Established
1998
Franchise Units
400
Minimum Investment
$5,000,000
Franchise Fee
$25,000
Total Investment Range
$15,000,000
Home Based
No
Description
The Sleep Inn franchise is a proven and well-recognized economy hotel brand designed for modern travelers who value comfort, cleanliness, and affordability. Positioned in the upper-economy lodging segment, Sleep Inn combines contemporary design, consistent guest experience, and operational efficiency—making it a strong investment choice for hospitality entrepreneurs across the United States.
Sleep Inn is part of the powerful Choice Hotels portfolio, one of the largest hotel franchising companies in the world. The brand is known for its signature Designed to Dream® concept, which emphasizes smart room layouts, premium bedding, sound-reducing design, and a fresh, modern aesthetic—without the high development and operating costs associated with upscale hotels.
With strong brand recognition, nationwide marketing reach, and a repeat-guest-driven loyalty program, the Sleep Inn franchise offers investors a scalable, resilient, and cash-flow-focused hotel business model. Whether located near highways, airports, business districts, or leisure destinations, Sleep Inn properties consistently appeal to both business and leisure travelers seeking dependable value.
Why Invest in the Sleep Inn Franchise?
Investing in a Sleep Inn franchise means aligning with a hospitality brand that balances affordability with performance-driven design and systems.
Key reasons investors choose Sleep Inn include:
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Strong brand equity backed by Choice Hotels’ global presence
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Upper-economy positioning with broad guest appeal
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Lower development and operating costs compared to midscale and upscale hotels
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Access to Choice Privileges®, one of the largest hotel loyalty programs in the U.S.
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Scalable model suitable for single-unit owners and multi-property developers
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High demand from road travelers, corporate guests, and cost-conscious vacationers
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Proven resilience during economic cycles due to value-oriented pricing
Background
Brand Founded: 1998
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Parent Company: Choice Hotels International
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Founders: Developed as an in-house brand by Choice Hotels
- Industry Category: Upper-Economy / Limited-Service Hotel Franchise
- Franchise Active Units (USA): 400+ locations across the United States
Sleep Inn was introduced to address the growing demand for modern, affordable lodging that delivers a premium sleep experience without unnecessary extras. Over the years, the brand has evolved through design refreshes, operational improvements, and technology upgrades—keeping it competitive in a crowded hotel marketplace.
Support Training
Sleep Inn franchisees receive end-to-end support from Choice Hotels, designed to simplify hotel development and maximize operational performance.
Pre-Launch & Development Support
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Site selection and market feasibility analysis
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Hotel design guidance aligned with brand standards
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Construction and prototype planning support
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Vendor sourcing and procurement assistance
Training & Operational Support
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Comprehensive initial training for owners and management teams
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Front desk, housekeeping, maintenance, and guest service systems
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Revenue management and pricing optimization tools
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Property management system (PMS) and technology onboarding
Marketing & Sales Support
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National and regional advertising campaigns
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Inclusion in Choice Hotels’ centralized reservation system
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Digital marketing, OTA exposure, and mobile booking integration
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Access to the Choice Privileges® loyalty network
Ongoing Support
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Dedicated franchise support managers
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Performance benchmarking and analytics
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Brand quality assurance and operational audits
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Continuous education, webinars, and system updates
Ideal Candidate
The Sleep Inn franchise is best suited for investors and operators with a long-term view of hospitality asset growth.
Ideal candidates include:
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Hotel owners looking to add or convert economy/upper-economy properties
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Real estate developers with hospitality-focused portfolios
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Multi-unit franchise operators seeking scalable hotel brands
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Investors with access to hotel development capital and financing
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Owner-operators or management-backed investors
Preferred franchisees typically have strong financial capability, an understanding of local real estate markets, and a commitment to maintaining brand standards. While prior hotel experience is beneficial, Choice Hotels’ training and support systems make Sleep Inn accessible to qualified first-time hotel investors as well.
Financial Detail
| Cost Component | Estimated Range (USD) |
|---|---|
| Total Initial Investment | $5,000,000 – $15,000,000 |
| Minimum Investment | ~$5,000,000 |
| Initial Franchise Fee | $25,000 – $50,000 |
| Number of Franchise Units | Single-unit & Multi-unit |
| Land / Leasehold Costs | Market-dependent |
| Construction & Build-Out | $3,000,000 – $10,000,000 |
| Furniture, Fixtures & Equipment (FF&E) | $700,000 – $1,500,000 |
| Technology & Signage | $100,000 – $300,000 |
| Pre-Opening & Training Costs | $75,000 – $200,000 |
| Initial Marketing Budget | $50,000 – $150,000 |
| Working Capital (3–6 months) | $200,000 – $500,000 |
| Royalty Fee | ~5%–6% of gross room revenue |
| Marketing / Reservation Fees | ~3%–4% of gross revenue |
| Expected ROI | 12%–20% (location dependent) |
| Break-Even Period | 3–5 years |
| Primary Revenue Streams | Room rentals, corporate bookings, loyalty stays |
