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Comparing Hotel Franchise Opportunities: Success and Failure Rates

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

Date: 06/05/2011 | Category: Buy a Franchise | No comments

Evaluating Hotel Franchise Statistics

When evaluating a franchise opportunity reviewing the "reported success and failure rate" of the franchise is only one of the many factors that must be considered. Just because a franchisor reports (what appears to be ) a high success rate – by itself – should not determine whether or not your franchise investment is a wise one.  In my opinion these reported rates should only be viewed as a warning or caution sign but never a positive sign that – by itself – would justify an investment.  Nevertheless‚ when it comes to hotel franchises‚ the SBA has compiled an interesting list of the highest and lowest SBA franchise loan failure rates for hotel franchises.

The failure rates for some of the more popular hotel franchises‚ include

Rank Franchise Brand Failure %
13 Country Clutter 66.67%
269 Best Inn 20.00%
326 Howard Johnson 16.00%
337 Best Value Inn 15.15%
374 Ramada Inn 12.00%
389 AmeriHost Inn 11.43%
396 Holiday Inn 10.00%
433 Travelodge 9.00%
444 Days Inn 8.00%
448 Budget Inn 7.69%
450 GuestHouse Inn 7.69%
455 Knights Inn 7.32%
481 Econo Lodge Motel 6.00%
482 Quality Inn 6.00%
489 Red Carpet Inn 5.88%
490 Red Roof Inn 5.88%
496 Rodeway Inns 5.13%
504 Super 8 Motel 5.00%
509 Best Western Inn 4.00%
510 Choice Hotels International Inc. 4.00%
518 Wingate Inns 3.70%
521 Hampton Inns 3.00%
522 La Quinta Inn 3.00%
526 Comfort Suites 2.00%
527 Holiday Inn Express 1.00%
528 Comfort Inn 1.00%
532 AmericInn 0.00%
535 Baymont Inns & Suites 0.00%
537 Candlewood Suites 0.00%
542 Country Hearth Inn 0.00%
543 Country Inn 0.00%
544 Country Inns & Suites 0.00%
547 Fairfield Inn 0.00%
556 Hilton Inns 0.00%
559 Marriott Hotel 0.00%
561 Motel 6 0.00%
572 Sleep Inn Motel 0.00%
582 Vagabond Inn 0.00%

Keep in mind that statistical percentages do not tell the whole story and we are only talking about SBA loan defaults.  There are many hotel franchises that do not rely on SBA loans.

Additional Resources for Buying a Hotel Franchise

Programs and Services: FDD Review Services

Video Series: Buying a Franchise University

Article: 6 Steps to Buying a Franchise

Book: An Entrepreneurs Guide to Purchasing a Business or Franchise

To schedule an appointment or to find out more information about the services offered at The Internicola Law Firm‚ P.C. contact us at 1-800-976-4904 or by email

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