2026 Guide•47 franchises analyzed
Hotel franchise investments range from under $100K for budget conversions to $100M+ for full-service properties. The FDD shows whether that investment makes sense.
Best Hotel Franchises to Own in 2026
Hotel franchise investments range from under $100K for budget conversions to $100M+ for full-service properties. The FDD shows whether that investment makes sense.
Hotel franchising is a different game than quick-service or retail. You're not buying a turnkey business. You're licensing a flag (brand) for a property you develop or acquire. Marriott, Hilton, and IHG dominate, but each brand within those families has different requirements, fee structures, and performance standards.
We analyzed 47 hotel franchise FDDs to compare what matters: brand fees, required property investment, performance standards that can trigger termination, and actual RevPAR data where disclosed.
Data source: 2025 FDD filings · 47 franchises analyzed · Updated January 2026
Key Findings from FDD Analysis
47
hotel franchises analyzed
$8.1M - $18.5M
avg. investment
$53K
avg. franchise fee
$2.7M
avg. revenue (Item 19)
How We Ranked These Hotel franchises
This page ranks hotel franchises by total locations and reported RevPAR from Item 19 where disclosed. Hotel franchising differs from other categories—you're licensing a flag for a property you develop or acquire. Fees include royalty, marketing, and reservation system charges that vary by brand tier.
Top Hotel franchises at a Glance
Ranked by Number of Locations
| Franchise | Investment | Fee | Locations | Revenue |
|---|---|---|---|---|
| QUALITY INN | $317K - $2.0M | $45K | 1,621 | - |
| SUPER 8 | $4.7M - $6.9M | $25K | 1,375 | - |
| DAYS INN, DAYS HOTEL AND DAYS INN & SUITES | $7.6M - $9.4M | $35K | 1,235 | - |
| LA QUINTA INN & SUITES | $12.8M - $17.2M | $55K | 884 | - |
| RED ROOF PLUS AND SUITES | $7.3M - $8.9M | $27K | 584 | - |
| BAYMONT INN & BAYMONT INN & SUITES | $7.6M - $10.5M | $26K | 547 | - |
| TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, | $6.1M - $11.0M | $35K | 328 | - |
| HYATT PLACE HOTEL | N/A | $75K | 318 | $5.8M |
| MICROTEL INN & SUITES BY WYNDHAM | $7.2M - $9.2M | $40K | 285 | - |
| SIGNATURE INN | $123K - $7.7M | $18K | 283 | - |
10 Best Hotel franchises Ranked
GrowingLitigation
Investment
$317K - $2.0M
Franchise Fee
$45K
Locations
1,621
Royalty
5.3%
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$4.7M - $6.9M
Franchise Fee
$25K
Locations
1,375
Royalty
5.5%
Source: 2025 FDD filingView details
Litigation
Investment
$7.6M - $9.4M
Franchise Fee
$35K
Locations
1,235
Royalty
5.5%
Source: 2025 FDD filingView details
Litigation
Investment
$12.8M - $17.2M
Franchise Fee
$55K
Locations
884
Royalty
5.5%
Source: 2025 FDD filingView details
GrowingLitigationBankruptcy
Investment
$7.3M - $8.9M
Franchise Fee
$27K
Locations
584
Royalty
5.0%
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$7.6M - $10.5M
Franchise Fee
$26K
Locations
547
Royalty
5.0%
Source: 2025 FDD filingView details
Litigation
Investment
$6.1M - $11.0M
Franchise Fee
$35K
Locations
328
Royalty
5.0%
Source: 2025 FDD filingView details
Investment
N/A
Franchise Fee
$75K
Locations
318
Avg. Revenue
$5.8M
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$7.2M - $9.2M
Franchise Fee
$40K
Locations
285
Royalty
6.0%
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$123K - $7.7M
Franchise Fee
$18K
Locations
283
Royalty
N/A
Source: 2025 FDD filingView details
Highest Profit Hotel franchises
Ranked by net income, EBITDA, or owner earnings from Item 19 FDD disclosures. Not all franchises disclose profit data.
GrowingLitigation
Investment
$8.2M - $13.3M
Franchise Fee
$50K
Locations
256
Net Profit
$1.2M
Source: 2025 FDD filingView details
Highest Revenue Hotel franchises
Ranked by average gross revenue per location from Item 19 FDD disclosures.
Investment
N/A
Franchise Fee
$75K
Locations
318
Avg. Revenue
$5.8M
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$8.2M - $13.3M
Franchise Fee
$50K
Locations
256
Avg. Revenue
$2.2M
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$12.5M - $19.0M
Franchise Fee
$35K
Locations
89
Avg. Revenue
$82.63
Source: 2025 FDD filingView details
Fastest Growing Hotel franchises
Ranked by projected new locations from Item 20 of their FDD filings.
GrowingLitigation
Investment
$5.3M - $8.3M
Franchise Fee
$25K
Locations
228
Royalty
4.0%
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$7.6M - $10.5M
Franchise Fee
$26K
Locations
547
Royalty
5.0%
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$12.5M - $19.0M
Franchise Fee
$35K
Locations
89
Avg. Revenue
$82.63
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$317K - $2.0M
Franchise Fee
$45K
Locations
1,621
Royalty
5.3%
Source: 2025 FDD filingView details
GrowingLitigation
Investment
$4.7M - $6.9M
Franchise Fee
$25K
Locations
1,375
Royalty
5.5%
Source: 2025 FDD filingView details
Most Affordable Hotel franchises
Ranked by minimum initial investment from Item 7 of their FDD filings.
Sorted by Minimum Investment
| Franchise | Investment | Fee | Locations | Revenue |
|---|---|---|---|---|
| Membership Hotel Organization | $72K - $1.2M | $10K | 3 | - |
| COBBLESTONE SUITES | $100K - $2.4M | $45K | 121 | - |
| SIGNATURE INN | $123K - $7.7M | $18K | 283 | - |
| Red Carpet Inn | $134K - $531K | $10K | 201 | - |
| MAGNUSON HOTELS & MAGNUSON GRAND | $175K - $400K | $10K | 11 | - |
Who Should Consider Hotel franchises?
Hotel franchising suits real estate investors and developers who understand hospitality economics. Investment ranges from under $100K for budget conversions to $100M+ for full-service properties. Most buyers work with hotel management companies rather than operating directly. Conversions (rebranding existing hotels) offer lower risk than ground-up development.
Frequently Asked Questions About Hotel franchises
How much does it cost to open a hotel franchise?
The average initial investment for hotel franchises ranges from $8.1M to $18.5M, based on our analysis of 47 FDD filings. The average franchise fee is $53K. The most affordable option is Membership Hotel Organization, starting at just $72K.
What is the most profitable hotel franchise?
According to Item 19 financial performance disclosures, HYATT PLACE HOTEL reports the highest average unit revenue at $5.8M. Other high-performing hotel franchises include WOODSPRING SUITES ($2.2M), TRADEMARK COLLECTION HOTEL ($82.63). Note: Not all franchises disclose Item 19 data.
What is the largest hotel franchise by number of locations?
QUALITY INN is the largest with 1,621 locations nationwide. Other major hotel franchises include SUPER 8 (1,375 locations), DAYS INN, DAYS HOTEL AND DAYS INN & SUITES (1,235 locations), LA QUINTA INN & SUITES (884 locations), RED ROOF PLUS AND SUITES (584 locations). Combined, the top 5 hotel franchises operate over 5,699 locations.
What is the cheapest hotel franchise to open?
The most affordable hotel franchises by initial investment are: Membership Hotel Organization ($72K - $1.2M), COBBLESTONE SUITES ($100K - $2.4M), SIGNATURE INN ($123K - $7.7M), Red Carpet Inn ($134K - $531K), MAGNUSON HOTELS & MAGNUSON GRAND ($175K - $400K). Lower investment often means smaller format, mobile/home-based, or service-based models.
How do I evaluate a hotel franchise opportunity?
Review the Franchise Disclosure Document (FDD) carefully. Key sections include: Item 5 (fees), Item 7 (initial investment), Item 19 (financial performance, if disclosed), and Item 20 (outlet information including terminations and closures). Our database extracts this data from official FDDs to help you compare hotel franchises objectively.
Want to explore more hotel franchises?
Browse all hotel franchises in our database with advanced filters for investment range, location count, and more.
View All Hotel franchises