2026 ITEM 7 ANSWER
How much does a Country Inn & Suites franchise cost?
Country Inn & Suites by Radisson has two separate 2026 investment ranges: $851,845 to $3,623,495 for converting an existing 83-room hotel, and $12,203,495 to $19,454,145 for a standard new-construction hotel with 101 guestrooms, 25% of them suites. The ranges are not interchangeable.
New build: $12,203,495-$19,454,145
Data basis. Legal franchisor: Choice Hotels International, Inc. FDD issued April 1, 2026 and amended May 20, 2026. Formats analyzed: an 83-room conversion hotel and a 101-room new-construction hotel. Cost disclosures used: Items 5, 6, 7, 10, 11 and 17. Information checked July 21, 2026.
The current FDD citations are shown as unlinked Item and page references because no matching 2026 FDD was verified on an official franchise-controlled domain. Separate links point to official Choice Hotels U.S. franchise information and Choice Hotels development company information.
Capital snapshot
Metric sources: 2026 FDD, Item 5, pp. 24-26; Item 6, pp. 27-42; Item 7, pp. 43-49.
FORMAT DIFFERENCE
Why are the conversion and new-build ranges so far apart?
The conversion estimate assumes an existing hotel that is open and operating, while the new-construction estimate includes a full building program. Choice's official upper-midscale development information identifies both conversion and new-construction opportunities, and the official U.S. Country Inn & Suites brand page confirms the brand within Choice Hotels' Americas portfolio.
2026 total initial investment ranges by format
The bars use a common $0 to $19.5 million scale. Exact FDD ranges are printed beside each format.
Source: 2026 FDD, Item 7, pp. 43-49. Official FDD figures; chart positions are proportional renderings of the disclosed low and high endpoints.
| Format | FDD model | Official range | Important assumption or exclusion |
|---|---|---|---|
| Conversion | Existing 83-room hotel | $851,845-$3,623,495 | Assumes the hotel is open and operating with real estate, FF&E, staff, internet, marketing and other operating assets already in place. |
| New construction | 101 guestrooms; 25% suites | $12,203,495-$19,454,145 | Assumes a standard prototype; a three-story hotel is described as requiring about two acres. |
| Real estate | Both formats | Not included | Purchase price, lease cost and real estate taxes are outside the Item 7 totals. |
| Site and soft costs | New construction | Not included | Sitework, general conditions, project-management fees, general-contractor profit and other soft costs can materially raise the project budget. |
Cost implication
A buyer should select the applicable format before using any number. Combining the conversion low with the new-build high, or treating the conversion range as a ground-up development budget, would misstate the 2026 disclosure.
CONVERSION HOTEL
What is included in the $851,845-$3,623,495 conversion estimate?
The conversion range is dominated by the customized Property Improvement Plan, opening inventory and other work required to bring an existing 83-room hotel to Country Inn & Suites standards. Item 7 assumes the hotel is already operating; it is not a purchase-price estimate for the property.
| Expenditure | Low | High | Timing |
|---|---|---|---|
| Property Improvements | $659,850 | $2,706,500 | As incurred before opening |
| Opening Inventory of Supplies | $26,000 | $356,700 | As incurred before opening |
| Mandatory On-Premises Signs | $20,000 | $100,000 | As incurred before opening |
| Professional Design Services | $30,000 | $100,000 | As incurred before opening |
| Insurance | $2,500 | $87,500 | As incurred before opening |
| Advertising | $2,500 | $40,000 | As incurred before opening |
| Brand in a Box | $15,150 | $30,000 | Pre-opening item paid to Choice |
| Immersion and Hospitality Operations Training Fees | $3,345 | $5,295 | Before opening; travel, lodging and meals excluded |
- Affiliation Fee
- $500 per room with a $50,000 minimum for a new franchise; $750 per room with a $65,000 minimum for a transfer or renewal. Item 7 assumes the applicable minimum.
- Interior Design Waiver Fee
- $0-$20,000, payable if a waiver is requested; the fee is due regardless of whether the waiver is approved.
- Architectural Design Review & Construction Services
- $0-$20,000 for a non-prototypical building-design waiver request.
- Permits, Licenses and Government Fees
- Varies by jurisdiction and is not assigned a numeric range.
- Revenue Management Setup and Training Fee
- $2,500 before opening.
- Working Capital Required Before Operations Begin
- $15,000-$40,000. The FDD says the actual amount depends on staffing, pay rates, management capability, economic conditions and competition.
- Additional Funds for the 3-Month Initial Period
- $25,000-$50,000 after opening. This amount is already included in the conversion total; it should not be added a second time.
Excluded from the conversion range
The Property Improvement Plan estimate excludes deferred maintenance such as parking-lot, HVAC and exterior work, and excludes the labor required for the improvements. If an existing hotel lacks a compliant high-speed internet solution, Item 7 Note 14 says conversion work could add $0-$20,000. Performance Engagement Training may add $4,500, and Re-Licensing Systems Training may add $995 when applicable. Source: 2026 FDD, Item 7, pp. 44-45.
NEW CONSTRUCTION
What drives the $12,203,495-$19,454,145 new-build estimate?
Construction excluding soft costs is the largest disclosed line item, at $10,399,000-$15,908,000. The remaining major categories include Furniture, Fixtures & Equipment, professional design, opening inventory, insurance, specialized equipment and pre-opening working capital.
Highest disclosed amounts for major non-construction categories
Maximum-only comparison for the 101-room new-construction format. Construction is omitted from the bars because its $15,908,000 maximum would compress the remaining categories.
Source: 2026 FDD, Item 7, pp. 46-48. The bars plot only the official high endpoint for each named category; they are not typical or expected costs.
| Expenditure | Low | High | Important qualification |
|---|---|---|---|
| Construction excluding soft costs | $10,399,000 | $15,908,000 | Excludes sitework, project management, general-contractor profit and other soft costs. |
| Furniture, Fixtures & Equipment | $858,000 | $1,488,000 | Taxes, shipping and installation are excluded. |
| Professional Design Services | $200,000 | $450,000 | Architect, engineer, interior design and related professionals. |
| Opening Inventory of Supplies | $214,000 | $355,350 | Includes brand-standard, linen, paper, housekeeping, kitchen, fitness, laundry and phone-system supplies. |
| Insurance | $55,000 | $250,000 | Construction, General Liability, Cyber Liability and Workers Compensation coverage. |
| Food, fitness and laundry equipment | $136,500 | $210,000 | Paid to suppliers or a Qualified Vendor. |
| Legal Fees | $10,000 | $45,000 | Paid to the franchisee's attorneys. |
| Feasibility, market or environmental studies | $10,000 | $35,000 | Applies if necessary. |
| Pre-Opening Advertising | $5,000 | $60,000 | Paid as incurred before opening. |
- Permits, Licenses and Government Fees
- Varies and is outside a fixed numeric estimate.
- Brand in a Box
- $15,150-$30,000 for pre-opening photography, choiceADVANTAGE hardware, software license and systems onboarding.
- Training
- $3,345-$5,295, excluding travel, lodging and meals.
- High Speed Internet Access
- The Item 7 table lists $10,000-$25,000. Note 11 describes $10,000-$20,000 for a wired solution or $4,500-$9,500 for wireless, plus estimated incoming broadband service of $1,800-$12,800 per year.
- Mandatory On-Premises Signs
- $20,000-$100,000, including freight and installation but excluding ongoing maintenance and insurance.
- Design waiver fees
- $0-$20,000 for the Interior Design Waiver Fee and $0-$20,000 for Architectural Design Review & Construction Services.
- Revenue Management Setup and Training
- $2,500 before opening.
- Working Capital Required Before Operations Begin
- $145,000-$285,000, including salaries for the General Manager, salespeople and other essential personnel.
- Additional Funds for the 3-Month Initial Period
- $70,000-$100,000 after opening, already included in the official total.
FDD caveat
Choice announced value-engineered Country Inn & Suites prototypes in 2025 and described a 10%-15% reduction in construction costs. That statement should not be subtracted from the 2026 Item 7 range. The current FDD remains the controlling disclosed estimate; the official prototype announcement is supplemental context, not a replacement project budget.
PAYMENT TIMING
When is the money paid?
The first payment is the $5,000 application fee, but most capital is paid later as the agreement is signed, the property is designed or renovated, equipment is ordered and the hotel approaches opening. The 2026 FDD states that a prospect must receive the disclosure document at least 14 calendar days before signing a binding agreement or making a related payment; the FTC franchise buying guide explains the disclosure and contract-review purpose of that period.
Application
Choice collects a nonrefundable $5,000 application fee and credits it toward the Affiliation Fee. Item 7 labels the Affiliation Fee as due upon application, while Item 5 states the full fee is due no later than signing.
Franchise Agreement
The full Affiliation Fee is due no later than signing and becomes nonrefundable after Choice signs. If Choice does not grant the franchise or countersign the agreement, the fee is refunded less the $5,000 application fee.
Design, conversion or construction
Property Improvements, Construction, Professional Design Services, insurance, inventory, signs, technology, training and other Item 7 categories are generally paid as incurred before opening to Choice, contractors, consultants, insurers, suppliers and Qualified Vendors.
Pre-opening cash reserve
Working Capital Required Before Operations Begin is $15,000-$40,000 for a conversion and $145,000-$285,000 for new construction.
Opening and first three months
Additional Funds are used after opening: $25,000-$50,000 for a conversion or $70,000-$100,000 for a new build. Monthly, weekly and transaction-based Item 6 fees also begin according to the applicable program.
Payment timing
The mandatory Brand in a Box amount is $15,150-$30,000. Choice may require reimbursement in one lump sum or place the cost on the monthly franchisee invoice over 12 months with no interest. The initial choiceADVANTAGE software license and onboarding amount of $8,750-$10,750 is included in Brand in a Box, not added separately to Item 7.
Sources: 2026 FDD cover; Item 5, pp. 24-26; Item 7, pp. 43-49; Item 11, p. 58.
ONGOING FEE STACK
Which fees continue after the hotel opens?
The continuing cost contract is broader than the 6.0% Royalty Fee and 3.5% Marketing and Reservation Fee. Country Inn & Suites also uses room-based technology fees, mandatory revenue-management programs, loyalty and distribution charges, annual training resources and event-triggered assessments.
The franchise-specific cost stack
| Fee | Amount or basis | Timing | Application |
|---|---|---|---|
| Royalty Fee | 6.0% of preceding month's GRR | Monthly | Gross Room Revenues are defined in Item 6 and exclude specified non-room revenues and taxes. |
| Marketing and Reservation Fee | 3.5% of preceding month's GRR | Monthly | Funds marketing, reservations and certain franchise services; the FDD permits increases for stated system costs and inflation. |
| Property Technology & Service Fee | $10.10 per room; $650 min./$950 max. | Monthly | Includes choiceADVANTAGE, interfaces, licenses, Rates Center and related property services; RESiN integrations add $0.35 per room per month. |
| CrowdStrike | $60 | Monthly | Required cybersecurity software and services. |
| ChoiceROCS | $970-$1,900 | Monthly | Mandatory for COUNTRY Hotels; the first-year minimum service tier is Silver or higher. |
| ChoiceMAX or similar program | $400-$525 | Monthly | Mandatory; monthly cost is bundled with ChoiceROCS for participating hotels. |
| Annual Convention Registration | $1,700 per attendee | Annually | One owner must attend; travel, lodging and living expenses are extra, and late registration adds $500. |
| Educational Resources Program | $1,500 plus tax | Annually; quarterly billing | Provides access to the online learning-management system. |
Booking, loyalty and distribution charges
- Rewards Program Fee
- 5% of gross room revenue generated by rewards-program members. The FDD says a future Performance Based Loyalty Fee may range from 4.5%-5.5% on the same member-generated revenue basis.
- Airline Frequent Traveler Program Fee
- 5% of room revenue generated by airline frequent travelers, payable monthly.
- Choice Accelerate
- 3% of gross room revenue from eligible direct online-channel consumed stays. International paid and meta-advertising stays can be charged up to 10% instead of the 3% fee.
- Programs Processing Fee
- $0.12 per transaction per eligible Reward Program or Choice Accelerate stay when the Onyx commission-processing fee is not charged.
- Third Party Distribution Fee
- $3.00 for each consumed reservation through specified directly connected online travel agencies and connectivity providers.
- Travel Agent and Reservation Commissions
- Currently 10%-15% standard commission, plus a $0.48 processing fee per commissionable transaction handled through the centralized program.
- Egencia and Hopper Preferred Program
- $5.00 per night for Choice Privileges points, plus any applicable Expedia or Hopper commission; the hotel may opt out.
- Leisure Affinity Promotional Program
- $2.50 per preferred room night or up to the equivalent of a 10% commission; waived when the Choice Accelerate fee applies.
- Global Distribution System
- Currently $7.70 per reservation received through an eligible GDS.
- Platform Marketing Distribution
- Up to 15% commission for consumed reservations generated through Choice's third-party marketing platform.
- Global Sales Pay for Performance
- 2.7% of total room revenue from consumed business generated through the program.
- FedRooms/DoD Program
- 2.25% of room revenue from consumed stays resulting from program activities.
Other recurring, optional and program-specific charges
Source: 2026 FDD, Item 6, pp. 27-42.
CONDITIONAL COSTS
Which event-triggered charges can change the budget?
Ownership changes, construction delays, design exceptions, noncompliance, late reporting, audit findings and termination can create substantial charges outside the normal monthly fee schedule.
Development delay
A three-month construction or renovation extension is $5,000 per extension.
Design and technology exceptions
Interior Design Waiver: $20,000. Architectural Design Review & Construction Services: $20,000. choiceADVANTAGE onboarding rescheduling: $500-$2,100.
Technology setup or cleanup
ChoiceMAX setup or reinstatement: $2,500. choiceADVANTAGE database cleanup: $500. Mandatory digital-registration tablets cost approximately $350 each, with quantity based on room count.
Room-count and ownership changes
Room Count Change Fee: then-current per-room new-franchise charge, at least $1,000. Assumption Fee: $7,500. Change of Ownership: $3,000.
Transfer and re-licensing
Transfer Fee: the then-current Affiliation Fee or $65,000, whichever is greater. Close Family Member Transfer: $0-$7,500. Property Improvement Plan Fee: $3,000. Re-Licensed Hotel Training: $995.
Lender documentation
Comfort Letter Fee: $2,500, plus a $500 expedite fee for a one-to-three-day request.
Insurance shortfall
Insurance Reimbursement Fee: $500-$100,000; the FDD says market conditions can place the amount outside that range.
Noncompliance
General Non-Compliance Penalty: $35-$25,000 per instance. Guest complaint handling: $100 plus resolution costs. Human-trafficking training noncompliance: $400 quarterly.
Required-training delay
Failure to complete Choice Onboard can be $125 per month; failure to complete HOST can be $250 per month until compliant, plus possible default consequences.
Audit and payment deficiencies
Audit cost is expected at $1,000-$6,000 per inspection or audit. A willful deficiency or one exceeding 5% can also trigger immediate payment, 1.5% interest and full audit costs.
Late reports or bills
Revenue Reporting Late Fee: 1.5% of the preceding month's Royalty Fee and Marketing and Reservation Fee. Interest: 1.5% of the delinquent amount.
Default and termination
Reservation System Reinstatement: $5,000. Liquidated Damages use the Item 6 room-count and GRR formulas. Continued trademark use after expiration or termination is $2,500 per day, and legal costs vary.
Sources: 2026 FDD, Item 5, pp. 24-26; Item 6, pp. 33-42; Item 17, pp. 75-77.
CAPITAL QUALIFICATIONS AND FINANCING
Does Choice disclose a liquid-capital requirement or financing?
No fixed Liquid Capital, Net Worth or Non-Borrowed Funds threshold was verified in the 2026 FDD sections and official U.S. development pages reviewed for this cost analysis. That absence should not be read as approval at any capital level. Choice states that financing and support are subject to credit, project and eligibility review, and owners may be required to sign personally.
Buyer verification
Request the current applicant financial criteria directly from Choice and distinguish that qualification screen from Item 7. Total Initial Investment is a project-cost range; Liquid Capital would be cash or near-cash available, while Net Worth would include noncash assets and liabilities.
| Arrangement | Disclosed amount or structure | Timing and principal conditions |
|---|---|---|
| Affiliation Fee Promissory Note | Affiliation Fee; no stated interest if paid as agreed | Choice may offer it in its sole discretion after credit approval. Generally due in one lump sum within three months; default rate is 18% annually, with possible personal signatures. |
| Selected Capital Support | Project-specific | Discretionary for strategically important projects; generally funded after opening and forgiven over the Franchise Agreement term if no specified default occurs. Acceptance can remove the 10th- and 15th-anniversary termination options. |
| Incentive Program | $2,500 per room; $250,000 maximum | For qualifying underrepresented entrepreneurs or honorably discharged U.S. veterans; paid after opening under a 10-year forgivable note. Qualifying re-licensing can receive a 50% Affiliation Fee discount instead. The official Choice Hotels SOAR program page provides current public program context. |
| Ascentium Capital LLC | $5,000-$500,000 | FDD describes conventional or lease financing for up to 100% of collateral value, generally 12-72 months with fixed rates, liens and possible personal guarantees. See the official Ascentium Capital website. |
| PMC Commercial Trust | $500,000-$5,000,000 | FDD describes conventional and SBA financing for 70%-85% of collateral value, up to 25 years, generally variable rates, collateral and personal guarantees. See the official PMC Capital website and the U.S. Small Business Administration loan overview. |
Choice disclosed that it receives $15,000 annually from Ascentium Capital and $10,000 annually from PMC for access to Choice marketing channels. Financing approval, rates, collateral, guarantees and final documents are lender-specific and are not guaranteed by the franchise disclosure.
Source: 2026 FDD, Item 10, pp. 54-57.
BUDGET BOUNDARIES
What should a buyer verify beyond the official ranges?
The most important unresolved costs are the property-specific items that Item 7 cannot standardize. A complete capital plan should reconcile the FDD total with the site, Property Improvement Plan, contractor scope, lender documents and recurring fee bases.
Decision summary
The 2026 cost decision starts with format: $851,845-$3,623,495 for the 83-room conversion model or $12,203,495-$19,454,145 for the 101-room new-build model. Both figures include the applicable Additional Funds allowance, but neither includes real estate. The next step is to price the customized property or site work, then model the 6.0% Royalty Fee, 3.5% Marketing and Reservation Fee, technology, revenue-management, channel and conditional charges using the exact bases in the current agreement.
Sources: 2026 FDD, Item 7, pp. 43-49; Item 6, pp. 27-42; cost-relevant system-change disclosure immediately preceding Item 17.
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