Choice Hotels vs Hampton by Hilton
Choice Hotels vs Hampton by Hilton: Choice Hotels costs $781K to $14.3M to open; Hampton by Hilton costs $6.9M to $22.2M. Choice Hotels has 461 units, Hampton by Hilton has 479. SBA loan history: Choice Hotels = 499 loans (21.8% default); Hampton by Hilton = 582 loans (3.8% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Choice Hotels vs Hampton by Hilton: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Choice Hotels requires the lower minimum capital commitment ($781K vs $6.9M for Hampton by Hilton), a 89% spread. Initial franchise fees come in at $50K for Choice Hotels versus $75K for Hampton by Hilton, Choice Hotels has the lower entry fee. Ongoing royalty load is 5.1% for Choice Hotels and 6% for Hampton by Hilton, giving Choice Hotels the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Hampton by Hilton operates 479 units to Choice Hotels's 461. Choice Hotels has been operating 87 years (founded 1939) versus 42 for Hampton by Hilton (founded 1984), a 45-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Hampton by Hilton has the deeper SBA lending track record, with 582 7(a) approvals compared with 499 for Choice Hotels.
Risk Signal
SBA default rates are 21.8% for Choice Hotels and 3.8% for Hampton by Hilton, Hampton by Hilton has the cleaner SBA loss record by 18.0 points. PeerSense FPI scores come in at 30 (Fair) for Choice Hotels and 59 (Moderate) for Hampton by Hilton, giving Hampton by Hilton the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 30/100 | 59/100 |
Health Tier | Limited | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 499 | 582 |
SBA Volume | – | – |
Default Rate | 21.8% | 3.8% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $781K to $14.3M | $6.9M to $22.2M |
Franchise Fee | $50K | $75K |
Royalty Rate | 5.1% | 6% |
Ad Fund | 4% | 4% |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 461 | 479 |
Franchised Units | 461 | 479 |
Company Owned | – | – |
Term Length | 20 yrs | 22 yrs |
Brand Information
Year Founded | 1939 | 1984 |
Franchising Since | 1968 | 1960 |
Years Franchising | 58 yrs | 66 yrs |
Headquarters | Rockville, MD | HOUSTON, TX |
Category | Hotels | Hotels |
Website | ||
FDD Year | N/A | 2023 |
Which Is Better, Choice Hotels or Hampton by Hilton?
Lower upfront capital required
Tie
Choice Hotels: $781K starting · Hampton by Hilton: $6.9M starting
More SBA lender confidence
Hampton by Hilton
Choice Hotels: 499 SBA loans · Hampton by Hilton: 582 SBA loans
Lower SBA default rate
Hampton by Hilton
Choice Hotels: 21.8% · Hampton by Hilton: 3.8%
Larger system & brand presence
Tie
Choice Hotels: 461 units · Hampton by Hilton: 479 units
Lower ongoing royalty load
Choice Hotels
Choice Hotels: 5.1% · Hampton by Hilton: 6%
More lender financing options
Hampton by Hilton
Choice Hotels: 175 unique lenders · Hampton by Hilton: 215 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Choice Hotels vs Hampton by Hilton: Franchise Funding Comparison
Comparing Choice Hotels and Hampton by Hilton is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $781K to $22.2M.
Choice Hotels has 499 SBA loans on record and Hampton by Hilton has 582. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Choice Hotels vs Hampton by Hilton, Frequently Asked Questions
Which is a better franchise investment, Choice Hotels or Hampton by Hilton?
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Which has a lower SBA default rate, Choice Hotels or Hampton by Hilton?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman