Coast Hotels Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Coast Hotels is a midscale hotel franchise operating full and limited-service properties. Franchisees own and operate the hotels, managing front desk, housekeeping, and revenue under brand standards.
FranchiseVerdict summary · 2026
A Coast Hotels franchise requires a total initial investment of $43K – $571K, including a $15K franchise fee. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $43K – $571K
- 0th pct Lodging
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 9
- 21st pct Lodging
- SBA charge-off
- N/A
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
- COSTTotal investment $43K – $571K including a $15K franchise fee.
- RETURNSThe provided page images (p033-p035) are NOT audited financial statements. They are Exhibit C of the FDD: p033 is the Exhibit C "Franchise Agreement" divider page, p034 is the Coast Hotels USA, Inc. Franchise Agreement cover page, and p035 is the Franchise Agreement Table of Contents. No balance sheet, income statement, or Independent Auditor's Report is present in this image set, so no financial figures could be extracted.
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Coast Hotels USA, Inc.
- Parent company
- Coast Hotels Limited
- CEO title
- President and Chief Executive Officer
- Hayashi (Jin) Sasaki
- Incorporated in
- DE
- HQ
- 925 Fourth Avenue, Suite 2900, Seattle, Washington 98104
- Auditor
- Prager Metis CPAs, LLC
- Audited financials
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Hayashi (Jin) Sasaki
- Headquarters
- WA
- Founded
- 2022
- FDD year
- 2023
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 97% below the typical lodging franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $2K | $5K |
| Equipment, build-out, other | $26K | $551K |
| Total initial investment | $43K | $571K |
Source: Coast Hotels 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $43K – $571K
- Top 40% of category vs category
- Liquid capital req'd
- $2K – $5K
- Top 40% of category vs category
- Franchise fee
- $15K – $15K
- Top 40% of category vs category
- Royalty
- 3-5% of Gross Room Sales (negotiated before signing)
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 16.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $9 |
| Inventory (initial) | $3K – $100K |
| Total fee load | 16.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Coast Hotels did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Coast Hotels unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
29%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
The provided page images (p033-p035) are NOT audited financial statements. They are Exhibit C of the FDD: p033 is the Exhibit C "Franchise Agreement" divider page, p034 is the Coast Hotels USA, Inc. Franchise Agreement cover page, and p035 is the Franchise Agreement Table of Contents. No balance sheet, income statement, or Independent Auditor's Report is present in this image set, so no financial figures could be extracted.
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 16.0% — above the Lodging average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Multi-unit rate
Only 13% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Coast Hotels Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 9
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 12.5%
3-year detail · Item 20
- Opened (3yr)
- 9
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $2.9M
- Median loan
- $2.9M
- average
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
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
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Coast Hotels presents meaningful risk due to lack of financial transparency (no Item 19), micro-scale system (9 units), unclear franchisor financial stability (going concern = false), and wide investment variance with no disclosed performance metrics.
Litigation (Item 3)
No litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Prager Metis CPAs, LLC
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 43 / 100 verdict
- 01MINORNo Item 19 (Average Revenue/Net Income) disclosure - impossible to assess profitability or ROI
- 02MINOROnly 9 units system-wide indicates very small/early-stage franchise with minimal track record
- 03MINORWide investment range ($42.5K-$571K) suggests inconsistent unit economics or unclear cost structure
- 04HIGHGoing Concern status is FALSE - potential financial instability at franchisor level
- 05MEDNo disclosed unit growth trajectory - unable to verify system momentum or franchisee success rates
- 06MINOR3-5% royalty on gross sales (not net) - franchisees pay fees even during unprofitable periods
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 16.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Seattle, Washington (King County) |
| Jury trial waiver | No |
| Governing law | DE |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
- POS system
- Property Management System (PMS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Property Management System (PMS)
Item 20 · call current owners
Franchisee Contacts
8 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Coast Hotels · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Coast Hotels franchise?
The total investment to open a Coast Hotels franchise ranges from $43K – $571K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Coast Hotels franchise owners earn?
Coast Hotels 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 Item 19 in the Coast Hotels FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Coast Hotels FDD and qualifies whose outlets they describe.
What is Coast Hotels's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Coast Hotels (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Coast Hotels franchise locations are there?
As of their most recent FDD filing, Coast Hotels has 9 total units in the United States, including 9 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is Coast Hotels a good franchise to buy?
FranchiseVerdict rates Coast Hotels as a C-grade franchise with a verdict score of 43 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 Coast Hotels, 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.