What Are Some Alternatives to the Best Western Franchise?

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What Are Alternative Franchise Chains to Best Western Franchise


Exploring alternatives to the Best Western franchise? If you're looking for diverse hospitality investment opportunities, understanding the landscape of hotel franchising is key. Discover other brands that align with your investment goals and operational preferences.

For those considering a venture into the hospitality sector, having a solid financial roadmap is crucial. Our Best Western Franchise Business Plan Template can provide the foundational structure you need, even as you explore other franchise options.

What Are Some Alternatives to the Best Western Franchise?
# Alternative Franchise Chain Name Description
1 Marriott International (Select-Service)

Marriott's select-service brands like Fairfield and Courtyard offer powerful brand recognition and a massive loyalty program, driving high occupancy and RevPAR premiums compared to competitors.

While requiring a substantial investment, their stringent brand standards and operational excellence are industry benchmarks, leading to strong guest satisfaction and higher average daily rates.

2 Hilton (Focused-Service)

Hilton's focused-service brands, including Hampton by Hilton and Hilton Garden Inn, are attractive for their proven models and consistent top rankings in the industry, bolstered by a large loyalty program that drives significant demand.

With innovative prototypes designed for efficiency and lower construction costs, these brands offer a compelling option for new entrepreneurs, often achieving faster build times.

3 IHG (InterContinental Hotels Group)

IHG, with iconic brands like Holiday Inn and Holiday Inn Express, provides strong franchise opportunities in the midscale and upper-midscale segments, supported by a robust loyalty program contributing significantly to revenue.

The group's commitment to brand modernization, such as the 'Formula Blue' design for Holiday Inn Express, has demonstrably increased guest satisfaction and RevPAR, making them a key alternative in the hospitality franchise landscape.





Key Takeaways

  • Major hotel franchisors like Wyndham, Choice Hotels, and IHG offer diverse midscale franchise opportunities, directly competing with Best Western's portfolio.
  • Many alternatives to Best Western, such as Marriott's Tribute Portfolio and Hilton's Tapestry Collection, offer flexible conversion models, similar to Best Western's structure.
  • Affordable hotel franchise options include brands like Magnuson Hotels and Cobblestone Hotels, which report lower all-in fee structures and development costs compared to major competitors.
  • Investment levels vary significantly, with Best Western conversions ranging from $250,000 to over $4 million, while new builds for competitors like Wyndham's La Quinta can exceed $13 million.
  • Ongoing fees differ, with Best Western's membership model generally having lower percentage fees compared to the royalty, marketing, and loyalty fees charged by brands like Choice Hotels or Marriott.


What Alternative Best Western Franchise Unit Options Exist?

What are hotel franchises similar to Best Western?

When exploring hotel franchise opportunities beyond Best Western, several major hospitality groups offer similar midscale and upper-midscale options. These include Wyndham Hotels & Resorts, Choice Hotels International, and IHG (InterContinental Hotels Group). As of late 2024, these three giants collectively boast over 15,000 franchised properties across the United States, directly competing with Best Western's North American portfolio of approximately 2,400 hotels. Many of these alternatives, much like Best Western's membership structure, also provide flexible conversion models, appealing to owners of existing independent hotels. For instance, Marriott's Tribute Portfolio and Hilton's Tapestry Collection are notable 'soft-brand' alternatives. Industry projections for 2025 suggest that RevPAR (Revenue Per Available Room) growth within these collections could outpace traditional brand conversions by 4-6%.

For entrepreneurs prioritizing affordability in their hotel franchise investment, brands like Magnuson Hotels and Cobblestone Hotels present compelling choices. Data from Q1 2025 indicates that Magnuson Hotels maintains an all-in fee structure approximately 15% lower than the industry average for midscale hotels. Similarly, Cobblestone Hotels' development costs for new builds in secondary markets are estimated to be 20-25% less than those of larger competitors, making them attractive options for those seeking to invest in hotel franchises other than Best Western.

Which hotel chain alternatives offer similar market positioning?

Several hotel brands directly compete with Best Western's market positioning. Wyndham's La Quinta and Ramada brands, for example, target the same midscale and upper-midscale segments. In 2025, Wyndham anticipates a system-wide occupancy rate of 64% for its midscale brands, with an Average Daily Rate (ADR) of $115, which is closely aligned with Best Western's projected ADR of $118. This makes them strong contenders when comparing hotel franchise brands' investment potential.

Choice Hotels International's Comfort Inn & Suites and Quality Inn brands are also significant Best Western competitors, appealing to value-conscious business and leisure travelers. In fiscal year 2024, Choice Hotels reported that its midscale brands achieved a RevPAR index of 108 against their direct competitive set, suggesting a stronger performance relative to their peers. This data is crucial for those looking to compare hotel franchise brands' investment returns.

IHG's Holiday Inn Express is a key competitor to Best Western Plus, focusing on the upper-midscale select-service market. As of June 2025, the estimated development cost for a new 100-room Holiday Inn Express is around $13.5 million, compared to an estimated $12.8 million for a similar Best Western Plus. This slight brand premium reflects market perception and may influence the decision for new hotel franchise concepts to consider. Understanding these financial nuances is vital for anyone considering a franchise hotel investment, especially when evaluating alternative hotel franchising options.


Choosing a Hotel Franchise: Key Considerations

  • Market Demand: Research local market demand for specific hotel segments to ensure your chosen brand aligns with customer needs.
  • Brand Strength: Evaluate the brand's reputation, customer loyalty, and marketing support, as these significantly impact revenue potential.
  • Franchise Fees and Royalties: Carefully compare the initial investment, ongoing royalty fees, marketing contributions, and other associated costs across different hotel brands. For example, the Best Western franchise fee is $55,000 with a royalty of 5.50% and a marketing fee of 2.10%.
  • Operational Support: Assess the level of training, operational guidance, and technology provided by the franchisor to ensure smooth operations.
  • Financial Performance: Review the franchisor's Item 19 in their Franchise Disclosure Document (FDD) for average revenue and profitability data, but always conduct your own independent financial analysis.



What Are The Investment Level Alternatives?

When considering hotel franchise opportunities, the investment required can vary dramatically between brands. It's crucial to understand these differences to align with your financial capacity and business goals. For a typical 80-100 room midscale property in 2025, a conversion to a Best Western Franchise Unit can range from $250,000 to over $4 million. A new build for the same brand could push that figure higher, exceeding $10 million. In contrast, a new build for a brand like Wyndham's La Quinta is estimated to fall between $7.5 million and $13.4 million.

How does a franchise hotel investment compare across brands?

The ongoing fees are a significant factor when comparing hotel franchise costs. While Best Western operates on a membership model with annual dues and fees averaging around 5.5% of Gross Room Revenue (GRR), many other hotel brands have different structures. For instance, brands like Choice Hotels or Hilton typically charge a royalty fee (often 5-6% of GRR), a marketing fee (usually 2-4% of GRR), and a loyalty program fee (typically 3-5% of GRR).

When you compare hotel franchise brands' investments, it’s essential to look at the total cost of ownership over the life of the franchise agreement, which is usually 15 to 20 years. Projections for 2025 suggest that for a $10 million hotel asset, the cumulative fees paid to a franchisor like Marriott could be 8-12% higher over the contract term compared to Best Western's fee structure.

What are some affordable hotel franchise opportunities?

For those new to entrepreneurship, certain brands offer more accessible entry points. Brands like Microtel by Wyndham and Sleep Inn by Choice Hotels are known for their lower initial investment requirements. The estimated total initial investment for a new-build 85-room Microtel in 2025 starts around $6.1 million, which is approximately 15-20% lower than the average for the broader midscale segment.

Conversion opportunities are another avenue for a more affordable entry into the hospitality franchise industry. Brands such as Wyndham's Super 8 or Choice's Econo Lodge can have initial franchise fees as low as $25,000 in 2025. Total conversion costs can begin under $200,000, though this is highly dependent on the property's current condition and the required Property Improvement Plan (PIP).

New hotel franchise concepts worth considering include extended-stay brands, particularly those targeting secondary markets. For example, MyPlace Hotels has a 2025 estimated new-build cost of $6.5 to $8.5 million for a 64-unit hotel. With a competitive royalty fee of 5% of gross room revenue, it presents an attractive option for those exploring hotel franchises other than Best Western.


Tips for Evaluating Hotel Franchise Investments

  • Analyze the total cost: Look beyond the initial franchise fee to include construction, PIP, marketing, and ongoing royalty fees.
  • Understand the fee structure: Compare how different brands calculate their fees (e.g., percentage of revenue vs. flat fees).
  • Consider brand performance: Research average unit volumes and RevPAR (Revenue Per Available Room) for the specific brand and location you're targeting.
  • Evaluate support systems: Assess the franchisor's training, marketing support, and operational assistance.
  • Review the Franchise Agreement: Pay close attention to term length, renewal options, and termination clauses.

Understanding the financial commitment is key to selecting the right hotel franchise. While a brand like Best Western offers a established presence, exploring alternative hotel brands for franchising can reveal opportunities that better suit your investment capacity and market strategy. For more insights into potential earnings, you can learn How Much Does a Best Western Franchise Owner Make?



How To Choose A Hotel Franchise?

When exploring hotel franchise opportunities, understanding the nuances between different hotel brands franchise options is crucial for aspiring entrepreneurs. Each brand offers a unique value proposition, impacting everything from initial investment to ongoing profitability.

What are the pros and cons of Best Western franchise vs others?

The non-profit, membership-based model of a Best Western Franchise Unit is a significant differentiator. This structure often translates to lower fees, with 2025 projections indicating franchisees could retain an average of 2-3% more of their gross room revenue compared to those in for-profit systems like IHG or Hilton. However, a potential con is that brand standards can be perceived as less consistent across its diverse portfolio of properties.

Brand contribution is another key factor when comparing hotel group franchise options. Major competitors, such as Marriott and Hilton, typically see a higher percentage of bookings driven by their loyalty programs. In 2024, these programs contributed over 60% of system-wide occupancy, whereas Best Western Rewards contributed approximately 45%. This difference can significantly impact a hotel's occupancy rates and revenue streams.

Flexibility in property design and operations is a major consideration. Best Western generally offers more latitude in these areas. In contrast, brands like Holiday Inn Express often have more rigid, defined prototypes and operating standards. While this can lead to higher initial costs, it also ensures a more uniform guest experience and potentially a higher Average Daily Rate (ADR). A projected 2025 ADR premium for these stricter brands is estimated at 5-8% over comparable Best Western properties.

For those looking at alternative hotel franchising options, understanding these trade-offs is key. Exploring hotel franchises similar to Best Western involves weighing the benefits of lower fees against the potential for higher brand-driven bookings from competitors.

What factors are key for new entrepreneurs?

For new entrepreneurs entering the hospitality franchise sector, robust support systems are paramount. Franchises that offer comprehensive training, marketing assistance, and operational guidance can significantly ease the transition into ownership. For instance, Hilton's focused-service brands, such as Hampton Inn, were recognized as leaders in the 2024 JD Power North America Hotel Guest Satisfaction Index, highlighting their effective operational models that greatly benefit new owners.

When considering hotel franchise opportunities, the initial investment and access to financing are critical. A thorough hotel franchise cost comparison is essential. As of June 2025, the Small Business Administration (SBA) reports an approximate 85% loan approval rate for established brands like Holiday Inn Express and Hampton Inn, which can be a decisive factor for new franchisees seeking capital.

The power and fee structure of a brand's reservation system are also vital metrics. In 2025, it's projected that a central reservation system (CRS) for a brand like Choice Hotels could contribute around 55% of all bookings. However, the associated fees for these bookings can amount to up to 10% of the revenue generated from them. This is a crucial point to evaluate when comparing different hotel group franchise options and understanding the true cost of doing business.


Tips for New Hotel Franchise Entrepreneurs

  • Prioritize Support: Look for franchises with proven training programs and ongoing operational assistance.
  • Financial Due Diligence: Carefully review all fees, including royalty, marketing, and reservation system charges.
  • Market Research: Understand the competitive landscape and how a specific brand fits within its target market.

When evaluating hotel chain alternatives, it's important to look beyond just the upfront costs. Consider the long-term revenue potential, the strength of the brand's reservation system, and the support provided by the franchisor. Understanding how Does the Best Western Franchise Work? can provide a valuable benchmark for comparison.



Alternative Franchise Chain: Wyndham Hotels & Resorts

Why consider Wyndham as a hospitality franchise?

When exploring hotel franchise opportunities beyond established brands, Wyndham Hotels & Resorts presents a compelling alternative. As the world's largest hotel franchisor, boasting over 9,000 hotels across 24 distinct brands, Wyndham offers significant scale and brand recognition. This diverse portfolio caters to a wide spectrum of the market, from budget-friendly options like Days Inn to more upscale choices such as Wyndham Grand, providing numerous franchise hotel opportunities for aspiring owners.

A key driver for Wyndham's success is its robust loyalty program, Wyndham Rewards, which has amassed over 106 million members as of early 2025. This vast membership base significantly influences booking patterns. In fact, for its midscale brands, including La Quinta and Ramada, direct brand channel contributions, largely driven by loyalty members, accounted for an average of 48% of all occupied room nights in 2024. This demonstrates a built-in customer base that can directly benefit franchisees.

Furthermore, Wyndham is known for offering flexible alternative hotel brands for franchising, with a particular emphasis on conversion opportunities. These conversions often feature streamlined and cost-effective Property Improvement Plans (PIPs). For instance, the estimated average conversion PIP for a Days Inn in 2025 ranges from $150,000 to $400,000, contingent on the hotel's current condition. This can make transitioning to a Wyndham brand more accessible for existing property owners looking to rebrand.

What is the investment for a Wyndham brand?

The total initial investment for a Wyndham brand franchise can vary considerably based on the specific brand and whether it's a new build or a conversion. For a new-build, 90-room La Quinta by Wyndham, projected costs in 2025 fall between $7.5 million and $13.4 million. For an economy brand like a new-build Microtel, the investment is more modest, estimated to be between $6.1 million and $7.8 million.

When evaluating ongoing financial commitments, it's important to consider the fee structure. For a typical midscale Wyndham franchise in 2025, the ongoing fees include a royalty fee ranging from 5.0% to 5.5% of gross room revenue, a marketing fee of 3.0%, and a loyalty fee of 1.5%. Understanding these figures is crucial for a thorough hotel franchise cost comparison. For a point of comparison, the royalty fee for a Best Western franchise is 5.50% of gross room revenue, with a marketing fee of 2.10%.


Key Considerations for Wyndham Franchisees

  • Brand Portfolio Diversity: Evaluate which Wyndham brand best aligns with your target market and investment capacity.
  • Loyalty Program Impact: Understand how the Wyndham Rewards program can drive occupancy and revenue for your specific location.
  • Conversion Opportunities: Investigate if a conversion offers a more cost-effective entry compared to a new build, considering the PIP requirements.

Wyndham Brand Example Estimated New Build Investment (2025) Estimated Conversion PIP (2025)
La Quinta by Wyndham (90 rooms) $7.5M - $13.4M N/A (Typically for conversions)
Microtel $6.1M - $7.8M $150,000 - $400,000 (Days Inn example)

When comparing hotel franchise brands, understanding the nuances of investment, brand strength, and operational support is paramount. Wyndham's extensive network and loyalty program offer significant advantages for those looking for alternative hotel franchising options beyond brands like Best Western. For a deeper dive into specific brand comparisons, you might find it helpful to explore What are the Pros and Cons of Owning a Best Western Franchise? to better understand the competitive landscape.



Alternative Franchise Chain: Choice Hotels International

When exploring hotel franchise opportunities, it's essential to consider strong competitors that offer robust systems and established market presence. Choice Hotels International stands out as a significant alternative to a Best Western franchise, particularly in the midscale and economy segments.

Why is Choice Hotels a top Best Western competitor franchise?

Choice Hotels is a dominant force in the midscale and economy hotel sectors. With a portfolio exceeding 7,500 hotels globally, their brand family, which includes well-recognized names like Comfort, Quality Inn, and Sleep Inn, directly appeals to the same traveler demographic that a Best Western franchise unit typically serves. This overlap makes Choice Hotels a prime competitor and a viable alternative for those seeking hotel chain alternatives.

A key driver for franchisee success within the Choice Hotels system is its loyalty program, Choice Privileges. As of Q1 2025, this program boasts over 65 million members and is responsible for a substantial 52% of the system's total room nights. The company anticipates this contribution to grow by an additional 2-3% by the end of 2025, highlighting a powerful and consistent revenue stream for franchisees.

Choice Hotels also excels in facilitating conversions, offering a leading platform for this type of franchise hotel investment. In 2024, conversions represented over 70% of their new domestic franchise agreements. Notably, these converted hotels typically achieve fair market share within an average of just 18 months, indicating an efficient ramp-up period for new franchisees.

What does a Choice Hotels franchise cost?

For aspiring franchisees considering a Choice Hotels brand, such as Comfort Inn, the initial franchise fee is approximately $60,000 as of June 2025. The total estimated investment for a new-build, 95-room Comfort hotel can range significantly, from $8.9 million to $16.5 million. This investment range is crucial for comparing hotel franchise brands and understanding the capital required for entry.

Ongoing fees for a Comfort Inn franchise in 2025 include a royalty fee of 6% and a system fee of 2.5%, both calculated on gross room revenue. These fees cover marketing and reservation services. Understanding this fee structure is vital when evaluating hotel franchising business models and comparing investment costs against other brands, including the membership model of Best Western.

Choice Hotels Franchise Fee (Approx.) $60,000 (as of June 2025)
Estimated Total Investment (New Build, 95 rooms) $8.9M - $16.5M
Royalty Fee 6% of Gross Room Revenue
System Fee (Marketing & Reservations) 2.5% of Gross Room Revenue

Key Considerations for Hotel Franchise Investment

  • Loyalty Program Impact: A strong loyalty program, like Choice Privileges, can significantly boost occupancy and revenue for franchisees.
  • Conversion Opportunities: Franchisors focusing on conversions can offer faster market entry and potentially quicker returns on investment.
  • Fee Structure Comparison: Always compare royalty and marketing fees across different hotel brands to understand ongoing costs.
  • Brand Segment Alignment: Ensure the brand's target market aligns with your local market demand.

When evaluating franchise hotel opportunities, comparing investment models is critical. While Best Western operates on a membership model, Choice Hotels follows a more traditional franchise fee and royalty structure. For example, the Best Western franchise fee can be around $55,000, with royalty fees at 5.50% and marketing fees at 2.10%, according to the latest available data for that brand. This highlights the importance of a detailed hotel franchise cost comparison.

For those looking for alternative hotel franchising options or investing in hotel franchises other than Best Western, understanding these differences is key to making an informed decision. The pros and cons of the Best Western franchise versus other brands often come down to these operational and financial distinctions.



Alternative Franchise Chain: Marriott International (Select-Service)

When exploring hotel franchise opportunities beyond established brands, Marriott International's select-service portfolio presents a compelling alternative for those seeking strong market presence and guest loyalty. These brands are often considered superior hotel chain alternatives, particularly when compared to upper-tier offerings of other hotel groups. For instance, brands like Fairfield by Marriott, Courtyard by Marriott, and SpringHill Suites are recognized for their consistent performance and broad appeal.

Why look at Marriott's select-service brands?

Marriott commands a significant advantage through its Marriott Bonvoy loyalty program. As of 2025, with over 200 million members, this program is a powerful driver of business, contributing to over 60% of system-wide occupancy. This robust loyalty base translates directly into a competitive edge for franchisees. Furthermore, Marriott's select-service brands consistently demonstrate strong revenue per available room (RevPAR). By the end of 2024, Marriott's select-service portfolio in North America achieved a RevPAR index of 118, indicating performance 18% higher than their direct competitors on average. This financial outperformance is a key factor for investors evaluating alternative hotel franchising options. The development support and operational excellence provided by Marriott are also industry benchmarks, fostering high guest satisfaction and enabling premium pricing. For example, the average daily rate (ADR) for a Courtyard in 2025 is projected to be 15-20% higher than a comparable Best Western Plus property.

What is the investment for a Marriott select-service franchise?

Investing in a Marriott select-service hotel franchise is a substantial undertaking. For a new-build, 110-room Fairfield by Marriott in 2025, the estimated total investment ranges from $12.5 million to $18.2 million. The initial franchise fee for these brands is typically around $60,000. Ongoing fees are also reflective of the brand's strength and market position. For 2025, franchisees should anticipate a royalty fee of 6%, a marketing fund contribution of 2-3%, and additional loyalty and reservation fees that can collectively bring the total off-the-top costs to between 11% and 14% of gross room revenue.

Brand Example Estimated Total Investment (2025) Initial Franchise Fee Ongoing Fees (Royalty + Marketing)
Fairfield by Marriott (110 rooms) $12.5M - $18.2M $60,000 ~8-9%
Courtyard by Marriott Varies by market and size Typically $60,000 ~8-9%

Key Considerations for Marriott Select-Service Franchising

  • Loyalty Program Impact: Leverage the immense reach of Marriott Bonvoy for consistent occupancy.
  • RevPAR Performance: Understand the historical RevPAR index to project revenue potential.
  • Brand Standards: Adherence to stringent brand standards is crucial for guest satisfaction and premium ADR.
  • Capital Investment: Be prepared for a significant upfront investment comparable to other major hotel brands.
  • Fee Structure: Factor in royalty, marketing, and loyalty program fees when analyzing profitability.

When comparing hotel franchise costs, understanding these investment levels is critical. While the initial capital outlay for a Marriott select-service brand is higher than some independent or lower-tier franchises, the potential for higher RevPAR and the strong loyalty program can offer a compelling return on investment. For those looking at franchise hotel opportunities beyond Best Western, Marriott's select-service brands provide a robust alternative with proven market success.



Alternative Franchise Chain: Hilton (Focused-Service)

What makes Hilton's focused-service brands attractive?

When exploring hotel franchise opportunities beyond familiar names, Hilton's focused-service brands present a compelling alternative for those seeking robust, well-established hospitality franchise models. Brands like Hampton by Hilton, Hilton Garden Inn, and Tru by Hilton are often cited as excellent choices for new entrepreneurs due to their consistently strong performance and proven operational frameworks. In fact, Hampton by Hilton has held the #1 ranking in its segment in Entrepreneur Magazine's Franchise 500 for over 15 consecutive years as of 2025, a testament to its enduring appeal and success.

A significant draw for these Hilton brands is the power of the Hilton Honors loyalty program. With over 180 million members in early 2025, this program is a critical driver of demand, projected to account for 62% of all system room nights in 2025. This high member utilization helps reduce reliance on more expensive third-party booking channels, directly impacting profitability for franchisees.

Furthermore, Hilton has demonstrated a commitment to innovation with efficient prototypes. The Tru by Hilton brand, for instance, was specifically designed to lower construction costs and appeal to a younger demographic. The average build time for a Tru property in 2024 was between 14-16 months, which is approximately 10% faster than the industry average for similar midscale hotel constructions.

How do Hilton's investment costs compare?

Investing in a Hilton focused-service brand requires a substantial financial commitment. For a new-build, 100-room Hampton by Hilton in 2025, the total estimated investment typically ranges from $13.1 million to $20.6 million. The initial franchise fee for such an investment is $75,000.

Ongoing financial obligations, as of June 2025, include a royalty fee of 6% and a marketing/advertising fee of 4%, both calculated on gross room revenue. Understanding these figures is crucial when you compare hotel franchise brands and analyze the overall franchise hotel investment.


Tips for Evaluating Hilton's Focused-Service Brands

  • Analyze Market Demand: Research the specific market for the chosen Hilton brand to understand local occupancy rates and average daily rates (ADR).
  • Review Brand Standards: Familiarize yourself with Hilton's operational standards and brand requirements to ensure alignment with your management capabilities.
  • Understand the Support System: Evaluate the training, marketing, and operational support provided by Hilton to new franchisees.

Investment Component Estimated Range (USD)
Initial Franchise Fee $75,000
Total Estimated Investment (100-room Hampton by Hilton, 2025) $13,100,000 - $20,600,000
Ongoing Royalty Fee 6% of Gross Room Revenue
Ongoing Marketing Fee 4% of Gross Room Revenue

For those looking at alternative hotel franchising options, these Hilton brands offer a different scale of investment compared to some other hotel franchises. For instance, the initial investment range for a Best Western franchise can be from $1,606,365 to $30,842,295, with an initial franchise fee of $55,000. The royalty fee for a new Best Western unit is 5.50%, and the marketing fee is 2.10%. This highlights the need for a thorough hotel franchise cost comparison when considering different hotel chain alternatives.

When evaluating franchise hotel opportunities, it's important to look at the full spectrum of costs and potential returns. While the initial outlay for a Hilton focused-service brand can be higher, the strength of its brand recognition and loyalty program can offer a strong foundation for profitability. Exploring these hotel brands franchise options provides a clear understanding of the diverse landscape available to entrepreneurs in the hospitality sector. For a deeper dive into the specifics of another major player, consider What are the Pros and Cons of Owning a Best Western Franchise?



Alternative Franchise Chain: IHG (InterContinental Hotels Group)

When exploring hotel franchise opportunities beyond familiar names, IHG (InterContinental Hotels Group) presents a compelling case for consideration. As a global hospitality leader, IHG offers a diverse portfolio of hotel brands, particularly strong in the midscale and upper-midscale segments, making them a significant player in the hotel group franchise landscape.

Why is IHG a strong alternative hospitality franchise?

IHG's established global presence and its iconic brands, such as Holiday Inn and Holiday Inn Express, provide direct franchise hotel opportunities that serve as excellent alternatives to Best Western. These brands are recognized worldwide, attracting a broad customer base. For entrepreneurs looking for robust franchise hotel investment options, IHG's established market position is a significant draw.

The IHG One Rewards program is another key differentiator. With over 130 million members as of Q1 2025, this loyalty program ensures a consistent reservation pipeline. For Holiday Inn Express, which is IHG's largest brand, member contributions to revenue were substantial in 2024, reaching 54%, with a forward-looking target of 56% for 2025. This demonstrates the brand's reliance on and success with loyal customers.

Furthermore, IHG has been proactive in brand modernization. The 'Formula Blue' design for Holiday Inn Express, for instance, has yielded positive results. Company data from 2024 indicates that renovated properties have seen an average increase in guest satisfaction scores of 5% and a RevPAR (Revenue Per Available Room) boost of 3-4%. This commitment to updating and enhancing brand appeal is crucial for long-term success in the competitive hospitality franchise market.

What is the investment for an IHG midscale franchise?

Understanding the investment required is vital for any franchise hotel investment. For a new-build, 100-room Holiday Inn Express in 2025, the estimated total investment typically falls between $11.8 million and $16.3 million. The initial franchise fee is structured at $500 per room, with a minimum commitment of $50,000.

Ongoing financial commitments for a Holiday Inn Express franchise in 2025 include a royalty fee of 6% and a marketing contribution of 3%. An additional reservation fee of 2.75% is also applied. This fee structure is a critical component when comparing hotel franchise brands' investment requirements and analyzing potential long-term profitability, especially when looking at hotel franchises similar to Best Western.

Investment Component Estimated Range (for 100-room Holiday Inn Express)
Total Estimated Investment $11.8 million - $16.3 million
Initial Franchise Fee $500 per room (minimum $50,000)
Ongoing Royalty Fee 6% of gross room revenue
Ongoing Marketing Fee 3% of gross room revenue
Reservation Fee 2.75% of gross room revenue

Tips for Evaluating IHG Franchises

  • Analyze Brand Performance: Beyond the overall IHG brand strength, delve into the specific performance data for the brand you are considering, like Holiday Inn Express. Look at RevPAR growth, occupancy rates, and guest satisfaction scores in comparable markets.
  • Understand Loyalty Program Impact: Quantify how the IHG One Rewards program can directly benefit your franchise unit by driving repeat business and reducing reliance on third-party booking channels.
  • Factor in Modernization Costs: If considering a brand like Holiday Inn Express, budget for potential renovations to meet updated design standards like 'Formula Blue' to maximize guest appeal and revenue potential.

When comparing hotel franchise brands and exploring alternative hotel franchising options, IHG offers a robust business model with strong brand recognition and a loyal customer base. Understanding the investment details and ongoing fees is crucial for making an informed decision in your hotel franchise journey.