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Days Inn & Suites Franchise ProfileLodging & Leisure > Lodging |
How to Open a Days Inn & Suites Franchise?
To begin your journey with Days Inn & Suites, you should first evaluate your financial standing against the brand's requirements, which include a net worth of at least $500,000 and significant liquid capital. The process typically involves submitting an inquiry to Wyndham Hotels & Resorts, followed by a review of the Franchise Disclosure Document (FDD). You will engage in discussions with franchise development representatives to explore available territories and conversion or new-build opportunities. Once your application is approved and the $35,000 initial franchise fee is paid, you will enter into a long-term agreement. From there, you will receive support in site selection or renovation to ensure the property meets brand standards before your grand opening.
What Might Make a Days Inn & Suites Franchise a Good Choice?
Days Inn & Suites offers a recognizable name in the economy lodging segment with a massive global footprint. The investment structure is designed for scalability, with a low initial investment starting around $187,370, though high-end developments can reach over $7.1 million. The brand provides a robust support system, including a 5.5% royalty fee and a 3% marketing fee that fuels national advertising campaigns. With a median annual revenue per unit ranging between $500,000 and $1,000,000, the business model is built for stability. Furthermore, the brand has a clear financial roadmap, with an estimated breakeven time of 24 months and a full investment payback period of approximately 30 months.
Why You May Want to Start a Days Inn & Suites Franchise?
Starting a Days Inn & Suites franchise allows you to tap into the powerful Wyndham Rewards loyalty program and a sophisticated central reservation system. This franchise is particularly appealing because it is a 100% franchised model; as of 2024, there are 1,284 franchised units and zero corporate-owned locations, meaning the parent company is fully invested in the success of its independent partners rather than competing with them. The brand's focus on "bright" hospitality and value-driven service makes it a resilient choice in various economic climates. Franchisees benefit from comprehensive training and ongoing operational support, ensuring that even those new to the hospitality industry have the tools to manage a successful hotel.
Is Owning a Days Inn & Suites Franchise the Right Move for You?
Owning a Days Inn & Suites requires a commitment to maintaining high service standards and a passion for the hospitality industry. While the total number of units has seen a slight contraction from 1,370 in 2020 to 1,284 in 2024, the brand remains a dominant force in the economy sector with high-performing units reaching annual revenues exceeding $1 million. You must be prepared to manage the ongoing costs of marketing and royalties while focusing on guest satisfaction to drive repeat business. If you have the required $394,700 in cash and are looking for a brand with a proven track record and a clear path to ROI within two to three years, this could be the ideal investment for your portfolio.
Days Inn & Suites Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Days Inn & Suites Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Total Units | 1370 | 1326 | 1284 | 1284 | 1284 |
| Net Change YoY | N/A | -44 | -42 | 0 | 0 |
| Franchised Units | 1370 | 1326 | 1284 | 1284 | 1284 |
| Net Change YoY | N/A | -44 | -42 | 0 | 0 |
| Corporate Units | 0 | 0 | 0 | 0 | 0 |
| Net Change YoY | N/A | 0 | 0 | 0 | 0 |
Investment Requirements
Starting a Days Inn & Suites franchise requires a total initial investment ranging from a low of $187,370 to a high of $7,179,979, depending on the property size and location. Prospective franchisees should have a minimum net worth between $500,000 and $1,000,000, with at least $394,700 in liquid cash available to cover startup costs and initial operations.
Fees and Royalties
To join the Days Inn & Suites network, franchisees must pay an initial franchise fee of $35,000. Ongoing operational costs include a monthly royalty fee of 5.5% of gross room revenue. Additionally, a marketing fee of 3% is assessed to support brand-wide advertising and promotional initiatives designed to drive guest traffic to individual units.
Financial Performance
The brand demonstrates a solid financial profile with an average annual revenue per unit of $1,026,299 at the highest end of the spectrum, while the lowest reported units earn approximately $1,004,057. Based on these performance metrics, franchisees typically see a breakeven point within 24 months of operation, with a full investment payback period estimated at 30 months.
Network Growth and Stability
Days Inn & Suites maintains a significant footprint in the hospitality industry, operating with a 100% franchised model. As of 2024, there are 1,284 franchised units in operation. While the total unit count saw a slight contraction from 1,370 in 2020, the brand has maintained a stable presence with zero corporate-owned units, focusing entirely on supporting its independent franchise partners.
Operational Model
The franchise operates under a pure-play franchising strategy, meaning the parent company does not own or operate any corporate units. This ensures that all corporate resources, training, and support systems are dedicated exclusively to the success of the franchised locations. The model is designed for scalability, catering to both new construction and the conversion of existing hospitality properties.
Franchise Opportunity
Choosing a Days Inn & Suites franchise offers entrepreneurs the chance to align with a globally recognized economy lodging brand. With a proven business model that emphasizes efficient operations and a clear path to profitability, owners benefit from a structured support system. The combination of a well-known brand name and a comprehensive marketing strategy provides a competitive edge in the mid-scale and economy hotel market.
Frequently Asked Questions
The total initial investment for a Days Inn & Suites franchise ranges from a low of $187,370 to a high of $7,179,979. This wide range accounts for differences in property size, location, and whether the project is a conversion or new construction.