Suburban vs Home2 Suites Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Suburban vs Home2 Suites including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Suburban Franchise
Home2 Suites Franchise
Investment $149,175 - $8,513,044$9,102,300 - $17,456,500
Franchise Fee $30,000$75,000
Royalty Fee 4%5%
Advertising Fee -3.5%
Year Founded 19862008
Year Franchised 19892009
Term Of Agreement 10 years22 years
Term Of Agreement 10 years22 years
Renewal Fee $30K or $225/roomSame as initial fee


Business Experience Requirements
 
Suburban Franchise
Home2 Suites Franchise
Experience
  • General business experience
    		• -

    Financing Options
     
    Suburban Franchise
    Home2 Suites Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/No-/Yes
    Start-up Costs No/No-/Yes
    Equipment No/No-/Yes
    Inventory No/No-/Yes
    Receivables No/No-/Yes
    Payroll No/No-/Yes

    Training & Support
     
    Suburban Franchise
    Home2 Suites Franchise
    Training -On-The-Job Training: 1 hour Classroom Training: Varies
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperativesPurchasing Co-ops 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 slicks, Regional advertisingCo-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations 80% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 6 - 10

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

    		 Number of Employees Required to Run: 30

    Expansion Plans
     
    Suburban Franchise
    Home2 Suites Franchise
    US Expansion YesYes
    Canada Expansion NoYes
    International Expansion NoNo

    Company Overviews

    About Suburban

    Suburban Extended Stay Hotel is Choice Hotels International's economy brand in one of the most desirable hotel segments today-extended stay. Suburban provides a simple solution for longer-term housing that's as pleasant as it is affordable. Value-conscious guests looking to stay for a day, a week, a month or longer enjoy just the right hotel amenities including well-equipped kitchens in all the rooms, weekly housekeeping, guest laundry, free cable TV and high speed Internet service. The flexible floor plan concept allows for conversions, easily adopting local market-driven design, guest room mix and suitable extended stay guest room features, along with an optional fitness center, meeting space or swimming pool.

    In 2015, Suburban brand hotels received an average of 63.6% of gross room revenue through the Choice Hotels Central Reservations System (CRS) and other Choice Hotels marketing channels.

    Suburban Extended Stay Hotel franchise is supported by a nationwide team of Area Directors (AD's) who provide local market assessments, pricing and rate structure support, and operational training. Dedicated, Extended Stay sales training provides the skills necessary to compete effectively in the local market. This support makes sure your hotel adheres to the extended stay business model for optimal performance.

    About Home2 Suites

    Home2 Suites by Hilton, one of the fastest-growing brands in the history of Hilton, is a mid-tier, all-suite, award-winning extended-stay hotel concept designed to offer stylish accommodations with flexible guest room configurations and inspired amenities for the cost-conscious guest. With a commitment to environmentally friendly products and hotel operations, Home2 Suites offers complimentary breakfast selections with hundreds of combinations; innovative and customizable guest room designs; laundry and fitness areas; complimentary WiFi; multiple outdoor spaces; 24-hour business centers; expansive community spaces; and pet-friendly environments.

    The total investment necessary to begin operation of a newly constructed 107 suite Home2 Suites by Hilton hotel, excluding real property, is $9,111,295 to $17,474,775, including up to $236,995 that must be paid to the franchisor or their affiliates.

    Veteran Incentives  Varies
    "Entrepreneur
    #113 in Franchise 500 for 2020.
    #43 in Franchise 500 for 2021.