QUALITY INN
Choice Hotels International, Inc. franchises mid-scale hotels under the QUALITY INN brand family, including QUALITY INN, QUALITY INN & SUITES, QUALITY SUITES, QUALITY HOTEL, and QUALITY RESORT, providing comfortable accommodations with amenities like free breakfast, high-speed internet, in-room coffee, and personal service. The business model supports both new construction and conversion of existing hotels into franchised properties. It targets business and leisure travelers seeking value-oriented, mid-scale lodging options.
Franchise Costs
5.25% royalty + 3.5% marketing & reservation fee + $519-$855/mo choiceADVANTAGE support + $235-$360/mo ChoiceMAX + $60/mo CrowdStrike + $60/mo CHOC dues + $18/mo ECM
Financial Performance
Item 19 Financial Performance
Data Based On: 1,528 franchised QUALITY hotels that were open and operating as of December 31, 2024 and met the definition of the Performance Sample.
* The document provides performance metrics such as Average Occupancy Rate, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR) for franchised hotels, along with contribution percentages. However, it does not provide the total gross revenue per franchise unit (hotel) in dollar amounts. RevPAR and ADR are per-room metrics, and without additional data like the average number of rooms per hotel, it is not possible to derive average gross revenue per unit. Furthermore, the document explicitly states that the financial performance representations do not reflect costs of sales, operating expenses, or other costs/expenses required to obtain net income or profit. Therefore, net income, net profit, EBITDA, and profit range estimates cannot be determined from the provided information.
Extracted Item 19 Section
How QUALITY INN Compares
Key Insights
- #1 largest franchise system in Hotels
- Lower than average SBA loan default rate in Hotels
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
QUALITY INN Current | $317K – $2.0M | $45K | 5.3% | 1,621 |
| SUPER 8 | $4.7M – $6.9M | $25K | 5.5% | 1,375 |
| DAYS INN, DAYS HOTEL AND DAYS INN & SUITES | $7.6M – $9.4M | $35K | 5.5% | 1,235 |
| LA QUINTA INN & SUITES | $12.8M – $17.2M | $55K | 5.5% | 884 |
| RED ROOF PLUS AND SUITES | $7.3M – $8.9M | $27K | 5.0% | 584 |
| BAYMONT INN & BAYMONT INN & SUITES | $7.6M – $10.5M | $26K | 5.0% | 547 |
Hotels Average 34 franchises | $7.8M – $18.0M | $46K | 5.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 34 Hotels franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+35 more states
SBA Loan History
Historical SBA 7(a) loan data for QUALITY INN franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
1,679 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
1,679 Contacts Available
Unlock all QUALITY INN franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Primarily franchisor-initiated actions to recover unpaid royalties, liquidated damages, fees, and other debts from franchisees and former franchisees; franchisee-initiated claims alleging breach of contract, fraud, misrepresentation, discriminatory and anti-competitive practices, misuse of fees and data, and violations of franchise laws; includes class actions and arbitrations.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a QUALITY INN franchise ranges from $316,945 to $2,045,895. This includes a franchise fee of $45,000. Ongoing royalty fees are 5.3% of gross sales.
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