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Below is an in-depth analysis and side-by-side comparison of Hilton Hotels & Resorts vs Motel 6 including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $30,581,105 - $128,987,095 | $206,850 - $8,823,850 |
Franchise Fee | $75,000 | $25,000 - $35,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | 4% | 3.5% |
Year Founded | 1919 | 1962 |
Year Franchised | 1965 | 1996 |
Term Of Agreement | 10 years | 10-15 years |
Term Of Agreement | 10 years | 10-15 years |
Renewal Fee | Same as initial fee | 50% of current franchisee fee |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/Yes | No/Yes |
Receivables | No/Yes | No/No |
Payroll | No/Yes | No/No |
Training & Support |
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Training | On-The-Job Training Classroom Training | On-The-Job Training: 25-30 hours Classroom Training: 40 hours Additional Training: Annual convention |
Support | Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform |
Marketing | Ad Templates National Media SEO Loyalty program/app | Co-op Advertising Ad Templates National Media Social media SEO Website development Email marketing Loyalty program/app |
Operations |
Number of employees needed to run franchised unit: 150 Absentee ownership of franchise is allowed. |
10% of all franchisees own more than one unit Number of employees needed to run franchised unit: 10 - 20 Absentee ownership of franchise is allowed. (70% of current franchisees are owner/operators)
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Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
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.
We'll Leave the Light on for You!
Thanks to one of the most successful ad campaigns in the history of the hotel industry, Motel 6 enjoys strong brand awareness and high guest loyalty. After more than 40 years, Motel 6 is still a true American icon and continues to outperform the competition.
Founded in 1962 in Santa Barbara, California, Motel 6 is synonymous with a great travel value. The first Motel 6 in Santa Barbara still leaves the light on today, but a lot has changed for the motel chain that pioneered the first real economy motel designed for the no-frills traveler.
The original price of a night's stay at Motel 6 was just $6.00, and thus established the brand name for an American classic.
The promise of the lowest price of any national chain and a clean, comfortable room are Motel 6 virtues. Motel 6 is a household name, synonymous with quality and value. It enjoys the highest brand recognition factor of any economy lodging brand.
The brand continues to grow and currently has approximately 1,200 locations with more than 120,000 rooms in the United States and Canada. Part of G6 Hospitality, Motel 6 is the largest owned and operated hotel chain in North America.