TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN,
Travelodge Hotels, Inc. franchises economy-segment guest lodging facilities under the Travelodge brand, including Travelodge Inns, Hotels, and Suites, offering clean, comfortable overnight accommodations with basic amenities such as complimentary coffee, free high-speed internet, and optional services like restaurants or meeting spaces. The business model involves licensing the proprietary Travelodge System and Marks to franchisees for operation at single locations, targeting primarily leisure travelers in the competitive hospitality industry. Facilities cater to transient guests seeking affordable, no-frills stays without land acquisition costs included in initial investments.
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
5% royalty + 2% ad fund + $734-$1,050/mo PMS fee + $600/yr continuing education
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 134 Qualified Chain Facilities operated by franchisees, open for the full year 2024 (January 1, 2024 through December 31, 2024), reporting on ADR, Occupancy Rate, and RevPAR.
* The document provides Average and Median RevPAR (Revenue Per Available Room) for Qualified Chain Facilities ($46.26 and $45.00 respectively). However, this metric is 'per available room' and not 'per franchise unit', which is what 'average_gross_revenue' and 'median_gross_revenue' require. No data for net income, net profit, EBITDA, or expense information was found.
Extracted Item 19 Section
How TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, Compares to Other Hotels Franchises
Key Insights
- Top 10 largest franchise system in Hotels
- Lower than average SBA loan default rate in Hotels
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, Current | $6.1M - $11.0M | $35K | 5.0% | 328 |
| 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
+31 more states
SBA Loan History
Historical SBA 7(a) loan data for TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchisees (2010 - 2018)
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)
Primarily breach of contract, recurring fee collection, and liquidated damages disputes with terminated franchisees, some involving counterclaims for fraud, misrepresentation, and franchise law violations.
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 TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchise?
The total initial investment to open a TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchise ranges from $6,101,809 to $10,986,279. This includes a franchise fee of $35,000. Ongoing royalty fees are 5.0% of gross sales.
How many TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchise locations are there?
As of the 2025 FDD, TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, has 328 franchise locations. The company has been franchising since 1996.
Can you get an SBA loan for a TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchise?
Yes, SBA loans are available for TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchises. Historical data shows 82 SBA 7(a) loans have been approved for TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchisees, with an average loan amount of $1,579,888. The historical default rate is 3.7%.
Is TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, a good franchise to buy?
TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, shows several positive indicators: established brand with 328+ locations, 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.
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