Comfort Inn & Suites
The total investment to open a Comfort Inn & Suites franchise ranges from $305,250 to $14.3M. The initial franchise fee is $50,000. Ongoing royalties are 6% plus a 3.5% advertising fee.
What is the Comfort Inn & Suites franchise?
Comfort Inn & Suites began in 1981 under Quality Inns International. That company traces its roots to 1939, when seven Florida motel owners formed Quality Courts United, a nonprofit marketing cooperative intended to standardize the growing motel industry. The cooperative established its formal structure in 1941. Stewart W. Bainum Sr. opened his first hotel in Silver Spring, Maryland, in 1957 and franchised his first Quality Courts motel in 1963. In 1968, Bainum’s Park Consolidated Motels, Inc. merged with Quality Courts Motels. Bainum became president and CEO, and the headquarters moved to Silver Spring, Maryland. The company adopted the name Quality Inns International, Inc. in 1972. Comfort was introduced in 1981 as part of Choice Hotels’ early use of market segmentation for different traveler needs. Choice Hotels was formally established in 1990 and is headquartered in North Bethesda, Maryland, United States. Stewart W. Bainum Sr. led Choice Hotels International until 1987. His son, Stewart W. Bainum Jr., later became chairman and chief executive. Robert Hazard helped expand Comfort internationally during the 1990s as CEO. Charles A. Ledsinger, Jr. became CEO in 1998 and introduced a multi year standardization plan for Comfort franchisees. As of December 31, 2024, Comfort Inn, Comfort Suites, and Comfort Inn & Suites together had 2,159 locations. Other sources report more than 2,300 units open or in development worldwide, all 100% franchisee owned. In 2022, the brand had 1,600 locations in America and 2,100 abroad, with 775 reported franchised units. Across its brands, Choice Hotels oversees nearly 5,300 hotels open or under development in 46 countries, representing close to 400,000 rooms. Comfort is the largest brand in the Choice Hotels portfolio. It was repositioned in the early 2010s as an upper midscale brand after initially focusing on economy travelers. Its strongest concentration in the mid range hotel segment is in the Eastern and Midwestern United States, especially Virginia, Michigan, and North Carolina. The global hotels market was valued at USD 2,080.57 billion in 2025, while the U.S. hotels market was estimated at USD 263.21 billion in 2024. These figures and Choice Hotels’ infrastructure give buyers a recognized brand platform in a large hospitality market.
The global hotels market was valued at USD 2,080.57 billion in 2025 and is projected to reach USD 3,931.42 billion by 2034, a Compound Annual Growth Rate, or CAGR, of 7.54%. Europe held 36.04% of the market in 2025. Asia Pacific is expected to grow at a 9.57% rate and reach USD 477.20 billion in 2025, with China contributing USD 162.77 billion and India contributing USD 144.99 billion. The U.S. hotels market was estimated at USD 263.21 billion in 2024 and is projected to grow at a 7.1% CAGR from 2025 to 2030. The broader U.S. hospitality market was valued at USD 247.81 billion in 2026 and is expected to reach USD 305.53 billion by 2031, growing at a 4.28% CAGR. Online Travel Agencies captured 38.37% of U.S. hospitality bookings in 2025, while direct digital channels are projected to post the highest CAGR, at 8.26%, through 2031. Demand for value for money continues to support the economy and budget segment. The midscale segment where Comfort Inn & Suites operates is projected to grow at the fastest CAGR during the forecast period, at 7.6% from 2025 to 2030, as travelers seek affordable lodging with quality and essential amenities. The U.S. recorded 77.7 million international arrivals in 2024, a 17% year over year increase that exceeded pre pandemic levels. Global travel activity and consumer spending also support demand. Wellness focused trips are contributing to leisure travel, digital payment systems are supporting online booking, and leisure and local travel have shifted more demand toward domestic clients. Hotels are adopting AI, data analytics, and Machine Learning to track demand and support loyalty programs. Large Language Models such as ChatGPT and Copilot are also changing trip planning. These developments create operating conditions that favor brands able to adapt to changing booking and travel behavior.
A new Comfort Inn & Suites franchise requires a $50,000 initial franchise fee, calculated at $500 per room with a $50,000 minimum. Transfers and renewals use a $60,000 minimum or $750 per room. Applicants also pay a nonrefundable $5,000 application fee, which is later credited toward the affiliation fee. Total investment depends heavily on the development model and can range from $118,825 to $26,370,195. Converting an existing 86 room hotel is estimated at $312,250 to $2,241,099, including the $50,000 minimum franchise fee. A newly constructed 86 room Comfort Inn or Comfort Inn & Suites is estimated at $4,472,670 to $8,152,272, also including that minimum fee. A newly constructed Comfort Suites requires $5,027,342 to $9,145,231, including the $50,000 minimum franchise fee. These estimates generally exclude the cost of purchasing the real estate and related taxes, which can add millions to the project. Required liquid capital is at least $1,000,000, with other sources indicating requirements of $5,000,000 to $6,000,000. Required net worth ranges from $1,000,000 to $10,000,000. The Rewards Program Fee for Choice Privileges members ranges from 4.5% to 5.5% of revenue from program members. Other charges include a 5% Airline Frequent Traveler Program Fee and commissions of up to 10% for reservations made through affiliate programs or the Choice Hotels Enhanced Reservations Program, known as CHERP. The Marketing Processing Fee is $0.48 per transaction for Affiliate FedRooms GSA fees. The Third Party Distribution Fee is $0.12 per transaction for Reward Program or CHERP fees, or $3.00 for each consumed reservation through directly connected online travel agents and DerbySoft. Travel Agent Commissions range from 10% to 12% through the Travel Agent Centralized Commission Program. Property Management System costs range from $8,750 to $15,750 annually, with an additional monthly support fee. Training charges include a $995 Re Licensing Training Fee for significant ownership changes, an Onboard Training Fee of $1,850, and a HOST Training Fee of $1,395. Choice Hotels offers financing through third parties and a 15% veteran discount. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders. PeerSense is not a lender and does not approve or provide loans.
The operating model requires consistent quality, daily oversight, and adequate staffing. Franchisees manage employees, maintenance, and regulatory compliance while providing amenities such as a complimentary hot breakfast, high speed WiFi, premium bedding, and workspaces. Many properties also have indoor heated pools, fitness centers, and business centers. The brand stresses friendly, professional service, which makes hotel operations labor intensive. The format can be a Comfort Inn, Comfort Suites, or combined Comfort Inn & Suites property. The Comfort Rise & Shine prototype launched in March 2021 and uses smart design features intended to improve the guest experience and operating efficiency. Choice Hotels training begins with the Total Lodging by Choice, or TLC, orientation program. The franchisee pays an Onboard Training Fee of $1,850, a HOST Training Fee of $1,395, and a Re Licensing Training Fee of $995 when a hotel has a 50% or greater ownership change. Pre Opening Operations Training covers front office and guest services, maintenance, housekeeping, the Choice Central Reservations System, and programs such as the 100% Satisfaction Guarantee. A five day program at Choice Hotels’ corporate training facility in Silver Spring, Maryland, covers Human Resources, Front Desk Management, Risk Management, Maintenance Operations, Housekeeping Operations, Financial Management, and Sales & Marketing. It also provides instruction on Choice property management systems, reservations systems, and the ChoiceCentral platform. A New Hotel Opening Specialist provides sales and marketing techniques and assists with initial sales activity intended to help a new hotel reach fair market share. Each hotel receives a Brand Performance Consultant who is the primary support contact for the opening process, operations, and marketing. This consultant also connects the franchisee with Choice resources and monitors quality assurance standards. A Centralized Help Desk handles franchisee questions. The cloud based ChoiceEdge Reservation System represents tens of millions in investment and helps manage reservations and room occupancy. The Choice Privileges Rewards Program has 36 million members. More than 60% of revenue comes from Choice Hotels owned or controlled marketing channels. Specific territory exclusivity details are not provided. Locations generally perform best near major highways, business districts, or tourist attractions, with secondary markets and suburban areas also identified as successful settings. Proximity to demand generators and sufficient parking are key site considerations. Comfort’s strongest mid range presence remains in the Eastern and Midwestern United States, with concentrations in Virginia, Michigan, and North Carolina.
Public system and parent company information can provide context, but it does not replace unit level financial data. Since the comprehensive rebranding initiative began, annual system wide reservation volume for the Comfort brand has grown to more than $7 billion. The brand’s repositioning as an upper midscale offering and its focus on consistent quality are reflected in an average customer rating of 4.58 across numerous reviews. The midscale segment is projected to grow at a 7.6% CAGR from 2025 to 2030, indicating continued demand for lodging that combines affordability, quality, and essential amenities. Comfort expanded from 860 locations by the late 1980s to 1,000 hotels by 1993 and 2,159 locations as of December 31, 2024. In 2019, more than 60 Comfort hotels were expected to open in major U.S. cities, with more than 300 properties in the development pipeline. New construction represented 80% of that pipeline. Choice Hotels completed a multi year, $2.5 billion refresh of more than 1,600 U.S. hotels by June 2021. The work included guest room and public space upgrades, a new logo, and new signage.
Loan Activity Score
41/100
SBA Default Rate
8.1%
Active Lenders
288
According to its Franchise Disclosure Document or public business records, Comfort Inn & Suites has 775 locations, all owned by franchisees. Public SBA loan records show 288 lenders made 945 loans to franchisees of Comfort Inn & Suites. PeerSense calculates Comfort Inn & Suites's score as 41 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2024 Franchise Disclosure Document.
Franchising since 1981 · 775 locations
$305,250 to $14.3M
$50,000
775
775 franchised
Proprietary PeerSense metric
FairDistinct lenders in public SBA records for Comfort Inn & Suites
945
Total SBA loans
$1.5M
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Comfort Inn & Suites
Loan Activity Score Breakdown
Major Brand (100+ loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
8.1%
vs 10.3% peer avg
SBA Loans
945
Total Volume
$1447.6M
Active Lenders
288
30 selective
States
49
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Comfort Inn & Suites based on SBA lending data
SBA Default Rate
8.1%
2.2% below peer avg
SBA Loan Volume
945 loans
Across 288 lenders
Lender Diversity
288 lenders
Avg 3.3 loans per lender
Investment Tier
Premium investment
$305,250 to $14,346,795 total
Payment Estimator
Estimated Monthly Payment
$3,160
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
Comfort Inn & Suites, unit breakdown
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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; 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
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