Park Inn by Radisson Franchise Cost, Revenue & Review 2026
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 does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $256K – $1.3M
- 13th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.5%
- 38th pct Lodging
- Units
- 4
- 15th 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 $256K – $1.3M including a $45K franchise fee, 5.5% ongoing royalty.
- RETURNSConsolidated 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.
- RISKVerdict D (Below average), verdict score 30/100 (higher is better).
- DATAItem 19 reports Occupancy, ADR, RevPAR metrics only (no gross revenue totals disclosed) rather than annual gross sales, so unit revenue is not directly comparable. 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.
- 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.
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 92% 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%
- percentage · 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
Park Inn by Radisson 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 Park Inn by Radisson unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
10%
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: 2024 FDD
Financial Performance
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.
- Item 19 type
- Occupancy, ADR, RevPAR metrics only (no gross revenue totals disclosed)
- Sample size
- 4
- vs category median 99 · small
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 174 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% — below the Lodging average of 10.4%.
Disclosure
Item 19 reports Occupancy, ADR, RevPAR metrics only (no gross revenue totals disclosed) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System shrank 20.0% over 3 years — 0 closures. 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 averages
How Park Inn by Radisson Compares
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
- 50.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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
- N/A
- limited sample (4 loans) — 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
- 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
A severely contracting 4-unit system with active multi-party litigation, undisclosed financials, going concern questions, and demonstrated franchisor-franchisee conflict presents extreme operational and financial risk.
Litigation (Item 3)
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.
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
Score breakdown · what drove the 30 / 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
- 03HIGHGoing Concern status is FALSE, indicating franchisor financial viability questions
- 04MINORUnprotected territory creates direct competition risk from other franchisees
- 05MED5.5% royalty on undisclosed revenues with no profitability data creates revenue uncertainty
- 06MINORDiscriminatory practice allegations by franchisee group suggest franchisor-franchisee relationship breakdown
- 07MINORChoice 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 | 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 | 4 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 3 |
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?
Park Inn by Radisson 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 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 30 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 Park Inn by Radisson, you can request corrections or provide updated information.
Other Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.