Franchise Deep Dive: Motel 6's Franchise Costs, Fees, Profit and Data

LAST UPDATED: August 18, 2023
FRANCHISE WEBSITE: https://g6hospitality.com/franchising/
NUMBER OF LOCATIONS: 1,400+
REPORTED COST TO GET IN: $222,550 to $8,230,104
REPORTED ROI (Item 19): N/A

Motel 6 is a well-known brand of budget motels throughout North America, and is the largest owner and franchisor in the U.S. economy lodging segment. The brand was founded in Santa Barbara, California in 1962 by William Becker and Paul Greene, who were local building contractors. The franchise provides guests with an affordable and simple place to stay the night while traveling, and as such, has locations strategically situated near airports, freeways and other thoroughfares.

Motel 6 also operates Studio 6, which is a brand of extended-stay hotels that offer additional amenities, including fully equipped kitchens with dishes, utensils and cookware on weekly and monthly rates. The brands are operated under the Dallas, Texas-based parent company G6 Hospitality.

The Motel 6 brand is most commonly known for its award-winning advertising campaign, “We’ll leave the light on for you,” which started in 1986.

https://www.youtube.com/watch?v=LhiBiTfI7pc

As a result of its services, Motel 6 was named the “Best Budget-Friendly Hotel Brand” in USA TODAY’s 10Best Readers’ Choice Awards in 2022.

How Many Motel 6 Locations Are There?

As of August 2023, there are more than 1,400 Motel 6 and Studio 6 Extended Stay locations operating in 49 states and five Canadian provinces.

What Is Motel 6’s Business Model?

Motel 6 operates on a budget-focused business model and offers basic and affordable accommodations for travelers. The brand has a consistent and standardized approach across all of its properties, allowing it to prioritize operational efficiency to keep costs low.

Motel 6 and Studio 6 Extended Stay locations cater to a wide range of travelers who are seeking a short stay. As a result of its offerings, the brand says for more than 60 years, it has been “known as the best place to find a clean, comfortable room with great service at a fair price.”

The brand underwent system-wide renovations in 2009 called the “Phoenix Project,” which updated the look and amenities of the bedrooms in each of its locations. Motel 6 says this renovation was meant to ensure its properties remained “familiar and classic, yet with contemporary features” that its guests appreciate. As a result of the renovations, Motel 6 earned Travel & Leisure Magazine’s 2010 design award for Best Large Hotel.

How Much Can Motel 6 Franchise Owners Make?

Motel 6 does not have a publicly available Item 19. However, the brand claims it has the highest brand recognition in the economy lodging sector and claims to have an average occupancy of 68% as well as an average daily rate of $70 per room. To learn more, contact the team about reading the Franchise Disclosure Document (FDD), which will state the total earnings of any company or franchise-owned unit as a reference.

How Much Does It Cost to Open a Motel 6?

Motel 6 does not make its investment fees available to the public. However, according to Entrepreneur, the initial investment to open a Motel 6 or Studio 6 Extended Stay franchise can range anywhere from $222,550 to $8,230,104, including a $20K to $30K franchise fee.

Who’s On Motel 6’s Leadership Team?

• William Becker — Co-Founder
• Paul Greene — Co-Founder
• Julie Arrowsmith — President and Interim CEO
• Brent Haines — Chief Information Officer
• Nick Hayes — Director of Franchise Development

What Helpful Articles Can I Read to Learn More About Motel 6?

• G6 Hospitality Launches “Light Her Way” Program, Provides Tools to Empower Female Franchise Ownership
• Motel 6 Named Best Budget Hotel Brand in the US by USA Today Readers in 60th Year Serving Travelers
• Motel 6 Receives CFA Franchisees’ Choice Designation for Third Consecutive Year
• Motel 6 Celebrates 60 Years of Contributions to the Travel Industry

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