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Motel 6

Motel 6 is a true American icon, offering clean and comfortable rooms for the lowest price of any national chain. Motel 6 enjoys stronger brand awareness than any other budget-lodging brand as well as high guest loyalty. Since setting up shop in 1962, Motel 6 has set itself apart from the competition by offering lodging which is budget-priced, yet functional and modern.

Motel 6 accommodates value-conscious travelers, and caters to seniors, families with young children, students, military personnel, international travelers and even pets. Motel 6 was acquired by Accor in 1990, and is now named on more than 950 properties and 96,000 rooms. Motel 6 is now the largest company-owned and company-operated budget-lodging chain in the United States.

 

Accor Franchising North America is comprised of the Motel 6 and Studio 6 brands with over 1,000 locations throughout the U.S. and Canada. Accor brands enjoy some of the highest brand loyalty and advertising awareness ratings in the country. Market Matrix and Nationwide Surveys show current guest ratings of Motel 6 as #1 Price Value Leader in their segment and #1 in “Very Likely to Return” ratings.

 

Operating Units

12/31/2006

12/31/2007

12/31/2008

Franchised

197

225

284

% Change

--

14.2%

26.2%

Company-Owned

676

674

653

% Change

--

-0.3%

-3.1%

Total

873

899

937

% Change

--

3.0%

4.2%

Franchised as % of Total

22.57%

25.03%

30.31%

 

Investment Required

The fee for a Motel 6 franchise is $25,000.

 

Motel 6 provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.  The following figures refer to a 63-room new build facility.

 

Item

Established Low Range

Established High Range

Market Study (optional)

$5,000

$7,000

Application/Franchise Fee

$25,000

$25,000

Phase I Environmental Survey

$5,000

$8,000

Design, Testing & Fees

$60,000

$100,000

Site and Civil Work

$170,000

$280,000

Facility Construction

$1,250,000

$1,800,000

Construction Contingency

$80,000

$100,000

Furniture, Fixtures and Equipment

$500,000

$600,000

Systems

$35,000

$50,000

Signage

$45,000

$60,000

Insurance

$22,000

$27,000

Utility Deposits

$5,000

$12,000

Training Expenses, Installation and Training

$4,400

$8,400

Software License Fee

$6,500

$7,500

Additional Funds (3 months)

$55,000

$70,000

Total Investment (excludes land acquisition costs)

$2,289,900

$3,178,900

Total Investment (cost per room)

$36,348

$50,379


On-going Expenses
Motel 6 franchisees pay royalty fees equal to 4% of gross room revenues, marketing and reservation contributions equal to 3.5% of gross room revenues, and a monthly IT Services fee ranging from $350 to $500.  Other fees payable by the franchisee include annual software maintenance and data circuit fees, an annual conference fee and an online training subscription fee (mandatory only for the first year).

What You Get—Training and Support

Franchisees and managers receive initial and ongoing training at the Accor Academy campus in Carrollton, TX, and through Accor online University computer classes. Curriculums available include classes for the first-time operator or the experienced hotelier. Accor also offers the Pinnacle Program, part of Accor’s commitment to diversity, which offers potential hotel operators of diverse backgrounds industry assistance. Through the Pinnacle program, franchisees learn the lodging trade from a proven operator and receive support in construction, architecture, marketing and hotel operations.

E-procurement provides franchisees the convenience of one stop shopping for all their furnishings and supplies. The 1-800 Reservation System is a single image system that maximizes contribution opportunities for franchisees as well as corporate properties. Motel 6 manages smart marketing programs like the “Click 6” Internet promotion, as well as online reservations. As part of Accor, Motel 6 franchisees yield the purchasing power and pocket the subsequent savings of a family of 4,000 hotels.

Territory

Motel 6 does not grant exclusive territories.