Motel 6 vs Red Lion Hotels and Inns Franchise Comparison

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

 
Motel 6 Franchise
Red Lion Hotels and Inns Franchise
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 19621959
Year Franchised 19961999
Term Of Agreement 10-15 years-
Term Of Agreement 10-15 years-
Renewal Fee 50% of current franchisee fee-


Business Experience Requirements

 
Motel 6 Franchise
Red Lion Hotels and Inns Franchise
Experience
  • General business experience
  • -

    Financing Options

     
    Motel 6 Franchise
    Red Lion Hotels and Inns Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/Yes-/-
    Start-up Costs No/Yes-/-
    Equipment No/YesYes/-
    Inventory No/Yes-/-
    Receivables No/No-/-
    Payroll No/No-/-

    Training & Support

     
    Motel 6 Franchise
    Red Lion Hotels and Inns Franchise
    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 PlatformPurchasing 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/appAd 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

     
    Motel 6 Franchise
    Red Lion Hotels and Inns Franchise
    US Expansion -Yes
    Canada Expansion No-
    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 Red Lion Hotels and Inns

    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.

     Join a growing brand that takes pride in ownership too. Which Red Lion is right for you? If you are an owner of an independent hotel, or have a franchise agreement about to expire and would like to review franchise Opportunities, please contact: Mike Castro, Vice President Brand Services Red Lion Hotels Corporation 201 W North River Dr., Suite 100, Spokane, WA 99201 509-777-6326 (office) 509-464-9896 (mobile) 509-325-7324 (fax) [email protected] Steve KrebsSteve Krebs, Director, Lodging Development Red Lion Hotels Corporation 201 W North River Dr., Suite 100, Spokane, WA 99201 505-306-0073 (mobile) 509-325-7324 (fax) [email protected]

    The total investment necessary to begin operation of a 125-room Red Lion Inn & Suites Hotel with a minimal food and beverage offering is estimated to range between $8,431,750 to $12,448,000 for new development and $586,500 to $2,709,000 for conversion hotels. These amounts include $65,500 to $89,500 that must be paid to the franchisor. These amounts do not include the cost of purchasing or leasing land or any real estate taxes.
    The total investment necessary to begin operation of a 250-room full service Red Lion Hotel, including meeting space and catering service, is estimated to range between $28,594,750 to $36,598,000 for new development and $1,091,500 to $4,562,000 for conversion hotels. These amounts include $105,500 to $129,500 that must be paid to the franchisor. These amounts do not include the cost of purchasing or leasing land or any real estate taxes.