How much does a Sleep Inn franchise cost in 2026?

Choice files one disclosure document per brand on a shared template, so most of the fee table matches its other midscale brands. Against the Quality FDD of the same date, three things move. The Sleep Inn royalty is 5.5 percent where Quality's is 5.25 percent. The new-franchise affiliation fee is $300 per room with a $40,000 minimum where Quality's is $500 per room with a $45,000 minimum. The per-room rate inside the liquidated damages formula is $80 where Quality's is $70.^[1][3]

Two more differences follow from the building. A newly built Sleep Inn has no 5th anniversary termination window, and Item 19 adds a table for hotels built since 2016. A Sleep Inn built as a dual brand with a MainStay Suites or another Choice brand can carry that other brand's royalty and marketing rates (Item 6, p. 40; Item 17, p. 71; Item 19, p. 76).^[1] The shared mechanics are explained once on the hotel franchise cost hub.

A non-refundable $5,000 application fee is credited toward the affiliation fee. If Choice does not grant the franchise, it refunds the affiliation fee less that $5,000. Choice states that affiliation fees on new Sleep Inn agreements in the 12 months ending December 31, 2025 ranged from $5,000 to $45,000, and that it has reduced the fee for multi-unit owners, larger hotels and owners leaving other chains, without any obligation to do so (Item 5, pp. 25-26).^[1]

The mandatory Brand in a Box program costs about $15,150 to $30,000 and covers the choiceADVANTAGE property management system license, its hardware and other pre-opening items. Required training runs $3,345 to $5,295 per person before travel. An extension of the construction deadline is $5,000 per three months. A waiver from the approved interior design schemes is $20,000, and a non-prototype building design review is another $20,000, payable whether or not the waiver is granted (Item 5, pp. 26-27).^[1]

Gross room revenues include sleeping rooms, meeting rooms and banquet rooms, guaranteed no-show revenue, early departure and late checkout fees, and business interruption proceeds. Food and beverage sales and taxes are excluded. The royalty and liquidated damages are the only fees Choice says are not subject to change (Item 6, pp. 28, 40).^[1]

The Choice Privileges fee is 4.5 to 5.5 percent of room revenue from rewards members. Choice Accelerate is 3 percent of gross room revenue from stays booked through direct online channels. Third-party distribution is $4.00 per consumed reservation, and global distribution system reservations are currently $7.70 each. The mandatory ResConnect program is 3.50 percent of the gross room revenue its team books for the hotel (Item 6, pp. 29-31, 36).^[1]

The property technology and service fee is $9.65 per room per month, with a $625 minimum and a $925 maximum. The ChoiceMAX pricing software is mandatory at $235 to $360 per month with a $2,500 set-up fee. ChoiceROCS revenue management service is optional at $635 to $1,400 per month (Item 6, pp. 32-33).^[1] These charges apply to different bases, so they cannot be added into one rate.

Construction, excluding soft costs, is the largest line at $7,812,000 to $11,951,000. Furniture, fixtures and equipment run $603,900 to $836,300, opening supplies $196,730 to $302,820, and professional design services $200,000 to $450,000. Working capital before opening is $125,000 to $270,000, and additional funds for the first three months are $50,000 to $75,000 (Item 7, pp. 41-43).^[1]

The table excludes the cost of buying or leasing real estate. It also excludes sitework, general conditions and general contractor fees, which Choice says may vary widely. 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. 43).^[1] Financing for a build is covered at hotel construction loans, and conversion work at brand conversion financing and PIP and renovation loans.

For a newly built hotel, the franchisee may terminate on the 10th and 15th anniversaries of the opening date. For a hotel that is not newly built, either party may terminate without cause on the 5th, 10th or 15th anniversary. Choice's own without-cause right runs on the 5th, 10th or 15th anniversary with 12 months' written notice. An owner who takes an incentive waives the 5th anniversary window unless the incentive note is a five-year note. For a replacement agreement on an existing Sleep Inn, Choice may offer a term shorter than 20 years (Item 17, p. 71).^[1]

If Choice terminates for the franchisee's default after opening, liquidated damages are the greater of $80 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 penalty-free termination date, capped at 36 months. Before opening, the amount is the room count times 36 months times $80. Reinstatement to the reservation system after a suspension is $5,000 (Item 6, p. 39).^[1]

Item 6 sets the transfer fee for 50 percent or more of the equity at the then current affiliation fee or $45,000, whichever is greater, and Choice's consent is needed for any transfer of more than 5 percent. 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, p. 26; Item 6, pp. 34-35; Item 17, p. 72).^[1]

A lender comfort letter is $2,500, plus $500 if needed within one to three days (Item 6, p. 35).^[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?.

There were 402 open Sleep Inn and Sleep Inn and Suites hotels in the United States at December 31, 2025, all franchised. The sample is the 388 that were operating on or before January 1, 2025, excluding hotels that repositioned from another Choice brand during 2025, had at least 30 days of incomplete data, or were interrupted for more than 30 consecutive days. The median RevPAR was $50.99, the range was $19.14 to $135.34, and 168 hotels, or 43.3 percent, met or exceeded the average. Choice notes that one Sleep Inn closed during 2025 after being open less than a year (Item 19, p. 75).^[1]

A second table covers the 62 sample hotels newly constructed since 2016. They averaged 61.3 percent occupancy, a $106.11 average daily rate and $65.07 RevPAR, with a median RevPAR of $59.58. Across the full sample, Choice reports an average total Choice enterprise contribution of 78.8 percent of gross room revenues and an average Choice Privileges contribution of 48.8 percent. The enterprise figure counts online travel agent bookings made through Choice's negotiated relationships (Item 19, pp. 75-77).^[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. 78).^[1] This page draws no profit conclusion from them. The measures are defined at RevPAR and ADR.

Guide

How much does a hotel franchise cost?

Other questions in this guide

• How much does a Quality Inn franchise cost in 2026?
• How much does a Comfort Inn or Comfort Suites franchise cost in 2026?
• How much does a Cambria Hotels franchise cost in 2026?
• How do I finance converting my hotel to a new brand?
• How do I finance a hotel PIP or renovation?
• Should I buy a branded or independent hotel?

Terms defined in the glossary

• Franchise Disclosure Document (FDD)
• Hotel Franchise Agreement
• PIP (Property Improvement Plan)
• Franchise Comfort Letter

Our own data

• Matthews Hotel Markets rate sheet