Ascend Hotel Collection Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$402,150 - $23,760,460
Franchise Fee
$10,000
Total US Locations
182
Business Summary
ASCEND HOTEL COLLECTION is a hotel franchise system that offers a unique collection of upscale resort, historic, and boutique hotels. These hotels operate under the ASCEND HOTEL COLLECTION brand name, often retaining their existing local names followed by 'an ASCEND hotel.' ASCEND hotels are characterized by their strong local identity, commitment to outstanding guest service, and diverse range of styles from historic to contemporary. They typically offer amenities such as on-site upscale dining or are located near upscale restaurants. While many ASCEND hotels are conversions of existing properties, new construction is considered if the design meets brand standards.
Corporate History
Choice Hotels International, Inc. traces its origins back to 1939 when seven independent motel owners in Florida formed Quality Courts United, which became the nation's first hotel chain by 1941. In January 1963, the organization was formalized as a for-profit corporation, Quality Courts Motels, Inc. The company expanded its franchise system through the development of additional hotel brands and name changes, eventually becoming Choice Hotels International, Inc. in 1990. The ASCEND HOTEL COLLECTION® brand itself was first franchised in 2008, followed by ASCEND RESORT COLLECTION® in 2013, targeting upscale resort, historic, and boutique hotels. Choice Hotels International, Inc. has also expanded internationally since 1958 and made significant acquisitions, such as Radisson Hospitality, LLC and its Radisson Brands in 2022.
Financial Overview
Investment Range
$402,150 - $23,760,460
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$60,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$8,182,166
Equipment Costs (High)
$22,220,800
Working Capital
$327,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Choice Hotels International, Inc. appears to be in a financially challenging position with negative working capital and a deficit in shareholders' equity as of December 31, 2024. While the independent auditors gave an unqualified opinion, prospective Ascend franchisees should be aware that the company's short-term assets are not enough to cover its short-term debts. The company has a significant amount of long-term debt, though it recently refinanced a large maturing loan. It's important for prospective franchisees to note that Choice Hotels has the ability to advance money to its franchise system and recover these funds through future fee increases or reduced spending.
Financing Details
Choice Hotels International, Inc. offers several direct financing options to Ascend franchisees. First, Choice Hotels may finance the initial affiliation fee through a promissory note, which is typically interest-free if repaid in a lump sum within three months. If not paid on time, it accrues interest at 18% annually (or 10% maximum in California). Additionally, Choice Hotels may provide "Selected Capital Support" to strategically important properties. This support is given as a loan, evidenced by a promissory note, which is forgiven over 10 or 20 years on a straight-line basis, provided the franchisee does not default on the franchise agreement. Interest on this loan only applies if there is a default (prime plus 2% annually, or 10% maximum in California). Finally, Choice Hotels has an "Incentive Program" for diverse or veteran entrepreneurs. This provides $2,500 per room for an Ascend hotel, up to a maximum of $200,000, through a 10-year forgivable promissory note. If the franchisee remains in good standing, the note is completely forgiven. A 5-year option is also available for 50% of the incentive amount (max $100,000). For re-licensing an existing Ascend hotel, qualifying franchisees can receive a 50% discount on the affiliation fee.
Performance Metrics
Total US Locations
182
Franchised Units
182
Corporate Units
0
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
90
Bankruptcy History
Ascend has no bankruptcy history to disclose in this Franchise Disclosure Document.
Agreement Terms
Initial Term
20 years
Renewal Conditions
ASCEND franchisees do not have the right or option to renew their Membership Agreement or extend its term after the initial 20-year period expires.
Training & Support Program
Franchisor Assistance
Choice Hotels International, Inc. offers comprehensive support for ASCEND franchisees, both before and after the hotel opens. **Pre-Opening Assistance:** * **Site Selection:** Choice reviews and approves the franchisee's selected site, considering location, market, and revenue potential. The Franchise Committee aims to review applications within 30 days. * **Construction & Renovation:** For newly constructed or substantially renovated hotels, Choice reviews and approves architectural plans and designs to ensure they meet brand standards. The franchisee must submit preliminary drawings at least 6 months before construction starts and final plans 3 months prior. Choice aims to provide feedback within 15 business days. Additional consultation and services for construction/renovation may be provided at a reasonable fee. * **Rules & Regulations:** Choice provides electronic access to its Rules and Regulations manual, which outlines standards for construction, equipment, furnishings, operations, and marketing. * **Opening Services Support:** An Onboarding Project Director and Opening Services Manager are assigned to monitor project progress, assist with contractual milestones, introduce organizational support departments, enroll the hotel in marketing programs, coordinate training, and ensure brand standards are met for the initial Quality Assurance Review (QAR). * **Training:** * **Upscale Immersion Program:** Required for all new hotels, conversions, and transfers to new owners (or after new on-property leaders are hired). This 3-day program covers Choice history, culture, brand identities, upscale service, reputation management, F&B service, QAR & compliance, staffing, revenue & profitability, marketing, loyalty, sales, technology, crisis management, leadership, and action planning. It is held at Choice's corporate headquarters in North Bethesda, Maryland. The cost is $2,450 per attendee, plus travel, lodging, and meals. * **Hospitality Operations Success Training (HOST) - Leadership Certification:** Mandatory for General Managers and recommended for Directors of Sales and other leaders. This virtual program includes self-paced online modules (12 hours) and live interactive virtual workshops (12 hours), covering upscale brand expectations, operations management, sales, F&B, distribution, reputation management, revenue, profitability, Choice systems, crisis management, legal fundamentals, and leadership. It also includes online exams (3 hours) and discipline-specific content (6-8 hours). The fee is $1,395 per attendee. * **Re-Licensed Hotel Training:** For hotels undergoing a 50% or greater ownership change, a customized remote training is delivered via a self-paced Learning Map on Choice University (LMS). The fee is $995. * **choiceADVANTAGE® Onboarding:** Remote onboarding support is provided for the property management and reservation system, including hardware setup, basic functions, configuration review, and report usage. This includes 16-22 hours of remote on-the-job training. Optional on-site training is available for an additional $8,000. * **Educational Resources Program:** An annual fee of $1,500 provides unlimited access to training programs on Choice's online learning management system (Choice University). * **Pre-Opening Photography:** Franchisees must retain a professional photographer from a qualified vendor to take photos and provide a virtual tour of the hotel before opening (estimated $3,500-$5,000). **Post-Opening Assistance:** * **Quality Assurance:** Choice administers a mystery shopper program or QAR, including periodic visits and guest satisfaction surveys to evaluate compliance. Non-compliance can lead to penalties or termination. * **Marketing and Reservations:** Choice provides an advanced reservation system, supported by the monthly Marketing and Reservation Fee. This includes direct sales, digital media, multi-brand TV campaigns, trade publications, radio, and other materials. ASCEND members must participate in and honor loyalty, discount, and promotional programs, and pay associated fees. * **Fair Franchising Policy:** Choice maintains a Fair Franchising Policy to address conflicts and guide system management, including an Impact Policy for new franchise applications near existing properties. It also outlines a contractual out evaluation process for expiring agreements. * **Computer Hardware and Software:** Ongoing remote support for choiceADVANTAGE® software is provided 24/7, along with enhancements and updates. Franchisees are required to refresh Dell hardware and peripherals every 48 months or upon warranty expiration (estimated $3,800-$10,800). * **Independent Property Website:** Franchisees may purchase and maintain a brand-approved third-party vanity website from qualified vendors, with annual support fees between $4,000 and $10,000. * **Change in Sleeping Room Count:** Choice reviews and approves requests to add or remove guestrooms or make substantial alterations. * **Franchise Advisory Council:** Choice may periodically assemble franchise advisory councils to advise on system-related issues, including advertising.
Initial Training Hours
81
Training Location
Choice Headquarters, Pike & Rose in North Bethesda, Maryland, and online/remote for other programs.
Ongoing Support
After opening their ASCEND hotel, franchisees receive various forms of ongoing support from Choice Hotels International, Inc. **Quality Assurance:** Choice administers a Quality Assurance Review (QAR) program, which includes periodic visits to the ASCEND hotel by Choice or authorized third parties, and/or guest satisfaction surveys. This evaluates the franchisee's compliance with the membership agreement and Rules and Regulations. If deficiencies are found, Choice advises on necessary changes, and franchisees must correct them within specified timeframes. Failure to improve can lead to warnings, penalties, mandatory training, reservation suspension, or even termination of the agreement. **Marketing and Reservations:** Choice provides and maintains an advanced reservation system for the ASCEND hotel, funded by the monthly Marketing and Reservation Fee. This system encompasses direct sales efforts, digital media, multi-brand television campaigns, trade publications, radio, directories, and other collateral materials. ASCEND franchisees are required to participate in and honor the terms of loyalty, discount, and promotional programs, and pay associated fees. They also contribute complimentary room nights for Choice staff visits and promotional activities. Choice administers the allocation of these marketing funds and provides an unaudited statement upon reasonable request. **Computer Hardware and Software:** Choice provides ongoing remote support for the choiceADVANTAGE® property management and reservation system 24 hours a day, 7 days a week. This includes enhancements and updates to the software via training bulletins and online training through ChoiceU.com. ASCEND franchisees are required to refresh the choiceADVANTAGE® system's Dell hardware and required peripherals every 48 months or upon hardware warranty expiration. **Independent Property Website:** ASCEND franchisees may purchase and maintain a brand-approved third-party vanity website from qualified vendors. Ongoing support and maintenance for these websites are estimated to cost between $4,000 and $10,000 yearly. If currently using a non-qualified vendor, franchisees must switch to an approved vendor upon agreement expiration. **Room Count Changes:** Choice reviews and approves requests to add or remove guestrooms or make substantial alterations to the ASCEND hotel after receiving the necessary construction plans and fees. **Fair Franchising Policy:** Choice maintains a Fair Franchising Policy that sets general guidelines for managing the Choice franchise system, including principles for informal dispute resolution. This policy also references an Impact Policy, though it does not apply to ASCEND hotels. **Franchise Advisory Council:** Choice may periodically assemble franchise advisory councils with franchisee representatives to advise on system-related issues, including advertising.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
non-exclusive
Staffing Notes
Ascend Hotel Collection franchisees are not required to personally participate in the direct operation of the franchised hotel. However, each Ascend Hotel Collection hotel must have a certified General Manager. The General Manager (and at least one other hotel staff member in a managerial role) is required to complete the Hospitality Operations Success Training (HOST) leadership certification. This is a self-paced virtual certification covering upscale brand service expectations, operations management, sales operations, food & beverage operations, distribution, reputation management, revenue driving, profitability, Choice Hotels International, Inc. systems and resources, crisis/emergency management, lodging legal fundamentals, and leadership. The General Manager or Director of Sales is also required to attend the 3-day Upscale Immersion Program at Choice Hotels International, Inc.'s corporate headquarters. This program covers various aspects including Choice history, brand identities, upscale service culture, reputation management, F&B service, Quality Assurance & Compliance, staffing models, employee relations, segment support, revenue/profitability programs, marketing, loyalty, sales training, global sales, RFPs, sales & marketing plans, technology, crisis management, PR, leadership, and accountability. If a hotel does not meet certain performance metrics, Choice Hotels International, Inc. may require the franchisee to contract with a pre-approved hotel management company to operate the hotel. Owners are required to attend the annual convention, with the General Manager and Director of Sales also recommended to attend. Mandatory human trafficking prevention training must be completed by hotel owner(s) and/or management level designees, with annual renewal. Training provided by Choice Hotels International, Inc. is limited to guiding employees on approved services per brand standards; the franchisee remains the sole employer responsible for all employment decisions and ensuring adequate employee training. Optional Sales Certification Training is also available.