Motel 6 vs InterContinental Hotels Group Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Motel 6 vs InterContinental Hotels Group including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Motel 6 Franchise
InterContinental Hotels Group Franchise
Investment $206,850 - $8,823,850$70,494,125 - $103,087,610
Franchise Fee $25,000 - $35,000$75,000
Royalty Fee 5%5%
Advertising Fee 3.5%-
Year Founded 19621952
Year Franchised 19961954
Term Of Agreement 10-15 yearsVaries; avg. 10 years
Term Of Agreement 10-15 yearsVaries; avg. 10 years
Renewal Fee 50% of current franchisee feeVaries


Business Experience Requirements
 
Motel 6 Franchise
InterContinental Hotels Group Franchise
Experience
  • General business experience
    		• -

    Financing Options
     
    Motel 6 Franchise
    InterContinental Hotels Group 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/NoNo/Yes
    Payroll No/NoNo/Yes

    Training & Support
     
    Motel 6 Franchise
    InterContinental Hotels Group Franchise
    Training On-The-Job Training: 25-30 hours Classroom Training: 40 hours Additional Training: Annual convention 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 Social media SEO Website development Email marketing Loyalty program/appCo-op advertising, Ad slicks, National media, Regional advertising
    Operations 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)

    		 1% of all franchisees own more than one unit

    Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators)

    Expansion Plans
     
    Motel 6 Franchise
    InterContinental Hotels Group Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Motel 6

    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.

    Franchisor is seeking new franchise units throughout the U.S. and  Asia, Canada, Central America, Mexico and South America

    The total investment necessary to begin operation of a newly constructed 100 room Motel 6 Motel (excluding land acquisition costs) is $6,891,850 to $8,823,850 and a conversion 100 room Motel 6 Motel (excluding land acquisition costs) is $206,850 to $2,106,050. This includes $33,850 in fixed pre-opening fees, which must be paid to the franchisor or their affiliates.
    Veteran Incentives  $1,500 for training
    "Entrepreneur
    #96 in Franchise 500 for 2020.
    #197 in Franchise 500 for 2021.




    About InterContinental Hotels Group

    InterContinental Hotels Group is a leading global hospitality group, with more than 3,500 hotels and 534,000 guest rooms across nearly 100 countries and territories. Every year more than 120 million people find a welcome at one of our lodging brands.

    ""  

    "Entrepreneur
    #483 in Franchise 500 for 2020.