Red Carpet Inn
Hospitality International, Inc. franchises budget hotels under the Red Carpet Inn brand, among others, as part of a nationwide network connected by a central reservation system and promoted through national and regional advertising. Franchisees operate affordable hotels targeting price-sensitive travelers, often required to provide a restaurant serving breakfast or a free continental breakfast to guests. The business model involves initial franchise fees ranging from $10,000, monthly fixed fees per room, reservation fees, and other ongoing charges to the franchisor.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
$25 per room/mo royalty + $15 per room/mo marketing fund + $35/mo education and meeting fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
How Red Carpet Inn Compares to Other Hotels Franchises
Key Insights
- Lower investment than 88% of Hotels franchises
- Lower than average SBA loan default rate in Hotels
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
Red Carpet Inn Current | $134K - $531K | $10K | N/A | 201 |
| QUALITY INN | $317K - $2.0M | $45K | 5.3% | 1,621 |
| SUPER 8 | $4.7M - $6.9M | $25K | 5.5% | 1,375 |
| DAYS INN, DAYS HOTEL AND DAYS INN & SUITES | $7.6M - $9.4M | $35K | 5.5% | 1,235 |
| LA QUINTA INN & SUITES | $12.8M - $17.2M | $55K | 5.5% | 884 |
| RED ROOF PLUS AND SUITES | $7.3M - $8.9M | $27K | 5.0% | 584 |
Hotels Average 33 franchises | $8.1M - $18.5M | $46K | 5.2% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 33 Hotels franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+26 more states
SBA Loan History
Historical SBA 7(a) loan data for Red Carpet Inn franchisees (2010 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Red Carpet Inn franchise?
The total initial investment to open a Red Carpet Inn franchise ranges from $134,195 to $531,295. This includes a franchise fee of $10,000.
How many Red Carpet Inn franchise locations are there?
As of the 2025 FDD, Red Carpet Inn has 201 franchise locations. The company has been franchising since 1977.
Can you get an SBA loan for a Red Carpet Inn franchise?
Yes, SBA loans are available for Red Carpet Inn franchises. Historical data shows 30 SBA 7(a) loans have been approved for Red Carpet Inn franchisees, with an average loan amount of $1,371,247. The historical default rate is 10.0%.
Is Red Carpet Inn a good franchise to buy?
Red Carpet Inn shows several positive indicators: established brand with 201+ locations. 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.
Interested in Red Carpet Inn?
Talk to a franchise advisor to get personalized guidance and learn if Red Carpet Inn is the right fit for you.
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