Red Roof Inn vs Hilton Hotels & Resorts Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs Hilton Hotels & Resorts including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Red Roof Inn Franchise
Hilton Hotels & Resorts Franchise
Investment $203,500 - $5,456,700$30,581,105 - $128,987,095
Franchise Fee $30,000$75,000
Royalty Fee 4.5%5%
Advertising Fee 4%(Marketing & Reservation Fee)4%
Year Founded 19671919
Year Franchised 19961965
Term Of Agreement 20 years10 years
Term Of Agreement 20 years10 years
Renewal Fee 50% of current franchise feeSame as initial fee


Business Experience Requirements
 
Red Roof Inn Franchise
Hilton Hotels & Resorts Franchise
Experience
  • General business experience

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    Red Roof Inn Franchise
    Hilton Hotels & Resorts Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/YesNo/Yes
    Receivables No/YesNo/Yes
    Payroll No/YesNo/Yes

    Training & Support
     
    Red Roof Inn Franchise
    Hilton Hotels & Resorts Franchise
    Training On-The-Job Training: Varies Classroom Training: 40 hours Additional Training: Regional workshops On-The-Job Training Classroom Training
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet PlatformMeetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/appAd Templates National Media SEO Loyalty program/app
    Operations Number of Employees Required to Run: 10

    10% of all franchisees own more than one unit

    Absentee ownership of franchise is allowed. (60% of current franchisees are owner/operators)

    Number of employees needed to run franchised unit: 150

    Absentee ownership of franchise is allowed.

    Expansion Plans
     
    Red Roof Inn Franchise
    Hilton Hotels & Resorts Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Red Roof Inn

    Congratulations! You have made the first step in learning more about how you can join the Red Roof family. Here you will learn how you're making a smart decision by choosing to become a Red Roof franchisee. A Smart-By-Design Franchise Opportunity, A Red Roof franchise has been an extraordinarily positive experience from almost all standpoints; customer service, design help, purchasing efficiencies, brand loyalty and, most importantly, reservations. The brand has consistently performed extremely well in good and bad economic times and often punched above its weight and rate. Brand changes are always done by considering franchisee needs while ensuring the customer gets the most value for their money. The company has also been very adaptive changing customer demographics and has adapted both its physical plant and virtual image to appeal to a broad cross section of travelers. 98% of current Red Roof franchisees would recommend a Red Roof franchise to other entrepreneurs. Red Roof is securely positioned in the upper-end of the economy segment with RevPARs currently averaging 21% higher than competing economy hotels in the markets in which we compete. Our Smart-by-Design approach to franchising is evident in everything we do, from exciting new prototypes and conversion plans to day-to-day operations training. We focus on the details that keep our guests coming back and our franchisees successful. With a seasoned management team and a focus on the success of one outstanding brand, Red Roof is truly redesigned and rededicated to become the best franchise opportunity in the economy segment.

    "Entrepreneur

    #66 in Franchise 500 for 2020.
    #134 in Franchise 500 for 2021.


    About Hilton Hotels & Resorts

    Hilton is part of the portfolio of brands at Hilton Worldwide, which has hotels in more than 90 countries. Other Hilton Worldwide brands include Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hampton by Hilton, Hilton Garden Inn, Homewood Suites by Hilton, Home2 Suites by Hilton, Curio - A Collection by Hilton, Canopy by Hilton and Hilton Grand Vacations.

    Veteran Incentives  Varies
    ""   "Entrepreneur

    #101 in Franchise 500 for 2020.
    #132 in Franchise 500 for 2021.