How much does a Cambria Hotels franchise cost in 2026?
Last updated: By Nate Solomon, Matthews Hotel Markets
Choice Hotels' Cambria disclosure document, issued April 1, 2026, estimates $16,210,100 to $33,556,222 to build a 124-room Cambria hotel, before real estate. The affiliation fee is $500 per room with a $60,000 minimum. The royalty is 6 percent and the marketing and reservation fee 3 percent of gross room revenues.[1]
Key takeaways
- Affiliation fee: $500 per room, $60,000 minimum, for a new franchise. $750 per room, $65,000 minimum, for a transfer or renewal.[1]
- Royalty: 6 percent of gross room revenues. Marketing and reservation fee: 3 percent.[1]
- Item 7: $16,210,100 to $33,556,222 for 124 rooms, or $130,727 to $270,615 per room, excluding real estate.[1]
- Term: 20 years, no renewal provision, and no anniversary termination windows for either side.[1]
- Fees change every year. Choice's current FDD and the signed franchise agreement govern, not this page.
What is different about the Cambria FDD?
Cambria is the upscale brand in Choice's 2026 filings, and its FDD departs from the Choice template on exit rights: Item 17 gives neither side a termination window, and liquidated damages can run to 60 months.[1]
Choice's Quality FDD of the same season gives the franchisee and Choice a right to terminate on the 5th, 10th or 15th anniversary, and caps liquidated damages at 36 months at $70 per room per month.[3] The Cambria Item 17 lists franchisee termination only for Choice's uncured default, marks termination by Choice without cause as not applicable, and adds a right of first refusal for Choice on a sale. The Cambria damages formula uses $100 per room per month and a 60-month cap (Item 6, p. 42; Item 17, pp. 77-78).[1]
The fee mix differs too. The royalty is 6 percent against Quality's 5.25 percent, the marketing and reservation fee is 3 percent against 3.5 percent, and ChoiceROCS revenue management service is mandatory for at least the first 12 months.[1][3] Eleven of the 76 open Cambria hotels at December 31, 2025 were owned by Choice itself (Item 19, p. 82).[1] The shared mechanics are explained once on the hotel franchise cost hub.
What does Choice charge up front for a Cambria franchise?
The 2026 Cambria FDD lists an affiliation fee of $500 per room with a $60,000 minimum for a new franchise, and $750 per room with a $65,000 minimum for a transfer or renewal.[1]
The fee is due no later than signing and is non-refundable once Choice signs. If Choice does not grant the franchise, it refunds the affiliation fee. Choice states that affiliation fees on new Cambria agreements in the 12 months ending December 31, 2025 ranged between $5,000 and $87,000 (Item 5, p. 27).[1]
The mandatory Brand in a Box program costs about $26,750 to $41,250 and covers the choiceADVANTAGE property management system license, its hardware and other pre-opening items. A food and beverage opening support fee of $8,500 to $20,000 may apply. Changing a confirmed opening date within two weeks costs $2,500 plus travel. Training is $2,450 per attendee for the three-day Upscale Immersion Program, $1,395 for the general manager's HOST certification and $1,600 for the director of sales workshop. An extension of the construction deadline is $5,000 per three months (Item 5, pp. 27-29).[1]
What are the ongoing Cambria franchise fees?
Choice's 2026 Item 6 lists a 6 percent royalty and a 3 percent marketing and reservation fee, both on the preceding month's gross room revenues.[1]
The royalty and liquidated damages are the only fees Choice says are not subject to change (Item 6, pp. 29-30, 42).[1] The Choice Privileges fee is 4.5 to 5.5 percent of room revenue and food and beverage revenue from rewards members. Choice Accelerate is 3 percent of gross room revenue from stays booked through direct online channels. Third-party distribution is $3.00 per consumed reservation, and global distribution system reservations are currently $7.70 each. The ResConnect call program is optional at 3.0 percent of the gross room revenue its team books (Item 6, pp. 30-32, 39).[1]
The property technology and service fee is $6.60 per room per month, with a $600 minimum and a $1,200 maximum. ChoiceROCS revenue management service is mandatory for at least the first 12 months at $1,340 to $1,900 per month, and a revenue management system, either ChoiceMAX or IDeaS G3, is mandatory with a set-up fee of up to $4,500 (Item 6, pp. 34-35).[1] A note to Item 7 adds that Choice requires up to 5 percent of monthly gross room revenues to be placed in escrow for furniture, fixtures and equipment (Item 7, p. 47).[1] The reserve concept is defined at FF&E reserve. These charges apply to different bases, so they cannot be added into one rate.
How much does it cost to build a Cambria hotel?
Choice's 2026 Item 7 estimates $16,210,100 to $33,556,222 for a 124-room Cambria, which Choice states as $130,727 to $270,615 per room.[1]
Construction is the largest line at $12,560,205 to $24,395,018. Choice bases it on wood frame construction, and includes general contractor overhead and profit of 10 percent and sitework of $800,000 to $900,000. Furniture, fixtures and equipment run $2,168,400 to $6,240,000, opening supplies and equipment $334,750 to $424,360, and professional design services $350,000 to $800,000. Working capital before opening is $275,000 to $425,000, and additional funds for the first three months are $100,000 to $175,000 (Item 7, pp. 44-47).[1]
The table excludes the cost of buying or leasing real estate. For an existing hotel, Choice says it is unable to estimate the initial investment because it depends on the hotel's condition and the upgrades needed (Item 7, p. 46).[1] Financing for a build is covered at hotel construction loans, and conversion work at brand conversion financing and PIP and renovation loans.
How long is a Cambria franchise agreement, and can I get out early?
The Cambria franchise term is 20 years from the opening date, with no renewal provision and no scheduled termination windows.[1]
Item 17 lets the franchisee terminate only if Choice is in default of material obligations and fails to cure within 60 days of written notice. Termination by Choice without cause is listed as not applicable. For a replacement agreement on an existing Cambria, Choice may offer a term shorter than 20 years (Item 17, p. 77).[1]
If Choice terminates for the franchisee's default after opening, liquidated damages are the greater of $100 per room per month, or the average monthly gross room revenues for the last 12 months times the royalty rate, in each case multiplied by the months until the next date the franchisee could terminate without penalty, capped at 60 months. Before opening, the amount is the room count times 60 months times $100. Continued use of the marks after termination costs $2,500 per day (Item 6, p. 42).[1]
What happens to the Cambria franchise when I sell the hotel?
Choice holds a right of first refusal: the owner must give 90 days' notice of any good faith offer, and Choice may buy the hotel on the same terms.[1]
If Choice does not exercise that right, a buyer of a controlling interest must meet Choice's qualifications, sign the then current franchise agreement and pay a relicensing fee equal to the then current affiliation fee. Item 6 sets the transfer fee for 50 percent or more of the equity at the then current affiliation fee or $65,000, whichever is greater. The buyer also pays a $3,000 property improvement plan fee and $995 for relicensing training. A transfer of less than 50 percent carries a $7,500 assumption fee (Item 5, pp. 27, 29; Item 6, p. 37; Item 17, p. 78).[1]
A lender comfort letter is $2,500, plus $500 if needed within one to three days (Item 6, p. 37).[1] Choice-flagged hotels on the market are listed at Choice Hotels for sale, and the flag decision is weighed at Should I buy a branded or independent hotel?.
What does Choice's Item 19 say about Cambria performance?
Choice's 2026 Item 19 reports that 51 franchised Cambria hotels in its performance sample averaged 67.5 percent occupancy, a $167.57 average daily rate and $113.12 RevPAR in 2025.[1]
There were 76 open Cambria hotels in the United States at December 31, 2025: 65 owned by franchisees and eleven owned by Choice. The sample is the 51 franchised hotels operating on or before January 1, 2025, excluding hotels that repositioned from another Choice brand, had incomplete data, were interrupted for more than 30 consecutive days, or were developed before January 1, 2013 under a different prototype. The median RevPAR was $96.24, the range was $63.34 to $251.38, and 16 hotels, or 31.4 percent, met or exceeded the average (Item 19, p. 82).[1]
Choice also reports an average total Choice proprietary contribution of 51.9 percent of gross room revenues and an average Choice Privileges contribution of 50.8 percent. The Cambria proprietary figure excludes online travel agent bookings (Item 19, pp. 83-84).[1]
Choice states that the figures come from information franchisees provided, and that they do not reflect cost of sales or operating expenses that must be deducted to obtain net income or profit (Item 19, p. 84).[1] This page draws no profit conclusion from them. The measures are defined at RevPAR and ADR.
Cambria Hotels franchise fees, 2026 FDD issued April 1, 2026
| Fee | Amount | Where in the FDD |
|---|---|---|
| Affiliation fee, new franchise | $500 per room, $60,000 minimum[1] | Item 5, p. 27 |
| Affiliation fee, transfer or renewal | $750 per room, $65,000 minimum[1] | Item 5, p. 27 |
| Royalty fee | 6% of gross room revenues[1] | Item 6, p. 29 |
| Marketing and reservation fee | 3% of gross room revenues[1] | Item 6, p. 30 |
| Choice Privileges rewards program fee | 4.5% to 5.5% of room revenue and food and beverage revenue from rewards members[1] | Item 6, p. 30 |
| Choice Accelerate (direct online bookings) | 3% of gross room revenue from stays booked through direct online channels[1] | Item 6, p. 31 |
| Third-party distribution and GDS | $3.00 per consumed reservation; GDS currently $7.70 per reservation[1] | Item 6, pp. 31-32 |
| Property technology and service fee | $6.60 per room per month, $600 minimum, $1,200 maximum[1] | Item 6, p. 34 |
| ChoiceROCS revenue management (mandatory, first 12 months) | $1,340 to $1,900 per month[1] | Item 6, p. 35 |
| Brand in a Box (pre-opening) | About $26,750 to $41,250[1] | Item 5, p. 28 |
| Transfer fee, 50% or more of equity | Then current affiliation fee or $65,000, whichever is greater[1] | Item 6, p. 37 |
| Property improvement plan fee on transfer | $3,000[1] | Item 6, p. 37 |
| Liquidated damages, after opening | Greater of $100 per room per month or average monthly gross room revenues times the royalty, times months to the next penalty-free termination date, up to 60[1] | Item 6, p. 42 |
| Estimated initial investment, new 124-room hotel | $16,210,100 to $33,556,222; $130,727 to $270,615 per room, excluding real estate[1] | Item 7, p. 46 |
Worked example
Hypothetical: a year of Cambria brand fees on assumed room revenue
Hypothetical. Assume a 124-room Cambria earns $5,000,000 of gross room revenues in a year. The revenue figure and the member share below are assumptions for arithmetic. They are not forecasts and they are not figures from the FDD.
Affiliation fee at signing: 124 rooms x $500 = $62,000, which is over the $60,000 minimum.[1]
Royalty fee at 6 percent: $5,000,000 x 0.06 = $300,000.[1]
Marketing and reservation fee at 3 percent: $5,000,000 x 0.03 = $150,000.[1]
Together: $450,000, or 9 percent of room revenue.
Property technology and service fee: 124 rooms x $6.60 = $818.40 per month, inside the $600 to $1,200 band, or $9,820.80 for the year.[1]
If $2,000,000 of revenue comes from Choice Privileges members, the rewards program fee at 4.5 to 5.5 percent is $90,000 to $110,000.[1]
On the same assumptions, at the 60-month cap, the revenue side of the liquidated damages formula is $5,000,000 / 12 x 0.06 x 60 = $1,500,000. That is more than $100 x 124 rooms x 60 months = $744,000, so $1,500,000 would apply.[1] Revenue management fees, Choice Accelerate, per-reservation charges, commissions and training come on top, so they are not estimated here.
Frequently asked
- How much does a Cambria Hotels franchise cost?
- Choice's 2026 FDD lists a $500 per room affiliation fee with a $60,000 minimum, a 6 percent royalty and a 3 percent marketing and reservation fee. Item 7 estimates $16,210,100 to $33,556,222 to build 124 rooms, before real estate.[1]
- How much does it cost per room to build a Cambria?
- Choice's 2026 Item 7 states $130,727 to $270,615 per room for a 124-room wood frame hotel. That includes about $800,000 to $900,000 of sitework and excludes land.[1]
- Can I terminate a Cambria franchise early?
- Not on a schedule. The 2026 Item 17 lets the franchisee terminate only for Choice's uncured material default. Liquidated damages for a default termination can run up to 60 months.[1]
- Does Choice have a right to buy my Cambria if I sell?
- Yes. Item 17 gives Choice a right of first refusal. The owner must give 90 days' notice of any good faith offer, and Choice may purchase the hotel on the same terms.[1]
- I'm buying a Cambria. What does the relicensing cost?
- For 50 percent or more of the equity, the then current affiliation fee or $65,000, whichever is greater. The transfer rate is $750 per room. Add a $3,000 property improvement plan fee and $995 for relicensing training.[1]
- Does the Cambria FDD say what a Cambria earns?
- Item 19 reports 2025 occupancy, average daily rate, RevPAR and contribution percentages for 51 franchised hotels. It gives no expenses and no profit.[1]
- Will these Cambria fees be the same next year?
- Not necessarily. Choice says all fees except the royalty and liquidated damages are subject to change, and it reissues the FDD every year. The current FDD and the signed agreement govern.[1]
Who wrote this
Hospitality Associate, Matthews Hotel Markets
(512) 839-6999nate.solomon@matthews.comLinkedIn
Reviewed by Luke Thompson, VP & Director, Capital Markets.
Sources
- Cambria Franchise Disclosure Document (issued April 1, 2026): Item 5, pp. 26-29; Item 6, pp. 29-43; Item 7, pp. 44-48; Item 17, pp. 77-81; Item 19, pp. 81-85. Minnesota CARDS document 35798-202604-03, file number 11647, Clean FDD · Choice Hotels International, Inc., filed with the Minnesota Department of Commerce · accessed September 18, 2026
- Matthews Hotel Markets September 2026 rate sheet · Matthews Hotel Markets · accessed September 18, 2026
- Quality Franchise Disclosure Document (issued April 1, 2026, as amended May 20, 2026): Item 6, pp. 27-28, 40; Item 17, p. 72. Minnesota CARDS document 36789-202606-03, file number 48, Clean FDD · Choice Hotels International, Inc., filed with the Minnesota Department of Commerce · accessed September 18, 2026
Related
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Matthews Hotel Markets sells and finances franchised hotels, so we read these disclosure documents alongside owners and buyers.