Sleep Inn franchise cost
Sleep Inn (Choice Hotels) charges a royalty of 5.5% of gross room revenue plus a further 3.5% in marketing, reservation or system fees, according to its franchise disclosure document issued April 1, 2026, as amended May 20, 2026. The franchisor estimates the total cost of a new-build hotel at $9,160,125 to $14,367,915, not counting land.
- Royalty
- 5.5%of gross room revenue
- Marketing
- 3.5%of gross rooms revenue
- Fee to take over on a purchase
- $45,000Transfer fee for a 60-room hotel, from the Item 5 formula
- Fee for a new franchise
- $40,000Item 5 formula at 60 rooms. Fees actually charged can be lower; see the notes below.
- Total investment
- $9.16M to $14.4MItem 7 estimate for a new-build hotel
Recurring fees in the 2026 FDD
| Royalty | 5.5% of the preceding month's GRR |
|---|---|
| Marketing or brand fund | Marketing and Reservation Fee: 3.5% of the preceding month's GRR |
| Reservation, loyalty and technology | Rewards Program Fee (Choice Privileges): 4.5%-5.5% of room revenue generated by rewards program members. Property Technology & Service Fee: $9.65 per room monthly, $625 minimum, $925 maximum. ChoiceROCS revenue management: $635-$1,400/month, optional. Also: Third Party Distribution Fee $4.00 per consumed OTA/connectivity reservation; GDS fee currently $7.70 per GDS reservation; travel agent commissions currently 10%-15%; Choice Accelerate 3% of GRR from direct online channel consumed stays; CrowdStrike $60/month; CHOC dues $60/month. |
| Initial fee (Item 5) | Affiliation fee "$300 per room for new construction with a $40,000 minimum for new franchises; $550 per room for transfers and renewals, with a $45,000 minimum." Non-refundable $5,000 application fee credited toward the affiliation fee. |
| New build (Item 7) | $9,160,125 to $14,367,915 |
| What Item 7 assumes | New construction only: Sleep Inn & Suites, 84 rooms ($109,049-$171,047 per room). No conversion table. Excludes land. |
From the filing: Item 6 Note 2: for a Sleep Inn dual-branded with MainStay Suites or another Choice brand, Choice "may increase the Royalty Fee and Marketing and Reservation Fee up to the standard amount" for the other brand. Affiliation fees charged in 2025 ranged from $5,000 to $45,000. Except for the Royalty Fee and liquidated damages, Item 6 says all fees are subject to change.
What the fees cost a 60-room hotel
Take a 60-room Sleep Inn with $1,500,000 of rooms revenue a year. The royalty and the marketing or system fees that apply to every room night come to 9%, or $135,000 a year, and per-room fees add $6,948 ($9.65 per room per month, before the FDD's minimum and maximum). That is $141,948 a year, about $11,829 a month, before payroll or utilities. Fees charged only on some bookings, such as loyalty-member stays, central reservation bookings and online commissions, come on top.
Those fees come straight off NOI. At 1.25x coverage, $141,948 of fees is $113,558 a year of payment you can no longer borrow against, or about $1,040,000 of loan at 10% over 25 years.
Fees billed per reservation, per transaction or as a fixed amount are not in this total; they are listed in the table above as the FDD states them. Run your own numbers with Sleep Inn fees filled in.
Financing a Sleep Inn
Lenders read the franchise agreement as closely as the appraisal. On a purchase, expect the brand to require a change-of-ownership application, a new franchise agreement on current terms and often a property improvement plan (PIP), and expect the lender to fold the PIP cost into the project. For a new build, the Item 7 range is the starting point for the construction budget a lender will test.
Most owner-operators finance a branded hotel with an SBA 7(a) or 504 loan. Read SBA 7(a) for hotels and SBA 504 for hotels, or send the deal to Janover Capital.
Source
Sleep Inn Franchise Disclosure Document, issued April 1, 2026, as amended May 20, 2026, as filed with the Minnesota Department of Commerce (CARDS). Item 5 p.25, Item 6 p.28, Item 7 p.41 (PDF pp.32/35/48). View the filing record. Fees change every year and the franchise agreement you sign controls. Read on 2026-10-24.
Other Choice Hotels brands
- Ascend Collection: royalty 5%, all percent fees 8%
- Cambria: royalty 6%, all percent fees 9%
- Clarion: royalty 5.5%, all percent fees 8.75%
- Clarion Pointe: royalty 5.5%, all percent fees 8.75%
- Comfort Inn: royalty 6%, all percent fees 9.5%
- Comfort Suites: royalty 6%, all percent fees 9.5%
- Country Inn & Suites by Radisson: royalty 6%, all percent fees 9.5%
- Econo Lodge: royalty 5%, all percent fees 8.5%
- Everhome Suites: royalty see FDD, all percent fees 9%
- MainStay Suites: royalty 6%, all percent fees 8.5%
- Quality Inn: royalty 5.25%, all percent fees 8.75%
- Radisson: royalty 6%, all percent fees 9%
- Rodeway Inn: royalty 5%, all percent fees 8.5%
- Suburban Studios: royalty 6%, all percent fees 8.5%
- WoodSpring Suites: royalty 6%, all percent fees 8.5%
Buying or building a Sleep Inn?
Send the deal to Janover Capital, which runs this site and arranges hotel financing through lenders.