About Coast Hotels USA Franchise
Coast Hotels is a hospitality franchise brand under parent company Coast Hotels Limited, offering franchise opportunities since 2022.
The brand features a collection of hotels that emphasize genuine hospitality, comfortable accommodations, and a connection to the local character of each destination.
Coast Hotels serves both business and leisure travelers seeking a reliable, quality stay.
Coast Hotels USA Franchise Cost & Fees
Minimum Investment
$43K
Average Investment
$307K
Maximum Investment
$571K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | The greater of (i) $15,000.00, plus applicable taxes, and (ii) $150.00 per room, plus applicable taxes. | One-time payment upon signing |
| Royalty Fee | 3-5% of Gross Room Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2-3% of Gross Room Sales | National brand fund |
| Total Investment Range | $42,500 – $571,000 | Includes build-out, inventory, working capital |
The investment range of $43K–$571K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3-5% of Gross Room Sales) and marketing fee (2-3% of Gross Room Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Application Fee | $15,000 | $15,000 |
| Land | $0 | $0 |
| Building and Site Work | $0 | $0 |
| Equipment, fixtures, décor & signs | $25,000 | $100,000 |
| Inventory and Supplies | $3,000 | $100,000 |
| Insurance | $5,000 | $100,000 |
| Central Reservation System and Property Management System | $5,000 | $100,000 |
| Security deposits and other prepaid expenses required to commence operations and working capital | $0 | $25,000 |
| Additional Fund | $2,000 | $5,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Technology Fee | Based on extent of participation. Currently the fee is $9.00 per confirmed reservation. |
| If guest chooses Alaska Mileage | $.0205 USD/mile on 500 mile qualified stay |
| Aeroplan Mileage | $.0198 CDN per mile based on 250-500 mile qualified stay. |
| Coast Rewards (frequent stay) | $6.00 per room per month for monthly maintenance. $.045 USD per point issued. |
| More Rewards | $.01 per point issued. Guest receives 1 point per pre-tax dollar spent. |
| Annual Franchisee Meeting – General Manager & Director of Sales Meeting Fee – Registration Fee | $1,100 per person or less |
| Inspections | Reimbursement of our actual travel expenses for economy airfare; plus comp room at your hotel when we determine that an overnight stay is required. |
| Marketing Support | Reimbursement of our actual travel expenses for economy airfare; plus comp room. |
| Guest Satisfaction Survey | Included in Loyalty Program Costs. |
| Customer Relations Management (E-Mail Marketing) | Monthly fee included in loyalty program. |
| Cvent Transient | $875 per year, subject to prevailing Cvent Contract. |
| Online Marketing Advertising (META) Marketing | 15% commission and $3.00 per reservation |
| Social Media (optional program) | $500-$1,500 per month depending upon program |
| Digital Marketing SEO/PPC (optional program) | $500-$2000 per month (estimated). |
| Public Relations (optional program) | $250 - $500 per month. |
| Print/Digital Advertising (optional program) | $200 per quarter |
| Sales Mission & Trade Show – Exhibitor Fee (optional program) | Costs vary depending on event and the number of participating Coast hotels, but should not exceed $1,500 per event. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | We do not offer an initial training program. |
| Additional Training | We will consult with franchisees if they have specific questions, but we do not offer formal training instruction. During the annual general manager and sales meeting, which your General Manager and Director of Sales must attend, we may conduct training in subjects of general interest to our franchisees in our discretion. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Negotiable |
| Exclusive Territory | No |
| Description | The franchise license is location-specific in that it awards you the right to use the COAST marks and Coast System to operate your Coast hotel at a specific location. You will be able to negotiate a territory protection during the franchise agreement process. We reserve all rights to exploit the COAST marks and engage in all types, methods and channels of distribution regardless of whether we use the method now or adopt it in the future. Our reserved rights include the right to exploit the COAST marks for uses unrelated to hotel and lodging services. We do not have to share the revenue that we derive from these activities with you even if we engage in competitive activities in your trade area. At this time, neither we nor any an affiliate of ours operates or plans to operate or franchise hotel or lodging businesses under a different trademark that will sell goods or services that are the same as or similar to those that Coast franchisees offer. However, nothing in the Franchise Agreement precludes us, our parent or our affiliates from doing so in the future regardless of the proximity of these activities to your Coast hotel. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one five-year period |
| Renewal Conditions | You must accept the terms and conditions provided in the franchise agreement and not be in default |
| Transfer Conditions | Coast’s approval is required for any assignment or transfer of rights or duties |
| Termination for Cause | Bankruptcy or insolvency; governmental taking; destruction; material breaches not cured; repeated breaches; voluntary abandonment of business; conviction, sale of hotel and plea of guilty or no contest. |
| Non-Compete Period | None |
| Non-Compete Details | During the term of the franchise: Involvement with non-Coast hotels is permissible, provided that this hotel may not use the name “Coast” or other proprietary mark of Coast, or represent or suggest, that it is part of or affiliated with the Coast System. Coast or its affiliates may own, manage, or have entered into Franchise Agreements with hotels that compete with your hotel, and as subject to state law. After termination or expiration: Non-competition provisions are subject to state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You are solely responsible for operating your hotel. You may contract with another person or legal entity to operate the hotel who is an experienced hotel operator. Coast does not require that you personally supervise the franchised business. The manager need not have an ownership interest in you. The manager must sign a written agreement to maintain confidentiality of the information contained in the franchise agreement and to conform to the covenants not to compete described in Item 17. Personal guarantees are to be negotiated based on the credit worthiness of the owners and their spouses. |
| Required Suppliers | You must use in the operation of your hotel any supplies, including guest room amenities and printed materials that have been designed and are made available by Coast for your use. You may purchase these supplies from Coast or from a vendor of your choice, provided that if these supplies are purchased from a vendor other than Coast, they must be of identical quality and design to those sold or otherwise made available by Coast. |
| Supply Restrictions | Coast has no written specifications/standards for supplies. The executive staff of Coast determines which supplies meet the Coast standards. The supplies designed and made available by Coast for use by hotels in the Coast System may vary. Coast will provide you with updated lists of these supplies upon request. You also must use signs that include the word “Coast” in identifying your hotel, with the wording and with the design approved by Coast. You may purchase these signs from a vendor of your choice. |
| Franchisor Revenue from Suppliers | Coast does not receive payments from purchases by you from third party vendors. Coast does not participate in any purchasing or distribution cooperatives. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Coast does not offer direct or indirect financing. Coast does not guarantee your note, lease, or obligation. |
Coast Hotels USA Franchise Earnings — Item 19
Coast Hotels USA does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Coast Hotels USA does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Coast Hotels USA Litigation & Risk Flags
Clean Litigation RecordCoast Hotels USA has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Coast Hotels USA System Growth
Total Units
9
Franchised
9
Company-Owned
0
Coast Hotels USA currently operates 9 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
| 2022 | 9 | 0 | 9 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Coast Hotels USA Franchise — FAQ
The total investment to open a Coast Hotels USA franchise ranges from $42,500 to $571,000, per their Franchise Disclosure Document. This includes the initial franchise fee of The greater of (i) $15,000.00, plus applicable taxes, and (ii) $150.00 per room, plus applicable taxes.. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Coast Hotels USA charges a royalty fee of 3-5% of Gross Room Sales of gross sales, plus a 2-3% of Gross Room Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Coast Hotels USA Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Coast Hotels USA to ensure you have the most up-to-date version.
Coast Hotels USA does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Coast Hotels USA has been franchising since 2022. The FDD shows an investment range of $42,500-$571,000, a 3-5% of Gross Room Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is The greater of (i) $15,000.00, plus applicable taxes, and (ii) $150.00 per room, plus applicable taxes. and the total investment ranges from $42,500 to $571,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Coast Hotels USA and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Coast Hotels USA or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com