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How much does it cost to buy a Motel 6 franchise?
How much does Motel 6 franchise cost? Motel 6 has the franchise fee of up to $35,000, with total initial investment range of $2,617,700 - $3,868,600.
How do I open a Motel 6?
The capital required to open a unit is $100,000. The franchise expects its new franchisees to have a net worth of at least $150,000. Motel 6 franchisees pay a royalty of 5% back to the franchisor. $222,550 is the minimum that Motel 6 expects its owners will need to invest in a new location.
How much would it cost to open a motel?
The average cost of starting a hotel in the US ranges from $750,000-$1,000,000 for a small motel, to the national average being around $22,000,000 for a hotel with around 115 rooms, and much higher for luxury and high-rise hotels (source.)
How much does a hotel franchise cost?
Initial Franchise Fee For example, imagine you are opening a new hotel with 450 rooms. A franchise might charge you a flat fee of $65,000 plus $500 per room for every room over 200. Thus, your initial franchise fee outlay would be $65,000 + $500/room * 250 rooms = $190,000.
Who is Motel 6 owned by?
Blackstone Inc.Motel 6 / OwnerBlackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate. Wikipedia
What franchise is Motel 6?
Motel 6 is a privately owned hospitality company with a chain of budget motels in the United States and Canada. Motel 6 also operates Studio 6, a chain of extended-stay hotels. The hotel brand is owned by The Blackstone Group's real estate business.
Is owning a motel profitable?
How much profit can a motel business make? Profits for motels can be substantial, especially if the demand is high. Room rates can conceivably triple during major events and peak tourist season. However, average profits have fallen in the last few years for motels from around 35% to 25%.
How much do motel owners make?
According to Shmoop.com, the owner of a chain hotel can expect an average hotel owner's salary of $50,000, with a range of $40,000 to $60,000 a year. Don't forget, the owner is paying a 4% to 6% franchise fee. He is also repaying, with interest, the financing on the property's acquisition cost.
How much money does a hotel owner make a year?
A well run hotel should typically run ~25-40% EBITDA Margins meaning that if you purchase a hotel doing $1M in annual revenue you could expect to make $250k - $400k per year which is about 3-5x the average salary of a hotel manager.
Who is the wealthiest hotel owner?
Here are five of the richest hotel owners:Sheldon Adelson. With a net worth of $21.8 billion, Sheldon Adelson is the 12th wealthiest American and the 24th richest man on Earth. ... Donald Trump. ... William Barron Hilton. ... Phillip Ruffin. ... Ty Warner.
What are the disadvantages of owning a franchise hotel?
Hotel Franchise DisadvantagesStartup Costs and Franchise Fees. ... Less Control Over Your Business. ... Locked Into a Contract. ... Not Free of Risk. ... Exploring Franchise Hotel Advantages.
Who is the largest hotel franchise?
Marriott InternationalMarriott International Marriott is the largest hotel chain in the world by the number of available rooms. It has 30 brands with 7.642 hotels including 1.423. 044 rooms in 131 countries and territories. Between 2020 and 2021 the number of Marriott International rooms increased from 1.358.
What is a motel vs hotel?
A Hotel is a building with interior corridors that the various rooms are off of. A Motel is short for Motor Hotel. It does not have interior corridors, and a Lodge is either, usually a Hotel, in a rustic area and the building itself is also rustic.
Who is the CEO of Motel 6?
Rob Palleschi (Apr 5, 2018–)Motel 6 / CEO
Who owns G6 Hospitality?
Blackstone Inc.G6 Hospitality / Parent organization
How did Motel 6 get started?
Two California contractors, William Becker and Paul Greene, saw a need for an economy motel on the California coast. They opened a 52-room motel in Santa Barbara, offering a good night's sleep for the low, low price of just $6 per night (cash only). Fittingly, they decided to name it Motel 6.
What is franchise fee?
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor.
What is royalty fee for franchise?
This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
How long is a franchise agreement?
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
The History of Motel 6
The concept of Motel 6 was born in 1962. It was the brainchild of Paul Greene and William Becker, who were business partners with a dream to construct a new budget motel chain. The name came from the per night rate they had settled on for guest stays: $6. They knew that that $6 would cover the most basic costs of running the motel.
Franchising with Motel 6
The road to Motel 6 begins like most other franchise opportunities. The interested party submits an inquiry form to the franchisor outlining some basic information about them. The franchisor then contacts the applicant to have a brief conversation over the phone wherein some deeper information is exchanged.
Motel 6 and Their Processes for Franchising
The applicants that are chosen to become franchisees will be welcomed to the team and introduced to the wide world of benefits that accompany a Motel 6 franchise license. But first, they must pay the price.
Making It with Motel 6
Motel 6 is a budget hotel powerhouse. They have over 50 years of experience in the industry and are the pioneer for affordable lodging. Their business model has served them and their franchisees well over the years and will continue to do so for as long as their leadership remains vigilant.
How much does a Motel 6 franchise make?
Franchise revenue and profits depend on a number of unique variables, including local demand for your product, labor costs, commercial lease rates and several other factors. We can help you figure out how much money you can make by reviewing your specific situation. Please unlock this franchise for more information.
How many franchise locations do they have?
As of the 2016 Franchise Disclosure Document, there are 957 franchised Motel 6 locations in the USA.
What does it mean to find the best franchise?
Finding the best franchise means comparing several brands to determine the ideal fit for you.
When did they begin franchising?
They began franchising in 1962. The average Hotel franchise began franchising in 1998.
Overview
The capital required to open a unit is $100,000. The franchise expects its new franchisees to have a net worth of at least $150,000. Motel 6 franchisees pay a royalty of 5% back to the franchisor. $222,550 is the minimum that Motel 6 expects its owners will need to invest in a new location.
Related
Motel 6 is listed in the Franchise Directory under the Real Estate category. It's also listed in the section for Franchises Under $150,000 .
What is a motel 6?
Motel 6 Franchise is one of the most affordable Motels in continental North American. It has a well-rounded brand-name recall factor for its rooms, service, and price.
How many nights does Motel 6 last?
Motel 6 is now available in all states in the US, except Hawaii. It is now averaging around 15 to 16 million stay per year with an average length of stay at 2 nights.
How much will the total cost range?
The franchising fee is very affordable, only $25,000 with royalty fees of only 4 percent gross per room revenue. A 63 unit Motel 6 prototype building will sit in a one and half acre lot and a 112 unit Motel 6 prototype building will need around two acres of land. You do the math.
Is Motel 6 pet friendly?
Pet friendly--this is how customers of Motel 6 describe the franchise as it allows guests to have their pets brought into their rooms.
