1851

Hotel franchisors have become key players in the modern hospitality industry, providing numerous opportunities for newcomers and experienced professionals alike. And with the industry constantly changing, more people are opting for franchising as a reliable route to success in the&nbsp;<a href="https://www.linkedin.com/pulse/hospitality-market-growth-trends/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">booming hospitality market</a>, leveraging established brands and comprehensive support systems.&nbsp;In this guide to hotel franchising, we'll take a closer look at how the process works and what you can expect in terms of costs. We’ll also provide you with a list of hotel brands to consider.&nbsp;<h3>What Is Hotel Franchising?</h3>Hotel franchising is a business model where a hotel brand (franchisor) grants the rights to operate a hotel under its name and business model to a third party (franchisee). In exchange for using the brand name and receiving ongoing support and guidance, the franchisee pays initial and ongoing franchise fees to the franchisor. This arrangement allows aspiring hotel owners to tap into an established brand and operational framework, reducing some of the risks associated with starting a new business.<h3>Understanding the Costs of Hotel Franchising</h3>Entering into a hotel franchise agreement involves a substantial financial commitment. And depending on which brand you choose, it can cost upwards of millions of dollars — on the low end.&nbsp;Here's a breakdown of the typical costs associated with hotel franchising:<ul><li>Initial Franchise Fee:&nbsp;This fee is paid to the franchisor for the privilege of using its brand name and operational framework. The amount varies depending on the hotel brand, and can range from tens of thousands to hundreds of thousands of dollars.</li><li>Initial Investment:&nbsp;The initial investment encompasses all the capital required to establish and operate the hotel franchise. This includes expenses such as property acquisition or lease, construction or renovation, equipment purchase and furnishings. It also includes the working capital required to cover initial operational expenses.</li><li>Ongoing Fees: Franchisees are obligated to pay ongoing fees to the franchisor throughout the duration of the franchise agreement. These fees may include royalties based on revenue generated by the hotel, marketing fees to support brand promotion, and additional charges for ongoing support services provided by the franchisor.</li><li>Operating Expenses: In addition to the initial investment and franchise fees, franchisees are responsible for covering the day-to-day operating expenses of the hotel. This includes payroll for staff members, utilities, maintenance and repairs, as well as marketing initiatives to attract guests to the hotel.</li></ul><h3>Who Are the Major Players in the Hotel Franchising Industry?</h3>Hotel franchise brands range from budget-friendly accommodations to some of the most luxurious resorts around. Many hotel brands don’t provide their franchise development data online; fortunately,&nbsp;<a href="https://www.entrepreneur.com/franchise500?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Entrepreneur</a> has gathered some important information you may need about these five major players:&nbsp;<a href="https://development.wyndhamhotels.com/brand/super-8-by-wyndham/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Super 8 by Wyndham</a><ul><li>Investment Range: $232,000 - $5.7 million</li><li>Unit Count: 2,690+</li></ul>Known for its budget-friendly accommodations, Super 8 is a cost-effective franchise option with growth potential both domestically and internationally.<a href="https://g6hospitality.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Motel 6</a><ul><li>Investment Range: $236,000 - $7.9 million</li><li>Unit Count: 1,230+</li></ul>Despite its budget-friendly reputation, Motel 6 boasts strong brand recognition and a track record of success, making it an attractive franchise opportunity.<a href="https://www.entrepreneur.com/franchises/directory/hampton-by-hilton/284276?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Hampton by Hilton</a><ul><li>Investment Range:&nbsp;$12.8 million - $24.1 million&nbsp;</li><li>Unit Count: 2,910+</li></ul>Combining quality and affordability, Hampton by Hilton is a popular choice for franchisees seeking a balance between budget and quality.<a href="https://www.entrepreneur.com/franchises/directory/holiday-inn-and-holiday-inn-express/335297?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Holiday Inn and Holiday Inn Express</a><ul><li>Investment Range: $11 million - $23.3 million</li><li>Unit Count: 4,300+</li></ul>Holiday Inn and Holiday Inn Express are among the world's most recognized hotel brands. With four tiers ranging from midscale to luxury, they prioritize value and dependability in their offerings.<a href="https://www.entrepreneur.com/franchises/directory/doubletree-by-hilton/284273?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">DoubleTree by Hilton</a><ul><li>Investment Range:&nbsp;$28 million - $97.6 million</li><li>Unit Count:&nbsp;500+</li></ul>Founded in 1969, DoubleTree began franchising in 1989. It quickly caught the attention of Hilton Hotels, which later merged with the brand. DoubleTree has since expanded to over 500 units globally.While the initial investment and ongoing expenses can be substantial, the potential for success and profitability is significant, particularly when aligned with the right brand and market demand. By carefully evaluating your options, conducting thorough research, and seeking professional guidance, you can embark on a rewarding journey as a hotel franchisee.Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">www.1851growthclub.com</a> and start your journey.

Hotel Franchising: A Comprehensive Guide

1851 Franchise

Hotel franchising is a great gateway into the lucrative hospitality market. In this article, we look at how it works, the costs involved, and some of the major players in the industry.

Hotel Franchising: The Ultimate Guide

hotel-franchising-the-ultimate-guide

HomeTeam Inspection Service

Good Day Columbus: Home Insurance Expert Reveals Why Central Ohio Premiums Are Rising and How to Combat Costs

rising-home-insurance-costs-ohio

CapitalSpring

Primetime Fitness Expands Crunch Portfolio With CapitalSpring’s Backing

primetime-fitness-expands-crunch-portfolio-with-capitalsprings-backing

Children's Lighthouse

How Children’s Lighthouse Franchisees Scale to Multiple Locations

how-childrens-lighthouse-franchisees-scale-to-multiple-locations

Express Employment Professionals

Betting on Himself: How Chris Brown Built an Express Employment Professionals Franchise From the Ground Up

betting-on-himself-how-chris-brown-built-an-express-employment-professionals-franchise-from-the-ground-up

Comfort Keepers

Comfort Keepers® Named One of America’s Best Home-Care Providers

comfort-keepers-named-one-of-americas-best-home-care-providers

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

Hotel Franchising: The Ultimate Guide

MORE STORIES LIKE THIS