How Much Does a Travelodge Franchise Cost?

Travelodge Hotels, Inc. discloses two different 100-room investment ranges: $231,893 to $3,172,992 for a conversion facility and $7,395,606 to $11,310,962 for a new-construction facility. These are not interchangeable budgets. The conversion estimate assumes the franchisee already owns the hotel, while both ranges exclude the cost of buying or leasing real estate.

Key cost figures

The most decision-useful figures are the Initial Fee, three-month Additional Funds, core percentage fees, and the required Property Management System cost. Source: 2026 FDD, Items 5–7, pp. 26–49.

The conversion range starts lower because its Item 7 assumptions allow an existing property, furniture, technology, and building systems to meet Travelodge System Standards with limited replacement. The new-construction range includes a complete facility build, pre-opening wages, new furniture, fixtures and equipment, and a construction contingency. The official Wyndham hotel conversion overview explains the conversion development path, while the FDD controls the Travelodge-specific figures.

For a 100-room new-construction Travelodge facility, Facility Construction is the dominant cost category. The 2026 FDD also includes architecture and engineering, a 5% construction contingency, technology, Property Management System setup, FF&E, signage, Opening Inventory, insurance, advertising, wages, professional startup costs, and three months of Additional Funds.

Combined rows are derived additions of compatible Item 7 categories and are shown only to reduce table size. Official total: $7,395,606–$11,310,962. Source: 2026 FDD, Item 7, pp. 42–45.

The FDD reports an official cost per room of $73,956–$113,110 for this 100-room model. Source: 2026 FDD, Item 7, pp. 42–45.

The condition of the existing hotel determines most of the conversion spread. Item 7 permits a $0 low estimate for Facility Improvements and certain design work when the property already meets standards, but the disclosed maximum for Facility Improvements reaches $1,224,400. FF&E can range from $9,080 to $982,444 depending on how much existing furniture and décor must be replaced.

What other conversion line items are disclosed?

Beyond the renovation-sensitive categories in the chart, the conversion schedule includes required brand, training, insurance, advertising, startup, and initial-period amounts.

Training is a derived addition of two compatible conversion categories; the official categories remain separate in Item 7. The FDD reports $2,319–$31,730 per room. Source: 2026 FDD, Item 7, pp. 46–49.

The Travelodge cost schedule is not a single payment. The $1,500 Application Fee comes first, the remaining Initial Fee is generally due at Franchise Agreement signing, most premises and equipment costs are paid as incurred before opening, and Recurring Fees begin when the facility opens.

The core recurring charge is not only the 5% Royalty. A Travelodge franchisee also pays the System Assessment Fee, technology charges, and transaction- or program-based fees when the relevant reservation channel, service, or loyalty activity applies. Percentage fees should be read against their exact FDD basis; they cannot be converted into a reliable annual dollar amount without the facility’s actual Gross Room Revenues and reservation mix.

GRR is Gross Room Revenues as specifically defined in the FDD. Source: Travelodge Hotels, Inc. 2026 FDD, Item 6, pp. 29–41.

Usage-based and optional charges

These charges depend on the reservation source, selected service level, training event, or conference cycle rather than applying as one uniform monthly percentage.

The Item 7 total is a defined disclosure range, not a complete property acquisition or financing budget. Several potentially material obligations sit outside the total or remain location- and condition-dependent.

The official Wyndham hotel franchise cost FAQ also distinguishes property acquisition and renovation costs from brand-related startup fees, but the Travelodge FDD is the source for the brand-specific ranges above.

No brand-specific Liquid Capital or Net Worth threshold is stated in the March 31, 2026 Travelodge FDD or on the official Travelodge development page. A prospective franchisee should not treat the $35,000 Initial Fee as the cash required to complete the project. Total Initial Investment, equity investment, Liquid Capital, Net Worth, and lender proceeds are different measures.

The FDD does require significant owners of an entity franchisee to guarantee the franchisee’s obligations. Owners and, in specified states, their spouses may also have to co-sign an Initial Fee Note or Development Incentive Note. The official FAQ describes financial review and external funding generally, but it does not publish a Travelodge-specific minimum.

What financing arrangements are actually disclosed?

The 2026 FDD discloses possible Initial Fee deferral, discretionary Development Incentives, two ownership-support programs, and lender documentation—not guaranteed project financing.

Transfer, renewal discussions, failed inspections, delayed opening, default, and early termination can create costs beyond normal monthly fees. These obligations matter because the new-construction term is 20 years and the conversion or transfer term is 15 years, with no contractual renewal right.

Source: Travelodge Hotels, Inc. 2026 FDD, Items 5, 6, 10, and 17, pp. 26–41, 55–57, and 76–80.

Other transaction-specific charges include a $5,000 Administrative Assignment fee, a $7,500 administrative Relicense Fee for an assignment to a financial institution or receiver, and a $995 PMS transfer fee when an existing compliant system needs no upgrade.

First determine whether the project is a 100-room conversion or a 100-room new construction, then identify which existing assets actually satisfy Travelodge System Standards. For a conversion, property condition drives the $231,893–$3,172,992 range. For new construction, Facility Construction drives the $7,395,606–$11,310,962 range. In either case, the $35,000 Initial Fee is only one component, the $116,953–$182,548 Additional Funds amount covers only three months and excludes rent and debt service, and percentage-based Royalty, System Assessment, reservation, technology, and loyalty fees continue after opening.

The most important unresolved figure is the property-specific cost outside the FDD assumptions: acquisition or lease economics, lender terms, local development charges, and the final property improvement plan. Review the current Franchise Agreement and FDD before payment; the Federal Trade Commission Franchise Rule is the governing federal disclosure framework.