10 Best Hotel Franchise Opportunities 2024

Looking for the best hotel franchise to own? Don’t worry we’ve got you covered. Looking at the increasing demand for hotel franchises we’ve compiled a list of 10 best hotel franchise opportunities to own in 2024.

10 Best Hotel Franchise Opportunities

The hotel market in the US is worth more than $106 billion and is expected to grow further. By 2027, more than $160 billion users will be a part of the hotel market.

So, diving into this lucrative industry is the best decision you will make in 2024. Therefore, let’s start our guide to understanding the factors necessary to consider before investing and finding your ideal franchise among the 10 best hotel franchises.


10 Best Hotel Franchise Opportunities

1. Days Inn By Wyndham

10 Best Hotel Franchise Opportunities- Days Inn By Wyndham
Founded1970
Franchising Since1972
Estimated Outlets1,516
Initial Investment$196,873– $6,907,975
Franchise Fees$35,000
LiquidityN/A
Royalty Fees5.5%

Days Inn By Wyndham is one of the major hotel chains in the U.S., founded in 1970. The company specializes in affordable, warm, and energetic hotel experiences.

It is one of the largest brand names in hospitality and has more than 1,600 locations worldwide. Out of these, 1,400 are located in the United States. So, if you want to get into the hotel industry, Days Inn By Wyndham is the ideal franchise for you.

The company offers the necessary training to the franchisees on starting and running the business smoothly. It also offers support to its franchisees.

2. Hampton By Hilton

10 Best Hotel Franchise Opportunities- Hampton By Hilton
Founded1983
Franchising Since1984
Estimated Outlets2,919
Initial Investment$12,834,733 – $24,076,967
Franchise Fees$67,000
Liquidity$3,750,000
Royalty Fees6%

Hampton By Hilton is also known as Hampton Inn & Suites and is one of the leading hotel franchisees in the United States.

The guests in Hampton By Hilton enjoy fresh coffee, exercise rooms, business travel meeting space, hotel breakfasts, discounted rates, and free internet access.

So, if you are interested in opening a hotel and restaurant business, then starting Hampton By Hilton is the ideal choice for you. However, make sure to be financially ready in order to be a part of the franchise.

3. Intercontinental Hotels & Resorts

Intercontinental Hotels & Resorts
Founded1946
Franchising Since1946
Estimated Outlets215
Initial Investment$96,928,750– $139,284,300
Franchise Fees$100,000
LiquidityN/A
Royalty Fees6%

Intercontinental Hotels & Resorts is a globally known hotel under the Intercontinental Hotel Group. The parent company owns many other hotels, such as Kimpton and the Holiday Inn.

It was founded in 1946 and has more than 150 franchised units worldwide. The franchise Intercontinental Hotels & Resorts are typically in major markets in countries worldwide.

Intercontinental Hotels & Resorts focuses on a high-quality market in an effort to reinforce it in the portfolio. Moreover, to be a part of this franchise, you should have excellent communication skills, collaborate, and be decisive.

4. Marriott Franchise

10 Best Hotel Franchise Opportunities- Marriott
Founded1927
Franchising Since1970
Estimated Outlets7,500
Initial Investment$5,000,000– $7,000,000
Franchise Fees$50,000
LiquidityN/A
Royalty Fees6%

Marriott is a company founded in 1927 by J. Willard Marriott and his wife Alice. It is headquartered in Bethesda, Maryland, and manages a portfolio of more than 7,500 hotels in 132 countries and territories under 30 prominent brands.

The company operates and leases hotels under the Marriott, The Ritz-Carlton, Renaissance, Courtyard, TownePlace Suites, and Bulgari brands.

It also runs Marriott Executive Apartments and develops and operates vacation ownership properties under the Marriott Vacation Club brand. Therefore, owning this franchise means that you’ll be a part of a well-established and big company.

Read our complete guide to get more details on Marriott Franchise.

5. Motel 6

10 Best Hotel Franchise Opportunities- Motel 6
Founded1962
Franchising Since1996
Estimated Outlets1,237
Initial Investment$236,455– $7,945,584
Franchise Fees$20,000-$30,000
LiquidityN/A
Royalty Fees5%

Motel 6 is a hospitality franchise known for its affordability. The hotel was established in the year 1962 and began franchising in 1996.

Since then, Motel 6 has expanded to develop a whopping network of over 1,100 economy lodging locations across the United States and Canada.

With more than 60 years of history behind it, a Motel 6 franchise is an excellent investment opportunity for those with experience in the hospitality industry.

Get more details about Motel 6 Franchise by reading our full article.

6. La Quinta

10 Best Hotel Franchise Opportunities- La Quinta
Founded1968
Franchising Since2000
Estimated Outlets918
Initial Investment$4,254,021-$15,244,470
Franchise Fees$55,000
LiquidityN/A
Royalty Fees4.5%-5%

La Quinta Hotels was started by two brothers named Sam and Phil Barshop. It began franchising in 2000 and was acquired by Blackstone Group in 2005.

However, in 2018, Wyndham Hotels purchased La Quinta. Now, the hotel group has over 600 hotels in the United States and more than a dozen in other countries.

La Quinta offers fairly low room rates, free wifi and breakfast, pet-friendly rooms, and a swimming pool. So, ultimately, the hotel group has become a staple for middle-income travelers.

7. Super 8

10 Best Hotel Franchise Opportunities- Super 8
Founded1974
Franchising Since1976
Estimated Outlets2,691
Initial Investment$232,032– $5,678,048
Franchise Fees$25,000
LiquidityN/A
Royalty Fees5.5%

Super 8 is a chain of hotels owned and operated by Wyndham Hotels & Resorts. Currently, it has more than 2,600 locations on three continents and is also one of the world’s leading economy hotels.

So, when owning Super 8, you are not only becoming a potential leader in hospitality but also helping travelers make long-lasting memories.

However, to own this franchise, you have to make sure that you are financially capable of bearing the initial investment, franchise fees, and any other costs affiliated with owning the franchise.

8. Radisson

10 Best Hotel Franchise Opportunities- Radisson
Founded1962
Franchising Since1983
Estimated Outlets190
Initial Investment$9,975,890– $52,293,335
Franchise Fees$75,000
LiquidityN/A
Royalty Fees5%

Radisson is part of one of the largest hotel groups worldwide which was founded in 1962. The hotels and resorts of the chain are available in dozens of countries, and continue to expand its territories.

The hotel chain began franchising in 1983 and, since then, expanded to many locations. Radisson describes its ideal franchisee as an individual who is passionate about the hospitality industry, possesses exceptional entrepreneurial skills, and has enough capital to begin the Radisson franchise.

Therefore, joining the Radisson group will allow you to access a dynamic business model.

9. Red Lion Hotels

Red Lion Hotels
Founded1959
Franchising Since1999
Estimated Outlets70
Initial Investment$641,250– $38,740,000
Franchise Fees$40,000-$75,000
LiquidityN/A
Royalty Fees5%

Red Lion Hotel is a full-service, midscale hotel brand owned by Red Lion Hotels Corporation (RLHC). This is an American hospitality corporation that primarily engages in the franchising, management, and ownership of midscale economy hotels.

Since the hotel’s launch in 1959, Red Lion Hotel has expanded across the U.S. and Canada with 8 unique brands.

Moreover, the hotel is a rapidly expanding hospitality company with an innovative business model.

10. Choice Hotels

Choice Hotels
Founded1939
Franchising Since1972
Estimated Outlets7,151
Initial Investment$118,825– $26,370,195
Franchise Fees$15,000-$60,000
Liquidity$1,000,000
Royalty Fees5%-6%

Choice Hotels started as a small chain in 1939. The company franchising in 1972 and since then has over 7,000 hotels worldwide.

The company tried to launch innovations such as being the first to offer 24-hour, toll-free reservations in 1970, implementing non-smoking rooms in 1984, and utilizing voice-enabled hotel bookings on the Google map app in 2019.

However, as a Choice Hotels franchisee, you may need to have a few special characteristics, such as good time management skills, good leadership skills, and the willingness to learn.


When Should You Choose A Hotel Franchise?

The right to own a hotel franchise is when you know all the key benefits of owning one. So, here are some reasons or advantages that will help you make an informed decision:

1. Established Brand Recognition

One of the main advantages of owning a hotel franchise is that you can get access to an established and recognized brand name.

This can help you reduce the time and effort required to build brand awareness and attract the audience. Moreover, the people will know beforehand what to expect from your franchise.

2. Marketing And Advertising

Franchisees benefit from the collective marketing efforts of the franchisor.

National or international advertising campaigns and loyalty programs can attract more guests to individual franchise locations. This will ultimately help you in boosting revenue and occupancy rates.

3. Cost Savings

Franchises may be less expensive than starting an independent hotel.

This is because some expenses, like architectural plans and interior designs, may be provided by the franchisor. This reduces the need for individual hotel owners to start from scratch.


Factors To Consider Before Investing In Hotel Franchise

If you are thinking of owning a hotel franchise, we have identified a few things that you need to consider before investing in a hotel franchise:

1. Brand

There are many brands that cater to different types of audiences. Therefore, you must decide what type of facility and quality you want in your hotel franchise.

For example, the Hilton Hotel, which is also one of the 10 best American franchises to own, is known for its first-class facilities, while the Holiday Inn is more affordable for travelers looking to stay within a budget.

2. Fees And Costs

The next thing that should be considered is the costs and fees of the franchise. You need to understand that the royalty fee is only a fraction of the fees that you have to pay to the franchisor.

There are many fees and expenses that you’ll be charged, such as initial investment, the annual cost of the reservation system, and marketing programs.

So, it is crucial to ensure that you have clarity on all the fees and costs associated with operating the franchise.

3. The Franchisor

This is one of the crucial factors to consider before investing in the hotel franchise. Your success depends on the actions of the franchisor.

Therefore, get clarity on the actions and behavior of the franchisor. Moreover, it is an excellent strategy to talk to other franchisees to get an idea of the business.


Comparison Of 5 Hotel Franchises

Company NameDays Inn By WyndhamHampton By HiltonIntercontinental Hotels & ResortsMarriott FranchiseMotel 6
Founded19701983194619271962
Outlets 1,5162,9192157,5001,237
Franchise Fee $35,000$67,000$100,000$50,000$20,000-$30,000
Initial Investment $196,873– $6,907,975$12,834,733– $24,076,967$96,928,750– $139,284,300$5,000,000– $7,000,000$236,455– $7,945,584
Royalty Fee5.5%6%6%6%6%


Conclusion

So, this is our list of the 10 best hotel franchise opportunities to own in 2024. However, while selecting the best one, do your own research and ensure that the cost of the franchise aligns with your budget.

Also, consider all the above-mentioned points before investing in a franchise. You should also ensure that you can operate the franchise or not. This includes having the perfect knowledge, mindset, and skills to run the franchise business.


FAQs

Which is the cheapest hotel franchise?

According to our list, the cheapest hotel franchise is Days Inn Wyndham. It requires an initial investment of $196,873– $6,907,975 which is very less as compared to other franchises.

Which is the richest hotel franchise?

The largest hotel chain franchise in the world is Marriott International, with a revenue of $20.77 billion.

What is the profit margin of hotel franchises?

The average profit margin of a hotel franchise ranges between 5% and 15%.

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