Motel 6 Franchise

Motel 6

Min. Liquid Capital: $2,617,700

Total Investment: $2,617,700 - $3,868,600

Initial Franchise Fee: $35,000

Training Provided: Yes

No of Existing Units: 1274

Company-Owned Units: 418



About Motel 6

Motel 6 is an economy hotel chain with over 55 years of history in the United States. The brand prides itself on offering the lowest rates possible while still providing comfortable, clean and safe accommodations. Its rallying cry of “We’ll leave the light on for you” has been heard throughout the U.S. and Canada, making it one of the best-established economy hotel properties available.

Motel 6’s hotel chain has a reputation for 24-hour service, a welcoming atmosphere and cozy-but-simple rooms that are accessible to any budget. This makes it a frequent and popular choice for travelers passing through, families on vacation and businesspeople who have to front their own travel expenses. Motel 6’s popularity accounts for its high average room occupation percentages of approximately 70 percent.

This well-known franchise is owned by G6 Hospitality, LLC, which also owns the Studio 6 and Hotel 6 brands. Studio 6 offers enhanced accommodations catered towards longer stays, with the simple amenities of a studio apartment. G6 Hospitality, LLC offers some franchisees the opportunity to operate a dual-brand location on the same property, potentially increasing revenue by appealing more specifically to two different types of customers.

Why?

As the market for economy travel and lodging continues to increase, which is observed in consumer tendencies toward everything from budget airline fares to cheap car rentals, many franchises focusing on keeping accommodation costs low experience excellent growth. In a market where customers search for the lowest prince, Motel 6 leads competitors by as much as 10 percentage points.

One significant advantage of the Motel 6 brand is a franchisee’s ability to keep operating costs at a minimum to maximize revenue. Amenities such as continental breakfast, pool, restaurant or health club are non-existent, reducing overhead and personnel costs. Instead, travelers are treated to a comfortable, clean room, Wi-Fi access and 24/7 lodging.

Positive financial and franchise growth builds trust in the brand, with an increase of 17.7 percent in total franchises between 2016 to 2018. Sales growth is encouraging as well, increasing 9.68 percent as of 2017, generating an AUV of roughly $1,379,000. Motel 6’s franchisor, G6 Hospitality, LLC, has a reputation for in-depth asset management, ongoing training and excellent PR support, contributing to strong brand recognition both online and in traditional media. The franchise also features a high-tech proprietary software system and ample online and social media marketing tools.

Ideal Candidate

Motel 6 is a sound investment for individuals or corporations wanting to capitalize on the economy travel segment. This allows for attracting budget-conscious consumers with the solid reputation of an internationally recognized and respected company. Motel 6 franchisees will optimally focus on increasing volume rather than luxury upsells from clients.

Sole proprietors require significant liquid capital on startup, but can expect low operating costs and a net income of approximately 45 percent afterwards. For corporations looking to invest in several hotel properties simultaneously, Motel 6 is an excellent fit with its multi-unit operational freedom and dual Motel 6 and Studio 6 brand possibilities.

Training And Support

Motel 6 provides a mandatory initial training program consisting of 16 hours of on-the-job training and 30 hours of classroom instruction, along with onsite instruction for hotel personnel in use of the proprietary computer system. Ongoing employee training is made available via optional online courses, and hotel managers are required to attend an annual franchise convention.


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