Hospitality
6 brands
Comfort Inn
HospitalityOutdoor Collection by Marriott Bonvoy
HospitalityRed Roof Inn
HospitalityWyndham Hotels & Resorts
HospitalityMotel 6
HospitalityBest Western (SureStay Collection)
HospitalityHospitality Category at a Glance
6 brands compete in hospitality, with an average minimum investment of $11.2M and an average royalty of 5.2%. 67% disclose Item 19 revenue data — above the database-wide average, giving buyers in this category better visibility into unit economics before committing capital.
5 brands are growing and 1 is contracting by net unit count. A category where more brands are growing than shrinking signals healthy demand — but individual brand trajectory matters more than category averages. Check each brand's 3-year unit trend in their FDD Item 20 before investing.
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Frequently Asked Questions
How much does it cost to open a hospitality franchise? ▾
Investment ranges for hospitality franchises in our database span from $195K to $94.6M. The lowest-cost option is Best Western (SureStay Collection) starting at $881K, while the most expensive is Wyndham Hotels & Resorts at up to $94.6M. These figures come from official Franchise Disclosure Documents and include franchise fees, build-out, equipment, and initial working capital.
Which hospitality franchise has the best performance? ▾
Based on our health score methodology, Comfort Inn leads the hospitality category with a score of 79/100. The health score combines unit growth rate, system size, investment efficiency, and whether the franchisor discloses Item 19 revenue data. 1 of 6 hospitality brands disclose revenue data in their FDD, making direct financial performance comparison possible for those brands.
What are typical royalty rates for hospitality franchises? ▾
The average royalty rate across 6 hospitality brands with disclosed rates is 5.2%. Royalties are typically calculated as a percentage of gross revenue and paid weekly or monthly. Some brands also charge a marketing/advertising fund fee of 1-3% on top of royalties. When comparing franchises, look at the total ongoing fee burden (royalty + ad fund + technology fees) rather than royalty alone — the stacking effect can significantly impact unit-level profitability.