How many HOMETOWNE STUDIOS BY RED ROOF franchise locations are there?

As of the 2026 FDD, HOMETOWNE STUDIOS BY RED ROOF has 53 franchise locations. The company has been franchising since 2018.

Can you get an SBA loan for a HOMETOWNE STUDIOS BY RED ROOF franchise?

Yes, SBA loans are available for HOMETOWNE STUDIOS BY RED ROOF franchises. We have historical SBA 7(a) loan data on file including approval counts, average loan amounts, and default rates. Get full access to see the complete SBA loan history.

Is HOMETOWNE STUDIOS BY RED ROOF a good franchise to buy?

HOMETOWNE STUDIOS BY RED ROOF shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

HOMETOWNE STUDIOS BY RED ROOF

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FDD Year:

HomeTowne Studios, LLC franchises economy extended-stay hotels under brands like HomeTowne Studios by Red Roof, HomeTowne Studios & Suites by Red Roof, HomeTown Inn, and HomeTowne Inn, offering guest rooms with kitchenettes, on-site laundry, free Wi-Fi, vending, and business centers for extended stays, temporary housing, or transient visits. Franchisees can develop new builds or convert existing hotels, with options for dual-brand facilities alongside Red Roof Inn, following standardized designs and operations. The business model targets budget travelers in the extended-stay lodging market through franchise fees, royalties, and brand support.

Locations

$11734K–$14457K

Investment

Since 2018

Franchising

Download FDD

FDD Year:

ServicesNew Albany, OHRed Roof Franchising, LLCwww.redrooffranchising.comDisclaimer

Franchise Costs

Franchise Fee

$30,000

Item 5 of FDD

Initial Investment Range

$11,734,393 – $14,457,291

Low: $11,734,393High: $14,457,291

Item 7 of FDD

Royalty Rate

5.50%

of gross sales

Brand Fund

3.00%

Item 6 of FDD

Fixed Monthly Fees

$1,092 – $1,217

Item 6 of FDD

5.5% royalty + 3% marketing and reservation fee + $490/mo PMS fee plus $3.85 per room/mo + $125-$250/mo RediResponse fee

Financial Performance

Item 19 Financial Performance

Data Based On: 51 franchised Hotels open and operating for at least one year for the period of January 1, 2025 through December 31, 2025.

* The document provides performance metrics (Daily Room Rate, Occupancy Rate, RevPAR, Brand Contribution) for franchised hotels, rather than the total gross revenue or profit figures for an entire franchise unit. RevPAR is defined as 'revenue generated per day from each available room', not total unit revenue. Therefore, average_gross_revenue, median_gross_revenue, revenue_top_quartile, revenue_bottom_quartile, and all profit-related fields are set to null as per the specific definitions required.

Extracted Item 19 Section

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How HOMETOWNE STUDIOS BY RED ROOF Compares

Key Insights

#2 largest franchise system in Extended Stay
One of the lowest SBA loan default rates in Extended Stay

Franchise	Investment	Fee	Royalty	Locations
HOMETOWNE STUDIOS BY RED ROOF Current	$11.7M – $14.5M	$30K	5.5%	53
HAWTHORN SUITES HOTELS AND HAWTHORN SUITES	$12.3M – $14.3M	$40K	5.5%	71
Hyatt Studios	$12.0M – $21.5M	$50K	5.0%	45
GRANDSTAY RESIDENTIAL SUITES	$125K – $24.2M	$35K	5.0%	30
AFFORDABLE SUITES OF AMERICA	$193K – $1.8M	$35K	5.0%	18
stayAPT	$7.5M – $12.9M	$40K	5.0%	9
Extended Stay Average 8 franchises	$8.7M – $15.6M	$39K	5.2%	–

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 8 Extended Stay franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2025)

Outlets by state across the United States

Top States

1TX

2MI

3GA

4NJ

5PA

6NY

7VA

8AL

9CA

10IL

11FL

12KY

13SC

14CT

15NC

+4 more states

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SBA Loan History

Historical SBA 7(a) loan data for HOMETOWNE STUDIOS BY RED ROOF franchisees (2021 – 2025)

Total Loans

Average Loan

$3,090,480

Total Volume

$30.9M

Default Rate

0.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

10 SBA loans on record

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Franchisee Contacts

63 franchisee contacts on file from official FDD filings.

63 Contacts Available

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Due Diligence

Litigation (Item 3)

Franchisee Cases0

No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryYes

General Counsel Gerrod Bede's prior employer, ASTECH Engineered Products, Inc., filed Chapter 11 on July 15, 2022; plan of liquidation confirmed May 20, 2024; case closed January 2, 2026.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations

Non-Renewals

Reacquired

Ceased Ops

Transfers

Sold to Franchisees

N/A

Projected New

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Frequently Asked Questions

The total initial investment to open a HOMETOWNE STUDIOS BY RED ROOF franchise ranges from $11,734,393 to $14,457,291. This includes a franchise fee of $30,000. Ongoing royalty fees are 5.5% of gross sales.