1998
27
$5,000,000
$35,000
$10,175,100
No
Affordable Suites of America is a distinguished brand in the U.S. extended-stay hotel industry, offering spacious, apartment-style accommodations tailored for guests seeking comfort and affordability. With a focus on weekly and monthly rentals, the brand caters to business travelers, relocating families, and military personnel, providing them with a homely environment during their stay. Established in 1998, Affordable Suites has built a reputation for delivering quality service and value, positioning itself as a trusted name in the lodging sector.
Proven Business Model: Affordable Suites operates on a sustainable extended-stay model, offering consistent revenue streams through weekly and monthly rentals.
Market Demand: The demand for affordable, long-term accommodations is on the rise, driven by factors such as business travel, relocations, and temporary assignments.
Brand Recognition: With over two decades in the industry, Affordable Suites has established a strong brand presence, ensuring customer loyalty and repeat business.
Comprehensive Support: Franchisees receive extensive training and ongoing support, including assistance with site selection, marketing, and operations, ensuring a smooth and successful business journey.
Established Year:
Affordable Suites of America was founded in 1998, marking over two decades of experience in the extended-stay hospitality sector. Its longevity demonstrates stability and a proven track record in managing long-term accommodations for diverse clients.
Franchise Units:
The brand operates approximately 27 locations across the United States, reflecting a moderate but strategically expanding footprint in key markets. Each unit follows consistent operational standards to maintain brand quality and customer satisfaction.
Founders:
The company was founded by Tom Goodwin, a hospitality entrepreneur who recognized the demand for affordable, apartment-style accommodations for business travelers, relocating families, and military personnel. His vision was to create a homely, comfortable, and cost-effective lodging alternative for extended stays.
Brand Journey & Company History:
Affordable Suites started as a single property and gradually expanded into a franchise model. Over the years, it has built a strong reputation for delivering consistent quality and value, gaining recognition in the extended-stay hotel market. The brand’s growth has been guided by a commitment to guest satisfaction, operational efficiency, and strategic expansion into high-demand markets.
Ownership:
The company is privately held and headquartered in Matthews, North Carolina. This private ownership allows for focused decision-making, maintaining operational control, and ensuring the franchise aligns with the brand’s core values and standards.
Market Presence in the USA:
While the brand has 27 active locations, its presence is strategically focused in regions with strong demand for extended-stay accommodations, including urban centers, business hubs, and areas with transient populations like military bases or corporate relocations. This strategic placement supports steady occupancy and revenue streams.
Industry Category:
Affordable Suites of America belongs to the Hospitality – Extended Stay Hotels industry, catering specifically to guests who require longer-term accommodations with the comfort and amenities of a home-like environment. This niche differentiates it from traditional hotels by offering apartment-style units, weekly/monthly rental options, and value-driven pricing.
1. Pre-Launch Support:
Before opening a franchise location, Affordable Suites assists franchisees with critical startup tasks, including:
Site Selection: Guidance to identify high-demand areas and locations that align with the brand’s strategic goals.
Lease Negotiations & Property Development: Assistance in securing favorable lease terms, property renovations, and design layouts to meet brand standards.
Permits & Licensing: Support in navigating local regulations, zoning requirements, and legal compliance for hotel operations.
2. Operational Training:
Franchisees receive in-depth training to efficiently run day-to-day operations:
Front Desk & Guest Services: Best practices for check-ins, guest communication, and problem resolution.
Housekeeping & Maintenance: Operational standards for cleanliness, room readiness, and preventive maintenance.
Property Management Systems: Training on software tools for reservations, billing, reporting, and inventory management.
Financial Management: Guidance on budgeting, accounting, and monitoring revenue streams to optimize profitability.
3. Marketing Support:
Affordable Suites helps franchisees attract and retain customers through:
National Marketing Campaigns: Access to branded marketing initiatives, including online advertising and PR campaigns.
Local Marketing Assistance: Tools and strategies for targeting regional audiences through social media, local promotions, and community engagement.
Website & Online Presence: Help with listing properties on booking platforms, optimizing local SEO, and generating leads through digital channels.
4. Academic & Ongoing Support:
The brand ensures franchisees continuously grow and maintain operational excellence:
Continuous Learning: Periodic workshops, webinars, and refresher courses to update franchisees on new practices, trends, or system updates.
Operational Audits: Regular evaluations to ensure brand standards, guest satisfaction, and operational efficiency.
Corporate Assistance: Dedicated support from corporate representatives to address challenges, troubleshoot issues, and advise on growth opportunities.
5. Network & Community Support:
Franchisees benefit from being part of a community of franchise owners, enabling knowledge sharing, mentorship, and collaboration to strengthen overall success.
1. Business Background & Experience:
Individuals with experience in hospitality, hotel management, or general business operations are highly suited for this franchise.
While prior hotel experience is beneficial, motivated entrepreneurs with strong management and operational skills can also thrive with the brand’s comprehensive training.
Understanding of financial management, staff supervision, and customer service is highly valued.
2. Passion for Customer Service:
Franchisees should have a strong commitment to guest satisfaction and creating a homely, welcoming environment for long-term guests.
A hands-on approach to managing the property, interacting with guests, and overseeing staff operations ensures the delivery of consistent service standards.
3. Investment Capability:
Prospective franchisees must have the financial resources to cover the total investment, which ranges from $5,051,200 to $10,175,100 per location.
This includes franchise fees, property development, marketing, working capital, and operational costs.
Strong financial stability and access to funding are essential to sustain the business until it reaches profitability.
4. Location & Market Awareness:
Ideal franchisees are individuals who can identify and manage locations in high-demand areas, such as business hubs, urban centers, or regions with transient populations (e.g., relocating families, military bases, or corporate assignments).
Awareness of local market dynamics, competition, and guest demographics helps maximize occupancy rates and revenue.
5. Commitment & Long-Term Vision:
Successful franchisees demonstrate dedication to the brand’s growth and quality standards over the long term.
They must be willing to invest time, energy, and resources into building a profitable, sustainable extended-stay hotel business.
6. Leadership & Team Management:
Effective franchisees possess strong leadership qualities and can recruit, train, and manage a reliable team to maintain daily operations and service excellence.
Ability to motivate staff and maintain high operational standards is critical for consistent guest satisfaction.
1. Total Investment Required:
The total investment for opening an Affordable Suites franchise ranges from $5,051,200 to $10,175,100, depending on the location, property size, and construction or renovation needs.
This investment covers property acquisition, development, furniture, fixtures, equipment, and other startup costs.
2. Minimum Investment Required:
The minimum investment needed to launch a single franchise unit is approximately $5 million, allowing for essential setup, staffing, and working capital to operate the property efficiently.
3. Franchise Fee:
The initial franchise fee is $35,000 per unit, which grants the franchisee the right to operate under the Affordable Suites brand, access proprietary systems, and receive initial training and support.
4. Royalty Fees:
Franchisees pay a royalty fee of 5% of gross sales, which covers ongoing brand support, operations guidance, and access to corporate resources.
5. Marketing & Advertising Fees:
A marketing fee of 1% of gross sales is contributed to national and local marketing initiatives, including digital campaigns, social media promotion, and local advertising to drive bookings.
6. Infrastructure & Development Costs:
Costs include property acquisition or lease, construction, interior design, furniture, fixtures, and equipment (FF&E).
These can vary significantly depending on location, size of the property, and whether the building is new construction or a conversion of an existing structure.
7. Working Capital:
Franchisees are advised to maintain sufficient working capital to cover operational expenses, payroll, utilities, and maintenance for the initial months of operation.
8. Expected ROI & Profitability:
Franchisees typically see a return on investment (ROI) as the property stabilizes in its first 2–3 years.
Steady occupancy from weekly and monthly rentals ensures consistent revenue streams.
9. Break-Even Time:
The break-even period generally ranges from 2 to 3 years, depending on location, market conditions, and operational efficiency.
10. Potential Revenue Streams:
Primary Revenue: Room rentals from weekly and monthly stays.
Secondary Revenue: Additional income from laundry services, vending machines, parking fees, and other guest amenities.
