1980
50
$2,500,000
$25,000
$3,500,000
No
Coratel Inn & Suites is a rapidly expanding hotel franchise in the United States, offering a unique blend of affordability, flexibility, and owner autonomy. Designed for both business and leisure travelers, Coratel provides comfortable accommodations with modern amenities at budget-friendly prices. The brand's commitment to quality service and guest satisfaction has positioned it as a competitive player in the hospitality industry.
What sets Coratel apart is its franchise model that emphasizes owner control and minimal operational restrictions. With a low initial investment and a flexible contract structure, Coratel appeals to entrepreneurs seeking to enter the hospitality market without the constraints often associated with larger hotel chains.
Low Initial Investment: Coratel offers one of the most affordable franchise opportunities in the hospitality sector, making it accessible for first-time investors and seasoned entrepreneurs alike.
Owner Autonomy: Unlike many hotel franchises, Coratel provides owners with significant operational freedom, allowing them to manage their properties according to their vision and market needs.
Flexible Contract Terms: The franchise agreement is open-ended, requiring only a three-month prior notice for termination, which offers unparalleled flexibility for owners.
Comprehensive Support: Coratel offers robust pre-launch and ongoing support, including training, marketing assistance, and operational guidance, ensuring franchisees are well-equipped to succeed.
Established Year & Founders:
Coratel Inn & Suites was launched under the ownership of Jasper Rooms, a hospitality management company that specializes in providing affordable, high-quality lodging across the United States. While the exact founding year of Coratel is not publicly documented, some of its properties, like the Northfield, Minnesota location, have been operational since the mid-1980s. The brand was designed to fill a niche in the midscale economy and extended-stay hotel segment, offering budget-friendly accommodations without compromising guest experience.
Franchise Units & Market Presence:
The brand currently operates over 50 franchise units across key U.S. states, including Minnesota, Wisconsin, Texas, and Kansas. Each property typically features 50–120 rooms, catering to both business and leisure travelers. Coratel focuses on suburban and regional markets with high demand for affordable lodging, providing a strong growth opportunity for franchisees.
Brand Journey & Company History:
Coratel’s journey began with a mission to empower hotel owners by providing a flexible franchise model with low entry barriers. The brand emphasizes owner autonomy, allowing franchisees to manage daily operations according to local market needs while benefiting from a recognized brand. Over the years, Coratel has expanded steadily, maintaining its focus on cost-effective operations, high-quality guest services, and consistent brand standards.
Ownership & Management:
Coratel Inn & Suites is part of Jasper Rooms, which manages multiple hotel brands in the United States. Jasper Rooms provides comprehensive franchise support, including training, operational guidance, and marketing assistance, while allowing owners significant freedom in running their properties.
Industry Category & Positioning:
Segment: Midscale extended-stay and economy hotels
Positioning: Coratel competes with national hotel chains by offering affordable lodging, operational flexibility, and franchise-friendly contracts.
Other Notable Information:
The franchise is SBA-approved, giving franchisees access to government-backed loans.
Properties typically include modern amenities like complimentary breakfast, Wi-Fi, business centers, and loyalty programs.
Coratel emphasizes community engagement, partnering with local businesses to enhance guest experiences and occupancy rates.
Coratel Inn & Suites offers comprehensive support and training programs designed to ensure the success of its franchisees at every stage of the business lifecycle—from pre-launch to ongoing operations.
Site Selection Assistance: Guidance on choosing locations with high market potential and strong demand for midscale lodging.
Property Development & Renovation Support: Advice on hotel design, construction, or renovation to meet Coratel brand standards.
Franchise Onboarding: Step-by-step assistance to integrate the property into the Coratel system, including branding, technology, and operational setup.
Hotel Management Training: In-depth courses covering day-to-day hotel operations, staffing, and workflow management.
Guest Services & Hospitality Training: Best practices in customer service, handling reservations, and maintaining guest satisfaction.
Financial & Revenue Management: Guidance on budgeting, forecasting, managing operating costs, and optimizing revenue streams.
National and Regional Campaigns: Participation in marketing programs designed to drive bookings and brand recognition.
Digital Marketing Assistance: Guidance on online presence, SEO, social media, and reputation management.
Promotional Materials: Access to templates, flyers, digital ads, and other brand-approved materials for local marketing initiatives.
Performance Evaluation: Regular reviews and reports to help franchisees identify areas for improvement and growth.
Operational Guidance: Continuous assistance on staffing, training, and compliance with brand standards.
Industry Updates & Networking: Insights on hospitality trends, competitor analysis, and opportunities to connect with other Coratel franchise owners.
Technical Support: Assistance with booking systems, software, and property management platforms.
Local Partnerships & Community Engagement: Support in developing relationships with local businesses to increase visibility and occupancy.
Extended Services Consultation: Guidance on adding value-added services such as event hosting, long-stay packages, or loyalty programs.
Summary: Coratel Inn & Suites prioritizes franchisee success through a combination of structured training, operational guidance, marketing support, and ongoing assistance. This ensures that each franchisee can confidently operate their property, maintain brand standards, and maximize profitability while retaining operational flexibility.
The ideal Coratel Inn & Suites franchisee is an entrepreneur or investor who is passionate about the hospitality industry and seeks a flexible, profitable, and recognized hotel franchise. The brand’s model is designed to support both experienced hoteliers and newcomers with strong business acumen.
Hospitality Experience: While prior hotel management experience is beneficial, it is not mandatory. Coratel provides extensive operational training to ensure franchisees can run their hotels effectively.
Business or Management Experience: Candidates with backgrounds in retail, service industries, or entrepreneurship are well-suited, as they bring operational, marketing, and financial skills that are transferable to hotel ownership.
Must have access to sufficient capital to cover total investment requirements ($2.5M – $3.5M), including property acquisition, renovation, working capital, and marketing contributions.
Ability to secure SBA-backed loans or alternative financing, if needed, to support property acquisition and development.
Genuine interest in providing high-quality guest experiences, ensuring service excellence, and maintaining a strong reputation in the local community.
Desire to build a long-term business in the hospitality industry, leveraging the Coratel brand and operational model.
Focused on establishing hotels in suburban or regional markets with demand for affordable, midscale accommodations.
Open to working closely with the local community and understanding the dynamics of the regional hospitality market.
Motivated and self-driven, capable of managing staff, operations, and customer relations effectively.
Flexible and adaptive, able to implement brand standards while customizing operations to local market needs.
Committed to growing and sustaining the business while maintaining financial discipline and operational excellence.
The ideal Coratel franchisee is a business-savvy, hospitality-oriented entrepreneur with the financial resources and passion to successfully operate a midscale hotel. Coratel’s flexible franchise model, combined with extensive training and support, makes it suitable for both seasoned investors and motivated first-time hotel owners seeking profitability and independence in the hospitality sector.
| Financial Component | Details / Range |
|---|---|
| Total Investment Required | $2,500,000 – $3,500,000 (depends on location, property size, and renovations) |
| Minimum Investment Required | Varies; generally starts around $2,500,000 |
| Franchise Fee | $25,000 – $35,000 (one-time, covers brand licensing and onboarding) |
| Franchise Units | 50+ operational units across the USA |
| Infrastructure Cost | $1,500,000 – $2,500,000 (property acquisition, construction, renovation) |
| Marketing Budget | 2–4% of gross revenue (contribution to national/regional marketing programs) |
| Working Capital | $100,000 – $200,000 (to cover initial operating expenses, staffing, inventory) |
| Royalty Fees | 5–7% of monthly gross revenue |
| Expected ROI | 15–25% annually (depending on occupancy rates and operational efficiency) |
| Break-Even Time | 2–3 years (varies by location and management) |
| Potential Revenue Streams | Room bookings, extended-stay packages, event/meeting space, loyalty program fees |
Notes:
ROI and break-even times are approximate and depend heavily on location, market demand, management efficiency, and competition.
Infrastructure costs can fluctuate based on whether a property is a new build or renovation.
Marketing contributions ensure brand consistency and participation in national campaigns.
