross room sales divided by total available rooms. For the 1 year period ended December 31, 2013, STIFH achieved an average RevPAR Index of 109.4%. The RevPAR Index of STIFH ranged from a high of 224.3% to a low of 55.3% and 335 STIFH (52%) achieved an average RevPAR Index equal to or greater than 109.4%. “RevPAR Index” measures the fair share of the amount of available revenue a hotel (or hotel brand) receives relative to its competitive set (as defined by each hotel or brand) within a given market.

(2) There were 653 North American franchised System hotels that, as of December 31, 2013, were open and operating as franchised System hotels at least 2 years and, in the case of U.S. hotels, satisfied each of the Conditions (the “North American Included Franchised Hotels (NAIFH)”). During 2013, the average number of gross room nights booked through the Marriott Channels for NAIFH was 17,474 gross room nights per hotel. Gross room nights for hotels ranged from 5,569 for a small NAIFH with fewer than 50 rooms to 111,226 for a NAIFH with more than 240 rooms and 252 of NAIFH (38.6%) had more than 17,474 gross room nights booked through the Marriott Channels. As a percentage of gross room nights per hotel, the percentage booked through the Marriott Channels for NAIFH in 2013 ranged from 23.3% to 91.1%, and the average percentage was 57.6% and 323 of the NAIFH (49.5%) had at least 57.6% of their gross room nights booked through the Marriott Channels. For the 1 year period ended December 31, 2013, hotel guests at NAIFH who were members of Marriott Rewards generated Marriott Rewards eligible revenue that was approximately 57% of the total room night revenue at such hotels, with an average daily spend of $106. The total of all Marriott Rewards room nights for such NAIFH was approximately 7,693,000, generating approximately $818,868,000 in room revenue, not including taxes and tips. For such NAIFH, Marriott Rewards members paid for an average of 11,800 room nights. These Marriott Rewards hotel room nights ranged from 4,700 to 33,800 and 290 NAIFH (44%) achieved or exceeded the average of 11,800 paid Marriott Rewards room nights.

(3) See Item 19, Franchise Disclosure Document for Fairfield Inn & Suites by Marriott dated 3/31/2014. These statements relate to historical performance of franchised North American System hotels that satisfy certain criteria as detailed above and are not guarantees of future performance. The figures above were based on hotels with at least two years of operating results. Hotels typically achieve lower results in their first year of operation. We do not claim or expect that you can or will expect to achieve the same average occupancy rate, average daily room rate, average RevPAR, RevPAR Index, reservations, or Marriott Rewards room nights, as these figures will vary from hotel to hotel and will depend upon many variables and factors, including size, location, seasonality, competition, general economic conditions, the length of time your hotel has been open or affiliated with us, the condition and attractiveness of the hotel, the perception of your hotel by customers utilizing our distribution channels, the reputation for quality of service at the hotel, how effectively you participate in our programs and market your affiliation with us, and the efficiency with which you operate your hotel. Operating results are subject to numerous risks and uncertainties, including economic conditions, public reaction to terrorist attacks and political unrest, supply and demand changes for hotel rooms, competitive conditions in the hospitality industry, relationships with customers and property owners, and the availability of capital.

(4) Source: Marriott internal database. Global distribution figures represent open properties and pipeline projects as of 2nd Quarter 2014.