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 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.
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:
Because hotel development can be lengthy and capital-intensive, Choice also evaluates credit history and access to financing before approving a candidate.
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:
Franchise affiliation fee: $500 per room for new franchises ($50,000 minimum) or $750 per room for transfers/renewals ($65,000 minimum).
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:
These estimates exclude land and real estate taxes, which can add significantly to the total project budget.
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:
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.
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.
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:
Choice’s scale offers franchisees national marketing, a powerful loyalty program, and technology tools that would be costly to build independently.
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.
Choice invests heavily in owner support to help franchisees compete in a crowded lodging market:
The development process typically follows these steps:
Whether you’re converting an existing property or building new, Choice assigns a development specialist to help navigate design standards, construction, and launch.
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.
Daire made it happen! There is no doubt that Swoop sped up the process and found lenders that worked to our time scale rather than the other way round
Joint owner, F45 Virginia
Swoop was actually very helpful in helping us get our initial fundraising in place. Swoop was able to connect us with investors, with grant financing options and debt financing options.
Founder, SingleKey
Pedja was amazing. Super supportive, understanding of our needs and wasn't pushy at all. We've been going back and forth with Swoop for over a year inquiring about different financing options and they were patient until we were ready!
F45 Multi-studio owner
Written by
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.
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