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Coast Hotels USA Franchise For Sale

USA

Established

1960

Franchise Units

46

dollar

Minimum Investment

$27,500

dollar

Franchise Fee

$27,500

dollar

Total Investment Range

$381,000

Home Based

No

Description

Coast Hotels is a dynamic hotel brand that offers a unique blend of local charm and modern hospitality. With a portfolio of over 46 properties across the Pacific Northwest, including Alaska, California, Hawaii, and British Columbia, Coast Hotels provides guests with authentic, locally inspired experiences. Each hotel reflects the character of its location, ensuring that guests enjoy a stay that is both comfortable and connected to the local community.

Why Invest in Coast Hotels?

Investing in a Coast Hotels franchise offers several compelling advantages:

  • Established Brand: As a subsidiary of APA Hotel Canada, Inc., Coast Hotels is part of one of North America's fastest-growing hotel brands. 

  • Strategic Expansion: Coast Hotels is actively expanding its presence in the USA, targeting key markets along the West Coast and beyond. 

  • Owner-Centric Approach: The brand emphasizes a "One Brand – One Focus" strategy, providing franchisees with a clear and effective roadmap for success.

  • Comprehensive Support: Franchisees receive robust support in areas such as operations, marketing, and revenue management, ensuring a competitive edge in the hospitality industry.


Background

Established Year & Origins
Coast Hotels was founded in the 1960s in Western Canada and has grown into a prominent mid-scale hotel chain in North America. Over the decades, the brand has developed a reputation for providing comfortable accommodations with a local touch, focusing on the “Refreshingly Local™” guest experience. The brand emphasizes integrating local culture, cuisine, and community into each property’s design and services.

Franchise Units & Market Presence
Today, Coast Hotels operates over 46 properties across Canada and the U.S., with locations in California, Alaska, Washington, and British Columbia. The brand is actively expanding its footprint in the U.S., targeting key metropolitan areas and travel corridors along the West Coast. Its growth strategy includes a mix of new franchise agreements, acquisitions, and hotel management contracts.

Founders & Ownership
Coast Hotels is a subsidiary of APA Hotel Canada, Inc., which is part of the globally recognized APA Group based in Japan. This ownership structure allows Coast Hotels to leverage international hospitality expertise while tailoring its services to the North American market.

Brand Journey & Company History

  • 1960s: Coast Hotels is founded, opening its first properties in Western Canada.

  • Expansion: The brand steadily grows across Canada, establishing itself as a mid-scale hotel chain known for quality service and local charm.

  • 2010s–Present: Expansion into the U.S. market, focusing on strategic locations along the West Coast.

  • 2023: Completion of a master franchise agreement consolidating Coast Hotels USA, LLC, and setting the stage for accelerated franchise growth in the U.S. by 2027.

Industry Category
Coast Hotels operates in the mid-scale hospitality segment, catering to business travelers, tourists, and families who value comfort, convenience, and local experiences.

Key Differentiators

  • Focus on local experiences in every property.

  • Flexible franchise model with strong owner support and operational guidance.

  • Strong regional brand recognition in Western North America.

  • Access to international operational expertise through APA Group.

Current and Future Market Presence in the USA

  • Actively seeking new franchise partners in California, Alaska, and Washington, with plans to expand into other strategic markets.

  • Emphasis on sustainable growth, operational efficiency, and delivering consistent guest satisfaction.


Support Training

Coast Hotels provides comprehensive, structured support to ensure franchisees succeed in the competitive hospitality industry. Their assistance covers every stage of ownership, from pre-launch to ongoing operations, and combines practical guidance with strategic resources.

1. Pre-Launch Support

Before opening a property, Coast Hotels helps franchisees with:

  • Site Selection: Assistance in identifying ideal locations based on market analysis, demographics, and travel patterns.

  • Property Development & Renovation: Guidance on hotel design, layout, branding standards, and renovations to meet Coast Hotels’ specifications.

  • Regulatory Compliance: Support with local building codes, zoning, permits, and franchise agreements.

  • Feasibility & Financial Planning: Detailed analysis of expected investment costs, ROI projections, and operational budgeting.

2. Operational Training

Franchisees receive hands-on training to run their hotels efficiently:

  • Front Desk & Guest Services: Training in reservations, check-in/check-out procedures, and guest satisfaction protocols.

  • Housekeeping & Maintenance: Standards for cleanliness, room setup, and preventive maintenance.

  • Food & Beverage Operations: Guidance on hotel restaurants, catering, and snack bars (if applicable).

  • Management Software: Training on Coast Hotels’ proprietary property management systems (PMS) and other operational tools.

3. Marketing Support

Coast Hotels ensures franchisees have the resources to attract and retain guests:

  • National & Regional Marketing Campaigns: Participation in brand-wide campaigns that enhance visibility.

  • Local Marketing Toolkit: Templates, digital marketing guidance, social media support, and public relations strategies tailored to the local market.

  • Revenue Management Assistance: Expertise in pricing strategies, promotions, and distribution channels to maximize occupancy and profitability.

4. Academic & Continuing Education

  • Workshops & Webinars: Ongoing training sessions for franchisees and staff covering new operational techniques, service standards, and emerging trends.

  • Leadership Development: Training programs for general managers and department heads to enhance skills in team management and operational efficiency.

5. Ongoing Operational Support

Even after launch, Coast Hotels provides continuous support:

  • Dedicated Franchise Liaison: A single point of contact to resolve issues, answer questions, and provide guidance.

  • Performance Monitoring: Regular evaluation of operational metrics, guest satisfaction scores, and revenue performance.

  • Technology Updates: Access to the latest hotel management tools, booking systems, and digital marketing platforms.

  • Networking & Collaboration: Opportunities to connect with other franchisees for sharing best practices and insights.

Key Benefits of Coast Hotels’ Support System

  • Reduces operational risk by providing proven processes and templates.

  • Enhances revenue potential through strategic marketing and revenue management.

  • Ensures consistent guest experience across all properties, strengthening the brand.

  • Empowers franchisees with knowledge, tools, and ongoing mentorship.


Ideal Candidate

Coast Hotels seeks franchise partners who are passionate, capable, and committed to providing exceptional guest experiences while growing a successful business. The ideal franchisee combines operational skill, business acumen, and a genuine interest in the hospitality industry.

1. Business Background & Experience

  • Hospitality Experience: Prior experience in hotel management, restaurant operations, or the broader hospitality sector is highly advantageous.

  • Entrepreneurial Mindset: Ability to independently manage day-to-day operations, make strategic decisions, and lead a team.

  • Financial Literacy: Comfort with budgeting, forecasting, and financial reporting to ensure operational profitability.

2. Passion & Commitment

  • Guest-Centric Approach: Dedication to delivering a high-quality, personalized guest experience.

  • Community Engagement: Interest in promoting local culture and fostering relationships within the community.

  • Brand Ambassador: Enthusiasm for representing Coast Hotels’ values and “Refreshingly Local™” philosophy.

3. Investment Capability

  • Financial Resources: Sufficient capital to cover initial franchise fees, property acquisition or development, and working capital requirements.

  • Long-Term Vision: Willingness to invest time and resources to achieve sustainable growth and profitability.

4. Location Preference & Market Insight

  • Strategic Location Selection: Franchisees should understand the value of location in driving hotel traffic, including proximity to business centers, airports, tourist attractions, or travel corridors.

  • Market Savvy: Ability to analyze local competition, guest demographics, and trends in the hospitality market.

5. Leadership & Management Skills

  • Team Leadership: Experience in managing staff and fostering a productive, customer-focused work environment.

  • Operational Excellence: Strong organizational skills to ensure smooth hotel operations, adherence to standards, and consistent guest satisfaction.

  • Problem Solving & Decision Making: Capacity to respond effectively to operational challenges and changing market conditions.

Key Characteristics of an Ideal Coast Hotels Franchisee

  • Experienced and Entrepreneurial: Familiar with hospitality operations or business management.

  • Guest-Focused: Committed to providing superior service and memorable experiences.

  • Financially Prepared: Able to fund initial investments and sustain operations through early stages.

  • Community-Oriented: Interested in engaging with local culture and clientele.

  • Strategic and Proactive: Capable of planning, executing, and optimizing business strategies effectively.


Financial Detail

Financial ComponentDetails / Range
Franchise Fee$27,500
Total Investment Required$27,500 – $381,000 (varies by property size, location, and renovations)
Minimum Investment$27,500
Infrastructure / Build-Out CostVariable, depending on property condition, required renovations, and branding requirements
Marketing BudgetAllocated funds for local and regional marketing campaigns; typically included in operational plans
Working CapitalSufficient to cover 3–6 months of operating expenses
Royalty Fees4–8% of gross revenue, depending on franchise agreement
Expected ROIVaries by location, occupancy rates, and operational efficiency; typically positive within 2–4 years
Break-Even TimeApproximately 2–4 years
Potential Revenue Streams- Room bookings / accommodations
- Food & beverage services
- Event hosting
- Ancillary services (parking, spa, merchandise, etc.)



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