Hospitality International franchise
2026 filing · March 24, 2026Fewer locations
Hospitality International at a glance
A budget hotel franchise under the Scottish Inns, Red Carpet Inn, Master Hosts, Passport Inn or Downtowner Inns names. At the end of 2025 there were 191 Hospitality International locations in the US, all franchised.
The business
- Industry
- Hotel
- Franchisor
- Hospitality International, Inc
- The company that sells the franchises
What you pay
- Cost to open
- $134K–$531K
- Converting an existing hotel
- Franchise fee
- $8K–$15K
- By brand: $7,500 Passport Inn and Downtowner, $10,000 Scottish Inns and Red Carpet Inn, $15,000 Master Hosts, plus a $1,995 application fee for a conversion
- Royalty
- $25 per room a month
- A fixed $40 per room each month ($25 royalty and $15 marketing), plus reservation fees
- Agreement length
- 5 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2025
- 191
- Franchised and company-owned
- Franchised
- 191
- Company-owned
- 0
- Change in 3 years
- −13
- Franchised locations, 2023–2025
- States
- 28
- Most in Texas, New Jersey and Pennsylvania
From Hospitality International, Inc’s 2026 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Hospitality International among all franchises with the same figure.
| Figure | Hospitality International | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $332,745 | Costs less than 53% of franchises |
| Franchise feePaid once, when you sign | $7,500 | Lower than 97% of franchises |
| US locationsFranchised and company-owned | 191 | More than 85% of franchises |
How much a Hospitality International franchise costs
Opening converting an existing hotel costs an estimated $134,195 to $531,295. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Hospitality International, Inc, 2026 filing, page 16
Hospitality International franchise fee
The franchise fee is $7,500 to $15,000, by brand: $7,500 Passport Inn and Downtowner, $10,000 Scottish Inns and Red Carpet Inn, $15,000 Master Hosts, plus a $1,995 application fee for a conversion. You pay it when you sign the franchise agreement.
Source: Hospitality International, Inc, 2026 filing, page 13
Royalty and ongoing fees
| Royalty | A fixed $40 per room each month ($25 royalty and $15 marketing), plus reservation fees. |
|---|---|
| Transfer Fee | $2,500 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Hospitality International, Inc, 2026 filing, page 13
Other fees as filed, from page 14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Hospitality International 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: Hospitality International, Inc, 2026 filing, page 35
Growth and closures
Share of franchised locations, 2025 / 2023–2025. Typical means the median: half of brands are above it, half below.
| Measure | Hospitality International | Typical hotel brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −5% / −6.4% | +2.1% / +9.7% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 6.5% / 15% | 3.1% / 14% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical hotel brand is the median of the 47 brands in hotel franchises with three years of counts.
How Hospitality International compares
Of the 116 hotel franchises on this site, Hospitality International is the 4th cheapest to open and the 30th largest by number of locations.
| Figure | Hospitality International | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $134K | $9.44M | $222K |
| Cost to open, high end | $531K | $21.3M | $477K |
| Franchise fee | $8K | $54K | $40K |
| US locations | 191 | 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 |
|---|---|---|---|---|
| 2023 | 203 (−1) | 0 | +8 | −9 |
| 2024 | 201 (−2) | 0 | +6 | −8 |
| 2025 | 191 (−10) | 0 | +3 | −13 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. Counts cover all of the franchisor's hotel names together.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: hotel franchise costs and franchise failure rates.
Source: Hospitality International, Inc, 2026 filing, page 36
Where Hospitality International locations are
At the end of 2025, Hospitality International had franchised locations in 28 states. The most are in Texas, New Jersey and Pennsylvania.
- Texas65
- New Jersey22
- Pennsylvania22
- Georgia12
- New York9
- North Carolina7
| State | Franchised |
|---|---|
| Texas | 65 |
| New Jersey | 22 |
| Pennsylvania | 22 |
| Georgia | 12 |
| New York | 9 |
| North Carolina | 7 |
| Tennessee | 7 |
| Virginia | 6 |
| Florida | 5 |
| Maryland | 4 |
All 28 states
| Alabama | 3 |
|---|---|
| Arkansas | 3 |
| Connecticut | 3 |
| Massachusetts | 3 |
| California | 2 |
| Indiana | 2 |
| Minnesota | 2 |
| Mississippi | 2 |
| Ohio | 2 |
| Oregon | 2 |
| Hawaii | 1 |
| Illinois | 1 |
| Kentucky | 1 |
| Louisiana | 1 |
| Missouri | 1 |
| Nevada | 1 |
| New Hampshire | 1 |
| Wisconsin | 1 |
Source: Hospitality International, Inc, 2026 filing, page 37
Who owns Hospitality International?
Hospitality International franchises are sold by Hospitality International, Inc.
From Hospitality International, Inc’s 2026 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 11–12. |
|---|---|
| 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: Hospitality International, Inc, 2026 filing, litigation on pages 11–12, bankruptcy on page 12
Hospitality International filings
The figures on this page come from Hospitality International, Inc’s 2026 filing, issued March 24, 2026, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2026 filing | March 24, 2026 | NASAA depository | Costs, fees and locations, 2023–2025 |
Each link opens the filing as a PDF. See the newest filings across all brands.
