1969
800
$326,000
$25,000
$1,640,000
No
Econo Lodge is one of America’s most recognizable and trusted economy hotel brands, offering travelers clean, comfortable, and affordable accommodations with exceptional value. As part of Choice Hotels International, Econo Lodge has built a long-standing reputation for consistency, reliability, and profitability in the hospitality industry.
With thousands of locations nationwide, Econo Lodge appeals to budget-conscious travelers seeking simplicity without sacrificing comfort. For entrepreneurs, it represents a strong franchise model backed by a powerful global hospitality network, proven business systems, and extensive franchisee support.
Whether located near highways, airports, or business districts, Econo Lodge properties are designed to deliver convenience and a quality guest experience that keeps customers coming back. The franchise’s proven concept, recognizable brand, and access to Choice Hotels’ reservation and marketing systems make it one of the most attractive low-cost hotel franchise opportunities in the U.S. lodging market.
Investing in an Econo Lodge franchise means joining a well-established hospitality leader with a track record of success spanning over six decades. As a franchisee, you benefit from:
Strong Brand Recognition: With its iconic red and yellow logo, Econo Lodge is one of the most recognizable names in budget lodging.
Backed by Choice Hotels: As part of the Choice Hotels family, franchisees gain access to advanced technology systems, marketing platforms, and customer loyalty programs.
Steady Demand: The economy hotel sector consistently performs well, even in economic downturns, thanks to the growing need for affordable travel accommodations.
Loyal Customer Base: Econo Lodge benefits from millions of members of the Choice Privileges® loyalty program, driving repeat bookings.
Operational Flexibility: The franchise model is designed for both new constructions and conversions, making it adaptable to various property types and investment budgets.
Scalable Growth: Investors can start with one property and expand into multiple locations over time with the guidance of Choice Hotels’ experienced development team.
Founded: 1969
Founder: Vernon Myers
Parent Company: Choice Hotels International
Headquarters: Rockville, Maryland, USA
Number of Franchise Units: Over 800+ Econo Lodge hotels across the United States
Econo Lodge began its journey in 1969 as a simple yet smart concept — provide comfortable accommodations at an affordable price without unnecessary frills. The idea resonated deeply with travelers and investors alike, leading to rapid growth across North America.
In 1990, Econo Lodge became part of the Choice Hotels International portfolio, one of the world’s largest and most respected hospitality franchisors. This acquisition provided Econo Lodge franchisees with cutting-edge technology, global marketing reach, and robust operational support.
Today, Econo Lodge continues to lead the economy lodging segment with a strong U.S. presence, offering investors a trusted and time-tested opportunity within the hotel industry.
Econo Lodge and Choice Hotels provide a complete suite of support services that help franchisees establish, operate, and grow their business efficiently.
Pre-Opening Support:
Site selection assistance and feasibility studies
Guidance through property design and construction or conversion processes
Access to approved vendors and brand design specifications
Training & Onboarding:
Comprehensive training at Choice University, covering operations, brand standards, hospitality management, and customer service
On-site and virtual training programs for franchise owners and staff
Ongoing education to ensure consistent service and profitability
Operational & Marketing Support:
Access to ChoiceEDGE, an advanced reservation and revenue management system
Integration into the global Choice Privileges® loyalty program, generating millions of repeat bookings annually
National advertising and promotional campaigns that strengthen brand visibility
Continuous performance reviews, quality audits, and business consultation from a dedicated franchise support team
With these resources, Econo Lodge franchisees can focus on guest satisfaction while relying on a strong corporate infrastructure to streamline operations.
The Econo Lodge franchise is an excellent opportunity for:
Experienced Hoteliers: Those familiar with hospitality operations seeking a recognized brand with strong corporate support.
First-Time Investors: Entrepreneurs looking to enter the hotel industry through a reputable and affordable franchise system.
Multi-Unit Investors: Real estate developers or investors aiming to diversify portfolios with multiple low-cost, high-demand properties.
Hands-On Operators: Owners who value customer service and want to be involved in day-to-day operations to maximize performance.
Preferred Qualities:
Strong business acumen and leadership skills
Financial capacity to invest and manage operational costs
Passion for hospitality, community engagement, and delivering excellent guest experiences
Suitable property location near highways, business centers, or popular travel destinations
| Type of Expenditure | Low Investment (USD) | High Investment (USD) | Description / Notes |
|---|---|---|---|
| Initial Franchise Fee | $25,000 | $35,000 | One-time fee to acquire franchise rights and brand access. |
| Total Estimated Investment | $326,000 | $1,640,000 | Includes all startup costs such as construction, furnishing, and operational setup. |
| Minimum Net Worth Requirement | $750,000 | — | Ensures financial stability for ownership and operations. |
| Minimum Liquid Capital | $250,000 | — | Required to cover early-stage expenses and working capital. |
| Royalty Fee | 4.5% | 4.5% | Ongoing fee based on gross room revenue. |
| Marketing / Advertising Fee | 4% | 4% | Contributes to Choice Hotels’ national marketing and brand campaigns. |
| Working Capital | $50,000 | $150,000 | To cover initial staffing, operations, and local marketing. |
| Construction / Conversion Costs | $200,000 | $1,200,000 | Depends on property size, design standards, and market location. |
| Furniture, Fixtures & Equipment (FF&E) | $40,000 | $200,000 | Includes beds, furniture, appliances, and decor per brand standards. |
| Training & Pre-Opening Expenses | $10,000 | $25,000 | Covers staff training, travel, and initial franchise orientation. |
| Technology & Reservation System Setup | $5,000 | $10,000 | Includes installation and integration of ChoiceEDGE and PMS systems. |
| Insurance, Licenses & Permits | $5,000 | $10,000 | Varies by state regulations and property type. |
| Grand Opening Marketing | $3,000 | $10,000 | Local advertising and promotional materials for property launch. |
| Estimated Annual Revenue (Per Property) | $600,000 | $1,500,000+ | Based on occupancy rate, ADR, and local market performance. |
| Expected ROI Period | 3 Years | 5 Years | Average payback period depending on market and management efficiency. |
| Break-Even Timeline | 24 Months | 36 Months | Typical range for profitability after opening. |
