Top 10 Hotel Franchise Options

The hotel industry is one of the world’s most profitable, rising, and vast business opportunities. This means that now is a great time to open a hotel business. Hotel franchising allows you to own a business without investing in individual locations. Instead, you can buy into an established brand and operate their hotels from your centralized location. This blog post will discuss the top ten hotel franchises to consider when opening a hotel business.

1. Days Inn

First on our list of hotel franchise options is Days Inn, which is a part of the Wyndham Hotel Group. This is a good brand to consider if you’re looking for a franchise within budget. Days Inn prides itself on being a top performer in economy hospitality. That said, it’s one of the top options for guests who want lodging, breakfast, and excellent service for an affordable rate. The initial investment ranges from $292,634 to $8,281,441.

2. Super 8

Super 8 is another franchise under the Wyndham Hotel Group. At present, it has more than 2,600 hotels operating on four continents. That makes Super 8 hotels the most common economy hotel brand globally. You’ll usually see Super 8 hotels on major highways, and its clientele includes leisure and business road trippers. The initial investment for this brand ranges from $221,026 to $5,473,490.

3. Motel 6

Motel 6 is another brand that enjoys immediate recognition in the economy lodging industry. With its six decades of presence in the market, Motel 6 has surely made a name for itself as a hotel brand for a minimal price. The brand has had over 550 franchises over the past few years, with an average occupancy rate of 71.4 percent. The initial investment range from $222,550 to $8,230,104.

4. Hyatt Place

If you’re looking for an upscale hotel franchise, check out Hyatt Place. This franchise is under Hyatt, which offers a variety of brands in the exclusive, upper-upscale, and luxury markets. Aside from Hyatt Place, Hyatt brands include Caption, Andaz, Alila, Thompson Hotels, Hyatt Centric, Park Hyatt, Miraval, and more. The initial investment for a Hyatt Place franchise costs $13,645,000 to $20,604,000.

5. Sheraton

Sheraton is a good hotel franchise option if you want to serve leisure and business travelers. After all, Sheraton is one of the major hotel franchise brands under Marriott International, one of the world’s largest hospitality and lodging companies. This brand’s initial hotel franchise cost is $883,500 to $75,576,000.

6. InterContinental Hotels Group

InterContinental Hotels Group operates its hotels in various ways: as a franchisor, manager, and on an owned and leased arrangement. That means the IHG hotels you see are either franchise ventures (mostly in Europe and the Americas) or IHG-managed on behalf of third-party hotel franchise owners (usually in emerging markets like Greater China). The estimated total initial investment ranges from $81,174,250 to $110,584,000.

7. W Hotels Worldwide

If you’re looking for a hotel franchise that’s young and hip, then W Hotels Worldwide is right up your alley. This brand, which falls under the umbrella company of Marriott International, aims to be an innovative player in an industry overcrowded with austere and formal brands. This is the best hotel franchise if you want a business with personality. The initial investment for this brand ranges from $10,565,000 to $21,828,000.

8. Econo Lodge

Econo Lodge offers a simple USP – easy to find, easy to book, and easy on the wallet. That said, they take pride in being an easy stop on the road where travelers can get a good night’s rest in clean and comfortable rooms with free continental breakfast. The initial investment for this franchise ranges from $208,275 to $938,645.

9. La Quinta

La Quinta is also a brand under Wyndham and falls under their upper midscale category. With the slogan “Wake up on the bright side,” this brand has 922 hotels spread across the US, Canada, and Latin America. If you’re considering this option for your business, the initial investment is $3,962,414 to $14,105,775.

10. Hampton by Hilton

Last but not least in our list of hotel franchise options is Hampton by Hilton. This franchise combines standard guest rooms with double-room suites in one hotel property and is one of the most profitable hotel franchises. The total investment required for a newly constructed 80-room Hampton Inn is $7,662,800 to $14,821,500, excluding real property.

Pros and Cons of a Hotel Franchise Business

When starting a hotel franchise business, you’ll have the opportunity to work with an established brand. This means you’ll have a clear brand image to work with and will have access to their established marketing channels. In addition, you’ll also have access to the backend franchising systems that can help you grow a profitable business quickly.

The downside to a franchise business is that you have less control over your brand image. You’ll have to work within the confines of the franchise brand you buy into. Another disadvantage is that many franchises have strict terms of use, meaning you’ll be unable to use the brand outside of the franchise locations. This can be a problem if you want to expand your hotel business, as you’ll need to buy into a new franchise to grow.

Tips for Choosing a Hotel Franchise

Like any other business venture like bagel franchises, the best way to choose a hotel franchise is to research several brands. Make sure you talk to current franchisees of the brands you’re interested in. Find out how they feel about their business and what the franchising company is like.

You should also consider the future of the industry you’re choosing to franchise in. You don’t want to invest in a brand that is likely to decline. Finally, choose a hotel franchise that fits your experience and skill set. If you don’t feel like managing a hotel, you should look for a less intensive franchise.