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HOMETOWNE STUDIOS BY RED ROOF
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.
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Franchise Costs
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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Unlock financial performance dataHow 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 |
| GRANDSTAY RESIDENTIAL SUITES | $125K – $24.2M | $35K | 5.0% | 32 |
| AFFORDABLE SUITES OF AMERICA | $193K – $1.8M | $35K | 5.0% | 18 |
| stayAPT | $7.5M – $12.9M | $40K | 5.0% | 9 |
| ECHO SUITES, ECHO SUITES EXTENDED STAY BY WYNDHAM | $11.5M – $17.3M | $35K | 5.5% | 5 |
Extended Stay Average 9 franchises | $8.0M – $15.2M | $39K | 5.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 9 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
+4 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for HOMETOWNE STUDIOS BY RED ROOF franchisees (2021 – 2025)
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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Unlock SBA loan historyFranchisee Contacts
63 franchisee contacts on file from official FDD filings.
63 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
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
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Unlock due diligence reportsFrequently 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.
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