Established
1968
Franchise Units
203
Minimum Investment
$350,000
Franchise Fee
$25,000
Total Investment Range
$1,500,000
Home Based
No
Description
The Red Carpet Inn franchise represents a strong opportunity in the value-driven lodging segment of the U.S. hospitality industry. Known for its straightforward comfort, accessible pricing, and reliable guest experience, Red Carpet Inn has carved out a durable niche among budget-conscious travelers, families, long-stay guests, and highway commuters.
Positioned primarily along major highways, suburban corridors, and secondary markets, Red Carpet Inn benefits from consistent demand without the intense competition and overhead associated with upscale hotel brands. The franchise appeals to owners seeking a proven hotel concept with flexible operations, modest staffing requirements, and multiple revenue channels.
For entrepreneurs, property owners, and hospitality investors looking to enter or expand within the economy hotel segment, Red Carpet Inn delivers brand recognition, operational simplicity, and scalability across diverse U.S. markets.
Why Invest in This Franchise?
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Established Budget Hotel Brand – Recognizable name with decades of operating history in the U.S. lodging market
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Lower Operating Costs – Lean staffing model and simplified service structure
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Strong Roadside & Secondary Market Demand – Ideal for highways, suburban areas, and regional travel hubs
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Flexible Property Options – Suitable for conversions, renovations, or new builds
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Multiple Revenue Streams – Nightly stays, extended stays, group bookings, and local business contracts
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Owner-Operator Friendly – Designed for hands-on investors and multi-unit hotel operators
Background
Brand Name: Red Carpet Inn
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Industry Category: Hospitality / Economy Hotel Franchise
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Established Year: 1968
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Country of Origin: United States
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Ownership: Operated under Hospitality International, Inc.
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Franchise Active Units: 203+ locations across the USA
Brand Journey & History
Red Carpet Inn was founded 1968 during the rapid expansion of automobile travel in the United States. The brand was built to serve travelers seeking affordable, clean, and conveniently located accommodations without unnecessary extras.
Over the decades, Red Carpet Inn evolved into a nationally recognized economy lodging brand, adapting to changes in travel behavior while maintaining its core focus on value and accessibility. Today, the franchise maintains a solid footprint across multiple states, particularly in highway-adjacent and suburban markets where consistent occupancy is driven by practical travel needs.
Support Training
Red Carpet Inn offers comprehensive franchise support designed to streamline hotel operations and help owners achieve long-term profitability.
Pre-Launch Support
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Site evaluation and market feasibility guidance
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Assistance with property conversion or renovation planning
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Brand standards, layout, and signage specifications
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Pre-opening checklists and compliance reviews
Training & Operational Support
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Initial training covering front desk operations, housekeeping, pricing strategies, and guest relations
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Revenue management and occupancy optimization guidance
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Ongoing operational manuals and SOP updates
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Access to centralized reservation and booking systems
Marketing & Branding Support
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National brand presence and online visibility
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Inclusion in brand website and third-party booking platforms
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Guidance on local marketing, signage, and promotions
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Reputation management and guest feedback best practices
Ongoing Franchise Support
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Dedicated franchise support team
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Periodic inspections and performance reviews
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Operational consulting and improvement recommendations
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Continuous brand upgrades and system enhancements
Ideal Candidate
The Red Carpet Inn franchise is well-suited for investors and operators who value efficiency, consistency, and steady cash flow.
Ideal candidates include:
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Existing hotel owners or multi-unit hospitality operators
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Real estate investors with suitable roadside or suburban properties
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Owner-operators seeking a hands-on hotel business
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Entrepreneurs with experience in hospitality, property management, or service industries
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Investors with the financial capacity to acquire, renovate, or develop hotel properties
Location Preferences:
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Highway exits and travel corridors
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Suburban and secondary markets
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Near industrial zones, hospitals, colleges, or regional attractions
Financial Detail
| Cost Component | Estimated Amount (USD) |
|---|---|
| Total Investment Required | $350,000 – $1,500,000 |
| Minimum Investment | $350,000 |
| Franchise Fee | $25,000 – $35,000 |
| Number of Franchise Units | 100+ Active Units (USA) |
| Property / Infrastructure / Renovation Cost | $200,000 – $1,000,000 |
| Furniture, Fixtures & Equipment (FF&E) | $50,000 – $200,000 |
| Marketing & Grand Opening Budget | $15,000 – $40,000 |
| Working Capital (3–6 months) | $50,000 – $150,000 |
| Royalty Fee | 5% – 6% of Gross Room Revenue |
| Technology / Reservation System Fees | Included / Nominal |
| Expected ROI | 18% – 30% (market dependent) |
| Estimated Break-Even Period | 2 – 4 Years |
| Primary Revenue Streams | Room bookings, extended stays, group & corporate lodging |
Figures are approximate and vary by location, property size, condition, and market dynamics.