|
Below is an in-depth analysis and side-by-side comparison of Motel 6 vs Red Lion Hotels and Inns including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
||
Investment | $206,850 - $8,823,850 | $8,431,750 - $36,598,000 |
Franchise Fee | $25,000 - $35,000 | $40,000 - $75,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | 3.5% | 3.5% |
Year Founded | 1962 | 1959 |
Year Franchised | 1996 | 1999 |
Term Of Agreement | 10-15 years | - |
Term Of Agreement | 10-15 years | - |
Renewal Fee | 50% of current franchisee fee | - |
Business Experience Requirements |
||
Experience | - | |
Financing Options |
||
In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | Yes/- |
Inventory | No/Yes | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
||
Training | On-The-Job Training: 25-30 hours Classroom Training: 40 hours Additional Training: Annual convention | On-The-Job Training: Optional Classroom Training: Optional |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations 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 | Co-op Advertising Ad Templates National Media Social media SEO Website development Email marketing Loyalty program/app | Ad Templates National Media Regional Advertising 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 |
||
US Expansion | - | Yes |
Canada Expansion | No | - |
International Expansion | Yes | Yes |
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.
Results Oriented. Growth Driven.
With over 50 properties open or under development, Red Lion has positioned itself for sustainable growth. Important to the chain's lasting success is the redefinition of brand segmentation and strengthened brand identity for both Red Lion Hotels and Red Lion Inns & Suites, along with the addition of the Leo Hotel Collection, a collection of unique, boutique, historic and/or destination hotels.
Publicly traded on the NYSE (RLH), Red Lion is an owner, operator and franchisor. Red Lion grew out of the Pacific Northwest with historic roots dating back more than 50 years and is showing hotel owners how they can tap into their deep experience.
More hoteliers are finding that franchise partners with skin in the game truly have their franchisees' return on investment in mind. As owners, Red Lion never asks their franchisees to do anything that as a company they would not do for their own properties. The biggest benefit for hotel owners is the ability to plug their properties into a finely tuned franchise system that offers franchisees the highest level of support including access to industry leading technology, business intelligence and revenue management systems.
With a keen eye on the market, Red Lion's new consumer website creates direct interaction with guests, offers local experiences and provides an improved booking engine. The locally inspired experience carries through to the service culture at the property and brings the website's local focus full circle, creating a impactful point of differentiation that helps build guest loyalty.