Clarion Hotel FDD – Franchise Information, Costs and Fees
Type of Business
The franchise offered is for the right to construct and operate a hotel under their name and primary business trademark “CLARION HOTEL,” “CLARION INN,” “CLARION INN & SUITES,” “CLARION SUITES,” or “CLARION RESORT” (“CLARION”) or a “CLARION POINTE” (“CLARION POINTE”).
Corporate Information
Choice Hotels International, Inc. is a Delaware corporation formed on January 8, 1963, under the name Quality Inns International, Inc. They changed their corporate name to Choice Hotels International, Inc. on July 25, 1990. From November 1, 1996 to October 15, 1997, their corporate name was Choice Hotels Franchising, Inc. Their corporate name has been Choice Hotels International, Inc. since October 15, 1997. Their principal business address is 1 Choice Hotels Circle, Suite 400, Rockville, Maryland 20850. This address will change in December 2023, when they move their headquarters to 915 Meeting Street, North Bethesda, Maryland 20852
Investment
The total investment necessary to convert an existing hotel and begin operation of a CLARION hotel is between $396,750 and $2,501,395, assuming the CLARION hotel contains 128 guestrooms but excludes the cost of real estate. The total investment necessary to convert an existing hotel and begin operation of a CLARION POINTE hotel is between $284,750 and $1,599,395, assuming the CLARION POINTE hotel contains 80 guestrooms but excludes the cost of real estate. This includes $53,750 to $59,095 that must be paid to the franchisor or its affiliates as follows: an affiliation fee of $500 per room for new construction and $550 per room for transfers and renewals for CLARION ($45,000 minimum for new franchises or transfers and renewals); and $500 per room for new construction and $650 per room for transfers and renewals for CLARION POINTE ($45,000 minimum for new franchises or for transfers and renewals); a property management system software license and systems training fee of between $8,750 and $10,750 for CLARION and CLARION POINTE; and orientation and hospitality training fees of between $0 and $3,345 per person for both brands. These sums do not include the cost of any real estate taxes.
