Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner InnsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns franchise requires a total initial investment of $134K – $2.6M, including a $10K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $134K – $2.6M
- 7th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- N/A
- Units
- 203
- 40th pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1977. Systems this mature have refined operations and brand recognition.
Franchised units fell from 210 to 203 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $134K – $2.6M including a $10K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 33/100.
- No 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
- Legal entity
- Hospitality International, Inc.
- Parent company
- Southern Scottish Inns, Inc.
- Incorporated in
- TN
- HQ
- 1726 Montreal Circle, Suite 110, Tucker, Georgia 30084-6809
- Auditor
- Simons & Associates, CPA's
- Audited financials
- Franchisor revenue
- $1.9M
- vs $1.9M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Franchisees operate budget-segment hotel properties under one of five brand names, managing daily operations including front-desk staff, housekeeping, maintenance, and guest services. Revenue comes from room rentals at economy price points; franchisees pay a $25 per-room monthly royalty regardless of occupancy rate, creating fixed overhead pressure.
- CEO
- Christopher Guimbellot
- Headquarters
- GA
- Founded
- 1977
- FDD year
- 2024
- States available
- 29
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $90K | $175K |
| Equipment, build-out, other | $34K | $2.4M |
| Total initial investment | $134K | $2.6M |
Source: Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns 2024 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
- $134K – $2.6M
- Better than avg vs category
- Liquid capital req'd
- $90K – $175K
- Better than avg vs category
- Franchise fee
- $8K – $15K
- Better than avg vs category
- Royalty
- $25 per room
- Ad fund
- $15 per room
- Total fee load
- 25.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $3K |
| Total fee load | 25.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 203
- Opened
- 8
- Last reporting year
- Closed
- 8
- Turnover rate
- 3.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -0.5%
- Net unit change last year
- 3-yr CAGR
- -3.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 8
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 20
- Franchisor's next-year forecast
- Ceased ops
- 3.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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
- 29
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This is a declining budget hotel franchise system with shrinking unit count, missing financial disclosure, aggressive litigation history, and high operational leverage that creates significant franchisee default risk.
Litigation (Item 3)
1 case reference(s): 0 pending, 1 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Simons & Associates, CPA's
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 33 / 100 rating
- 01MINORDeclining unit count (203 units, -0.5% YoY) indicates shrinking franchise system with negative momentum
- 02MEDNo disclosed average revenue or net income (missing Item 19) prevents financial viability assessment and suggests weak unit economics
- 03MINORHigh royalty-to-investment ratio ($25/room on $134K-$2.6M investment) creates ongoing cash drain with unclear ROI
- 04HIGHSeven franchisor-initiated litigations for trademark infringement and past-due fees signal enforcement issues and franchisee financial distress
- 05MINORUnprotected territory creates direct competition risk from other franchisees within same brand portfolio
- 06MINORLow franchise fee ($10K) relative to total investment suggests high-leverage, asset-heavy model vulnerable to debt stress
- 07MINORFive-year term is short, limiting franchisee ability to recover investment and refinance debt
- 08MINORMultiple distinct brand names (Scottish Inns, Red Carpet Inn, Master Hosts, Passport Inn, Downtowner) may indicate fragmented legacy system or brand portfolio confusion
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Specific location |
| Protected territory | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 15 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 8 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 11 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Sabre SynXis Central Reservations System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Sabre SynXis Central Reservations System
Item 20 · call current owners
Franchisee Contacts
27 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns franchise?
The total investment to open a Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns franchise ranges from $134K – $2.6M, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns franchise owners earn?
Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns 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 Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns (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 Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns franchise locations are there?
As of their most recent FDD filing, Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns has 203 total units in the United States, including 210 franchised units and 0 company-owned units. 8 new units were opened in the latest reporting year.
Is Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns a good franchise to buy?
FranchiseVerdict rates Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns as a A-grade franchise with a risk score of 33 out of 100, 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.
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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.