Clarion Inn by Choice Hotels/Clarion Inn & Suites by Choice Hotels/Clarion Pointe by Choice Hotels 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% · % of preceding month's Gross Room Revenues, payable monthly

Marketing contribution

3.25% (basis not captured; see original filing)

Technology fee

$9.65 per room monthly (min $625, max $925); CrowdStrike $60 monthly

Other fees

Rewards Program Fee 4.5%-5.5% of room revenue from loyalty members; Choice Accelerate 3% of gross room revenue from direct online bookings (up to 10% for international/meta paid marketing); ChoiceMAX mandatory $400-$525/month

Working capital (FDD Item 7)

Additional Funds for 3-Month Initial Period: $50,000-$100,000 (CLARION); $25,000-$50,000 (CLARION POINTE). Separate pre-opening Working Capital: $30,000-$60,000 (CLARION); $15,000-$40,000 (CLARION POINTE).

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, median, low and high occupancy rate, ADR, RevPAR, Total Choice Enterprise Contribution, Choice Privileges Contribution and Privileges ADR; no gross sales or profit figures

Reporting period

Year ended December 31, 2025

Sample

155 of 172 open CLARION and CLARION POINTE hotels (Performance Sample); 74 hotels in the above-brand-average LTR subset

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

181

Year-end outlets

172

Net change

-9

Derivation

ending minus starting outlets

Openings

13

Terminations

2

Non-renewals

2

Other closures

18

Reacquisitions

0

Transfers

9

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

47 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$3,252,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

24 loans

Historical charge-off share

5.56%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

1 / 18

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 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Clarion Inn by Choice Hotels/Clarion Inn & Suites by Choice Hotels/Clarion Pointe by Choice Hotels franchise cost?

CLARION 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 Inn by Choice Hotels/Clarion Inn & Suites by Choice Hotels/Clarion Pointe by Choice Hotels owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average, median, low and high occupancy rate, ADR, RevPAR, Total Choice Enterprise Contribution, Choice Privileges Contribution and Privileges ADR; no gross sales or profit figures. Sample: 155 of 172 open CLARION and CLARION POINTE hotels (Performance Sample); 74 hotels in the above-brand-average LTR subset. Period: Year ended December 31, 2025.

Item 19 performance sourceFDD p.91 ↗

What's the SBA charge-off rate for Clarion Inn by Choice Hotels/Clarion Inn & Suites by Choice Hotels/Clarion Pointe by Choice Hotels?

5.56%; numerator / denominator: 1 / 18. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $3,252,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 24 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗