Red Roof Inn vs Hampton Inn/Hampton Inn & Suites Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs Hampton Inn/Hampton Inn & Suites including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$203,500 - $5,456,700 | $7,662,800 - $20,306,500 |
Franchise Fee |
$30,000 | $75,000 |
Royalty Fee |
4.5% | 6% |
Advertising Fee |
4%(Marketing & Reservation Fee) | 4% |
Year Founded |
1967 | 1983 |
Year Franchised |
1996 | 1984 |
Term Of Agreement |
20 years | 20 years |
Term Of Agreement |
20 years | 20 years |
Renewal Fee |
50% of current franchise fee | Same as initial fee |
Business Experience Requirements |
Experience |
General business experience | Industry experience General business experience |
Financing Options |
|
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 |
Training |
On-The-Job Training: Varies
Classroom Training: 40 hours
Additional Training: Regional workshops
| - |
Support |
Purchasing Co-ops
Newsletter
Meetings/Conventions
Toll-Free Line
Grand Opening
Online Support
Security/Safety Procedures
Field Operations
Proprietary Software
Franchisee Intranet Platform | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing |
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social media
SEO
Website development
Email marketing
Loyalty program/app | Co-op advertising, Ad slicks, National media, Regional advertising |
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: 25
Absentee ownership of franchise is allowed. |
Expansion Plans |
US Expansion |
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.
#66 in Franchise 500 for 2020.
#134 in Franchise 500 for 2021.
About Hampton Inn/Hampton Inn & Suites
The first Hampton Inn opened in Memphis, Tennessee in 1984. Hampton Inn
was the first mid-price national hotel chain to begin offering a free
continental breakfast and free local phone calls. In 1995, the Hampton
brand introduced Hampton Inn & Suites, which consisted of two-room
suite hotel rooms with living rooms and kitchen areas. In 1999, Hampton Inn was acquired by Hilton Worldwide, which has hotels in more than 90 countries.
Hampton hotels offer a 100% guarantee. If guests are not completely happy with the clean rooms and friendly service, Hampton Hotels vows to refund the cost of the stay.
Franchisees of Hampton Hotels will not only be aligning with a leading, emerging brand in the hotel industry, but also the parent company of Hilton Worldwide, which has a proven, dominant track record in the hotel industry. Franchisees have the peace of mind that many successful people will be behind them to support their business endeavors.
#19 on Franchise Rankings.com
#30 in Franchise 500 for 2020.
#24 in Franchise 500 for 2021.