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Updated RecentlyRed Roof Inn vs Homewood Suites by Hilton Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs Homewood Suites by Hilton 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 | $12,337,700 - $25,972,000 |
| Franchise Fee | $30,000 | $75,000 |
| Royalty Fee | 4.5% | 3.5% - 5.5% |
| Advertising Fee | 4%(Marketing & Reservation Fee) | 3.5% |
| Year Founded | 1967 | 1988 |
| Year Franchised | 1996 | 1988 |
| 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 |
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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 | Classroom Training: 141-148 hours Additional Training: At Memphis, TN, corporate office |
| 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/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 Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | 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: 25 Absentee ownership of franchise is allowed. |
Expansion Plans |
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| 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.
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#66 in Franchise 500 for 2020.
#134 in Franchise 500 for 2021.
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
#133 in Franchise 500 for 2020.
#122 in Franchise 500 for 2021.