Red Roof Inn vs Homewood Suites by Hilton Franchise Comparison

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

Start-Up Costs and Fees

 
Red Roof Inn Franchise
Homewood Suites by Hilton Franchise
Investment $203,500 - $5,456,700$12,337,700 - $25,972,000
Franchise Fee $30,000$75,000
Royalty Fee 4.5%3.5% - 5.5%
Advertising Fee 4%(Marketing & Reservation Fee)3.5%
Year Founded 19671988
Year Franchised 19961988
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee 50% of current franchise feeSame as initial fee


Business Experience Requirements

 
Red Roof Inn Franchise
Homewood Suites by Hilton Franchise
Experience
  • General business experience

  • Industry experience
  • General business experience

  • Financing Options

     
    Red Roof Inn Franchise
    Homewood Suites by Hilton 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
    Homewood Suites by Hilton Franchise
    Training On-The-Job Training: Varies Classroom Training: 40 hours Additional Training: Regional workshops Classroom Training: 141-148 hours Additional Training: At Memphis, TN, corporate office
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet PlatformNewsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations 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 Regional Advertising Social media SEO Website development Email marketing 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: 25

    Absentee ownership of franchise is allowed.


    Expansion Plans

     
    Red Roof Inn Franchise
    Homewood Suites by Hilton Franchise
    US Expansion Yes-
    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 Homewood Suites by Hilton

    Make Yourself At Home. Investing in Homewood Suites by Hilton gives you the opportunity to capture your own piece of one of the fastest-growing segments in the hotel industry. When you develop with us, you get the upscale position in the extended-stay market backed by the power of the Hilton name.
    When you develop a Homewood, you're not just developing a hotel, but a relationship with the entire Hilton Family of Hotels. Advantages like our friendly corporate staff, central reservations system and award-winning Hilton HHonors guest reward program make this a brand you'll want to stay with for a long time.

    Franchisor is seeking new franchise units throughout the U.S. , Canada and Mexico    

    Veteran Incentives  Varies
    "Entrepreneur
    #133 in Franchise 500 for 2020.
    #122 in Franchise 500 for 2021.