Established
1974
Franchise Units
200
Minimum Investment
$190,000
Franchise Fee
$25,000
Total Investment Range
$3,400,000
Home Based
No
Description
The Knights Inn franchise offers entrepreneurs a proven pathway into the budget-friendly hospitality sector—one of the most resilient and consistently profitable segments of the U.S. lodging industry. Known for its simple, dependable, and value-driven hotel experience, Knights Inn attracts both road-trip travelers and budget-conscious guests seeking clean rooms, friendly service, and convenient locations. With decades of brand recognition behind it, Knights Inn has become a legacy name in the economy hotel category, making it an attractive franchise for owners who want a branded hotel experience without the overwhelming costs often associated with large hotel chains.
What makes Knights Inn stand out is its dedication to operational simplicity. Its streamlined model focuses on essential guest needs, efficient staffing, and low overhead—allowing franchisees to operate with strong margins even in smaller markets. Backed by global hospitality franchising powerhouse Red Lion Hotels (a Sonesta brand since 2021), Knights Inn benefits from robust marketing networks, customer loyalty channels, and nationwide reservation systems that help franchisees maintain consistent occupancy and year-round demand.
Why Invest in the Knights Inn Franchise?
Investing in Knights Inn means choosing a hospitality brand with a long track record of stability and affordability. For hotel investors seeking lower startup costs, flexible conversion opportunities, and a strong support infrastructure, Knights Inn delivers an exceptional balance of brand equity and operational efficiency.
Key reasons investors choose Knights Inn:
1. Low-Cost Entry into the Hotel Sector
Knights Inn is well-known for offering one of the most affordable franchise investments in the U.S. lodging industry, especially through property conversions.
2. Strong Brand Recognition
With over 50 years in the market, Knights Inn still holds relevance due to its reputation for clean, comfortable stays and approachable price points.
3. Backed by a Global Hospitality Network
As part of Red Lion Hotels / Sonesta, franchisees benefit from national distribution channels, OTA partnerships, and an established loyalty program.
4. High Demand for Economy Hotels
Travelers increasingly seek affordable accommodations, making the budget hotel category one of the most recession-resilient lodging segments.
5. Flexible Property Conversions
Knights Inn is ideal for owners seeking to convert independent hotels or aging motel properties into a recognizable, standardized brand.
6. Scalable for Multi-Unit Investors
The low-overhead model allows experienced operators to expand portfolios with strong ROI potential.
Background
Established Year: 1974
Founders: Knights Inn was originally developed by Cardinal Industries, a prominent modular building developer.
Current Franchise Active Units: Approx. 200+ locations across the United States.
Industry Category: Economy Lodging / Budget Hotel Franchise
Current Ownership: Knights Inn is franchised under Red Lion Hotels Corporation (Sonesta brand portfolio under Sonesta International Hotels Corporation).
Brand Journey & History
Knights Inn began as an innovative economy lodging concept built using modular construction—providing cost-effective and uniform layouts during the 1970s and 1980s. The brand expanded rapidly across suburban and interstate markets, becoming a recognizable roadside hotel name for travelers, families, and business guests.
Over the decades, the brand transitioned through several ownership structures, ultimately joining Red Lion Hotels Corporation (RLHC), which modernized its franchise model and enhanced its distribution capabilities. After RLHC was acquired by Sonesta International Hotels, Knights Inn gained access to a larger hospitality network, strong marketing infrastructure, and broader guest loyalty programs.
Today, Knights Inn maintains a presence across key U.S. states and secondary markets, offering consistent value, clean accommodations, and a simple-to-operate hotel model ideal for first-time or seasoned hospitality owners.
Support Training
Knights Inn offers a strong franchise support system backed by Sonesta’s hospitality expertise. Franchisees receive comprehensive assistance from the moment they join, helping them launch smoothly and operate confidently.
Pre-Launch Support
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Site evaluation & property assessment for conversions or new build projects
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Brand compliance guidance for room layouts, signage, and guest experience standards
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Renovation & design support through approved vendors and design partners
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Integration with central reservation systems (CRS) to ensure online visibility from day one
Operational Support
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Standard operating procedures for front desk management, housekeeping, staffing, and guest service
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Cost-efficient operational tools to manage occupancy, pricing, and property performance
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Access to technology platforms for reservations, revenue management, and accounting
Marketing & Sales Support
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Nationwide brand marketing campaigns through digital, OTA, and travel platforms
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Access to Sonesta’s loyalty program to increase repeat guest bookings
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Listing visibility on major online travel agencies (Booking.com, Expedia, etc.)
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Support with local marketing strategies tailored to each franchise location
Training Programs
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Initial training for owners, managers, and staff (property operations, revenue management, customer service)
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Ongoing training modules via online learning platforms
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Regional workshops & brand conferences for ongoing education
Ongoing Franchisee Support
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Dedicated franchise business consultants
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Quality assurance inspections
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Pricing recommendations & revenue optimization tools
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24/7 reservations and technical support
Ideal Candidate
A Knights Inn franchise is designed for entrepreneurs who appreciate operational simplicity and steady occupancy. Ideal franchise partners include:
1. First-Time Hotel Owners
Those entering hospitality for the first time appreciate the brand’s affordable entry point, strong support, and simple business model.
2. Experienced Hospitality Operators
Owners who already manage motels, independent hotels, or economy hospitality brands often choose Knights Inn for conversions or portfolio expansion.
3. Real Estate Investors
Land or building owners looking to convert existing properties into revenue-producing hotels.
4. Multi-Unit Franchisees
Investors who want a scalable, low-overhead hotel brand they can replicate across multiple markets.
5. Owners in Interstate, Suburban, or Small-Town Markets
Knights Inn performs well in secondary cities, highway corridors, tourist routes, and budget-friendly neighborhoods.
Required Attributes
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Strong commitment to customer service
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Basic business management or hospitality experience
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Adequate financial capability for renovations and operational setup
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Long-term vision to grow occupancy and local reputation
Financial Detail
Below is a general financial overview for Knights Inn franchise ownership. Actual investment may vary based on location, property size, and renovation needs.
Estimated Total Investment:
$190,000 – $3,400,000+ (varies widely based on property condition and conversion scope)
Minimum Investment Required:
Approx. $190,000+ for smaller conversion properties
Franchise Fee:
~ $25,000 – $30,000 (subject to current FDD)
Royalty Fees:
Approx. 5% of gross room revenue
Marketing Fund Contribution:
Approx. 1.5% – 2% of gross revenue
Working Capital Needed:
$20,000 – $75,000 depending on market and staffing plan
Infrastructure & Renovation Costs:
Costs vary based on brand-mandated upgrades, signage, room standards, and property condition. Renovations typically represent the largest investment portion for conversions.
Expected ROI:
Many franchisees aim for 12% – 20% ROI, depending on occupancy, ADR (average daily rate), and market competitiveness.
Break-Even Timeline:
Generally 18–36 months, depending on property size and market demand.
Potential Revenue Streams
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Room bookings (primary revenue source)
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Extended-stay guests
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Partnerships with travel agencies, trucking fleets, construction crews
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Vending and on-site convenience services
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Pet-friendly room fees
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Parking fees (market dependent)