Motel 6 vs Home2 Suites Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Motel 6 vs Home2 Suites including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
Motel 6 Franchise
Home2 Suites Franchise
Investment $206,850 - $8,823,850$9,102,300 - $17,456,500
Franchise Fee $25,000 - $35,000$75,000
Royalty Fee 5%5%
Advertising Fee 3.5%3.5%
Year Founded 19622008
Year Franchised 19962009
Term Of Agreement 10-15 years22 years
Term Of Agreement 10-15 years22 years
Renewal Fee 50% of current franchisee feeSame as initial fee


Business Experience Requirements

 
Motel 6 Franchise
Home2 Suites Franchise
Experience
  • General business experience
  • -

    Financing Options

     
    Motel 6 Franchise
    Home2 Suites Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/Yes-/Yes
    Start-up Costs No/Yes-/Yes
    Equipment No/Yes-/Yes
    Inventory No/Yes-/Yes
    Receivables No/No-/Yes
    Payroll No/No-/Yes

    Training & Support

     
    Motel 6 Franchise
    Home2 Suites Franchise
    Training On-The-Job Training: 25-30 hours Classroom Training: 40 hours Additional Training: Annual convention On-The-Job Training: 1 hour Classroom Training: Varies
    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/appCo-op Advertising 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)

    Number of Employees Required to Run: 30

    Expansion Plans

     
    Motel 6 Franchise
    Home2 Suites Franchise
    US Expansion -Yes
    Canada Expansion NoYes
    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 Home2 Suites

    Home2 Suites by Hilton, one of the fastest-growing brands in the history of Hilton, is a mid-tier, all-suite, award-winning extended-stay hotel concept designed to offer stylish accommodations with flexible guest room configurations and inspired amenities for the cost-conscious guest. With a commitment to environmentally friendly products and hotel operations, Home2 Suites offers complimentary breakfast selections with hundreds of combinations; innovative and customizable guest room designs; laundry and fitness areas; complimentary WiFi; multiple outdoor spaces; 24-hour business centers; expansive community spaces; and pet-friendly environments.

    The total investment necessary to begin operation of a newly constructed 107 suite Home2 Suites by Hilton hotel, excluding real property, is $9,111,295 to $17,474,775, including up to $236,995 that must be paid to the franchisor or their affiliates.

    Veteran Incentives  Varies
    "Entrepreneur
    #113 in Franchise 500 for 2020.
    #43 in Franchise 500 for 2021.