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Microtel Inn & Suites Franchise ProfileRestaurant Franchises > Full-Service Restaurants |
What is the Initial Investment for a Microtel Inn & Suites Franchise?
To open a Microtel Inn & Suites franchise, you should prepare for an initial investment ranging from $6,816,044 to $8,450,250. This includes a franchise fee of $40,000. It's essential to have cash on hand within this range to cover the various startup costs associated with launching your hotel. Additionally, you'll need a net worth between $1,000,000 and $1,500,000 to qualify for franchise ownership.
What Are the Ongoing Fees for a Microtel Inn & Suites Franchise?
As a franchisee, you'll be responsible for ongoing fees that include a royalty fee of 6% on your revenue and a marketing fee of 2%. These fees are crucial for maintaining the brand's presence and ensuring ongoing support from the franchisor. Understanding these costs is vital for budgeting and financial planning as you operate your franchise.
What Are the Financial Performance Metrics for Microtel Inn & Suites?
Microtel Inn & Suites franchises have demonstrated strong financial performance, with an average annual revenue of approximately $1,498,000 per unit. The median revenue is around $1,200,000, while the highest reported revenue can reach up to $1,205,000. With a breakeven time of just 12 months and an investment payback period of about 42 months, the potential for profitability is significant.
How Many Units Does Microtel Inn & Suites Currently Operate?
As of 2022, Microtel Inn & Suites has a total of 293 franchised units, with no corporate-owned units. The number of franchised units has seen a slight decline from 300 in 2020 to 293 in 2022. This trend indicates a stable yet competitive market for hotel franchises, emphasizing the importance of effective management and marketing strategies for franchisees.
Microtel 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:
Microtel 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 |
|---|---|---|---|
| Total Units | 300 | 296 | 293 |
| Net Change YoY | -4 | -3 | |
| Franchised Units | 300 | 296 | 293 |
| Net Change YoY | -4 | -3 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Company Background
Microtel Inn & Suites, a member of the Wyndham Hotels & Resorts family, is a well-established hotel chain known for its value-driven accommodations. Founded in 1995, Microtel focuses on providing comfortable, affordable lodging with a commitment to quality and service. With over 300 locations across the United States and internationally, the brand has become synonymous with reliability for both business and leisure travelers seeking budget-friendly options without compromising on comfort.
Franchise Opportunity
Investing in a Microtel Inn & Suites franchise offers aspiring entrepreneurs a chance to enter the hospitality industry with a recognized brand. The initial investment ranges from approximately $6.8 million to $8.4 million, which includes a franchise fee of $40,000. Microtel's proven business model, combined with ongoing support and training, equips franchisees with the tools necessary to succeed in a competitive market.
Financial Requirements
To qualify for a Microtel Inn & Suites franchise, potential franchisees must demonstrate a net worth of $1 million to $1.5 million and have liquid assets of at least $6.8 million to $8.4 million. The franchise operates under a royalty fee of 6% on gross sales, along with a marketing fee of 2%. These financial commitments are designed to ensure franchisees are well-prepared for the operational demands of running a hotel.
Performance Metrics
Microtel Inn & Suites franchises have shown strong financial performance, with average annual revenue per unit reaching approximately $1.5 million. The breakeven period for new units is around 12 months, and franchisees can expect an investment payback period of about 42 months. This data highlights the brand's potential for profitability and a solid return on investment for franchise owners.
Operational Support
Franchisees of Microtel Inn & Suites benefit from comprehensive operational support, including training programs, marketing resources, and ongoing assistance from the corporate team. This support is crucial for maintaining brand standards and ensuring that each location delivers the consistent quality and service that guests expect. By leveraging the expertise of the corporate team, franchisees can navigate operational challenges more effectively.
Brand Vision
Microtel Inn & Suites aims to provide exceptional value to guests by offering clean, comfortable accommodations at an affordable price. The brand's vision focuses on enhancing the overall guest experience through innovative services and amenities, such as free breakfast, high-speed internet, and modern room designs. Microtel is committed to sustainability and community engagement, striving to create a positive impact in the neighborhoods where it operates.
Frequently Asked Questions
The initial investment for a Microtel Inn & Suites franchise ranges from approximately $6,816,044 to $8,450,250. This includes the franchise fee and other startup costs.