Red Lion Hotels/ Red Lion Inn & Suites franchise research

Investment by format

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

Investment sourceFDD p.38 ↗

Franchise fees and ongoing costs

Franchise fee

Not captured

Royalty

5% · % of Gross Rooms Revenue, payable monthly by the 15th of the following month

Marketing contribution

3% (basis not captured; see original filing)

Technology fee

$4.00 per Guest Room per month (plus $99/month PMS-to-CRS connectivity, $10.68 per Guest Room per month revenue management system, $150/month plus $5,222/year sales technology platform)

Other fees

Loyalty Program 3% of Qualified Revenue monthly; Brand Promotion Fee may rise to 4.5%; Brand Conference Fee $250/month

Working capital (FDD Item 7)

Additional Funds (during the first 3 months of operation): $300,339 to $502,200 (125-room Red Lion Inn & Suites); $600,339 to $752,200 (250-room Red Lion Hotels)

Fees sourceFDD p.25 ↗

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.38 ↗

Financial performance: Item 19

Item 19 captured

No

Metric / basis

none

Reporting period

Not captured

Sample

Not captured

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.73 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

58

Year-end outlets

59

Net change

+1

Derivation

ending minus starting outlets

Openings

6

Terminations

0

Non-renewals

2

Other closures

3

Reacquisitions

0

Transfers

2

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.74 ↗

SBA loan history

Loan activity

14 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$1,414,100

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

4 loans

Historical charge-off share

8.00%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

2 / 25

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 Red Lion Hotels/ Red Lion Inn & Suites franchise cost?

Red Lion Inn & Suites By Sonesta, 125 rooms - conversion: $732,173 to $3,567,800; Red Lion Inn & Suites By Sonesta, 125 rooms - new construction: $17,074,113 to $23,615,800; Red Lion Hotels By Sonesta, 250 rooms - conversion: $1,162,107 to $7,325,449; Red Lion Hotels By Sonesta, 250 rooms - new construction: $31,877,957 to $41,710,449 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: Not captured.

Investment sourceFDD p.38 ↗

How much do Red Lion Hotels/ Red Lion Inn & Suites owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: none. Sample: Not captured. Period: Not captured.

Item 19 performance sourceFDD p.73 ↗

What's the SBA charge-off rate for Red Lion Hotels/ Red Lion Inn & Suites?

8.00%; numerator / denominator: 2 / 25. 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: $1,414,100; window: FY2023-FY2026 YTD through 2026-06-30; sample: 4 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗