Motel 6 vs GUESTHOUSE Franchise Comparison

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

Start-Up Costs and Fees
 
Motel 6 Franchise
GUESTHOUSE Franchise
Investment $206,850 - $8,823,850$118,000 - $1,918,500
Franchise Fee $25,000 - $35,000$15,000
Royalty Fee 5%3%year1, 3.5%thereafter
Advertising Fee 3.5%1.5%
Year Founded 19621987
Year Franchised 19961987
Term Of Agreement 10-15 years10 years, 5 years thereafter
Term Of Agreement 10-15 years10 years, 5 years thereafter
Renewal Fee 50% of current franchisee fee-


Business Experience Requirements
 
Motel 6 Franchise
GUESTHOUSE Franchise
Experience
  • General business experience
    		• -

    Financing Options
     
    Motel 6 Franchise
    GUESTHOUSE Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/Yes-/-
    Start-up Costs No/Yes-/-
    Equipment No/Yes-/-
    Inventory No/Yes-/-
    Receivables No/No-/-
    Payroll No/No-/-

    Training & Support
     
    Motel 6 Franchise
    GUESTHOUSE Franchise
    Training On-The-Job Training: 25-30 hours Classroom Training: 40 hours Additional Training: Annual convention -
    Support Purchasing Co-ops Newsletter 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 Social media SEO Website development Email marketing Loyalty program/app-
    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)

    		-

    Expansion Plans
     
    Motel 6 Franchise
    GUESTHOUSE Franchise
    US Expansion --
    Canada Expansion NoNo
    International Expansion YesNo

    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 GUESTHOUSE

    GuestHouse International Inns Hotels and Suites evolved from the first GuestHouse Inn & Suites in Little Rock AR in 1987 to become a leading mid-market brand with 70+ properties across America and China. GuestHouse International's most popular standard amenities include complimentary continental breakfast, freshly baked Belgian waffles, 25" remote-controlled TV's with free sports, movie and all news channels, data ports, In-room coffeemakers, free parking, and high speed internet access. The GuestHouse International franchise support system is one of the best in the industry. Franchise Service Managers provide support from initial opening to front desk training to outside sales assistance. Our Brand Assurance team helps property managers maintain the highest possible standards to ensure guest satisfaction and increase success. InnLink Central Reservation Systems (located in GuestHouse Int'l corporate headquarters) delivers GDS, voice and branded reservation services at www.guesthouseintl.com. Guest House International franchise agreements reward success and a true working relationship between owner and franchisor. In December 2006, GuestHouse International was purchased by Settle Inn LLC. In 2005 Settle Inn LLC, working with the AAFD, developed a franchise agreement that has been awarded the most franchise friendly contract in the lodging industry. As with Settle Inn LLC, GuestHouse International is committed to delivering exceptional service to our franchisees.

    The total investment necessary to convert an existing hotel into a 70-room GuestHouse Extended Stay Hotel is $118,000 to $1,918,500. This estimate includes $21,000 to $22,000 that must be paid to the franchisor.
    The total investment necessary for a newly constructed 70-room GuestHouse Extended Stay Hotel is $3,765,500 to $7,369,000, excluding the cost of purchasing or leasing land or any real estate taxes. This estimate includes $21,000 that must be paid to the franchisor.