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.
Franchise Costs
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
| Franchise | Investment | 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 34 franchises | $7.8M – $18.0M | $46K | 5.2% | – |
* 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
+31 more states
SBA Loan History
Historical SBA 7(a) loan data for TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, franchisees (2010 – 2018)
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.
| Name | SBA 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)
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)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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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