Motel 6 vs Trademark Collection Hotel Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Motel 6 vs Trademark Collection Hotel 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 | $198,558 - $12,854,531 |
Franchise Fee |
$25,000 - $35,000 | N/A |
Royalty Fee |
5% | - |
Advertising Fee |
3.5% | - |
Year Founded |
1962 | 2017 |
Year Franchised |
1996 | 2017 |
Term Of Agreement |
10-15 years | - |
Term Of Agreement |
10-15 years | - |
Renewal Fee |
50% of current franchisee fee | - |
Business Experience Requirements |
Experience |
General business experience | - |
Financing Options |
|
In-House/3rd Party | In-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 |
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 |
US Expansion |
- | Yes |
Canada Expansion |
No | Yes |
International Expansion |
Yes | Yes |
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
#96 in Franchise 500 for 2020.
#197 in Franchise 500 for 2021.
About Trademark Collection Hotel
Trademark Collection by Wyndham is the Company's fastest-growing
brand, and experienced a 19% growth in rooms year-over-year as of December 31,
2019. The growth comes at a time when soft brands have strong appeal
for independent owners seeking the support of a branded partner as the
travel industry prepares for recovery of domestic, leisure travel. With
Trademark Collection, hoteliers gain access to Wyndham's 83 million
Wyndham Rewards loyalty members and the company's global distribution
network without having to sacrifice their properties' own unique
branding and identities. As a leader in economy and midscale lodging,
Wyndham is uniquely positioned to champion hoteliers in these segments,
helping them compete in an ever-changing distribution environment with
brand-backed support. With over 15,000 independent economy and
midscale hotels in the U.S., converting independent hotels to Wyndham
brands remains an important source of consistent rooms. Wyndham has a
proven track record of growing net rooms during lodging cycle downturns,
fueled by the strong value proposition across its portfolio of
well-known brands. In the first quarter, Wyndham's conversion pipeline
increased 8% globally year-over-year.
The success
of its owner base is critical to Wyndham's business, and the Company is
taking an owner-first approach to endurance and recovery in the wake of
COVID-19 crisis. Wyndham is assisting owners by suspending certain
fees, providing payment relief and deferring property improvement plans
for nonessential brand standards in an effort to reduce operating costs
in the near term while the industry recovers. The Company also took
efforts to secure government assistance for franchisees, partnering with
industry organizations to advocate on their behalf while guiding them
through available relief, like the CARES act.
To support its
franchisees as travel picks up again, Wyndham previously announced a
long-term, multi-faceted initiative in the U.S. to build confidence
among guests. The initiative, dubbed "Count on UsSM" will
immediately focus on further elevating health and safety protocols at
Wyndham hotels in the wake of COVID-19, shoring up critical supply
chains and introducing new standards, training and guidelines grounded
in guidance from the U.S. Centers for Disease Control and Prevention.
Wyndham has also expanded its relationship with industry leader Ecolab
on requiring consistent use of Ecolab's EPA-approved disinfectants in
guestrooms and public spaces nationwide.
The total investment necessary to begin operation of a typical 100
room Trademark Collection hotel for a new construction project ranges
from $8,087,199 to $12,854,531.
The total investment necessary to begin
operation of a typical 100 room Trademark Collection hotel if you
already own a facility ranges from $198,558 to $4,409,581. Land
acquisition costs are not included in these ranges. The above amounts
include a range of $43,400 to $74,725 that must be paid to the
Franchisor or its affiliate(s).