Comfort Suites
The total investment to open a Comfort Suites franchise ranges from $750,000 to $2.1M. The initial franchise fee is $50,000. Ongoing royalties are 6%.
What is the Comfort Suites franchise?
Comfort Suites is an American hotel franchise and a subsidiary of Choice Hotels International. Choice Hotels began in 1939 as Quality Courts United, Inc., a nonprofit referral chain of seven motels in Florida. Quality Inns International launched the Comfort brand in 1981 as an economy offering for cost conscious domestic travelers. Its first property was a refurbished Atlanta hotel formerly called the Tech Motel. Comfort Suites followed in 1986 as an extension of Comfort Inn, with its first hotel opening in Anaheim, California. Choice Hotels International is headquartered in North Bethesda, Maryland, while Comfort Suites lists Lake Jackson, Texas, as its headquarters. Stewart W. Bainum Jr. became chairman and CEO in 1987 after Stewart Bainum Sr., and Quality Inns International changed its name to Choice Hotels International, Inc. in 1990. Patrick, or Pat, Pacious was president and CEO as of May 2019. The broader Comfort brand includes Comfort Inn, Comfort Suites, and Comfort Inn & Suites. It had more than 2,350 locations open or in development worldwide as of May 22, 2023. Another source reports that franchisees own 100% of Comfort Inn and Comfort Suites hotels, with nearly 2,500 units open or in development worldwide, including 2,159 Comfort locations as of December 31, 2024. One data point lists 111 Comfort Suites by Choice Hotel locations, while another lists 1,664 total U.S. Comfort Suites locations. The broader Comfort chain has about 2,000 hotels open or in development in the United States and about 550 internationally. Choice Hotels franchises close to 6,300 hotels with more than 500,000 rooms in the United States and more than 35 countries and territories. Comfort Suites moved from its economy roots into the upper midscale segment in the early 2010s and offers an all suite product. The global hotels market was valued at USD 1071.49 billion in 2024 and is projected to grow at a CAGR of 9.2% from 2025 to 2032, reaching nearly USD 2166.55 billion.
The global hotels market was valued at USD 1071.49 billion in 2024 and is expected to reach nearly USD 2166.55 billion by 2032 at a CAGR of 9.2% from 2025 to 2032. Another estimate places the global hospitality industry at USD 5,753.3 billion in 2025, with growth at a CAGR of 6.6% through 2034 to USD 10,267.8 billion. The U.S. hotels market was valued at USD 263.21 billion in 2024 and is projected to grow at a CAGR of 7.1% from 2025 to 2030. The broader U.S. Hospitality Industry Market is projected at USD 1,209.6 billion in 2025 and USD 2,078.7 billion in 2034, reflecting a CAGR of 6.2%. Travelers are seeking experiential travel, wellness tourism, and technology enhanced services. Contactless technology, artificial intelligence personalization, and mobile first interfaces are affecting hotel operations and guest service. Online booking platforms including Airbnb, MMT, and Booking.com held 55.25% of the market in 2025 and are expected to grow at a CAGR of 8.17%. Leisure travel, local travel after recent global events, and demand for midscale hotels are supporting the sector. Midscale hotels are projected to grow at a CAGR of 7.6% from 2025 to 2030. The segment serves budget conscious guests with clean rooms, complimentary breakfast, and Wi Fi. Smart hotel systems using the Internet of Things can control lighting, climate, and entertainment through smartphones or voice commands.
A newly constructed Comfort Suites hotel requires an estimated $5,027,342 to $9,145,231, excluding the cost of acquiring real estate and related taxes. The estimate includes an initial franchise fee of $50,000 or $500 per room, whichever is greater. A conversion of an existing 86 room Comfort Inn, Comfort Inn & Suites, or Comfort Suites property has an estimated investment of $312,250 to $2,241,099 and includes a franchise affiliation fee of at least $50,000 or $500 per room. Across the Choice system, investment ranges from $118,825 to over $26 million. New Comfort Suites franchises pay $500 per room, with a $50,000 minimum. Transfers or renewals require $60,000 or $750 per room, with a $65,000 minimum. The application fee is $5,000 and is credited toward the affiliation fee after approval. The Choice Privileges Rewards Program fee is 4.5% to 5.5% of revenue from program members. The Airline Frequent Traveler Program fee is 5% of revenue from airline frequent travelers. Property Management System costs range from $8,750 to $15,750 based on room count and selected interfaces, with an additional monthly support fee. Other charges include a $5,000 extension fee for construction or renovation delays, a $995 relicensing training fee after a 50% or greater ownership change, an Onboard Training Fee of $1,850, and a HOST Training Fee of $1,395. Additional attendees receive a 50% discount up to a maximum of $875. Comfort Suites requires $1,000,000 in liquid capital and a net worth of $1,000,000 to $10,000,000. Honorably discharged veterans may receive an incentive of $1,500 per room, capped at $125,000, paid shortly after opening.
Franchisees manage daily hotel operations, including staffing, guest service, and property maintenance. Comfort Suites offers all suite accommodations with free hot breakfast, complimentary Wi Fi, business centers, and fitness facilities. Every suite is 100% nonsmoking. Staffing levels are not specified, although employee feedback has identified workload challenges when team members are absent. In March 2025, Choice Hotels introduced new value engineered prototypes for Comfort and Country Inn & Suites by Radisson. The designs add revenue producing space within the same footprint, target a 10% to 15% reduction in construction costs, and use an open lobby with sightlines to the breakfast area and lounge seating. New franchisees begin with two weeks of training at the franchisor headquarters, followed by continuing resources and support. Choice Hotels developed the cloud based ChoiceEdge booking system over several years with an investment of tens of millions of dollars and about 200 information technology professionals and engineers. The system supports reservation management and room occupancy. Comfort franchisees also receive access to the Choice Privileges Rewards program, which has 36 million members. Choice uses owner feedback, customer studies, and knowledge of upper midscale guests to refine its brands and prototypes with value for guests and operating costs favorable to owners. Public information does not specify territory structure or exclusivity. The investment and operating requirements generally fit an owner operator or highly involved management team better than fully absent ownership.
Prospective franchisees must contact the franchisor for further information and the full Franchise Disclosure Document. Adjusted earnings before interest, taxes, depreciation, and amortization reached $478.6 million for full year 2022, up 19% from 2021. More than 60% of revenue comes from Choice Hotels owned or controlled marketing channels. The global hotels market was valued at USD 1071.49 billion in 2024 and is projected to reach nearly USD 2166.55 billion by 2032 at a CAGR of 9.2%. The U.S. hotels market was USD 263.21 billion in 2024 and is expected to grow at a CAGR of 7.1% from 2025 to 2030. Midscale demand is projected to grow at a CAGR of 7.6% from 2025 to 2030, while online booking held 55.25% of the market in 2025 and is expected to grow at a CAGR of 8.17%. Choice Hotels and its franchisees invested $2.5 billion from 2013 through 2019 through the Move to Modern initiative.
The broader Comfort brand had more than 2,350 locations open or in development worldwide as of May 22, 2023, and nearly 2,500 franchisee owned units open or in development worldwide. It had 2,159 total Comfort locations as of December 31, 2024, and more than 2,100 U.S. locations with another 122 in the pipeline by March 2025. In 2012, a major brand revision introduced stricter standards and removed several hundred underperforming franchises. Choice Hotels and its franchisees invested $2.5 billion from 2013 through 2019 in the Move to Modern program, updating public spaces and guest rooms. The 2017 development pipeline was the brand's strongest in history, with plans to meet or exceed 56 openings and 25 new Comfort franchise agreements signed in the first quarter. Nearly 67% of 121 executed agreements for new Comfort locations in 2016 were new construction, a figure that had tripled during the prior eight years. The brand planned to open more than one hotel per week in 2018, with nearly 300 properties in the pipeline and 80% new construction. By early 2019, the pipeline was still almost 300 properties, with 80% new construction. A Brand Renaissance updated the properties and strengthened the brand's position in the upper midscale segment through guest and franchisee feedback. In March 2025, Choice Hotels introduced new prototypes for Comfort and Country Inn & Suites by Radisson with a targeted 10% to 15% construction cost reduction and updated open lobby designs. Comfort ranked No. 35 on Franchise Times' Top 500 Franchises in 2022. Its competitive resources include the ChoiceEdge reservation system, an investment of tens of millions of dollars over several years, about 200 information technology professionals, and the 36 million member Choice Privileges Rewards program. The brand continues to invest in technology, repositioning, and owner focused operating value.
An ideal Comfort Suites franchisee is generally an experienced business professional or hotel operator with strong financial knowledge and substantial capital. The source does not state that prior hospitality experience is required. However, managing a multi million dollar asset and responding to local market conditions may favor candidates with management experience or existing industry knowledge. The required liquid capital is $1,000,000.
Loan Activity Score
27/100
SBA Default Rate
13.2%
Active Lenders
86
According to its Franchise Disclosure Document or public business records, Comfort Suites has 109 locations, all owned by franchisees. Public SBA loan records show 86 lenders made 136 loans to franchisees of Comfort Suites. PeerSense calculates Comfort Suites's score as 27 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 1939 · 109 locations
$750,000 to $2.1M
$50,000
109
109 franchised
Proprietary PeerSense metric
LimitedDistinct lenders in public SBA records for Comfort Suites
136
Total SBA loans
$1.4M
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 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
13.2%
vs 10.3% peer avg
SBA Loans
136
Total Volume
$192.9M
Active Lenders
86
2 selective
States
32
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 Suites based on SBA lending data
SBA Default Rate
13.2%
2.9% above peer avg
SBA Loan Volume
136 loans
Across 86 lenders
Lender Diversity
86 lenders
Avg 1.6 loans per lender
Investment Tier
Premium investment
$750,000 to $2,131,000 total
Comfort Suites: 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
2022
25 approvals. The best year on record for Comfort Suites.
Top SBA State
Texas
51 SBA financed Comfort Suites locations, the densest operator footprint.
Average Loan Size
$2.3M
Median $3.4M. Use as a sizing anchor when modeling your own Comfort Suites unit.
Lender Concentration
13.5%
Highly Diversified
Share of Comfort Suites approvals captured by the top 3 SBA lenders.
Comfort Suites's SBA lending pipeline peaked in 2022 (25 approvals). The last five fiscal years account for 60% of cumulative volume ($288M approved). Operator density is highest in Texas with 51 SBA financed locations. Average funded ticket sits at $2.3M, with the median at $3.4M. Lender mix is highly diversified: the top three SBA lenders account for 13.5% of approvals. Borrowers have leverage to shop multiple credit boxes.
Payment Estimator
Estimated Monthly Payment
$7,764
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 Suites, unit breakdown
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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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