Established
1998
Franchise Units
30
Minimum Investment
$150,000
Franchise Fee
$40,000
Total Investment Range
$4,500,000
Home Based
No
Description
The Palace Inn franchise offers a compelling opportunity within the U.S. budget and mid-scale lodging sector—one of the most stable and demand-driven segments of the hospitality industry. Recognized for clean, comfortable accommodations and guest-friendly pricing, Palace Inn has positioned itself as a reliable choice for travelers seeking value without sacrificing quality.
Palace Inn properties are commonly located along highways, suburban corridors, and high-traffic travel routes, serving a diverse customer base that includes leisure travelers, business guests, contractors, and extended-stay visitors. The brand emphasizes operational efficiency, standardized property design, and disciplined cost management, allowing franchise owners to maintain healthy margins while remaining competitive in local markets.
For investors looking to enter or expand within the hospitality space, Palace Inn provides a balanced model that combines brand recognition, real estate-backed assets, and a practical, scalable franchise system.
Why Invest in the Palace Inn Franchise?
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Operates in the resilient budget hotel segment with year-round demand
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Strategic locations near highways and commercial zones
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Streamlined operations with controlled staffing and overhead
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Consistent brand standards across properties
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Strong mix of repeat, extended-stay, and transient guests
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Asset-backed business with long-term income potential
Background
Established Year: 1998
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Industry Category: Budget & Mid-Scale Hotel / Motel Franchise
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Franchise Active Units: 30+ locations
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Ownership Structure: Privately held franchise system
Brand Journey & Company History
Palace Inn was founded with a focus on delivering clean, affordable lodging for travelers who prioritize value and convenience. The brand initially expanded through company-owned properties before offering franchise opportunities to qualified investors. Over the years, Palace Inn refined its operating standards, room layouts, and service protocols to ensure consistency and efficiency across all locations.
Rather than aggressive over-expansion, the brand has focused on measured growth, helping franchisees protect market performance and maintain strong local positioning. Today, Palace Inn continues to expand selectively in travel-driven U.S. markets.
Support Training
Palace Inn provides comprehensive support to franchisees throughout the lifecycle of the business.
Pre-Launch Support
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Assistance with site selection and market evaluation
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Design standards and construction planning guidance
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Vendor coordination and pre-opening checklists
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Brand compliance and property setup support
Training & Operational Support
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Initial training covering hotel operations and guest services
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Front desk systems, housekeeping, and maintenance procedures
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Revenue management and occupancy optimization strategies
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Cost control and daily operations best practices
Marketing & Brand Support
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Brand signage and identity guidelines
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Local marketing strategies to drive occupancy
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Online booking and OTA optimization guidance
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Guest feedback and reputation management practices
Ongoing Support
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Regular operational reviews and performance benchmarking
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Continued training updates and operational refinements
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Access to preferred suppliers and support resources
Ideal Candidate
The Palace Inn franchise is well-suited for hands-on investors and owner-operators who value structure, efficiency, and long-term growth.
Ideal candidates include:
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Hotel and real estate investors seeking a branded lodging asset
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Entrepreneurs with hospitality, construction, or property management experience
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Owner-operators comfortable managing staff and daily operations
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Investors with access to suitable land or redevelopment opportunities
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Multi-unit investors aiming to build a regional hotel portfolio
Preferred Locations:
Highway-adjacent areas, suburban growth markets, logistics corridors, and secondary cities with consistent travel demand.
Financial Detail
| Financial Component | Estimated Details |
|---|---|
| Industry Category | Budget & Mid-Scale Hotel / Motel Franchise |
| Total Investment Required | USD $1.5 Million – $4.5 Million |
| Minimum Investment Required | Approx. USD $1.5 Million |
| Franchise Fee | USD $40,000 – $60,000 |
| Franchise Units Available | Single-Unit & Multi-Unit Opportunities |
| Land & Construction Cost | USD $1.1M – $3.5M |
| Furniture, Fixtures & Equipment (FF&E) | USD $200,000 – $500,000 |
| Pre-Opening & Marketing Budget | USD $25,000 – $50,000 |
| Working Capital Requirement | USD $75,000 – $150,000 |
| Royalty Fee | 4% – 6% of Gross Room Revenue |
| Marketing / Brand Fee | 1% – 2% of Gross Revenue |
| Expected ROI | 15% – 25% (Market Dependent) |
| Break-Even Timeline | 3 – 5 Years |
| Primary Revenue Streams | Daily Room Rentals, Extended Stay Guests, Corporate & Contractor Bookings |