Established
1998
Franchise Units
27
Minimum Investment
$5,000,000
Franchise Fee
$35,000
Total Investment Range
$10,175,100
Home Based
No
Description
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.
Why Invest in this Franchise?
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Proven Business Model: Affordable Suites operates on a sustainable extended-stay model, offering consistent revenue streams through weekly and monthly rentals.
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Market Demand: The demand for affordable, long-term accommodations is on the rise, driven by factors such as business travel, relocations, and temporary assignments.
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Brand Recognition: With over two decades in the industry, Affordable Suites has established a strong brand presence, ensuring customer loyalty and repeat business.
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Comprehensive Support: Franchisees receive extensive training and ongoing support, including assistance with site selection, marketing, and operations, ensuring a smooth and successful business journey.
Background
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.
Support Training
1. Pre-Launch Support:
Before opening a franchise location, Affordable Suites assists franchisees with critical startup tasks, including:
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Site Selection: Guidance to identify high-demand areas and locations that align with the brand’s strategic goals.
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Lease Negotiations & Property Development: Assistance in securing favorable lease terms, property renovations, and design layouts to meet brand standards.
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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:
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Front Desk & Guest Services: Best practices for check-ins, guest communication, and problem resolution.
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Housekeeping & Maintenance: Operational standards for cleanliness, room readiness, and preventive maintenance.
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Property Management Systems: Training on software tools for reservations, billing, reporting, and inventory management.
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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:
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National Marketing Campaigns: Access to branded marketing initiatives, including online advertising and PR campaigns.
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Local Marketing Assistance: Tools and strategies for targeting regional audiences through social media, local promotions, and community engagement.
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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:
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Continuous Learning: Periodic workshops, webinars, and refresher courses to update franchisees on new practices, trends, or system updates.
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Operational Audits: Regular evaluations to ensure brand standards, guest satisfaction, and operational efficiency.
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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.
Ideal Candidate
1. Business Background & Experience:
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Individuals with experience in hospitality, hotel management, or general business operations are highly suited for this franchise.
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While prior hotel experience is beneficial, motivated entrepreneurs with strong management and operational skills can also thrive with the brand’s comprehensive training.
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Understanding of financial management, staff supervision, and customer service is highly valued.
2. Passion for Customer Service:
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Franchisees should have a strong commitment to guest satisfaction and creating a homely, welcoming environment for long-term guests.
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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:
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Prospective franchisees must have the financial resources to cover the total investment, which ranges from $5,051,200 to $10,175,100 per location.
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This includes franchise fees, property development, marketing, working capital, and operational costs.
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Strong financial stability and access to funding are essential to sustain the business until it reaches profitability.
4. Location & Market Awareness:
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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).
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Awareness of local market dynamics, competition, and guest demographics helps maximize occupancy rates and revenue.
5. Commitment & Long-Term Vision:
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Successful franchisees demonstrate dedication to the brand’s growth and quality standards over the long term.
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They must be willing to invest time, energy, and resources into building a profitable, sustainable extended-stay hotel business.
6. Leadership & Team Management:
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Effective franchisees possess strong leadership qualities and can recruit, train, and manage a reliable team to maintain daily operations and service excellence.
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Ability to motivate staff and maintain high operational standards is critical for consistent guest satisfaction.
Financial Detail
1. Total Investment Required:
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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.
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This investment covers property acquisition, development, furniture, fixtures, equipment, and other startup costs.
2. Minimum Investment Required:
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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:
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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:
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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:
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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:
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Costs include property acquisition or lease, construction, interior design, furniture, fixtures, and equipment (FF&E).
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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:
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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:
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Franchisees typically see a return on investment (ROI) as the property stabilizes in its first 2–3 years.
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Steady occupancy from weekly and monthly rentals ensures consistent revenue streams.
9. Break-Even Time:
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The break-even period generally ranges from 2 to 3 years, depending on location, market conditions, and operational efficiency.
10. Potential Revenue Streams:
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Primary Revenue: Room rentals from weekly and monthly stays.
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Secondary Revenue: Additional income from laundry services, vending machines, parking fees, and other guest amenities.