Red Roof Inn vs Embassy Suites Hotels Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs Embassy Suites Hotels 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 | $17,910,500 - $85,492,500 |
Franchise Fee |
$30,000 | $75,000 |
Royalty Fee |
4.5% | 3.5% - 5.5% |
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
| Classroom Training: 32-38 hours |
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: 75
Absentee ownership of franchise is allowed. |
Expansion Plans |
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.
#66 in Franchise 500 for 2020.
#134 in Franchise 500 for 2021.
About Embassy Suites Hotels
Embassy Suites Hotels is a chain of hotels, which specializes in suite-style rooms.
Owned by Hilton Hotels Corporation, Embassy Suites is an upscale chain of all-suite hotels which are often held in high esteem for their quality, value and service. A hotel test conducted by Consumer Reports gave Embassy Suites the highest rating in satisfaction in the "Upscale" category. All guest rooms of this chain feature a separate living area as well as a sleeping area. Like many hotels, guests can choose from a king sized bed or two double beds. The living area often consists of a sofa bed with matching chairs and a separate television.
Most Embassy Suites hotels have an atrium style layout. The interior of the hotel may have a tropical rain forest setting complete with waterfall, bridges, and a large dining area. One of the key features of Embassy Suites is the "Cooked to Order Breakfast" which is essentially a breakfast buffet, complete with hot food, such as bacon, eggs or omelette's. In the evening, a complimentary "Manager's Reception" is always featured with alcoholic and non-alcoholic drinks for free, minus gratuity.
Embassy Suites' 200+ hotels are mainly in the USA, though others exist in other countries.
#82 in Franchise 500 for 2020.
#133 in Franchise 500 for 2021.