TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN,

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.

328
Locations
$6102K–$10986K
Investment
Since 1996
Franchising
Hospitality & LodgingParsippany, NJWyndham Hotels & Resorts, Inc.development.wyndhamhotels.comDisclaimer

Franchise Costs


Franchise Fee
$35,000
Item 5 of FDD
Initial Investment Range
$6,101,809 $10,986,279
Low: $6,101,809High: $10,986,279
Item 7 of FDD
Royalty Rate
5.00%
of gross sales
Brand Fund
2.00%
Item 6 of FDD
Fixed Monthly Fees
$734 – $1,050
Item 6 of FDD

5% royalty + 2% ad fund + $734-$1,050/mo PMS fee + $600/yr continuing education

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


Key Insights

  • Top 10 largest franchise system in Hotels
  • Lower than average SBA loan default rate in Hotels
FranchiseInvestmentFeeRoyaltyLocations
TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN,
Current
$6.1M – $11.0M$35K5.0%328
QUALITY INN$317K – $2.0M$45K5.3%1,621
SUPER 8$4.7M – $6.9M$25K5.5%1,375
DAYS INN, DAYS HOTEL AND DAYS INN & SUITES$7.6M – $9.4M$35K5.5%1,235
LA QUINTA INN & SUITES$12.8M – $17.2M$55K5.5%884
RED ROOF PLUS AND SUITES$7.3M – $8.9M$27K5.0%584
Hotels Average
34 franchises
$7.8M – $18.0M$46K5.2%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 34 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

Top States
1CA
56
2TX
20
3MI
16
4FL
13
5NM
13
6OR
12
7WY
11
8GA
11
9VA
11
10AZ
10
11CO
9
12IN
9
13TN
8
14OH
8
15MT
7

+31 more states

SBA Loan History


Historical SBA 7(a) loan data for TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchisees (20102018)

Total Loans
82
Average Loan
$1,579,888
Total Volume
$129.6M
Default Rate
3.7%

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.

Franchisee Contacts


376 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

376 Contacts Available

Unlock all TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases4

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)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
24
Non-Renewals
24
Reacquired
0
Ceased Ops
24
Transfers
9
Sold to Franchisees
0
Projected New
N/A

Frequently Asked Questions


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.

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Also includes FDDs for

QUALITY INN
QUALITY INN
SUPER 8
SUPER 8
DAYS INN, DAYS HOTEL AND DAYS INN & SUITES
DAYS INN, DAYS HOTEL AND DAYS INN & SUITES
LA QUINTA INN & SUITES
LA QUINTA INN & SUITES
RED ROOF PLUS AND SUITES
RED ROOF PLUS AND SUITES
+1,700 more