What Are Alternative Franchise Chains to SureStay Hotel Franchise
Exploring alternatives to the SureStay Hotel franchise? Discover a range of hotel franchising opportunities that align with your investment goals and operational preferences. If you're considering a venture in the hospitality sector, understanding the landscape beyond a single brand is crucial for success. Dive into this guide to find the best fit for your entrepreneurial journey, and consider leveraging our SureStay Hotel Franchise Business Plan Template to structure your strategic approach.
| # | Alternative Franchise Chain Name | Description |
|---|---|---|
| 1 | IHG (Holiday Inn Express) | IHG offers a strong global presence and a powerful loyalty program driving direct bookings, with Holiday Inn Express commanding a RevPAR premium in the upper-midscale segment. Its robust support systems contribute to franchisee efficiency and profitability, though investment costs are substantial. |
| 2 | Hilton (Tru by Hilton) | Hilton's Hilton Honors loyalty program attracts high-value guests, and the Tru by Hilton brand is a fast-growing disruptor in the mid-scale market, offering modern design and commanding an ADR premium. Advanced technology enhances guest experience and operations, making it a premium investment choice. |
| 3 | G6 Hospitality (Motel 6) | Motel 6, a recognized low-cost option, is highly accessible through conversions with significantly lower initial investment compared to other brands. Its straightforward model and brand recognition appeal to budget-conscious travelers, though it operates in a segment with lower ADR and RevPAR. |
Key Takeaways
- SureStay Hotel offers competitive franchise fees, with royalty and marketing fees around 7.5% of gross room revenue, lower than many mid-scale competitors like Holiday Inn Express (11%) or La Quinta (12.5%).
- While SureStay's initial investment can be low, particularly for conversions (under $300,000), other brands like Quality Inn or La Quinta may require higher upfront capital but potentially offer stronger RevPAR.
- Brands like La Quinta by Wyndham and Tru by Hilton often boast higher brand recognition and occupancy rates than SureStay, with projected ADRs and RevPARs that can be 3-5% and 10-15% higher, respectively.
- SureStay's profitability is boosted by its flexible property improvement plans (PIPs) and the backing of Best Western's loyalty program, allowing for faster ROI compared to new-build franchises.
- Low-cost alternatives like Motel 6 offer significantly lower entry points ($250,000 for conversions) but operate in the economy segment with a projected RevPAR that is substantially lower than SureStay properties.
What Alternative Surestay Hotel Franchise Unit Options Exist?
What are top hotel franchise alternatives?
For investors looking beyond a SureStay Hotel franchise, several compelling alternatives exist in the economy and mid-scale segments as of June 2025. Major hospitality groups like Choice Hotels offer established brands such as Quality Inn and Comfort, while Wyndham Hotels presents options like La Quinta and Days Inn. IHG's avid hotels is another notable entry in the mid-scale market. These brands provide a diverse range of hospitality franchise options for entrepreneurs.
When conducting a SureStay Hotel franchise comparison, it's important to note that while SureStay, a Best Western brand, offers a competitive fee structure, brands like La Quinta by Wyndham often benefit from higher brand recognition. This can translate to a 3-5% higher average occupancy rate in comparable markets in 2025. Investors also find value in newer or more specialized brands, such as Tru by Hilton for the mid-scale segment or G6 Hospitality's Motel 6 for a focused economy approach, each catering to distinct customer demographics.
How do other hotel franchise brands compare?
In a SureStay Hotel franchise vs Wyndham Hotels comparison, Wyndham's extensive portfolio provides a wider array of choices. For instance, La Quinta's projected RevPAR (Revenue Per Available Room) for 2025 is estimated to be between $55-$60, potentially outperforming SureStay Plus's estimated range of $48-$53.
Examining a SureStay Hotel franchise vs Choice Hotels scenario, Choice's Comfort brand typically demands a higher initial investment, with new construction in 2025 averaging around $4.5 million. However, this investment often yields an ADR (Average Daily Rate) that is 10-15% higher than that of a comparable SureStay property.
The SureStay Hotel franchise vs Best Western comparison is unique given SureStay's affiliation. Core Best Western brands, such as Best Western and Best Western Plus, operate on a membership model rather than a traditional franchise. Their annual fees in 2025 are around $60,000 per 100 rooms, which differs from SureStay's royalty-based system. For those seeking to understand the initial steps, learning How to Start a SureStay Hotel Franchise in 7 Steps: Checklist can be beneficial.
Key considerations when evaluating hotel franchise alternatives:
- Brand Strength and Recognition: Look for brands with established market presence and consumer loyalty, which can impact occupancy rates and ADR.
- Fee Structure: Compare royalty fees, marketing fees, and other ongoing costs to ensure they align with your financial projections.
- Target Market Alignment: Ensure the brand's target demographic matches the market potential in your chosen location.
- Investment Requirements: Evaluate the total initial investment, including franchise fees, build-out costs, and working capital, against your available capital.
What Are The Investment Level Alternatives?
When exploring hotel franchise opportunities, understanding the investment spectrum is crucial. For those seeking lower-cost entry points into the hospitality sector, several alternative hotel franchises offer appealing options. As of June 2025, brands like Motel 6, Microtel by Wyndham, and America's Best Value Inn are frequently cited as prominent low-cost hotel franchise options. Their total initial investment ranges can start from under $1 million for conversions, extending up to approximately $4 million for new builds.
In comparison, the SureStay Hotel franchise presents a competitive proposition for conversions, with initial fees often beginning around $25,000 and a total investment that can be less than $300,000. This positions it favorably among lower-cost hotel franchise opportunities. To provide further context, a new build Microtel by Wyndham in 2025 has an estimated total investment ranging from $35 million to $48 million. Meanwhile, a Motel 6 conversion could be secured for as little as $250,000, though this figure is highly dependent on the property's current condition and its location.
What are low cost hotel franchise options?
For entrepreneurs eyeing the lower end of the investment scale, several hotel franchise alternatives stand out. Brands such as Motel 6, Microtel by Wyndham, and America's Best Value Inn are recognized for their accessible entry points, with total initial investments potentially starting below $1 million for conversions and reaching up to $4 million for new construction projects as of June 2025. The SureStay Hotel franchise itself is a strong contender in this segment, offering highly competitive franchise fees for conversions, often starting with an initial fee of approximately $25,000 and a total investment that can fall under $300,000.
By way of comparison, undertaking a new build with Microtel by Wyndham in 2025 carries an estimated total investment of $35 million to $48 million. Conversely, converting an existing property to the Motel 6 brand can be as economical as $250,000, a figure that fluctuates significantly based on the property's condition and geographic placement.
How do mid-scale hotel franchise fees compare?
When examining mid-scale hotel franchise alternatives, fee structures generally increase compared to those found in the budget segment. Brands like Holiday Inn Express (part of IHG) and Quality Inn (under Choice Hotels) typically have higher fee structures. As of 2025, Holiday Inn Express charges a combined royalty and marketing fee of roughly 11% of Gross Room Revenue (GRR). In contrast, SureStay's combined fees are around 7.5%.
For a mid-scale brand like Tru by Hilton, the initial franchise fee in 2025 is approximately $50,000. The total development costs for a new 98-room prototype are estimated to be between $9.5 million and $12.5 million. The SureStay Hotel franchise agreement stipulates a royalty fee of 5% and a marketing/reservation fee of 2.5% of GRR. This combined 7.5% is notably lower than the typical fees exceeding 10% for many mid-scale competitors, which can potentially lead to higher profitability for SureStay Hotel franchise owners on a percentage basis.
Tips for Evaluating Hotel Franchise Investments
- Analyze Total Investment: Beyond the initial franchise fee, meticulously review the total projected investment, which includes construction, renovations, FF&E (Furniture, Fixtures, and Equipment), and working capital. As per the SureStay Hotel Franchise FDD, the total investment ranges from $901,750 to $2,951,015.
- Compare Royalty and Marketing Fees: Understand the ongoing fees. SureStay's combined royalty and marketing fees are 10% (5% royalty + 5% marketing), which is generally lower than many mid-scale competitors.
- Assess Brand Strength and Market Position: Research the brand's reputation, target demographic, and competitive landscape. Consider the pros and cons of each hotel franchise alternative to ensure alignment with your investment goals. For a deeper dive, explore What are the Pros and Cons of Owning a SureStay Hotel Franchise?
- Review Unit Performance Data: Examine the Average Annual Revenue per Unit, which for SureStay is cited at $536,596, and compare it with industry benchmarks and other hotel franchise opportunities.
- Understand Breakeven and Payback Periods: The SureStay Hotel franchise FDD indicates a breakeven time of 12 Months and an investment payback period of 36 Months, which are important metrics for financial planning.
How Profitable Is A Surestay Hotel Franchise Unit?
What drives SureStay Hotel franchise profitability?
SureStay Hotel franchise profitability is significantly influenced by its competitive fee structure and the robust support from Best Western's extensive global distribution and its highly popular loyalty program, Best Western Rewards, which boasts over 50 million members as of early 2025. This affiliation provides a substantial built-in customer base.
A key factor enabling faster returns is the brand's strategic focus on converting existing hotels. This approach substantially reduces the initial investment compared to new builds. For 2025, this means owners can anticipate achieving a positive return on investment approximately 12-18 months sooner than if they were developing a new franchise property from the ground up. Understanding these nuances is crucial when considering SureStay Hotel franchise pros and cons.
Operational flexibility further bolsters profitability. The SureStay Hotel franchise requirements offer more leeway regarding property improvement plans (PIPs) than many competitors. This allows owners greater control over renovation expenditures, which can lead to an improved net operating income by an estimated 3-5% annually.
What are typical SureStay Hotel franchise revenues?
Based on 2024 data and projections for 2025, a typical 60-room SureStay Plus Hotel situated in a secondary or tertiary market can anticipate an average occupancy rate ranging from 62% to 68%. Coupled with an Average Daily Rate (ADR) of $85-$95, this translates to an estimated annual Gross Room Revenue of approximately $1.2 million to $1.5 million.
New owners often cite the brand's rapid ramp-up period in SureStay Hotel franchise reviews. Conversions frequently experience a notable 15-20% increase in RevPAR within the first 18 months after integrating into the Best Western system. This quick revenue uplift is a significant advantage.
When compared to independent hotels, affiliation with SureStay is projected in 2025 to boost a property's revenue by an average of 25%. This increase is directly attributable to the benefits derived from the brand's established reservation system, marketing efforts, and the extensive reach of its loyalty program.
For a comprehensive understanding of the financial commitment, you can explore How Much Does a SureStay Hotel Franchise Cost?
Choice Hotels (Eg, Quality Inn)
How does Choice Hotels compare to SureStay?
When considering hotel franchise alternatives, Choice Hotels, particularly its Quality Inn brand, stands as a significant competitor to the SureStay Hotel franchise. Quality Inn boasts a much larger footprint, with over 1,600 locations in the US as of June 2025, compared to SureStay's approximately 400 properties. This broader brand recognition can translate to greater market penetration and potentially higher occupancy rates for franchisees.
The investment for a Quality Inn conversion in 2025 generally ranges from $275,000 to over $15 million. While this can be a higher initial outlay than a SureStay conversion, largely due to more stringent Property Improvement Plan (PIP) requirements, the return on investment can be more favorable. Projections indicate that Quality Inn properties can achieve 8-12% higher RevPAR in comparable markets. This suggests that the increased upfront investment may be offset by stronger revenue generation.
A key area where these two brands differ significantly for investors is in their fee structures. For Quality Inn, Choice Hotels' combined royalty, marketing, and reservation fees typically amount to approximately 11.5% of Gross Room Revenue (GRR). In contrast, SureStay's fees are around 7.5%. This difference in fees directly impacts the bottom-line profitability for franchisees, making it crucial to analyze the potential revenue uplift versus the increased cost.
What are Choice Hotels' franchise requirements?
Aspiring franchisees looking to join Choice Hotels, such as with the Quality Inn brand, should be prepared for specific financial and operational requirements as of 2025. A common benchmark for many hotel investment franchises, including Choice Hotels, is a minimum liquid capital of $500,000 and a minimum net worth of at least $1 million per hotel. These figures are indicative of the capital needed to secure and operate a hotel under a major brand.
The typical franchise agreement term for a new construction with Choice Hotels is 20 years, though conversions may have shorter terms. The initial franchise fee is calculated based on a per-room basis, typically $500 per room, with a minimum fee of $35,000. This is a notable difference from the SureStay initial fee, which is $29,000, highlighting the varying entry costs between these hotel franchise opportunities.
Participation in Choice Hotels' loyalty program, Choice Privileges, is mandatory. Furthermore, significant property upgrades are usually required to ensure adherence to brand standards. These upgrades, while representing a considerable upfront cost, are designed to maintain brand consistency and enhance guest satisfaction, which can ultimately support higher revenue and stronger brand equity. Understanding these requirements is key when comparing hotel franchise alternatives.
Key Considerations for Choice Hotels Franchisees
- Financial Strength: Ensure you meet the $500,000 liquid capital and $1 million net worth requirements per hotel.
- Brand Standards: Be prepared for significant investment in property upgrades to align with Choice Hotels' brand standards.
- Fee Structure: Analyze the impact of the 11.5% combined fees on your projected profitability compared to other hotel franchise options.
| Brand Recognition | Quality Inn: High (1,600+ US locations) | SureStay: Moderate (~400 properties) |
| Projected RevPAR Uplift | 8-12% higher | N/A |
| Total Investment (Conversion) | $275,000 - $15M+ | N/A (Generally lower than Quality Inn) |
| Combined Fees (Royalty, Marketing, Reservation) | ~11.5% of GRR | ~7.5% of GRR |
| Minimum Liquid Capital (2025) | $500,000 | N/A (Assumed lower based on SureStay FDD data) |
| Minimum Net Worth (2025) | $1,000,000 per hotel | N/A (Assumed lower based on SureStay FDD data) |
| Initial Franchise Fee | $500 per room (min $35,000) | $29,000 |
For a deeper dive into the specifics of the SureStay Hotel franchise, including its pros and cons, you can explore What are the Pros and Cons of Owning a SureStay Hotel Franchise? This comparison is vital for understanding the nuances of each hospitality franchise option.
Wyndham Hotels (eg, La Quinta)
How does Wyndham Hotels compare to SureStay?
When considering hotel franchise alternatives, Wyndham Hotels, particularly its La Quinta brand, presents a compelling option. La Quinta is a well-established player with over 900 properties and a significant advantage through Wyndham Rewards, a loyalty program boasting over 100 million members as of 2025. This extensive reach provides a built-in customer base, a key factor when evaluating hotel investment franchises.
In terms of performance, La Quinta's 2025 projections indicate a system-wide Average Daily Rate (ADR) between $100-$110 and an occupancy rate nearing 65%. These figures generally surpass those of SureStay Plus, reflecting La Quinta's positioning in the upper-midscale segment. For instance, the estimated initial investment for a new-build 100-room La Quinta Del Sol prototype in 2025 ranges from $98 million to $135 million. This is substantially higher than any SureStay property, highlighting the different market segments and capital requirements involved.
What are Wyndham's key franchise terms?
Wyndham's franchise agreements, such as for La Quinta, typically span a 20-year term. The initial franchise fee is $55,000, with an additional $300 per room for any rooms exceeding 75. This fee structure represents a notable investment when exploring hotel franchise opportunities.
Ongoing fees for La Quinta in 2025 are projected to be around 12.5% of gross room revenue. This is composed of a 5.5% royalty fee, a 4.5% marketing and reservation fee, and a 2.5% Wyndham Rewards program fee. These terms are critical for understanding the financial commitment compared to other hotel franchise brands.
Wyndham enforces rigorous brand standards for design, guest services (such as the 'Bright Side Breakfast'), and technology. These requirements ensure a consistent guest experience across all properties, a stark contrast to the more flexible standards sometimes found in SureStay Hotel franchise reviews. For those interested in starting a SureStay Hotel franchise, understanding these differences is crucial.
Key Considerations for Wyndham Franchises
- Brand Recognition: Leverage Wyndham's established brand name and extensive loyalty program.
- Investment Level: Be prepared for a higher initial capital outlay compared to lower-tier brands.
- Operational Standards: Adherence to strict brand standards is mandatory for a consistent guest experience.
| Wyndham (La Quinta) Initial Investment (100 rooms) | $98M - $135M (2025 est.) |
| Wyndham Royalty Fee | 5.5% |
| Wyndham Marketing Fee | 4.5% |
| SureStay Initial Investment (Low) | $901,750 |
| SureStay Royalty Fee | 5% |
| SureStay Marketing Fee | 5% |
IHG (eg, Holiday Inn Express)
What makes IHG a strong hospitality franchise option?
IHG is a dominant player in the hospitality franchise landscape, primarily due to its extensive global reach and the significant strength of its IHG One Rewards loyalty program. This program is a cornerstone of their direct booking strategy, driving over 40% of room nights in 2025. For franchisees, this translates into a more consistent occupancy and revenue stream.
The Holiday Inn Express brand, in particular, stands out as a formidable competitor for those considering upper-tier SureStay Collection properties. It boasts exceptional brand equity and consistently achieves a Revenue Per Available Room (RevPAR) premium of 15-20% above the mid-scale segment average. This performance solidifies its position as one of the best hotel franchise to invest in, provided you have the necessary capital.
Beyond brand recognition, IHG provides franchisees with comprehensive support systems. These include cutting-edge revenue management tools and thorough training programs designed to enhance operational efficiency and boost profitability, often surpassing what smaller, less established brands can offer.
What is the investment for an IHG franchise?
Investing in a new-build, 100-room Holiday Inn Express, specifically adhering to the Formula Blue design, is a significant undertaking. As of June 2025, the estimated initial investment ranges from $115 million to $152 million, positioning it firmly in the upper-midscale investment tier. This figure reflects the brand's commitment to quality and guest experience.
The initial franchise fee is typically $50,000, or calculated at $500 per room, whichever amount is greater. Ongoing financial commitments include a 6% royalty fee and a 5% contribution to marketing and reservations, totaling 11% of gross room revenue. These fees are standard for a brand of IHG's caliber.
Even for existing hotels looking to convert to a Holiday Inn Express, the investment remains substantial. Conversion costs can frequently exceed $2 million. This is largely due to IHG's stringent adherence to brand standards and the mandatory Property Improvement Plans (PIPs) that ensure brand consistency and guest satisfaction across all locations.
Key Considerations for IHG Franchisees
- Brand Strength: IHG's portfolio, particularly Holiday Inn Express, offers strong brand recognition and a loyal customer base, which can significantly reduce marketing costs and drive direct bookings.
- Loyalty Program Impact: The IHG One Rewards program is a critical asset, contributing over 40% of room nights in 2025. This provides a consistent flow of guests directly through IHG's channels.
- Revenue Performance: Holiday Inn Express properties typically command a RevPAR premium of 15-20% over the mid-scale average, indicating strong revenue-generating potential for well-managed locations.
- Investment Scale: Be prepared for a substantial initial investment, with new builds for Holiday Inn Express costing between $115 million and $152 million for a 100-room property.
- Ongoing Fees: Factor in ongoing royalty and marketing fees, which total 11% of gross room revenue, in addition to other operational costs.
| Investment Component | Estimated Cost Range |
|---|---|
| Initial Investment (New Build) | $115 million - $152 million |
| Initial Franchise Fee | $50,000 or $500 per room |
| Ongoing Royalty Fee | 6% of Gross Room Revenue |
| Marketing & Reservation Fee | 5% of Gross Room Revenue |
| Conversion Costs (Existing Hotel) | Often exceeds $2 million |
When comparing hotel franchise alternatives, IHG's Holiday Inn Express presents a compelling option for investors with significant capital who prioritize brand strength and proven revenue performance. While the initial investment is high, the robust support systems and the power of the IHG One Rewards program can lead to strong returns. For those looking at this tier, understanding the investment details and ongoing fees is crucial for a successful hotel investment franchise.
Hilton (Eg, Tru By Hilton)
When exploring hotel franchise alternatives, Hilton stands out as a significant player, particularly with brands like Tru by Hilton. This brand has rapidly carved out a niche in the mid-scale hotel segment, attracting a modern traveler with its fresh, efficient, and tech-forward design.
Why consider Hilton for a hotel investment franchise?
Hilton's appeal as a premier hotel investment franchise is largely driven by the immense power of its Hilton Honors loyalty program. By 2025, this program boasts over 180 million members, a substantial base that consistently directs high-value, direct business to its affiliated properties. This built-in customer base offers a significant advantage over many other hotel franchise brands.
The Tru by Hilton brand, in particular, is a testament to Hilton's innovative approach. It's recognized as one of the fastest-growing brands in hospitality history, having successfully redefined the mid-scale segment. Its modern, efficient design not only appeals to a younger demographic but also commands an Average Daily Rate (ADR) premium of 5-10% over older mid-scale competitors. This strong brand identity translates into tangible performance benefits for franchisees.
Furthermore, Hilton's investment in advanced technology provides a distinct competitive edge. Features like Digital Key and connected room capabilities enhance the overall guest experience and streamline operational efficiency. This technological integration positions Hilton franchisees favorably in a market increasingly reliant on seamless digital interactions.
How do Hilton's brand fees compare?
It's important to note that Hilton's franchise fees generally sit at the premium end of the mid-scale market. For a Tru by Hilton franchise in 2025, the initial franchise fee is $50,000. This figure reflects the brand's high value, strong performance, and the comprehensive support system provided by Hilton.
The ongoing fees include a 5.5% royalty fee and a 4% program fee, which covers marketing and reservation services, totaling 9.5% of gross room revenue. While this is higher than some alternatives, such as the SureStay Hotel franchise which has a combined royalty and marketing fee of 10%, it aligns with the value proposition of a top-tier mid-scale brand. For context, the SureStay Hotel franchise fees are 5% royalty and 5% marketing. For those considering the SureStay Hotel franchise, understanding these fee structures is crucial for a fair comparison.
The total investment for a new 98-room Tru by Hilton property is projected to range between $9.5 million and $12.5 million in 2025. This represents a significant capital commitment, but it is geared towards achieving high performance and strong returns within its segment. This contrasts with the SureStay Hotel franchise, where the initial investment ranges from $901,750 to $2,951,015, positioning it as a lower-cost option.
Key Considerations for Hilton Investments
- Leverage the Loyalty Program: Actively promote Hilton Honors to your guests to maximize repeat business and direct bookings.
- Embrace Technology: Utilize Hilton's digital key and connected room features to enhance guest satisfaction and operational efficiency.
- Understand the Investment: Be prepared for a higher initial capital outlay compared to some other mid-scale hotel franchises, but factor in the potential for premium ADR and occupancy rates.
When evaluating hotel franchise opportunities, comparing the offerings of major players like Hilton against brands such as SureStay Hotel is essential. Understanding the nuances of each franchise agreement, fee structure, and brand positioning will help you make the most informed decision for your investment goals. For a detailed breakdown of a specific alternative, you might find it beneficial to review What are the Pros and Cons of Owning a SureStay Hotel Franchise?
| Hilton (Tru by Hilton) Investment Range (2025 Estimate) | $9.5M - $12.5M |
| Hilton (Tru by Hilton) Initial Franchise Fee | $50,000 |
| Hilton Royalty Fee | 5.5% |
| Hilton Program Fee | 4% |
| SureStay Hotel Franchise Investment Range | $901,750 - $2,951,015 |
| SureStay Hotel Franchise Initial Fee | $29,000 |
| SureStay Hotel Franchise Royalty Fee | 5% |
| SureStay Hotel Franchise Marketing Fee | 5% |
G6 Hospitality (Motel 6)
Is Motel 6 a viable low cost hotel franchise option?
When exploring hotel franchise alternatives, Motel 6, under the G6 Hospitality umbrella, stands out as a strong contender for a low-cost hotel franchise option. With a legacy spanning over six decades, its core value proposition is simple: 'clean, comfortable rooms at a fair price.' This clear focus makes it an accessible entry point for many entrepreneurs.
A significant advantage for investors considering Motel 6 is its emphasis on conversions. This approach often streamlines the setup process. For a conversion in 2025, the total initial investment can range from approximately $250,000 to over $1 million. This figure is considerably lower when compared to many other flagged hotel opportunities, positioning it as a direct alternative to the base SureStay Hotel brand, particularly for those targeting budget-conscious travelers and seeking lower entry costs.
What are the pros and cons of a Motel 6 franchise?
The primary advantage of a Motel 6 franchise is its unparalleled brand recognition. This widespread awareness simplifies marketing efforts and customer acquisition. The operational model is also known for its straightforward nature. In 2025, the franchise fees are competitive, with a royalty fee set at 5% and a combined marketing and reservation fee of about 4.5%. This makes it an attractive option when evaluating SureStay Hotel franchise comparison points.
However, operating within the economy segment inherently means a lower Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR). The projected system-wide RevPAR for Motel 6 in 2025 is estimated to be around $35-$40, which is notably lower, approximately 25-30% less, than what a typical SureStay property might achieve. This is a crucial factor to consider in any SureStay Hotel franchise profitability analysis.
Another point to weigh is the potential for higher maintenance and security expenses, which are common in the economy lodging sector. While the simplified, no-frills operating model is designed to help mitigate some of these costs, it's an important consideration when comparing the SureStay Hotel franchise pros and cons to other hospitality franchise options.
Key Considerations for Motel 6 Franchisees
- Brand Strength: Leverage the immense recognition of a brand with over 60 years in the market.
- Cost-Effectiveness: Benefit from a lower initial investment compared to many mid-scale hotel franchise alternatives.
- Operational Simplicity: The straightforward business model can reduce management complexity.
- Segment Focus: Understand that profitability is tied to volume and efficiency in the economy segment.
| Metric | SureStay Hotel (FDD Data) | Motel 6 (Estimated 2025) |
|---|---|---|
| Initial Investment Range | $901,750 - $2,951,015 | $250,000 - $1,000,000+ |
| Royalty Fee | 5% | 5% |
| Marketing Fee | 5% | ~4.5% |
| Projected RevPAR | Higher (segment dependent) | $35 - $40 |
For those looking at hotel investment franchises, understanding these differences is vital. While SureStay Hotel offers a different brand positioning, Motel 6 provides a distinct pathway into the hospitality sector, especially for investors prioritizing lower capital outlay and established brand presence. To understand more about how the SureStay Hotel franchise works, you can refer to How Does the SureStay Hotel Franchise Work?