Established
1959
Franchise Units
70
Minimum Investment
$2,500,000
Franchise Fee
$25,000
Total Investment Range
$10,000,000
Home Based
No
Description
Red Lion Hotels is a well-established American hospitality brand known for delivering dependable, mid-scale to upper-midscale hotel experiences across the United States. With decades of brand recognition and a strong domestic footprint, Red Lion Hotels appeals to both leisure and business travelers seeking comfort, convenience, and value.
The brand’s franchise model is designed for hotel owners and investors who want the strength of a nationally recognized name combined with flexible operating formats. From roadside hotels to urban and suburban locations, Red Lion Hotels has positioned itself as a practical, revenue-focused hospitality franchise that balances brand standards with owner profitability.
In a highly competitive U.S. lodging market, Red Lion Hotels stands out by emphasizing cost-efficient operations, modernized guest experiences, and robust franchisee support. For investors seeking a proven hotel franchise with scalable potential and long-term asset value, Red Lion Hotels presents a compelling opportunity.
Why Invest in This Franchise?
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Strong Brand Legacy: Red Lion Hotels carries decades of trust and familiarity among U.S. travelers.
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Flexible Conversion Opportunities: Ideal for both new hotel developments and conversion of existing independent properties.
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Growing Domestic Travel Demand: Benefiting from consistent demand across business, leisure, and regional travel segments.
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Efficient Operating Model: Optimized systems designed to control costs while maximizing room revenue.
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Comprehensive Franchise Support: Centralized marketing, reservations, and operational guidance reduce owner workload.
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Attractive Long-Term Asset Value: Hotel ownership under a recognized brand improves resale and financing potential.
Background
Established Year: 1959
Founders: The brand originated in Spokane, Washington, as a regional hospitality venture that expanded steadily across the U.S.
Brand Journey & History:
Red Lion Hotels began as a single hotel concept and evolved into a nationally recognized lodging brand. Over the years, it expanded through strategic acquisitions, rebranding initiatives, and a strong focus on franchising. The company adapted to changing traveler expectations by modernizing properties, enhancing loyalty programs, and embracing technology-driven hospitality solutions.
Ownership: Operates as a franchised hotel brand with a portfolio of independently owned and operated properties.
Market Presence in the USA: Red Lion Hotels has a broad footprint across multiple U.S. states, serving highways, suburban markets, and city centers.
Industry Category: Hospitality / Hotel Franchise (Mid-scale to Upper-Midscale)
Franchise Active Units: 70+
Support Training
Red Lion Hotels offers a structured and hands-on franchise support system designed to help owners succeed from day one.
Pre-Launch Support
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Site evaluation and feasibility guidance
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Design, brand standards, and renovation planning
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Assistance with conversion strategy for existing hotels
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Pre-opening marketing and positioning support
Operational Training
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Comprehensive onboarding programs for owners and management teams
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Staff training on brand standards, guest service, and operations
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Revenue management and pricing strategy guidance
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Technology systems training (PMS, CRS, booking platforms)
Marketing & Sales Support
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National and regional marketing campaigns
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Centralized reservation system and brand website exposure
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Loyalty program integration to drive repeat bookings
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Digital marketing and online reputation management support
Ongoing Support
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Dedicated franchise support team
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Performance reviews and operational audits
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Continued education and best-practice sharing
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Access to preferred vendor programs and purchasing power
Ideal Candidate
The Red Lion Hotels franchise is best suited for:
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Hotel Owners & Investors: Individuals or groups with experience in hospitality or real estate investment
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Entrepreneurs: Business-minded operators seeking a branded hotel opportunity with scalable growth
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Conversion-Focused Owners: Independent hotel owners looking to upgrade brand affiliation and revenue performance
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Financial Capability: Ability to meet investment and liquidity requirements for hotel development or conversion
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Location Preference: Strong roadside, suburban, secondary city, or regional market locations across the USA
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Management Mindset: Commitment to service quality, operational excellence, and long-term asset growth
Financial Detail
| Investment Component | Estimated Range (USD) |
|---|---|
| Total Initial Investment | $2.5 million – $10+ million |
| Minimum Investment Required | $2.5 million |
| Initial Franchise Fee | $25,000 – $60,000 |
| Number of Franchise Units | Multiple units across the USA |
| Infrastructure / Build-Out Cost | $1.8 million – $7 million |
| Renovation / Conversion Cost | $500,000 – $3 million |
| Marketing & Pre-Opening Budget | $75,000 – $200,000 |
| Working Capital | $200,000 – $500,000 |
| Royalty Fees | Typically 5% – 6% of gross room revenue |
| Expected ROI | 12% – 20% annually (market-dependent) |
| Break-Even Period | 3 – 5 years |