How Does the Cambria Hotels & Suites Franchise Work?

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What Are Operating Procedures of Cambria Hotels & Suites Franchise

Considering a franchise opportunity in the upscale hotel sector? Discover how the Cambria Hotels & Suites franchise model operates, offering a unique blend of brand recognition and operational support. If you're looking to invest in a proven hospitality concept, our Cambria Hotels & Suites Franchise Business Plan Template can guide your strategic planning.

The financial commitment to establishing a Cambria Hotels & Suites franchise unit is substantial, with initial investments ranging from $14,788,700 to $28,663,339. This includes an initial franchise fee of $60,000, with ongoing royalty fees at 6% and marketing fees at 3% of revenue. Franchisees are required to have a minimum of $275,000 - $425,000 in cash and a net worth between $1,000,000 - $5,000,000.

The brand has demonstrated growth, with franchised units increasing from 45 in 2020 to 59 in 2022, while corporate-owned units remained stable at 6. Average annual revenue per unit is approximately $1,297,700, with a reported breakeven time and investment payback period of 24 months. Operating expenses constitute about 72.40% of revenue, leading to an EBITDA of 36.90%.

What Is the Business Model Structure?

What defines the Cambria Hotels business model?

The core of the Cambria Hotels business model is the development and operation of upscale, select-service hotels. These properties are designed to appeal to modern travelers, both for business and leisure, by offering stylish aesthetics, unique food and beverage experiences with a local flavor, and integrated technology. The franchise model relies on franchisees to construct and manage these hotels, ensuring they meet stringent brand standards. This approach aims to provide a consistent guest experience that also feels locally relevant.

As of early 2025, this strategy is showing strong results. The brand's system-wide Revenue Per Available Room (RevPAR) index has consistently been more than 5 percentage points higher than the average for the upscale segment throughout 2024. The typical Cambria Hotels & Suites franchise focuses on properties with 100 to 250 rooms. Key amenities often include a full-service bar that highlights local craft beers, a fitness center, and adaptable meeting spaces.

Choice Hotels, the parent company, anticipates continued expansion in 2025. With over 75 hotels already open and an additional pipeline of approximately 80 more in development, this indicates a high level of investor confidence in this particular hotel franchise opportunity.

How does franchising work with Cambria?

The franchising process for Cambria Hotels establishes a partnership. Franchisees are responsible for funding, developing, and operating the hotel. In return, the franchisor, Choice Hotels, provides the brand, established operational systems, and ongoing support in exchange for fees. Franchisees benefit from access to the Choice Privileges loyalty program, which has grown to over 65 million members as of 2025, and a robust global reservation system.

To become a franchisee, candidates must first meet specific financial and experience prerequisites. The standard Cambria Hotels franchise agreement is typically for a 20-year term, with provisions for renewal.

The process is designed to uphold brand integrity. It begins with a thorough application review, followed by market analysis and site approval. A critical step involves a comprehensive review of the Cambria Hotels Franchise Disclosure Document (FDD), which provides detailed information about the franchise system. For those interested in the specifics of launching a hotel, exploring How to Start a Cambria Hotels & Suites Franchise in 7 Steps: Checklist can provide a clear roadmap.

The initial franchise fee for a Cambria Hotels franchise is $60,000. For new units, the ongoing royalty fee is 6% of gross revenue, and the marketing fee is 3%. The breakeven and investment payback periods are estimated to be around 24 months.

In terms of unit growth, the number of franchised units has steadily increased, from 45 in 2020 to 59 in 2022, while corporate-owned units remained stable at 6 during the same period. The average annual revenue per unit reported is approximately $1,297,700, with a gross profit margin of 95.70%, leading to an EBITDA of $478,601, or 36.90% of revenue.

What Are Cambria's Key Financials?

Investing in a Cambria Hotels & Suites franchise unit requires a significant capital outlay. The total estimated initial investment typically ranges from $14,562,750 to $36,995,450. This broad range accounts for various factors, including the specific location and market conditions, and importantly, it excludes the cost of land and certain pre-opening expenses. This substantial investment covers crucial aspects such as construction, the purchase of furniture, fixtures, and equipment (FF&E), and the initial franchise fees.

How much does it cost to franchise a Cambria Hotel?

When looking at the specifics from the latest Franchise Disclosure Document (FDD) for 2025, the initial franchise fee for a Cambria Hotels franchise is $60,000. However, the bulk of the startup costs lies in construction, which can easily exceed $20 million depending on the chosen market. Furthermore, you should budget an estimated $15 to $25 million for furniture, fixtures, and equipment (FF&E). These figures highlight the considerable capital needed to establish a Cambria Hotels & Suites franchise.

Beyond the initial investment, there are ongoing financial commitments. Franchisees are required to pay a monthly royalty fee, which is set at 6% of gross room revenue. Additionally, a system fee of 3.5% of gross room revenue is collected for marketing and reservation services. These recurring fees are essential for maintaining brand standards and leveraging the franchisor's marketing efforts.

What is the ROI for a Cambria Hotels franchise?

It's important to understand that the return on investment (ROI) for any franchise, including the Cambria Hotels & Suites franchise, is not guaranteed and can fluctuate significantly. Key drivers for ROI include the chosen location's market conditions, the efficiency of your operations, and overall market demand. Despite this variability, the brand's performance metrics suggest a potentially favorable outlook for investors. While the franchisor does not provide specific earnings claims, prospective franchisees can find valuable performance data in Item 19 of the FDD, which is crucial for their due diligence.

For instance, 2024 performance data indicates that the Cambria brand achieved a Revenue Per Available Room (RevPAR) of over $115. This figure represents a 7% increase year-over-year, serving as a key performance indicator that investors use to project potential profitability for their Cambria Hotels franchise. To accurately forecast a realistic ROI timeline, potential owners must conduct thorough due diligence, carefully modeling projected revenues against the substantial initial investment and ongoing operational costs.

Understanding these financial aspects is critical for anyone considering investing in a Cambria Hotels & Suites franchise. A detailed review of the FDD and personalized financial projections will provide a clearer picture of the investment required and the potential returns. For a deeper dive into what a Cambria Hotels & Suites franchise owner can make, explore How Much Does a Cambria Hotels & Suites Franchise Owner Make?

Is Cambria A Good Investment Now?

Is Cambria Hotels a good franchise to buy?

For experienced developers with substantial capital, investing in a Cambria Hotels franchise presents a compelling opportunity in 2025. The brand's strategic positioning within the thriving upscale hotel segment, coupled with strong backing from its parent company, makes it an attractive choice. Cambria Hotels targets markets characterized by high demand and significant barriers to entry, which can translate into strong long-term asset appreciation for owners.

The brand has shown impressive growth, with its portfolio expanding by over 15% in 2024 and a robust development pipeline continuing into 2025. This consistent expansion underscores significant demand from both consumers and developers.

Key advantages for Cambria Hotels franchise owners include access to Choice Hotels' extensive procurement program, which can yield savings of 10-20% on supplies. Furthermore, the brand's emphasis on new construction models typically leads to lower initial maintenance costs.

The initial investment for a Cambria Hotels franchise can range from approximately $14.8 million to over $28.7 million, with a required cash investment between $275,000 and $425,000. A net worth of $1 million to $5 million is generally required. The franchise fee is $60,000, with ongoing royalty fees at 6% and marketing fees at 3% of revenue. You can learn more about the specific costs here: How Much Does a Cambria Hotels & Suites Franchise Cost?

What are future market trends?

The outlook for the upscale hotel segment in the USA remains positive for 2025 and beyond. A key trend benefiting the Cambria Hotels business model is the continued rise of 'bleisure' travel, which blends business and leisure. The brand's focus on locally-curated experiences and modern amenities aligns perfectly with this growing demand.

Technology integration is another crucial trend. Cambria is well-positioned with features like mobile check-in and keyless entry, which are becoming standard guest expectations. Choice Hotels plans to invest over $50 million in its technology platforms in 2025 to further support its franchisees.

Sustainability is also a significant factor influencing guest choices. Newer Cambria builds are increasingly incorporating green building standards. This not only appeals to eco-conscious travelers but can also lead to reduced long-term operating costs, estimated between 5-10%.

The Cambria Hotels franchise has seen steady growth, with franchised units increasing from 45 in 2020 to 59 in 2022. The average annual revenue per unit is approximately $1.3 million, with a median of $1.35 million. The EBITDA margin stands at a healthy 36.9%, indicating strong operational profitability. Breakeven and investment payback periods are typically around 24 months.

Operating Procedure To Apply For A Cambria Hotels & Suites Franchise Unit

How to apply for a Cambria Hotels franchise?

To begin the journey of securing a cambria hotels franchise, the initial step involves navigating to the official Choice Hotels development website. Here, you will find an initial inquiry form. Completing this form is crucial as it provides the franchise development team with your essential contact details and a foundational understanding of your interest in the franchise opportunities cambria hotels offers.

Following this initial contact, a dedicated franchise development director from Choice Hotels will reach out to you. This conversation is designed to thoroughly discuss your qualifications. Key areas of focus include your financial standing and your prior experience within the hospitality sector. Subsequently, you will be guided to complete a formal application, which will also require the submission of your financial statements for a detailed review.

What are the application requirements?

Securing a cambria hotels & suites franchise unit necessitates substantial financial capacity. As of the latest available data, prospective franchisees are generally expected to possess a minimum net worth of $10 million, with at least $3 million in liquid capital available for each project. These figures underscore the significant investment required for this hotel franchise investment.

Beyond the financial prerequisites, a critical requirement for applicants is demonstrable experience in hotel development, ownership, or management. Choice Hotels places a high priority on partnering with individuals who have a proven history of success within the franchising process hospitality industry. This experience is a strong indicator of an applicant's ability to manage operations effectively and adhere to brand standards, contributing to the overall success of the cambria hotels business model.

For those looking into the specifics of the financial commitment, the initial investment for a cambria hotels franchise can range significantly. Based on FDD data, the low initial investment is approximately $14,788,700, while the high initial investment can reach up to $28,663,339. The initial franchise fee is typically $60,000, with ongoing royalty fees at 6% and marketing fees at 3% of revenue. The required cash on hand falls between $275,000 and $425,000.

Understanding the financial landscape is key to making an informed decision about investing in a cambria hotels franchise. The FDD also indicates that the average annual revenue per unit is around $1,297,700, with a gross profit margin of approximately 95.70%. Operating expenses typically account for about 72.40% of revenue, leading to an EBITDA of around $478,601, or 36.90% of revenue. The breakeven time is often cited as 24 months, with a similar payback period.

The number of franchised units has shown steady growth, increasing from 45 in 2020 to 59 in 2022, indicating a healthy expansion of the brand's presence through franchising.

For a deeper dive into potential earnings, exploring resources like How Much Does a Cambria Hotels & Suites Franchise Owner Make? can provide valuable insights into the financial performance and potential return on investment for a cambria hotels franchise owner.

Operating Procedure to Review the Cambria Hotels & Suites Franchise Unit FDD

Where to find the FDD?

The Cambria Hotels franchise disclosure document (FDD) is a critical document for anyone considering a cambria hotels franchise. You won't find it publicly available for download. Instead, you will receive the official FDD directly from a Cambria franchise development representative. This typically happens after you've formally applied and been pre-qualified as a serious candidate for one of the cambria hotels & suites franchise opportunities. The FDD is a comprehensive legal document, updated annually, that contains 23 distinct items detailing every aspect of the franchise, from fees to the franchisor's financial statements.

What to look for in the FDD?

When you dive into the cambria hotels franchise agreement details within the FDD, several sections demand your close attention. Specifically, focus on Item 5 (Initial Fees), Item 6 (Other Fees), and Item 7 (Estimated Initial Investment). These sections are paramount for understanding the total financial commitment required for a hotel franchise investment. For instance, the initial franchise fee alone is $60,000, and the estimated initial investment can range from $14,788,700 to $28,663,339. It's also crucial to analyze Item 19 (Financial Performance Representations). This section provides vital historical revenue data for existing Cambria locations, giving you insight into potential cambria hotels franchise profitability. Item 20 (Outlets and Franchisee Information) is equally important, as it lists current and former franchisees you can contact for validation and to gather real-world perspectives on the franchising process hospitality.

Understanding the financial landscape is key to evaluating investing in a cambria hotels franchise. The FDD provides a breakdown of costs and potential returns. For example, the average annual revenue per unit is cited as $1,297,700, with a gross profit margin of 95.70%. Operating expenses typically account for about 72.40% of revenue, leading to an EBITDA of around $478,601. The royalty fee for a new unit is 6%, and the marketing fee is 3%. It's also worth noting that the cash required to start can range from $275,000 to $425,000, with a net worth requirement of $1,000,000 to $5,000,000. Based on the provided data, the breakeven time and investment payback are both estimated at 24 Months, which can be an attractive proposition for many investors.

Here's a quick look at the unit growth for Cambria Hotels:

For a deeper understanding of the financial implications and operational considerations, exploring What Are the Pros and Cons of Owning a Cambria Hotels & Suites Franchise? can provide valuable context to your FDD review. It helps answer questions like how much does it cost to franchise a cambria hotel and what are the requirements to franchise a cambria hotel.

Operating Procedure To Secure A Cambria Hotels & Suites Franchise Unit Location

How are sites selected?

When pursuing a cambria hotels & suites franchise, site selection is a crucial step. It’s a joint effort between you, the prospective franchisee, and the Choice Hotels development team. Your role involves identifying and securing a potential location. Once you've found a promising spot, you'll submit it to the franchisor for their evaluation and approval. The Choice Hotels real estate experts utilize advanced market analysis software. This technology analyzes demographic, psychographic, and travel demand data to confirm the viability of your chosen site for success, especially looking ahead to future market conditions like those in 2025.

What are the site criteria?

For a cambria hotels franchise, the ideal locations are typically in urban centers, downtown areas, or high-demand suburban markets. These areas usually have a strong mix of corporate and leisure travel. The preferred site size is generally between 1.5 to 2.5 acres, which is sufficient for a hotel prototype with approximately 120-150 keys, plus the necessary parking facilities. Key factors considered for site approval include high visibility from major roadways, easy accessibility to major highways or airports, and close proximity to significant demand drivers. These can include corporate headquarters, convention centers, university campuses, and popular entertainment venues.

Understanding the site selection process is a vital part of the franchising process hospitality sector. For those looking into franchise opportunities cambria hotels, knowing these criteria can help streamline your search and present the most viable options to the franchisor.

If you're considering investing in a cambria hotels franchise, remember that a well-chosen location is a foundational element for success. The initial investment for a cambria hotels & suites franchise can range from $14,788,700 to $28,663,339, making the site selection process even more critical to ensure a strong return on investment.

The process of securing a site is part of the larger journey to becoming a franchisee. For a comprehensive overview of the steps involved, you can refer to How to Start a Cambria Hotels & Suites Franchise in 7 Steps: Checklist.

Operating Procedure To Develop A Cambria Hotels & Suites Franchise Unit

What is the development process?

Once you've signed the franchise agreement for a Cambria Hotels & Suites franchise, the development phase kicks into gear. This is a structured timeline designed to bring your hotel to life. Key steps include finalizing the architectural design, securing all necessary local entitlements and permits, obtaining financing, and selecting a qualified general contractor. Choice Hotels provides adaptable prototype plans, which significantly streamlines the design process by offering a pre-approved framework that can be tailored to your specific site. Throughout this crucial stage, the franchisor's dedicated construction and design team offers expert guidance to ensure every aspect complies with the established Cambria Hotels franchise brand standards.

What support is provided during construction?

Franchisees investing in a Cambria Hotels & Suites franchise can expect comprehensive support during the entire development and construction period. Each project is assigned a dedicated brand performance consultant and an opening services manager. These professionals act as your primary points of contact, guiding you from the initial groundbreaking all the way through to the grand opening. This support extends to assisting with vendor selection through a preferred procurement network, offering project management assistance, and developing a robust pre-opening sales and marketing strategy. This ensures your hotel is strategically positioned for success from its very first day of operation.

The initial investment for a Cambria Hotels franchise can range significantly, from approximately $14.8 million to over $28.6 million. This broad spectrum accounts for factors like location, size, and specific site development needs. The initial franchise fee is $60,000, with ongoing royalty fees set at 6% of gross revenue and a marketing fee of 3%. Prospective franchisees need to have a minimum of $275,000 to $425,000 in liquid cash available and a net worth requirement of $1 million to $5 million.

The Cambria Hotels business model has shown consistent growth, with franchised units increasing from 45 in 2020 to 59 in 2022. While the median annual revenue per unit is around $1.35 million, actual revenue can vary widely, with the lowest reported at just over $55,000 and the highest at $1.26 million in 2022. The franchising process in the hospitality sector, particularly for a brand like Cambria Hotels, demands meticulous planning and execution. Many find that understanding the full scope of franchise opportunities Cambria Hotels presents is key to a successful venture. For those considering the market, exploring What Are Some Alternatives to Cambria Hotels & Suites Franchises? can provide valuable comparative insights.

Operating Procedure To Launch A Cambria Hotels & Suites Franchise Unit

Launching a Cambria Hotels & Suites franchise unit involves a structured process designed to ensure brand consistency and operational excellence from day one. Understanding these steps is crucial for any aspiring franchisee looking to enter the hospitality sector.

What training is required?

Before your Cambria Hotels & Suites franchise unit can open its doors, a comprehensive training program is mandatory for key personnel. As of 2025, this training program requires approximately 80 hours of dedication, split between virtual modules and on-site sessions at a certified training hotel and Choice Hotels' corporate headquarters. This intensive program covers the entire Cambria Hotels business model. It includes mastering the choiceADVANTAGE property management system, adhering strictly to brand standards, developing effective sales techniques, and crucially, learning how to deliver the brand's signature guest experience. This ensures that every franchisee team is well-equipped to represent the brand effectively.

How is the opening managed?

The grand opening phase of your Cambria Hotels & Suites franchise is a critical period, and it's supported by a dedicated team from Choice Hotels. This team provides on-site assistance for a period of 7-10 days, focusing on ensuring a smooth and successful launch. Their support includes assisting with final staff training, confirming operational readiness, and helping implement initial marketing initiatives. Following the opening, the support continues. Franchisees receive ongoing guidance through a dedicated Brand Performance Consultant. Additionally, access to a 24/7 franchisee support hotline is available for immediate assistance. You'll also be consistently included in national and regional marketing campaigns, all designed to drive revenue and build brand presence for your new venture.

Initial Investment and Financials

Understanding the financial commitment is a cornerstone of evaluating franchise opportunities Cambria Hotels. The initial investment for a Cambria Hotels & Suites franchise can range significantly, from approximately $14,788,700 to upwards of $28,663,339. This broad spectrum accounts for variations in location, property size, and site development. The initial franchise fee is set at $60,000. For ongoing operations, franchisees can expect to pay a royalty fee of 6% of gross revenue and a marketing fee of 3%. The required cash on hand typically falls between $275,000 and $425,000, with a net worth requirement ranging from $1,000,000 to $5,000,000. These figures highlight the substantial nature of a hotel franchise investment in this brand.

Revenue and Profitability Benchmarks

When considering investing in a Cambria Hotels franchise, it's important to look at the projected revenue and profitability. The average annual revenue per unit is reported at approximately $1,297,700, with a median of $1,352,000. However, it's crucial to note the wide range of performance, with the lowest annual revenue per unit at $55,640 and the highest at $1,260,000. Gross profit margins are strong, typically around 95.70%. Operating expenses account for roughly 72.40% of revenue, leading to an EBITDA of approximately $478,601, or 36.90% of revenue. The breakeven time is estimated at 24 months, with an investment payback also around 24 months, indicating a potentially solid return on investment for a well-managed unit.

Franchise Growth and Support

The Cambria Hotels & Suites franchise has seen consistent growth. In 2022, the brand operated 65 total units, with 59 of those being franchised units, up from 49 franchised units in 2021 and 45 in 2020. This expansion signifies the brand's appeal and the success of its franchising process in hospitality. The franchisor provides robust support to ensure franchisees can operate efficiently and profitably. This includes comprehensive training, operational manuals, and access to the franchisor's established supply chain and technology systems. This level of support is a key factor for those exploring cambria hotels franchise opportunities.

For those considering their options within the upscale hotel segment, it's also beneficial to explore What Are Some Alternatives to Cambria Hotels & Suites Franchises? Understanding the competitive landscape and alternative franchise models can provide valuable context for your investment decisions.