Established
1974
Franchise Units
15
Minimum Investment
$3,000,000
Franchise Fee
$40,000
Total Investment Range
$10,000,000
Home Based
No
Description
Shilo Inn is a well-established American hotel brand recognized for offering comfortable, value-focused accommodations across regional markets in the United States. Positioned within the mid-scale hospitality segment, the brand has built a strong reputation for spacious guest rooms, practical amenities, and traveler-friendly locations that serve both leisure and business guests.
Shilo Inn properties are especially appealing to highway travelers, families, corporate guests, and long-stay visitors who prioritize reliability, affordability, and comfort. Rather than competing in the luxury space, the brand focuses on consistent guest experiences in markets where demand remains steady year-round. This positioning allows franchise owners to benefit from dependable occupancy levels while maintaining manageable operating costs.
For investors seeking a proven entry into the U.S. hotel franchise industry, Shilo Inn offers a recognizable domestic brand backed by decades of operational experience. The franchise model is designed to provide structure without unnecessary complexity, helping owners focus on operational efficiency, guest satisfaction, and long-term asset performance.
Why Invest in This Franchise?
A Shilo Inn franchise presents a compelling opportunity for hospitality investors looking for stability, brand recognition, and scalable growth potential.
Key reasons to consider this franchise include:
• Long-standing U.S. hotel brand with multi-decade operating history
• Mid-scale positioning that attracts a broad and diverse guest base
• Suitable for both new developments and hotel conversion projects
• Strong performance potential in secondary and tertiary markets
• Repeat guest appeal from families, business travelers, and road travelers
• Operating systems designed for both single-unit and multi-unit ownership
Background
Brand Name: Shilo Inn
Industry Category: Hotel & Lodging | Mid-Scale Hospitality
Established Year: 1974
Founder: Budd Gronquist
Franchise Active Units (USA): Approximately 15 operating locations
Shilo Inn was founded in 1974 with a clear vision: to provide spacious, comfortable hotel accommodations at a fair and accessible price point. The brand originated in the Pacific Northwest and quickly gained recognition for offering larger-than-average guest rooms, practical amenities, and dependable service—features that resonated strongly with road travelers, families, and business guests.
During its growth phase, Shilo Inn expanded across multiple U.S. states, focusing primarily on regional, secondary, and highway-adjacent markets. These locations were intentionally selected to capture consistent travel demand while avoiding the high land, labor, and operating costs commonly associated with major metropolitan areas. This strategy helped the brand establish a loyal customer base and achieve steady occupancy levels.
Support Training
Shilo Inn provides structured franchise support to help owners successfully launch and operate their hotel properties.
Pre-Launch Support
• Site selection and market evaluation guidance
• Assistance with property development or conversion planning
• Brand standards, design guidelines, and layout specifications
• Pre-opening operational planning and checklists
• Vendor sourcing and procurement support
Training & Operational Support
• Franchise onboarding and management training
• Property management system instruction
• Revenue management and pricing strategy support
• Front desk, housekeeping, and guest service procedures
• Maintenance and asset management best practices
Marketing & Brand Support
• National and regional brand marketing initiatives
• Reservation system and booking channel integration
• Brand positioning and guest loyalty guidance
• Corporate and group sales strategy support
• Online reputation and brand consistency tools
Ongoing Support
• Dedicated franchise support contacts
• Performance tracking and benchmarking
• Brand compliance reviews
• Continued training updates and operational enhancements
Ideal Candidate
The Shilo Inn franchise opportunity is best suited for investors and operators with a strong interest in hospitality and long-term asset growth.
Ideal franchisees often include:
• Hotel owners or hospitality investors
• Multi-unit or multi-brand operators
• Real estate developers entering hotel ownership
• Owner-operators with experienced management teams
• Entrepreneurs with sufficient capital and operational focus
Preferred Attributes:
• Strong financial capability and access to capital
• Commitment to service quality and guest satisfaction
• Ability to follow brand systems and operational standards
• Interest in regional and secondary U.S. markets
• Long-term investment mindset
Financial Detail
| Cost Component | Estimated Amount (USD) |
|---|---|
| Total Investment Required | $3,000,000 – $10,000,000+ |
| Minimum Investment | $3,000,000 |
| Franchise Fee | $40,000 – $75,000 |
| Number of Franchise Units | Single & Multi-Unit |
| Infrastructure / Build-Out Cost | Market & property dependent |
| Real Estate / Lease Cost | Varies by location |
| Furniture, Fixtures & Equipment (FF&E) | Included in total investment |
| Initial Marketing & Launch Budget | $75,000 – $150,000 |
| Working Capital (6–12 months) | Market dependent |
| Royalty Fee | 5% – 7% of gross room revenue |
| Advertising / Brand Fund Fee | As per franchise agreement |
| Expected ROI | Market & performance dependent |
| Break-Even Timeline | 3 – 5 years |
| Primary Revenue Streams | Room revenue, extended stays, group bookings, meetings, F&B |
