Red Roof Inn vs InterContinental Hotels Group Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs InterContinental Hotels Group including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Red Roof Inn Franchise
InterContinental Hotels Group Franchise
Investment $203,500 - $5,456,700$70,494,125 - $103,087,610
Franchise Fee $30,000$75,000
Royalty Fee 4.5%5%
Advertising Fee 4%(Marketing & Reservation Fee)-
Year Founded 19671952
Year Franchised 19961954
Term Of Agreement 20 yearsVaries; avg. 10 years
Term Of Agreement 20 yearsVaries; avg. 10 years
Renewal Fee 50% of current franchise feeVaries


Business Experience Requirements
 
Red Roof Inn Franchise
InterContinental Hotels Group Franchise
Experience
  • General business experience
    		• -

    Financing Options
     
    Red Roof Inn Franchise
    InterContinental Hotels Group Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/YesNo/Yes
    Receivables No/YesNo/Yes
    Payroll No/YesNo/Yes

    Training & Support
     
    Red Roof Inn Franchise
    InterContinental Hotels Group Franchise
    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 PlatformMeetings/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/appCo-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)

    		 1% of all franchisees own more than one unit

    Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators)

    Expansion Plans
     
    Red Roof Inn Franchise
    InterContinental Hotels Group Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesYes

    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.

    "Entrepreneur

    #66 in Franchise 500 for 2020.
    #134 in Franchise 500 for 2021.


    About InterContinental Hotels Group

    InterContinental Hotels Group is a leading global hospitality group, with more than 3,500 hotels and 534,000 guest rooms across nearly 100 countries and territories. Every year more than 120 million people find a welcome at one of our lodging brands.

    ""  

    "Entrepreneur
    #483 in Franchise 500 for 2020.