What Are Alternative Franchise Chains to Econo Lodge Franchise
Are you exploring alternatives to the Econo Lodge franchise for your hospitality venture? Discovering other budget-friendly hotel brands can unlock new opportunities and potentially better returns. Our expertly crafted Econo Lodge Franchise Business Plan Template can help you analyze these options and build a solid foundation for success.
| # | Alternative Franchise Chain Name | Description |
|---|---|---|
| 1 | Americas Best Value Inn Franchise | This economy hotel franchise offers significant owner autonomy through its 'Freestyle' model with short-term contracts and no long-term liquidated damages for exiting. It's a top low-cost alternative with annual per-room fees, making it attractive for maximizing net operating income. |
| 2 | Red Roof Inn Franchise | Boasting a strong direct-to-consumer booking engine and the high-performing RediRewards loyalty program, Red Roof leads the upper-economy segment with a higher Average Daily Rate. While requiring a significant property improvement plan for its 'NextGen' design, its royalty and marketing fees are competitively lower. |
| 3 | Days Inn by Wyndham Franchise | A globally recognized economy lodging brand with over 1,500 US properties, Days Inn benefits from Wyndham's powerful reservation system and loyalty program. Its 'Dawn' renovation program has boosted guest satisfaction, offering strong brand equity for investors. |
Key Takeaways
- Several established hotel brands like Motel 6, Super 8, Americas Best Value Inn, Red Roof Inn, and Days Inn are primary alternatives to Econo Lodge in the economy segment, attracting similar demographics and investment levels.
- Franchisees may seek alternatives to Econo Lodge due to potentially more favorable fee structures, greater flexibility in brand standards, or opportunities in less saturated markets, as Econo Lodge has over 800 locations in the US.
- Initial investment for an Econo Lodge franchise conversion ranges from $225,000 to $750,000, while competitors like Americas Best Value Inn and Motel 6 can offer lower initial investment ranges.
- Econo Lodge has ongoing fees totaling 7.75% (5% royalty + 2.75% system fee), whereas some alternatives like Americas Best Value Inn have performance-based fees starting as low as $175 per room annually, and Red Roof Inn charges a combined 6.5%.
- Brands like Motel 6 and Super 8 by Wyndham offer strong brand recognition and extensive market presence, with Super 8 benefiting from Wyndham's global distribution and loyalty program, though their fee structures might be higher than some other alternatives.
What Alternative Econo Lodge Franchise Unit Options Exist?
When exploring franchise opportunities in the economy lodging sector, it's wise to look beyond a single brand. Several established hotel franchise alternatives offer compelling value propositions for franchisees. These include brands like Motel 6, Super 8 by Wyndham, Americas Best Value Inn, Red Roof Inn, and Days Inn by Wyndham. These are frequently considered when prospective franchisees compare hotel franchise brands to Econo Lodge, as they often cater to similar target demographics and present comparable investment profiles.
The US economy lodging segment is a significant market, valued at approximately $45 billion as of early 2025. Collectively, these main competitors hold over 40% of this market share, demonstrating their established presence and appeal to a broad range of travelers. For those looking for hotel franchise alternatives, these brands provide robust support systems. For instance, Wyndham, the parent company of Super 8 and Days Inn, reported a healthy 3% net room growth across its portfolio in 2024, signaling strong franchisee interest and system health.
Why Seek Alternatives to Econo Lodge?
There are several compelling reasons why franchisees might seek alternatives to Econo Lodge. These often revolve around finding more favorable fee structures, more flexible brand standards, or opportunities in territories with greater growth potential. An analysis of franchise opportunities conducted in late 2024 highlights this. While the Econo Lodge franchise unit benefits from strong brand recognition, its royalty fees, typically around 5% of gross room revenue, are a significant factor. Some competitors offer more attractive tiered or lower fee structures, which can impact overall profitability.
Market saturation is another key driver for seeking alternatives. With over 800 Econo Lodge locations across the US as of 2025, identifying a prime territory that isn't already densely populated with the same brand can be challenging. This often prompts a search for new hotel franchise opportunities besides Econo Lodge to secure a competitive advantage.
Tips for Comparing Hotel Franchise Alternatives
- Analyze Fee Structures: Carefully compare royalty fees, marketing fees, and any other mandatory charges across different brands. A difference of even 1-2% in royalties can amount to tens of thousands of dollars annually.
- Evaluate Brand Standards: Understand the renovation requirements, operational mandates, and guest experience expectations for each brand. More flexibility might be preferable for some franchisees.
- Research Territory Availability: Investigate the density of existing locations for each brand you consider. Finding a less saturated market can be crucial for initial success.
- Assess Support Systems: Look into the training, marketing, and operational support provided by the franchisor. Strong support can be invaluable, especially for first-time hotel franchisees.
- Review Financial Performance: Examine the average unit volumes and profitability metrics for existing franchisees, while also considering how much does an Econo Lodge franchise owner make in comparison to other brands.
When you are looking for lodging franchise options, it's essential to conduct thorough due diligence. Understanding the nuances of each brand will help you make an informed decision about your hospitality franchise investment. Exploring these franchise opportunities compared can lead to a more successful and profitable venture.
What Are The Investment Level Alternatives?
How much does an Econo Lodge Franchise Unit cost?
When considering hotel franchise alternatives, understanding the initial investment is paramount. For a new 60-room Econo Lodge Franchise Unit, the estimated investment, excluding real estate, ranges from $224,975 to $8,449,150 as of early 2025. The initial franchise fee alone is $30,000. This broad range is largely due to the difference between converting an existing hotel versus new construction. Conversion costs, which represent over 90% of new Econo Lodge franchise agreements, typically fall at the lower end, between $225,000 and $750,000. This initial outlay serves as a key benchmark when exploring low cost hotel franchise alternatives, as many competitors offer different models that can significantly impact startup capital requirements.
How do competitor investments compare?
Exploring lodging franchise options reveals varied investment profiles among Econo Lodge competitors. For instance, an Americas Best Value Inn conversion in 2025 presents a lower initial investment, estimated between $85,140 and $818,500. When comparing franchise opportunities compared, a Motel 6 conversion requires an estimated $319,800 to $633,500, placing it in a similar, though more concentrated, investment range than an Econo Lodge Franchise Unit conversion. For those looking into investing in hotel franchises other than Econo Lodge, a Super 8 conversion typically costs between $205,480 and $1,379,320, demonstrating the diverse capital needs across various economy lodging brands. These figures highlight the importance of detailed comparison when seeking other budget hotel franchise opportunities.
Tips for Evaluating Hotel Franchise Investments:
- Analyze Conversion vs. New Build Costs: Understand how the model (conversion or new construction) impacts the overall investment. Conversions are often less capital-intensive.
- Compare Franchise Fees and Royalties: Look beyond the total investment to understand the ongoing costs associated with each brand.
- Research Brand Performance: Investigate average unit volumes and profitability of existing locations for each brand you consider.
- Factor in Local Market Conditions: Real estate costs and market demand will significantly influence your total investment and potential returns.
For a deeper dive into the financial aspects of operating such a business, you can explore How Much Does an Econo Lodge Franchise Owner Make?
How Do Royalty Fees Compare Across Brands?
When evaluating hotel franchise opportunities, understanding the ongoing fee structure is crucial for projecting profitability. For an Econo Lodge Franchise Unit, the royalty fee is set at 5% of gross room revenue. Additionally, there's a system fee of 2.75% for marketing and reservations, bringing the total to 7.75% as of June 2025. This model is quite common within major hotel groups, as these funds are vital for national advertising campaigns and maintaining robust loyalty programs, like the Choice Privileges program which had over 65 million members in early 2025.
What are Econo Lodge's ongoing fees?
The combined royalty and system fees for an Econo Lodge Franchise Unit represent a significant portion of gross room revenue. This 7.75% total is a key figure to consider when conducting an Econo Lodge franchise vs other brands analysis, directly impacting your long-term profitability and cash flow.
Which alternatives offer lower fees?
Exploring other budget hotel franchise opportunities can reveal more competitive fee structures. For instance, Americas Best Value Inn offers a performance-based model with fees starting as low as $175 per room per year as of 2025. This can be a substantial saving compared to a percentage-based royalty system.
Another notable option is Red Roof Inn, which charges a combined royalty and marketing fee of approximately 6.5% of gross room revenue. This represents a potential saving of over 1.25% compared to the Econo Lodge fee structure, making it an attractive alternative for many franchisees. While Motel 6 has a 5% royalty fee and a 4% marketing contribution, totaling 9%, its strong brand recognition in the budget sector can often offset the slightly higher overall cost for investors seeking established economy lodging brands.
Tips for Comparing Franchise Fees
- Always look at the total combined fees, not just the royalty rate.
- Understand what the marketing and system fees cover.
- Consider how fee structures might impact your projected ROI over time.
- Inquire about any potential increases in fees during the franchise term.
When comparing franchise opportunities, it's essential to look beyond just the initial investment. Understanding the ongoing financial commitments is key to selecting the best fit for your investment goals. For those interested in the specifics of starting with a particular brand, you can find detailed guidance on How to Start an Econo Lodge Franchise in 7 Steps: Checklist.
Motel 6 Franchise
What is Motel 6's market position?
When considering hotel franchise alternatives, Motel 6 stands out as a prominent player in the budget lodging sector. With over 1,400 locations across the US, its brand is deeply ingrained in the minds of travelers seeking affordable accommodations. This strong brand recognition is a significant asset for franchisees, as it translates to immediate customer familiarity. By June 2025, the brand aims to have approximately 75% of its properties updated, reflecting a commitment to modernizing the guest experience and appealing to a broader demographic, including younger, tech-savvy travelers. This strategic repositioning is a key factor for those exploring other budget hotel franchise opportunities.
As of 2025, Motel 6 boasts an unaided brand awareness rate exceeding 85% among US travelers. This high level of recognition is a critical advantage, especially when comparing franchise opportunities. For those looking for alternatives to Econo Lodge for franchisees, Motel 6 offers a well-established presence and a clear value proposition.
What are the key franchise terms?
The financial commitment for a Motel 6 franchise includes an initial franchise fee of $30,000. For a conversion project, the total estimated investment can range from $319,800 to $633,500, based on data from late 2024. This makes it a competitive option among economy lodging brands. Franchisees can expect ongoing fees, with a royalty fee set at 5% and a marketing contribution fee of 4%. The standard franchise agreement term is 20 years, offering a solid foundation for long-term hospitality franchise investment.
Motel 6 is known for its streamlined operational model. This simplified approach is particularly beneficial for investors who are new to the hospitality industry, making it an attractive choice for those franchising a hotel other than Econo Lodge who may be seeking operational efficiencies.
Tips for Evaluating Hotel Franchise Alternatives
- Assess Brand Recognition: Look for brands with high unaided awareness, as this directly impacts customer acquisition.
- Review Investment Tiers: Understand the full spectrum of initial and ongoing costs to ensure alignment with your capital.
- Evaluate Modernization Efforts: Franchisors investing in property updates and technology are often better positioned for future growth.
- Consider Operational Simplicity: For new entrants, a streamlined operational model can significantly reduce the learning curve.
When comparing hotel franchise brands to Econo Lodge, it's crucial to examine the investment structure and operational support. The initial investment for Motel 6, with a minimum of $30,000 for cash required and a total estimated investment starting around $319,800, places it within a comparable range for many seeking low cost hotel franchise alternatives.
| Initial Franchise Fee | $30,000 |
| Estimated Total Investment (Conversion) | $319,800 - $633,500 |
| Royalty Fee | 5% |
| Marketing Contribution Fee | 4% |
| Franchise Agreement Term | 20 years |
For those looking to understand how to find hotel franchise alternatives, examining brands like Motel 6 provides valuable insights into market positioning and franchisee support. The brand's focus on affordability and its iconic status make it a compelling option for investors looking for new hotel franchise opportunities besides Econo Lodge.
When exploring best economy hotel franchise to buy, consider the data. The average annual revenue per unit can be a significant indicator, though specific unit performance varies. For instance, while the median annual revenue per unit was reported at $34,800, the highest recorded was $144,930, highlighting the potential for strong performance under effective management. This is a critical point when you are trying to compare hotel franchise brands to Econo Lodge.
For aspiring franchisees, understanding the full financial picture is paramount. The breakeven time for a franchise is often cited around 24 months, with investment payback typically occurring within 28 months. These figures are essential for anyone considering investing in hotel franchises other than Econo Lodge and seeking a comprehensive franchise investment guide hotel alternatives.
The number of franchised units provides another perspective. While the number of franchised units for Motel 6 has seen a slight decrease from 777 in 2020 to 702 in 2022, this reflects industry trends and strategic adjustments rather than a decline in opportunity. This data is important for those looking for finding a hotel franchise that isn't Econo Lodge.
When making your decision, remember to perform thorough due diligence. This includes reviewing the Franchise Disclosure Document (FDD) and potentially speaking with existing franchisees to gain firsthand insights. This process is vital for anyone looking for what are the best hotel franchise options and comparing Econo Lodge competitor franchise opportunities.
Super 8 By Wyndham Franchise
Why choose Super 8 over an Econo Lodge Franchise Unit?
When exploring hotel franchise alternatives, Super 8 by Wyndham stands out as a strong contender, particularly when compared to an Econo Lodge franchise unit. A key differentiator is Super 8's affiliation with Wyndham Hotels & Resorts, the world's largest hotel franchisor. This connection grants franchisees access to a robust global distribution network and the highly popular Wyndham Rewards loyalty program, which can significantly drive bookings and customer retention.
As of 2025, Super 8 boasts an impressive presence with over 1,700 locations across the United States, making it one of the most visible and recognizable lodging franchise options available to travelers. This extensive market penetration can translate into greater brand recognition and a larger potential customer base for franchisees.
Furthermore, Super 8 has actively invested in its brand image and guest experience. The 'Innov8te' design prototype, which by 2025 had been implemented in over 80% of its properties, has demonstrated a tangible impact on financial performance. Data indicates that properties adopting this prototype have seen an average increase in RevPAR (Revenue Per Available Room) of 5-10% following renovations. This focus on modernization can lead to enhanced guest satisfaction and improved revenue streams, offering a compelling reason to compare hotel franchise brands to Econo Lodge.
What is the investment and fee structure?
For those considering how to find hotel franchise alternatives, understanding the investment and fee structure is crucial. As of early 2025, the initial investment for a Super 8 conversion typically ranges from $205,480 to $1,379,320. The franchise fee itself is set at $25,000. This positions Super 8 as a competitive option within the economy lodging brands landscape.
The ongoing financial commitments include a royalty fee of 5.5% of gross room revenue. Additionally, there's a combined marketing and reservation fee of 4.5%, bringing the total ongoing fee to 10%. While this percentage might appear higher than some competitors, it's important to consider the value delivered. Wyndham's systems are estimated to contribute between 45-50% of all bookings, a substantial benefit that underscores the value proposition when you compare hotel franchise brands to Econo Lodge.
Key Considerations for Franchisees
- Brand Strength: Leverage Wyndham's extensive network and loyalty program for increased bookings.
- System Support: Benefit from Wyndham's significant contribution to overall reservations.
- Modernization: Invest in the 'Innov8te' design to potentially boost RevPAR.
When evaluating franchise opportunities compared, Super 8 offers a blend of established brand recognition, a vast operational footprint, and a strategic investment in property modernization. These factors can be instrumental for franchisees looking for a reliable budget hotel franchise.
| Initial Investment Range | Franchise Fee | Royalty Fee | Marketing & Reservation Fee |
| $205,480 - $1,379,320 | $25,000 | 5.5% | 4.5% |
For those interested in the specifics of establishing a presence with a competitor brand, understanding the process for other brands is key, much like learning about How to Start an Econo Lodge Franchise in 7 Steps: Checklist can provide context for alternative choices.
Americas Best Value Inn Franchise
When exploring hotel franchise alternatives, particularly if you're looking for options beyond Econo Lodge, Americas Best Value Inn presents a compelling case. This brand, now part of the Sonesta International Hotels Corporation portfolio, is recognized for its unique 'Freestyle' operating model.
What makes Americas Best Value Inn unique?
What sets Americas Best Value Inn apart as one of the best economy hotel franchise to buy is its emphasis on owner autonomy. The 'Freestyle' model offers franchisees more direct control over their operations compared to more traditional, rigid franchise systems. This includes shorter contract terms and a structure where owners have a voice and a vote in brand-related decisions. A significant differentiator is the absence of long-term contracts with steep liquidated damages for early termination, providing an escape clause that many franchisees value. This approach directly addresses the need for hotel franchise opportunities that prioritize owner flexibility and input, making it a standout among lodging franchise options for those who desire less corporate oversight.
How do its fees and investment differ?
For franchisees seeking low cost hotel franchise alternatives, Americas Best Value Inn stands out. As of 2025, the initial conversion investment can range from approximately $85,140 to $818,500, with a franchise fee typically falling between $15,000 and $20,000. This fee structure is notably different from many other brands, as it's not a percentage of revenue. Instead, it's an annual per-room fee, starting around $175 per room annually, plus marketing and reservation fees. For a well-performing property, this can translate to total fees being less than 3% of revenue. This financial structure offers a significant advantage for franchisees aiming to maximize their net operating income, positioning it as a leading choice for alternatives to Econo Lodge.
Tips for Evaluating Hotel Franchise Alternatives:
- Understand the Fee Structure: Compare the total fee percentage (royalty, marketing, technology, etc.) relative to revenue. A lower percentage can significantly impact profitability.
- Review Contract Terms: Look for flexibility in contract length and exit clauses. Avoid long-term commitments with punitive termination penalties.
- Assess Owner Involvement: Consider brands that offer owners a voice in brand decisions, as this can lead to a more responsive and supportive system.
- Analyze Support Services: Evaluate the franchisor's support in areas like marketing, operations, and training. Strong support is crucial for success, especially for new franchisees.
| Key Investment Metrics | Americas Best Value Inn (2025 Estimate) | Econo Lodge (FDD Data) |
| Initial Franchise Fee | $15,000 - $20,000 | $30,000 |
| Total Initial Investment Range | $85,140 - $818,500 | $161,450 - $901,895 |
| Royalty Fee Structure | Annual per-room fee (starting ~$175/room/year) + marketing/reservation fees | 5.00% of Gross Revenue |
| Total Fees (as % of Revenue, typical) | Less than 3% | 8.50% (5% Royalty + 3.5% Marketing) |
When comparing franchise opportunities compared, the fee structure alone can represent a substantial difference. For instance, a 5% royalty fee on a property generating $500,000 in annual revenue would be $25,000. With Americas Best Value Inn's per-room fee model, the cost could be considerably lower, enhancing the overall financial appeal as one of the best economy hotel franchise to buy. This makes it an attractive option for those looking for alternatives to Econo Lodge for franchisees seeking to preserve more of their revenue.
For those interested in understanding the financial commitment for the Econo Lodge brand, you can find detailed information on How Much Does an Econo Lodge Franchise Cost?. This comparison highlights how different franchise models approach investment and ongoing fees, crucial data points when evaluating hotel franchise alternatives and other budget hotel franchise opportunities.
Red Roof Inn Franchise
When exploring hotel franchise alternatives to Econo Lodge, Red Roof Inn stands out as a compelling option in the upper-economy segment. This brand offers a distinct value proposition for franchisees looking to capture a slightly more premium budget-conscious traveler.
What is Red Roof's competitive advantage?
Red Roof's competitive edge is built on a solid foundation of customer loyalty and direct booking capabilities. Its RediRewards program is a significant draw, and the brand's direct-to-consumer booking engine was responsible for generating over 65% of all system-wide revenue in 2024. This strong direct booking strategy minimizes reliance on third-party booking sites, often leading to better profit margins for franchisees.
Furthermore, Red Roof is recognized as a leader in the upper-economy lodging segment. In 2024-2025, its Average Daily Rate (ADR) averaged approximately 15% higher than the general economy segment average. This performance indicates a brand that can command a premium within its category, making it an attractive choice for investors seeking robust revenue potential among hotel franchise alternatives.
What are the franchise costs and requirements?
For those considering Red Roof Inn as one of their hotel franchise alternatives, understanding the investment is crucial. The initial franchise fee is $30,000. As of early 2025, the estimated total investment for a 75-room conversion falls within the range of $350,000 to $750,000. This figure encompasses various startup costs and potential property improvements.
The brand's fee structure includes a 5% royalty fee and a 15% marketing fee, totaling 20% of gross room revenue. While this might seem higher at first glance compared to some other lodging franchise options, it's important to consider the potential for higher ADR and direct booking revenue which can offset these fees. Red Roof also emphasizes stringent quality standards, often requiring a significant Property Improvement Plan (PIP) for conversions, particularly to align with its 'NextGen' property design. This commitment to brand standards is a key factor in evaluating any hospitality franchise investment.
| Initial Franchise Fee | $30,000 |
| Estimated Total Investment (75-room conversion) | $350,000 - $750,000 (early 2025) |
| Royalty Fee | 5% |
| Marketing Fee | 15% |
| Average Daily Rate (ADR) Premium vs. Economy Segment | ~15% higher (2024-2025) |
Tips for Evaluating Red Roof Inn as a Franchise Alternative
- Analyze the Property Improvement Plan (PIP): Understand the scope and cost of the required 'NextGen' upgrades to ensure it aligns with your budget and timeline.
- Review Direct Booking Performance: Inquire about the brand's ongoing strategies to maintain and grow its direct booking engine, as this significantly impacts revenue.
- Compare ADRs: Research the actual ADRs achieved by existing Red Roof Inn franchisees in your target market to validate the brand's premium positioning.
For franchisees seeking alternatives to Econo Lodge, Red Roof Inn presents a strong case, particularly for those aiming to serve the budget-conscious traveler while potentially commanding a higher average daily rate. The brand's focus on loyalty and direct bookings offers a clear advantage in the competitive lodging landscape. If you're exploring other budget hotel franchise opportunities, understanding these differences is key. To get a clearer picture of the financial aspects of a similar franchise, you might want to look into How Much Does an Econo Lodge Franchise Owner Make?
Days Inn By Wyndham Franchise
When exploring hotel franchise alternatives to Econo Lodge, Days Inn by Wyndham presents a compelling option within the economy lodging sector. It stands out as one of the most recognized names globally, boasting over 1,500 properties across the United States and a rich history spanning more than 50 years.
Why consider a Days Inn franchise?
Days Inn's established brand recognition, particularly among families and seniors, makes it a solid choice for franchisees seeking a familiar and trusted name. As a part of the expansive Wyndham Hotels & Resorts portfolio, Days Inn franchisees benefit immensely from the same robust reservation system and the highly popular Wyndham Rewards loyalty program that powers other Wyndham brands. This integration provides a significant advantage, especially when comparing franchise opportunities.
Furthermore, the brand's commitment to modernization is evident through its 'Dawn' renovation program. As of June 2025, nearly 90% of its U.S. properties have completed this upgrade, a significant investment that has been linked to a 4% year-over-year increase in guest satisfaction scores. This focus on enhancing the guest experience can translate into stronger operational performance for franchisees.
What are the investment details?
The initial investment for a Days Inn franchise conversion typically falls between $220,799 and $2,185,262. The initial franchise fee is $35,000, which is slightly higher than that of an Econo Lodge Franchise Unit. Ongoing financial commitments include a royalty fee of 55% and a combined 5% contribution towards marketing, reservation, and loyalty programs, totaling 105% of gross room revenue. This investment is directed towards a brand that consistently ranks high in traveler awareness, offering a strong foundation for those looking to invest in hotel franchises beyond Econo Lodge who prioritize brand equity and system contributions.
| Initial Investment Range | $220,799 - $2,185,262 |
| Franchise Fee | $35,000 |
| Royalty Fee | 55% |
| Marketing/Reservation/Loyalty Fee | 5% |
Franchise Investment Tips for Days Inn
- Analyze Market Demand: Before investing, thoroughly research the local market to understand the demand for economy lodging and the competitive landscape.
- Review the Franchise Disclosure Document (FDD): Pay close attention to the financial performance representations and understand all fees associated with operating a Days Inn franchise.
- Leverage Wyndham's Resources: Utilize the franchisor's support systems, including training, marketing, and operational guidance, to maximize your chances of success.
When considering hotel franchise alternatives, Days Inn by Wyndham offers a well-established brand with significant system-wide benefits. For franchisees looking for other budget hotel franchise opportunities, Days Inn represents a strong competitor in the economy lodging brands landscape. This is a notable option among the various lodging franchise options available to entrepreneurs.