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 Courts Motels, 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 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
Investment
The total investment necessary to convert an existing hotel and begin operation of a CLARION hotel is between $410,345 and $2,594,395, 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 $298,345 and $1,692,395, assuming the CLARION POINTE hotel contains 80 guestrooms but excludes the cost of real estate. This includes $52,395 to $78,345 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); orientation and hospitality training fees of between $1,395 and $3,345 per person for both brands; and approximately $6,000 to $30,000 in pre-opening supplies and equipment, including the purchase of a property management system software license and systems training fee of between $8,750 and $10,750. These sums do not include the cost of any real estate taxes.
