Coast Hotels franchise
2023 filing · August 8, 2023Growing
Coast Hotels at a glance
A hotel operating under the Coast brand with its marketing, reservation system and quality standards. At the end of 2022 there were 9 Coast Hotels locations in the US, all franchised.
The business
- Industry
- Hotel
- Franchisor
- Coast Hotels USA, Inc
- The company that sells the franchises
What you pay
- Cost to open
- $43K–$571K
- Excluding real estate
- Franchise fee
- $15,000
- Application fee, or $150 per room if greater
- Royalty
- 3%–5%
- 3% to 5% of gross room sales, paid monthly, plus a 2% to 3% marketing fee
- Brand fund
- Yes
- 2-3% of gross room sales, paid monthly
- Agreement length
- 10 years
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 9
- Franchised and company-owned
- Franchised
- 9
- Company-owned
- 0
- Change in 2 years
- +9
- Franchised locations, 2020–2022
- States
- 4
- Most in Washington, California and Alaska
From Coast Hotels USA, Inc’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Coast Hotels among all franchises with the same figure.
| Figure | Coast Hotels | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $306,750 | Costs less than 56% of franchises |
| Franchise feePaid once, when you sign | $15,000 | Lower than 93% of franchises |
| US locationsFranchised and company-owned | 9 | Fewer than 63% of franchises |
How much a Coast Hotels franchise costs
Opening excluding real estate costs an estimated $42,500 to $571,000. That covers the franchise fee and everything else needed to open, through the first months of working capital. It is one of the franchises under $50K.
Source: Coast Hotels USA, Inc, 2023 filing, page 1
Coast Hotels franchise fee
The franchise fee is $15,000, application fee, or $150 per room if greater. You pay it when you sign the franchise agreement.
Source: Coast Hotels USA, Inc, 2023 filing, page 7
Royalty and ongoing fees
| Royalty | 3% to 5% of gross room sales, paid monthly, plus a 2% to 3% marketing fee. |
|---|---|
| Brand or marketing fund | 2-3% of gross room sales, paid monthly. |
| Digital Marketing SEO/PPC (optional program) | $500-$2000 per month (estimated). This fee is hotel-specific. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Coast Hotels USA, Inc, 2023 filing, page 8
Other fees as filed, from page 10. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Coast Hotels does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Coast Hotels USA, Inc, 2023 filing, page 25
How Coast Hotels compares
Of the 116 hotel franchises on this site, Coast Hotels is the cheapest to open and the 77th largest by number of locations.
| Figure | Coast Hotels | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $43K | $9.44M | $222K |
| Cost to open, high end | $571K | $21.3M | $477K |
| Franchise fee | $15K | $54K | $40K |
| US locations | 9 | 37 | 21 |
| Shares earnings figures | No | 71 of 116 | 2,147 of 3,352 |
Typical is the median across the 116 brands in hotel franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 0 (0) | 0 | 0 | 0 |
| 2021 | 0 (0) | 0 | 0 | 0 |
| 2022 | 9 (+9) | 0 | – | – |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: hotel franchise costs and franchise failure rates.
Source: Coast Hotels USA, Inc, 2023 filing, page 26
Where Coast Hotels locations are
At the end of 2022, Coast Hotels had franchised locations in 4 states. The most are in Washington, California and Alaska.
- Washington4
- California3
- Alaska1
- Hawaii1
| State | Franchised |
|---|---|
| Washington | 4 |
| California | 3 |
| Alaska | 1 |
| Hawaii | 1 |
Source: Coast Hotels USA, Inc, 2023 filing, page 27
Who owns Coast Hotels?
Coast Hotels franchises are sold by Coast Hotels USA, Inc.
From Coast Hotels USA, Inc’s 2023 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Coast Hotels USA, Inc, 2023 filing, litigation on page 7, bankruptcy on page 7
Coast Hotels filings
The figures on this page come from Coast Hotels USA, Inc’s 2023 filing, issued August 8, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | August 8, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
