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Updated RecentlyRed Roof Inn vs Hilton Garden Inn Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs Hilton Garden Inn including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $203,500 - $5,456,700 | $13,045,500 - $27,123,500 |
| Franchise Fee | $30,000 | $75,000 |
| Royalty Fee | 4.5% | 5.5% |
| Advertising Fee | 4%(Marketing & Reservation Fee) | 4% |
| Year Founded | 1967 | 1996 |
| Year Franchised | 1996 | 1996 |
| Term Of Agreement | 20 years | 22 years |
| Term Of Agreement | 20 years | 22 years |
| Renewal Fee | 50% of current franchise fee | Same as initial fee |
Business Experience Requirements |
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| Experience | ||
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/Yes | No/Yes |
| Start-up Costs | No/Yes | No/Yes |
| Equipment | No/Yes | No/Yes |
| Inventory | No/Yes | No/Yes |
| Receivables | No/Yes | No/Yes |
| Payroll | No/Yes | No/Yes |
Training & Support |
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| Training | On-The-Job Training: Varies Classroom Training: 40 hours Additional Training: Regional workshops | On-The-Job Training Classroom Training |
| 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 Site Selection Proprietary Software Franchisee Intranet Platform |
| Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
| Operations |
Number of Employees Required to Run: 10 10% of all franchisees own more than one unit
Absentee ownership of franchise is allowed. (60% of current franchisees are owner/operators) |
Number of employees needed to run franchised unit: 35 - 50
Absentee ownership of franchise is allowed.
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Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | No |
| International Expansion | Yes | Yes |
Company Overviews
About Red Roof Inn
Congratulations! You have made the first step in learning more about how you can join the Red Roof family. Here you will learn how you're making a smart decision by choosing to become a Red Roof franchisee.
A Smart-By-Design Franchise Opportunity,
A Red Roof franchise has been an extraordinarily positive experience from almost all standpoints; customer service, design help, purchasing efficiencies, brand loyalty and, most importantly, reservations. The brand has consistently performed extremely well in good and bad economic times and often punched above its weight and rate. Brand changes are always done by considering franchisee needs while ensuring the customer gets the most value for their money. The company has also been very adaptive changing customer demographics and has adapted both its physical plant and virtual image to appeal to a broad cross section of travelers.
98% of current Red Roof franchisees would recommend a Red Roof franchise to other entrepreneurs.
Red Roof is securely positioned in the upper-end of the economy segment with RevPARs currently averaging 21% higher than competing economy hotels in the markets in which we compete. Our Smart-by-Design approach to franchising is evident in everything we do, from exciting new prototypes and conversion plans to day-to-day operations training. We focus on the details that keep our guests coming back and our franchisees successful.
With a seasoned management team and a focus on the success of one outstanding brand, Red Roof is truly redesigned and rededicated to become the best franchise opportunity in the economy segment.
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#66 in Franchise 500 for 2020.
#134 in Franchise 500 for 2021.
About Hilton Garden Inn
Hilton Garden Inn is an upscale mid-priced, focused-service hotel concept. Through extensive research, Hilton has designed a hotel product that delivers just what guests need, and eliminates what they've said they don't use. Hilton Garden Inn, targeted toward the individual business traveler and the weekend leisure segment, is designed to provide the finest quality of essential services and amenities and eliminates the costly trappings of large-scale properties. It's a hotel that's value-engineered from the ground up and dedicated to guest comfort.
When you develop a Hilton Garden Inn hotel, 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, worldwide sales organization and award-winning Hilton HHonors guest loyalty to the Hilton Garden Inn brand, as more and more hotels open throughout North America.
Veteran Incentives Varies
#133 in Franchise 500 for 2020.
#89 in Franchise 500 for 2021.