Homewood Suites by Hilton vs Suburban Franchise Comparison

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

Start-Up Costs and Fees

 
Homewood Suites by Hilton Franchise
Suburban Franchise
Investment $12,337,700 - $25,972,000$149,175 - $8,513,044
Franchise Fee $75,000$30,000
Royalty Fee 3.5% - 5.5%4%
Advertising Fee 3.5%-
Year Founded 19881986
Year Franchised 19881989
Term Of Agreement 20 years10 years
Term Of Agreement 20 years10 years
Renewal Fee Same as initial fee$30K or $225/room


Business Experience Requirements

 
Homewood Suites by Hilton Franchise
Suburban Franchise
Experience
  • Industry experience
  • General business experience

  • General business experience

  • Financing Options

     
    Homewood Suites by Hilton Franchise
    Suburban Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/YesNo/No
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support

     
    Homewood Suites by Hilton Franchise
    Suburban Franchise
    Training Classroom Training: 141-148 hours Additional Training: At Memphis, TN, corporate office-
    Support Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet PlatformNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/appCo-op advertising, Ad slicks, Regional advertising
    Operations

    Number of employees needed to run franchised unit: 25

    Absentee ownership of franchise is allowed.

    80% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 6 - 10

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)


    Expansion Plans

     
    Homewood Suites by Hilton Franchise
    Suburban Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About Homewood Suites by Hilton

    Make Yourself At Home. Investing in Homewood Suites by Hilton gives you the opportunity to capture your own piece of one of the fastest-growing segments in the hotel industry. When you develop with us, you get the upscale position in the extended-stay market backed by the power of the Hilton name.
    When you develop a Homewood, you're not just developing a hotel, but a relationship with the entire Hilton Family of Hotels. Advantages like our friendly corporate staff, central reservations system and award-winning Hilton HHonors guest reward program make this a brand you'll want to stay with for a long time.

    Franchisor is seeking new franchise units throughout the U.S. , Canada and Mexico    

    Veteran Incentives  Varies
    "Entrepreneur
    #133 in Franchise 500 for 2020.
    #122 in Franchise 500 for 2021.


    About Suburban

    Suburban Extended Stay Hotel is Choice Hotels International's economy brand in one of the most desirable hotel segments today-extended stay. Suburban provides a simple solution for longer-term housing that's as pleasant as it is affordable. Value-conscious guests looking to stay for a day, a week, a month or longer enjoy just the right hotel amenities including well-equipped kitchens in all the rooms, weekly housekeeping, guest laundry, free cable TV and high speed Internet service. The flexible floor plan concept allows for conversions, easily adopting local market-driven design, guest room mix and suitable extended stay guest room features, along with an optional fitness center, meeting space or swimming pool.

    In 2015, Suburban brand hotels received an average of 63.6% of gross room revenue through the Choice Hotels Central Reservations System (CRS) and other Choice Hotels marketing channels.

    Suburban Extended Stay Hotel franchise is supported by a nationwide team of Area Directors (AD's) who provide local market assessments, pricing and rate structure support, and operational training. Dedicated, Extended Stay sales training provides the skills necessary to compete effectively in the local market. This support makes sure your hotel adheres to the extended stay business model for optimal performance.