Choice Hotels franchise

Starting a hotel isn’t just about bricks, beds, and breakfast buffets—it’s about stepping into an industry built on trust and repeat guests. Choice Hotels International has spent decades becoming a name travelers recognize from the interstate to the city center. If you’ve ever pulled off the highway to a Comfort Inn or booked a Cambria for a business trip, you’ve already seen the reach of this powerhouse. For entrepreneurs, franchising with Choice isn’t a leap into the unknown. It’s a chance to join a system that pairs global brand recognition with a business model designed to support owners from day one.

Choice Hotels business details

Choice Hotels began in 1939 as Quality Courts, a small group of roadside motels that wanted to set a higher standard for consistency. By the 1960s, it became one of the first hotel companies to embrace franchising, paving the way for rapid expansion across the United States. Today, the company is headquartered in Rockville, Maryland and operates more than 7,000 hotels representing nearly 570,000 rooms in over 40 countries and territories.

The portfolio spans every major lodging segment. Well-known midscale brands such as Comfort Inn and Comfort Suites remain the backbone of the system, while Cambria Hotels serve upscale travelers and WoodSpring Suites target extended-stay guests. Economy guests find value through Econo Lodge, Rodeway Inn, and Quality Inn, while boutique travelers gravitate toward the Ascend Hotel Collection. This wide range of brands allows Choice to serve multiple market niches and gives franchisees flexibility when choosing the right concept for a property or location.

Can I start a Choice Hotels franchise?

Running a hotel is a complex business, so Choice looks for candidates with both financial stability and the ability to lead a hospitality team. You don’t need prior hotel management experience, but a background in business, real estate, or multi-unit operations is a plus. Key qualifications include:

  • Liquid capital: at least $1 million readily available.
  • Net worth: at least $1 million, though large projects can require a net worth of $10 million or more depending on brand and size.
  • A willingness to maintain a certified general manager on site and participate in training programs such as the Choice Onboard Orientation and the Certified General Manager HOST program.

Because hotel development can be lengthy and capital-intensive, Choice also evaluates credit history and access to financing before approving a candidate.

How much does a Choice Hotels franchise cost?

The April 2025 Franchise Disclosure Document (FDD) offers the most accurate picture of current costs. Numbers vary by brand and whether you’re converting an existing hotel or building from the ground up. Below are examples drawn directly from the FDD and other verified sources:

Comfort Inn / Comfort Inn & Suites

  • Conversion investment: $780,645 – $3,106,195 (for an 80-room property)
  • New construction investment: $9,464,745 – $14,346,795 (80-room prototype)

Franchise affiliation fee: $500 per room for new franchises ($50,000 minimum) or $750 per room for transfers/renewals ($65,000 minimum).

Comfort Suites

  • Conversion investment: $780,645 – $3,106,195
  • New construction investment: $10,505,145 – $15,869,195 (89-room prototype)
  • Franchise affiliation fee: same as Comfort Inn.

Across the broader Choice system (which includes brands like Cambria, Quality Inn, and Econo Lodge), the company reports an overall investment range of roughly $118,825 to over $26 million, reflecting everything from small economy conversions to full-service upscale builds. Typical ongoing fees include:

  • Royalty fee: 5% – 6% of gross room revenue
  • Advertising/marketing fund: about 3.5% of gross room revenue
  • Technology and reservation fees, which vary by brand and room count.

These estimates exclude land and real estate taxes, which can add significantly to the total project budget.

Are Choice Hotels franchises profitable?

Choice doesn’t release a simple “average owner profit,” so there isn’t a blanket earnings figure for franchises. But their latest financial results give a good sense of the money flowing through the system:

  • Strong company earnings: In the second quarter of 2025, Choice generated a record $165 million in adjusted EBITDA (which is basically operating cash flow before interest, taxes, and depreciation) and $1.92 per share in adjusted earnings. In plain English, the franchisor itself is making healthy, predictable income from the fees its hotels pay.
  • Room revenue trends: Across U.S. properties, revenue per available room (RevPAR)—a key hotel metric that combines occupancy and nightly rates—slipped about 2.9% year-over-year in Q2 2025, or closer to 1.6% after adjusting for holiday timing. That’s a mild dip, not a major drop, meaning most hotels saw roughly flat sales compared with last year.
  • Segments to watch: Choice’s extended-stay brands (like WoodSpring Suites and MainStay) actually outperformed the industry and grew their room count by about 10% in a year, showing stronger demand and steadier bookings than traditional nightly stays.
  • Typical fees: Franchisees pay roughly 5.1% of room revenue as royalties plus about 3.5% for national marketing—around 8.5–9% of gross room sales before other small tech and reservation fees. These are the main costs you’d factor into your cash-flow planning.

If you choose the right market and manage costs well, the revenue picture supports solid profits. But hotels are sensitive to small swings—a 1–3% dip in room revenue can tighten margins quickly—so conservative financing and healthy working capital are key to keeping cash flow comfortable.

What is the failure rate for a Choice Hotels franchise?

Choice does not disclose a specific historical failure rate in its 2025 FDD. Independent franchise research shows hotel closures can occur for many reasons—market shifts, undercapitalization, or poor management—but there’s no verified percentage specific to Choice at this time. Prospective owners should review the full FDD and speak directly with current franchisees to understand real-world performance in their market.

Why should you start a Choice Hotels franchise?

The hotel business rewards owners who combine hospitality with strategic thinking. Choice’s wide range of brands makes it appealing for developers who want flexibility—whether you’re repositioning a local independent property as an Econo Lodge or building a new Comfort Suites in a growing suburb. Candidates who typically thrive include:

  • Experienced real estate investors looking to diversify into hospitality.
  • Multi-unit operators from restaurants or retail who understand staff management and customer service.
  • Entrepreneurs with strong local networks who can leverage community relationships for group bookings and events.

Choice’s scale offers franchisees national marketing, a powerful loyalty program, and technology tools that would be costly to build independently.

What are the franchise territory policies for Choice Hotels?

Choice grants franchises for specific sites, not broad exclusive territories. While some agreements may include limited area protections—such as a radius where the same brand will not be franchised—these protections depend on market conditions and are not guaranteed. Franchisees may face competition from other Choice brands or company-owned hotels in the same market.

What franchise resources does Choice Hotels offer?

Choice invests heavily in owner support to help franchisees compete in a crowded lodging market:

  • Choice University: An award-winning training platform offering ongoing education for owners, managers, and staff.
  • ChoiceMAX revenue management tool: Automated pricing recommendations to stay competitive in changing markets.
  • Global sales team and corporate accounts: Relationships with hundreds of corporate, government, and intermediary clients to drive bookings.
  • 24/7 reservations and customer care: Centralized call centers capture reservations around the clock.
  • Marketing and loyalty programs: National advertising campaigns and the Choice Privileges rewards program deliver repeat guests.

What is the process for starting a Choice Hotels franchise?

The development process typically follows these steps:

  1. Complete an application with details about your financial background and proposed site.
  2. Application review by Choice’s franchise development team.
  3. Approval and execution of the franchise agreement.
  4. Introduction to the area director and the opening services team, who provide pre-opening guidance.
  5. Opening the hotel after completing required training, inspections, and brand compliance.

Whether you’re converting an existing property or building new, Choice assigns a development specialist to help navigate design standards, construction, and launch.

Secure franchise funding with Swoop

The blueprints are spread out on your desk, the name Comfort Inn or Cambria is already taking shape in your mind, and you can almost smell the fresh paint in the lobby. Owning a Choice Hotels franchise isn’t just a financial move—it’s a chance to create a place travelers remember and return to. But turning that vision into a real property takes serious funding power.

That’s where Swoop comes in. Instead of juggling endless bank meetings or guessing which lenders might back you, Swoop helps you see your borrowing potential upfront. In one simple platform, you can explore SBA loans (a favorite for hotel projects), construction financing, or other business lending options tailored to hospitality.

Apply with Swoop to check available business loans today. The sooner you know your financing range, the sooner you can focus on the exciting part—welcoming guests to a hotel with your name on the license and your vision behind every detail.

Ready to start your franchise?

Testimonials

Written by

Ashlyn Brooks

Ashlyn is a personal finance writer with experience in business and consumer taxes, retirement, and financial services to name a few. She has been published in USA Today, Kiplinger and Investopedia.

Swoop promise

At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

Find out more about Swoop’s editorial principles by reading our editorial policy.

Ready to grow your business?

Clever finance tips and the latest news

Delivered to your inbox monthly

Join the 95,000+ businesses just like yours getting the Swoop newsletter.

Free. No spam. Opt out whenever you like.

Our offices:

Disclaimer: Swoop Finance Ltd (Swoop) helps US firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop may receive a commission or finder’s fee for effecting such introductions. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions.
How Swoop makes money: In order to provide services free of charge, Swoop generates revenue through commission from companies featured on our platform. The commission we receive does not impact the cost of the product, service, or policy, and your payments remain unaffected by our commission structure.

© Swoop 2025

Looks like you're in . Go to our site to find relevant products for your country. Go to Swoop