Ascend Hotel Collection Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Ascend Hotel Collection is Choice Hotels' soft brand for upscale, independent, and boutique hotels. Franchisees own and operate a distinctive property, running guest services while tapping Choice's reservation and marketing systems.
FranchiseVerdict summary · 2026
A ASCEND HOTEL COLLECTION franchise requires a total initial investment of $188K – $2.2M, including a $45K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 32 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $188K – $2.2M
- 9th pct Lodging
- Avg gross sales
- N/A
- 1st pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 177
- 41st pct Lodging
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $188K – $2.2M including a $45K franchise fee, 5.0% ongoing royalty.
- Consolidated financial statements of Choice Hotels International, Inc. (parent franchisor); amounts in thousands. FY2023 total revenues $1,544.165M; FY2022 $1,401.949M. Audited by Ernst & Young LLP (PCAOB ID 42).
- Verdict A (Strongest tier), verdict score 84/100 (higher is better). SBA loan charge-off rate of 0.0% across 32 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- Item 19 reports "operational_metrics" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Choice Hotels International, Inc.
- Parent company
- Choice Hotels International, Inc.
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- DE
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.4B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1939
- FDD year
- 2024
- States available
- 42
Can you afford it, and what does the money buy?
Entry cost runs 88% below the typical lodging franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Fee | $45K | $45K | |
| Property Improvements | $78K | $1.8M | |
| Insurance | $3K | $88K | |
| Advertising | $3K | $40K | |
| Hardware to operate choiceADVANTAGE property management system | $4K | $11K | |
| choiceADVANTAGE Software License and Systems Training | $9K | $11K | |
| Opening Inventory of Supplies | $0 | $123K | |
| Onboarding, Sales, Hospitality Leadership Certification Fees, and Orientation Fees | $4K | $9K | |
| Mandatory On-Premise Plaque | $200 | $750 | |
| Pre-Opening Photography | $4K | $5K | |
| Working Capital Required Before Operations Begin | $15K | $40K | |
| Additional Funds for 3-Month Initial Period | $25K | $50K | |
| Total initial investment | $188K | $2.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $188K – $2.2M
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $50K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $472 |
| Training fee | $9K |
| Transfer fee | $45K |
| Inventory (initial) | $0 – $123K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
Financial Performance
Consolidated financial statements of Choice Hotels International, Inc. (parent franchisor); amounts in thousands. FY2023 total revenues $1,544.165M; FY2022 $1,401.949M. Audited by Ernst & Young LLP (PCAOB ID 42).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% — below the Lodging average of 10.3%.
Disclosure
Item 19 reports "operational_metrics" rather than annual gross sales. Not directly comparable across brands.
Operator retention
System roughly stable (-0.6% 3-year CAGR) with 177 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Ascend Hotel Collection Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 177
- Opened
- 17
- Last reporting year
- Closed
- 13
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +2.9%
- Net unit change over 3 years
- 3-yr CAGR
- -0.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 23
- Closed (3yr)
- 15
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 1.7%
- Franchisor-initiated terminations
- Ceased ops
- 8.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 34 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 32
- Loan volume
- $95.3M
- Median loan
- $3.0M
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 16
- Defaults
- 0
- Typical loan rate
- 6.5%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 11%
- top lender's share
Vintage analysis
Ascend Hotel Collection charge-off rate by loan vintage
Top lenders financing Ascend Hotel Collection franchisees
Showing 3 of 16 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Ascend Hotel Collection's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 16 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
With a 0.0% charge-off rate across 32 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
HIGH RISK: Stagnant growth, pervasive litigation, high franchisor enforcement actions, and missing financial disclosures indicate a troubled system where franchisees face legal exposure and undisclosed profitability risks.
Litigation (Item 3)
3 pending matters: (1) Norma Knuth class action in Canada re destination marketing fees; (2) Jai Sai Baba multi-plaintiff RICO/franchise law suit (stayed, in arbitration); (3) T&T Management breach of contract/data misappropriation. Resolved: Wydredge (settled 2014), Sender Kohl ($85K settlement 2021), Highmark Lodging ($779K judgment against Choice 2024), Dahya Investments (mixed award). Large volume of 2023 royalty collection arbitrations by franchisor against franchisees.
Largest disclosed settlement: $779,398
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 84 / 100 verdict
- 01MINORMinimal system growth (1.7% YoY) with only 177 units suggests stagnation or contraction pressure
- 02MINORMultiple active class action lawsuits regarding destination marketing fees and discriminatory practices indicate systemic franchisor issues affecting profitability
- 03MINOR61 recovery actions initiated by franchisor in prior year suggests widespread franchisee defaults, payment disputes, or breach claims
- 04MINORNo Item 19 financial performance disclosure (Avg Revenue/Net Income not provided) prevents validation of unit economics
- 05MINORUnprotected territory exposes franchisees to direct brand competition and canibalization within same market
- 06MINORWide investment range ($187K–$11.8M) with unclear cost structure creates pricing opacity and unpredictable capital requirements
- 07MINOR5% royalty on gross room revenue (not net) penalizes franchisees during low-occupancy periods common in hospitality
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 7 |
View Item 3 litigation summary
3 pending matters: (1) Norma Knuth class action in Canada re destination marketing fees; (2) Jai Sai Baba multi-plaintiff RICO/franchise law suit (stayed, in arbitration); (3) T&T Management breach of contract/data misappropriation. Resolved: Wydredge (settled 2014), Sender Kohl ($85K settlement 2021), Highmark Lodging ($779K judgment against Choice 2024), Dahya Investments (mixed award). Large volume of 2023 royalty collection arbitrations by franchisor against franchisees.
Items 10, 11
Training & Operations
- Classroom training
- 47 hrs
- On-the-job training
- 0 hrs
- Training location
- North Bethesda, Maryland or Scottsdale, Arizona (Choice Onboard); online/virtual (HOST)
- Ongoing training
- Required
- Site selection
- Franchisor must approve site; franchisee selects
- Franchisor financing
- Offered
- Item 10
- POS system
- choiceADVANTAGE
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: choiceADVANTAGE
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ASCEND HOTEL COLLECTION · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ASCEND HOTEL COLLECTION franchise?
The total investment to open a ASCEND HOTEL COLLECTION franchise ranges from $188K – $2.2M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ASCEND HOTEL COLLECTION franchise owners earn?
ASCEND HOTEL COLLECTION does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is ASCEND HOTEL COLLECTION's franchise failure rate?
Based on SBA 7(a) loan data, ASCEND HOTEL COLLECTION has a charge-off rate of 0.0% across 32 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many ASCEND HOTEL COLLECTION franchise locations are there?
As of their most recent FDD filing, ASCEND HOTEL COLLECTION has 177 total units in the United States, including 177 franchised units and 0 company-owned units. 17 new units were opened in the latest reporting year.
Is ASCEND HOTEL COLLECTION a good franchise to buy?
FranchiseVerdict rates ASCEND HOTEL COLLECTION as a A-grade franchise with a verdict score of 84 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent ASCEND HOTEL COLLECTION, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.