Clarion Hotel franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.53 ↗

Franchise fees and ongoing costs

Franchise fee

Not captured

Royalty

5.5% · 5.5% of preceding month's Gross Room Revenues (GRR), payable monthly

Marketing contribution

3.25% (basis not captured; see original filing)

Technology fee

Property Technology & Service Fee: $9.65/room/month, $625 min / $925 max, payable monthly (covers choiceADVANTAGE, Rates Center, compliance monitoring)

Other fees

Rewards Program (Choice Privileges) Fee 4.5%-5.5% of rewards-member room revenue; Choice Hotels Owners Council (CHOC) Dues $60/month; CrowdStrike security fee $60/month

Working capital (FDD Item 7)

Clarion: $50,000-$100,000; Clarion Pointe: $25,000-$50,000, payable to Choice/suppliers/employees/utilities for monthly recurring fees and other incurred expenses after opening

Fees sourceFDD p.37 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.53 ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average Occupancy Rate, Average Daily Rate (ADR), RevPAR, Total Choice Enterprise Contribution, Choice Privileges Contribution, and Choice Privileges ADR (no gross sales or profit figures disclosed)

Reporting period

Year ended December 31, 2025

Sample

155 hotels in the Performance Sample (of 172 total open/operating CLARION and CLARION POINTE hotels); a sub-sample of 74 hotels with above-average Likelihood to Recommend scores is also reported

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.91 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

110

Year-end outlets

93

Net change

-17

Derivation

ending minus starting outlets

Openings

2

Terminations

1

Non-renewals

2

Other closures

16

Reacquisitions

0

Transfers

6

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.95 ↗

SBA loan history

Loan activity

0 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

Not captured

Median loan window

Not captured

Median loan sample

Not captured

Historical charge-off share

3.57%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

1 / 28

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Clarion Hotel franchise cost?

Clarion (Inn/Hotel/Suites/Inn & Suites/Resort) conversion hotel, 128 rooms: $477,795 to $3,091,995; Clarion Pointe conversion hotel, 80 rooms: $326,495 to $1,893,195 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: Not captured.

Investment sourceFDD p.53 ↗

How much do Clarion Hotel owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average Occupancy Rate, Average Daily Rate (ADR), RevPAR, Total Choice Enterprise Contribution, Choice Privileges Contribution, and Choice Privileges ADR (no gross sales or profit figures disclosed). Sample: 155 hotels in the Performance Sample (of 172 total open/operating CLARION and CLARION POINTE hotels); a sub-sample of 74 hotels with above-average Likelihood to Recommend scores is also reported. Period: Year ended December 31, 2025.

Item 19 performance sourceFDD p.91 ↗

What's the SBA charge-off rate for Clarion Hotel?

3.57%; numerator / denominator: 1 / 28. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability.

SBA loans sourceSBA data · Jun 30, 2026 ↗