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Clarion Hotels

Clarion Hotels

The total investment to open a Clarion Hotels franchise ranges from $519,750 to $2.8M. The initial franchise fee is $40,000. Ongoing royalties are 4.5% plus a 3% advertising fee.

What is the Clarion Hotels franchise?

Clarion Hotels is an international hotel brand offering franchise opportunities through Choice Hotels International, one of the world’s largest lodging franchisors. The model combines independent operating flexibility with corporate scale. Quality Inns International founded Clarion Hotels in 1987. Quality Inns International is now known as Choice Hotels International. Choice Hotels traces its history to 1939, when Stewart W. Bainum Sr. established Quality Courts United, Inc. It incorporated in Delaware on January 8, 1963, as Quality Inns International, Inc., then changed its name to Choice Hotels International, Inc. on July 25, 1990. As of December 31, 2024, Clarion Hotels had 331 locations worldwide and had been franchising since 1987. Its primary markets are the United States and Europe, with additional locations in Asia Pacific and Latin America. Based on 2016 Franchise Disclosure Document data, the United States had 169 franchised Clarion Hotels across 39 states, including 82 in the South. The brand had 174 locations in 2014 and 169 in 2019, before its later development of Clarion Pointe. Clarion Hotels offers full service accommodations for business and leisure travelers. The global hotels market was valued at approximately USD 1,376.40 billion in 2023 and is projected to reach around USD 2,993.90 billion by 2032, with a compound annual growth rate of roughly 9.14% during that period. Choice Hotels gives the brand access to corporate resources, recognition and system support within the hospitality sector.

The hotels and motels industry, excluding casino facilities, provides short term lodging and is tied to domestic and international tourism and economic conditions. The global hotels market was valued at approximately USD 1,376.40 billion in 2023 and is projected to reach around USD 2,993.90 billion by 2032, at a compound annual growth rate of roughly 9.14% from 2024 to 2032. Another report places the global hotels market at USD 2,080.57 billion in 2025 and projects growth to USD 3,931.42 billion by 2034, at a compound annual growth rate of 7.54%. The global hotels and resorts market reached $1.7 trillion in 2024 after growing at a 6.7% compound annual growth rate from 2019 to 2024. The broader global hospitality industry is projected to reach USD 5,753.3 billion in 2025 and USD 10,267.8 billion by 2034, at a compound annual growth rate of 6.6%. The U.S. Hospitality Industry Market is projected at USD 1,209.6 billion in 2025 and USD 2,078.7 billion in 2034, with a compound annual growth rate of 6.2%. Demand is supported by business and leisure travel, higher consumer spending, online booking growth and specialized local tour providers. Travelers are showing interest in experiential travel, wellness tourism and flexible technology supported services. Contactless technology, artificial intelligence personalization and mobile first interfaces are becoming more common. Leisure held a 65.74% market share in 2025, while the professional travel segment had a projected compound annual growth rate of 9.03%. Hotels and motels represented 68.9% of the hotel and other travel accommodation market in 2021 and are projected to be the fastest growing segment, with a compound annual growth rate of 13.6% from 2021 to 2026. Digital bookings represented more than 60% of accommodation reservations in OECD countries, and average hotel room rates in OECD countries increased 5% in 2023. By the end of 2024, Choice Hotels franchised nearly 7,600 hotels across 46 countries and territories, supporting reservation access, marketing reach and operating systems for Clarion Hotels.

The initial franchise fee for Clarion Hotels is reported as up to $40,000, while other sources cite $45,000. Reported total initial investment ranges include $519,750 to $2,771,599, $427,445 to $2,728,595 and $396,250 to $2,488,895. Costs vary according to whether the project involves new construction or conversion of an existing hotel, along with property size, location, land, construction, renovation and furniture, fixtures and equipment. Estimated working capital is $80,000 to $160,000 for early operating expenses, inventory and unexpected costs. The minimum cash requirement is stated as $200,000, and the liquid capital requirement is listed as $600,000. A specific Clarion Hotels advertising fund percentage was not identified. The initial franchise term is 20 years. By the end of 2024, Choice Hotels franchised nearly 7,600 hotels with over 650,000 rooms in 46 countries and territories. This network provides purchasing power, technology and centralized support. Honorably discharged veterans may receive $1,500 per room, not to exceed $125,000, paid shortly after the hotel opens.

Clarion Hotels operates as a full service lodging brand serving business and leisure guests. Franchisees oversee front desk services, housekeeping, property maintenance and, where applicable, food and beverage operations. The brand also emphasizes F&B light formats, which provide flexible food and beverage choices and may require less operational complexity than a traditional hotel restaurant. Key amenities include meeting spaces, banquet facilities, catering, business centers and fitness centers. Staffing can include guest service representatives, front office managers, housekeeping employees, maintenance personnel and food and beverage staff. Hotels remain labor intensive, so recruitment, training and daily staff management are central operating needs. The available information identifies full service Clarion Hotels and the select service Clarion Pointe format, but does not specify additional format options. John Solarz described Clarion properties as different and said they have “a soul,” suggesting flexibility in design and offerings, especially when converting an existing hotel. Clarion Pointe launched in 2018 for the midscale select service segment. New franchisees typically complete two weeks of initial training at a central training facility. Ongoing support includes field consultants, technology platforms, marketing programs, operator knowledge and best practices. Choice Hotels also highlights support and localized marketing tools, along with computer and technology assistance. Clarion Hotels does not offer territory protection, so Clarion or Clarion Pointe locations could open near existing properties. John Solarz’s comments that owners need “their own vision” and enjoy “shaping their property” indicate that an involved owner operator approach may fit the brand, while the investment level may also appeal to experienced multi unit operators and investment groups.

Industry data still provides context. The global hotels market is projected to grow from USD 1,376.40 billion in 2023 to USD 2,993.90 billion by 2032, at a compound annual growth rate of 9.14%. Hotels and motels are projected to be the fastest growing segment, with a compound annual growth rate of 13.6% from 2021 to 2026. The core Clarion brand declined from 174 locations in 2014 to 169 in 2019, while Clarion Pointe expanded after its launch in 2018 and the opening of its first hotel on May 1, 2019. Clarion Pointe opened its 50th hotel by the summer of 2022. By June 30, 2022, more than 100 Clarion Pointe hotels were open or awaiting conversion. By July 13, 2023, the brand had 60 open hotels and more than 50 in the pipeline. On March 26, 2025, the 70th Clarion Pointe hotel opened in Milwaukee, Wisconsin. The brand then had 43 additional hotels in the pipeline, with 27 expected to open in 2025 in cities including Galveston, Texas, and Gettysburg, Pennsylvania. Clarion Pointe’s growth provides evidence of market acceptance for its midscale select service format, although it does not replace the need for property level financial analysis. Its F&B light model focuses on core hotel services and amenities such as meeting spaces and business centers while seeking to manage operating costs.

Loan Activity Score

52/100

SBA Default Rate

2.9%

Active Lenders

24

According to its Franchise Disclosure Document or public business records, Clarion Hotels has 26 locations, all owned by franchisees. Public SBA loan records show 24 lenders made 35 loans to franchisees of Clarion Hotels. PeerSense calculates Clarion Hotels's score as 52 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2024 Franchise Disclosure Document.

Franchising since 1987 · 26 locations

Investment

$519,750 to $2.8M

Franchise Fee

$40,000

Total Units

26

26 franchised

Loan Activity Score
High
52
SBA Lending
25
Lender Quality
9
Transparency
8
Reach
7
Momentum
3

Proprietary PeerSense metric

Moderate
Capital Sources
24SBA lenders

Distinct lenders in public SBA records for Clarion Hotels

35

Total SBA loans

$2.8M

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for Clarion Hotels

Loan Activity Score Breakdown

Established (25 to 99 loans)

High Confidence
52out of 100
Moderate
Market Momentum3/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety25/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence9/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency8/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint7/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

2.9%

vs 10.3% peer avg

SBA Loans

35

Total Volume

$99.6M

Active Lenders

24

6 selective

States

13

vs. SBA Sector Average

+7.4%lower default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Low SBA default rate (2.9%)

Data Insights

Key performance metrics for Clarion Hotels based on SBA lending data

SBA Default Rate

2.9%

7.4% below peer avg

SBA Loan Volume

35 loans

Across 24 lenders

Lender Diversity

24 lenders

Avg 1.5 loans per lender

Investment Tier

Premium investment

$519,750 to $2,771,599 total

Payment Estimator

Loan Amount$416K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$5,380

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Clarion Hotels, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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Clarion Hotels

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; it does not lend, fund, or approve loans, and 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