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SIGNATURE INN
Signature Inn offers franchises for operating affordable boutique hotels in the economy lodging segment, featuring a 'modern-retro' design with mid-century styling, modern amenities, complimentary high-speed Wi-Fi, lobby newspapers, and participation in the Sonesta Travel Pass loyalty program. Properties must have at least 40 guest rooms, be 100% smoke-free and pet-friendly (with possible waivers), and target budget-conscious travelers seeking distinctive accommodations. The business model provides experienced hotel operators with greater autonomy than conventional franchises while enforcing brand standards via manuals and periodic inspections.
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Franchise Costs
$42 per Guest Room/mo royalty (min $2,520/mo) + $18 per Guest Room/mo brand promotion (min $1,080/mo) + approx. $579/mo fixed tech/ops fees (PMS connectivity, revenue insights, operations insights, brand conference)
Financial Performance
Item 19 Financial Performance
Data Based On: 9 franchised Signature Inn Hotels open at least one full year as of December 31, 2025
* The document provides performance metrics (ADR, Occupancy, RevPAR) for franchised units, but not the total annual gross revenue or profit figures required for the requested fields. There is insufficient information to convert these rates into total dollar amounts per unit.
Extracted Item 19 Section
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Unlock financial performance dataSIGNATURE INN Franchise Analysis
In the economy hotel segment, Signature Inn carves a niche with its modern-retro boutique appeal under the Sonesta umbrella, promising autonomy for seasoned operators. Item 19 delivers revenue snapshots from its compact system, while a handful of SBA loans hint at the capital intensity of launching these 40+ room properties. Yet litigation echoes and a bankruptcy footprint raise eyebrows—could this be a breakout opportunity in budget lodging, or a cautionary tale of franchisor-franchisee friction?
Financial entry starts low at a $20,000 franchise fee, but expect hefty buildout costs reflected in three SBA loans averaging $2,355,267 each—item 7 would detail the full investment, likely multimillion for ground-up or conversion projects in pet-friendly, smoke-free builds. Ongoing fees scale with size: $42 per guest room monthly royalty (minimum $2,520) and $18 per room for brand promotion (minimum $1,080), plus around $579 monthly fixed for tech like PMS connectivity and revenue tools. Item 19 disclosure is a plus for this young brand (franchising since 2017), revealing performance across 14 locations, up 27% from 11 in 2024, with 10 new units projected—signaling momentum but from a tiny base.
System health shows promise in expansion yet flags risks: post-2017 growth is steady but slow, with litigation centered on fee disputes, contract breaches, and guarantor fights, including ex-franchisee counterclaims of fraud, misrepresentation, and service shortfalls. Bankruptcy history in the system adds scrutiny to stability under parent Sonesta International Hotels. For hotel veterans eyeing differentiation via mid-century vibes and loyalty perks, the low fee and growth trajectory tempt, but high per-unit fees (e.g., ~$4,500+ monthly min for 60 rooms) and legal noise demand granular Item 19 validation against category norms where royalties often hover 4-6% of revenue.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How SIGNATURE INN Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
SIGNATURE INN Current | N/A | $20K | N/A | 14 |
| 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% | 596 |
| BAYMONT INN & BAYMONT INN & SUITES | $7.6M – $10.5M | $26K | 5.0% | 547 |
Hotels Average 34 franchises | $8.7M – $22.2M | $48K | 5.3% | – |
* 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 (2025)
Outlets by state across the United States
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Historical SBA 7(a) loan data for SIGNATURE INN franchisees (2016 – 2019)
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.
3 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
14 franchisee contacts on file from official FDD filings.
14 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Primarily fee collection, breach of contract, guarantee enforcement, post-termination obligations, and trademark compliance disputes with former franchisees and guarantors, including counterclaims alleging misrepresentation, fraud in inducement, and failure to provide services.
Bankruptcy (Item 4)
Office Properties Income Trust and certain subsidiaries (entities for which certain officers and directors have management responsibility) filed Chapter 11 on October 30, 2025.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
As of the 2026 FDD, SIGNATURE INN has 14 franchise locations. The company has been franchising since 2017.
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