Park Inn by Radisson Franchise Cost, Revenue & Review 2026
- Investment
- $256K – $1.3M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (4)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Park Inn by Radisson is a midscale hotel franchise offering value-priced rooms for travelers. Franchisees own and operate the hotels, managing front desk, housekeeping, and revenue under Radisson standards.
FranchiseVerdict summary · 2026
A Park Inn by Radisson franchise requires a total initial investment of $256K – $1.3M, including a $45K franchise fee and an ongoing 5.5% royalty[2]. The 2024 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $256K – $1.3M
- 13th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.5%
- 39th pct Lodging
- Units
- 4
- 14th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · 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 $256K – $1.3M including a $45K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict D (Below average), verdict score 33/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed); 1 signed but not yet open (Item 20).
- LEGAL91 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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.
- FDD Item 1, page 9 of the 2024 FDD
- Predecessor
- Park Hospitality LLC
- Prior franchisor entity
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- Delaware
- 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.
Same owner · FDD Item 1, page 9
11 other brands on this site name Choice Hotels International, Inc. as parent or ultimate parent in their own FDD.
- ASCEND HOTEL COLLECTIONA
- Clarion / Clarion PointeB
- Country Inn & Suites by RadissonB
- Econo LodgeB
- Everhome SuitesB
- MainStay SuitesA
- RODEWAY INNB
- Radisson IndividualsC
- Sleep InnB
- Suburban StudiosB
- WoodSpring SuitesB
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1939
- FDD year
- 2024
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 91% below the typical lodging franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Fee | $45K | $45K | |
| Property Improvements | $105K | $725K | |
| Insurance | $3K | $88K | |
| Advertising | $3K | $40K | |
| Opening Inventories of Supplies | $24K | $140K | |
| Orientation and Hospitality Training Fees | $1K | $3K | |
| Mandatory On-Premise Signs | $15K | $80K | |
| Working Capital Required Before Operations Begin | $15K | $40K | |
| Hardware required to operate choiceADVANTAGE property management system | $4K | $11K | |
| choiceADVANTAGE Software License and Systems Onboarding | $5K | $7K | |
| Design and engineering costs and inspections | $10K | $50K | |
| Pre-Opening Photography | $1K | $3K | |
| Additional Funds for 3-Month Initial Period | $25K | $50K | |
| Total initial investment | $256K | $1.3M |
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
- $256K – $1.3M
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $50K
- Top 40% of category vs category
- Franchise fee
- $45K
- Top 40% of category vs category
- Royalty
- 5.5%
- typical 6–8%
- Ad fund
- 3.3%
- typical 3–5%
- Total fee load
- 8.8%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 3.3% of gross sales |
| Technology fee | $328 |
| Training fee | $3K |
| Transfer fee | $0 |
| Inventory (initial) | $24K – $140K |
| Total fee load | 8.8% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Park Inn by Radisson is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Park Inn by Radisson unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2024 FDD
Financial Performance
An occupancy metric, not unit revenue
- Item 19 type
- Occupancy, ADR, RevPAR metrics only (no gross revenue totals disclosed)
- Sample size
- 4
- vs category median 98 · small
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
Compared against 175 Lodging brands
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 8.8% (near the Lodging median).
Disclosure
Item 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System shrank 20.0% over 3 years. Ask existing franchisees about local market conditions.
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 medians
How Park Inn by Radisson Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -20.0%
- Net unit change over 3 years
- 3-yr CAGR
- -20.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 1
- 0.25 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 25.0%
- Owners selling to other franchisees
- Termination rate
- 25.0%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 4 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
4
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $14.8M
- Median loan
- $3.7M
- average
- Charge-off rate
- Under 10 loans (4)
- Insufficient SBA coverage: 4 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (4)
- 5-yr charge-off
- Under 10 loans (4)
- Loans approved 2021+
- Active lenders
- 4
- 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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
3 pending matters: (1) Norma Knuth v. Radisson Hotels International class action in Canada re destination marketing fees (2014); (2) Jai Sai Baba LLC v. Choice Hotels - RICO/discrimination suit now stayed pending arbitration (2020); (3) T&T Management Inc. v. Choice Hotels re territory/data misappropriation (2023). Multiple resolved matters including Highmark award against Choice for $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)
Consolidated financials are for Choice Hotels International, Inc. (parent/franchisor), in thousands USD, FY ended December 31, 2023. Total revenues $1,544,165K includes royalty/licensing/management fees $513,412K, initial franchise fees $27,787K, platform/procurement fees $75,114K, owned hotels $97,641K, other $46,051K, and other revenues from franchised/managed properties $784,160K.
ⓘ 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
Score breakdown · what drove the 33 / 100 verdict
- 01MINOROnly 4 units system-wide indicates severe contraction or failed brand expansion
- 02HIGHMultiple active litigations including class action, anti-competitive claims, and trade secret misappropriation suggest systemic operational/legal problems
- 03MINORUnprotected territory creates direct competition risk from other franchisees
- 04MED5.5% royalty on undisclosed revenues with no profitability data creates revenue uncertainty
- 05MINORDiscriminatory practice allegations by franchisee group suggest franchisor-franchisee relationship breakdown
- 06MINORChoice Hotels' royalty recovery lawsuits indicate payment compliance issues across system
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.8% 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 | No territory protection |
| 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 | 4 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 91 |
View Item 3 litigation summary
3 pending matters: (1) Norma Knuth v. Radisson Hotels International class action in Canada re destination marketing fees (2014); (2) Jai Sai Baba LLC v. Choice Hotels - RICO/discrimination suit now stayed pending arbitration (2020); (3) T&T Management Inc. v. Choice Hotels re territory/data misappropriation (2023). Multiple resolved matters including Highmark award against Choice for $779,398.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 0 hrs
- Training location
- North Bethesda, Maryland or Scottsdale, Arizona (Choice Onboard); Virtual (HOST)
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Franchisor must approve site selected by franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- choiceADVANTAGE
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: choiceADVANTAGE
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Park Inn by Radisson franchise?
The total investment to open a Park Inn by Radisson franchise ranges from $256K – $1.3M, 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 Park Inn by Radisson franchise owners earn?
Item 19 of the Park Inn by Radisson FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Park Inn by Radisson?
Park Inn by Radisson is franchised by Choice Hotels International, Inc.. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Park Inn by Radisson 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 Park Inn by Radisson FDD and qualifies whose outlets they describe.
What is Park Inn by Radisson's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Park Inn by Radisson (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 Park Inn by Radisson franchise locations are there?
As of their most recent FDD filing, Park Inn by Radisson has 4 total units in the United States, including 4 franchised units and 0 company-owned units.
Is Park Inn by Radisson a good franchise to buy?
FranchiseVerdict rates Park Inn by Radisson as a D-grade franchise with a verdict score of 33 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.