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Clarion Inn by Choice Hotels/C

Clarion Inn by Choice Hotels/C

The total investment to open a Clarion Inn by Choice Hotels/C franchise ranges from $1.2M to $4.5M. The initial franchise fee is $40,000. Ongoing royalties are 4.5% plus a 3% advertising fee.

What is the Clarion Inn by Choice Hotels/C franchise?

Clarion Inn by Choice Hotels/C is a hotel franchise for travelers. Estimated total initial investment is $1,198,400 to $4,474,000, with an initial franchise fee of $40,000.

The royalty fee is 4.5 percent. The advertising or brand fund fee is 3 percent. The franchise agreement term is 20 years. Headquarters are in STAUNTON, VA.

Loan Activity Score

63/100

SBA Default Rate

1.3%

Active Lenders

48

According to its Franchise Disclosure Document or public business records, Clarion Inn by Choice Hotels/C has 68 locations, all owned by franchisees. Public SBA loan records show 48 lenders made 80 loans to franchisees of Clarion Inn by Choice Hotels/C. PeerSense calculates Clarion Inn by Choice Hotels/C's score as 63 out of 100, using public SBA loan performance and recent lending activity.

Franchising since 1987 · 68 locations

Investment

$1.2M to $4.5M

Franchise Fee

$40,000

Total Units

68

68 franchised

Loan Activity Score
Very high
63
SBA Lending
25
Lender Quality
11
Transparency
4
Reach
10
Momentum
13

Proprietary PeerSense metric

Moderate
Capital Sources
48SBA lenders

Distinct lenders in public SBA records for Clarion Inn by Choice Hotels/C

80

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 Inn by Choice Hotels/C

Loan Activity Score Breakdown

Established (25 to 99 loans)

Very High Confidence
63out of 100
Moderate
Market Momentum13/35

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 Confidence11/15

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

Transparency4/15

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

Footprint10/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

1.3%

vs 10.3% peer avg

SBA Loans

80

Total Volume

$220.9M

Active Lenders

48

9 selective

States

30

vs. SBA Sector Average

+9.1%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 (1.3%)

Data Insights

Key performance metrics for Clarion Inn by Choice Hotels/C based on SBA lending data

SBA Default Rate

1.3%

9.0% below peer avg

SBA Loan Volume

80 loans

Across 48 lenders

Lender Diversity

48 lenders

Avg 1.7 loans per lender

Investment Tier

Premium investment

$1,198,400 to $4,474,000 total

Clarion Inn by Choice Hotels/C: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2023

13 approvals. The best year on record for Clarion Inn by Choice Hotels/C.

Top SBA State

Virginia

9 SBA financed Clarion Inn by Choice Hotels/C locations, the densest operator footprint.

Average Loan Size

$2.8M

Median $2.7M. Use as a sizing anchor when modeling your own Clarion Inn by Choice Hotels/C unit.

Lender Concentration

21.3%

Moderately Spread

Share of Clarion Inn by Choice Hotels/C approvals captured by the top 3 SBA lenders.

Clarion Inn by Choice Hotels/C's SBA lending pipeline peaked in 2023 (13 approvals). The last five fiscal years account for 60% of cumulative volume ($144M approved). Operator density is highest in Virginia with 9 SBA financed locations. Average funded ticket sits at $2.8M, with the median at $2.7M. Lender mix is moderately spread: the top three SBA lenders account for 21.3% of approvals. Borrowers have leverage to shop multiple credit boxes.

Payment Estimator

Loan Amount$959K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$12,406

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 Inn by Choice Hotels/C, unit breakdown

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

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Clarion Inn by Choice Hotels/C

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