
Motel 6
Hospitality · Hotels & Extended Stay
- Active units
- 1,206
- Royalty
- 5.0%
Franchised, year-end 2023
of weekly Net Sales
About Motel 6
Motel 6 is a well-known economy motel chain with its headquarters based in Carrollton, Texas, United States. Founded in 1962 in Santa Barbara, California, by two building contractors, William Becker and Paul Greene, Motel 6 originally aimed to provide affordable lodging options for travelers. The company's main product is budget-friendly accommodations in the form of clean and comfortable motel rooms. Motel 6 offers basic amenities including free Wi-Fi, expanded cable channels, and pet-friendly rooms at most locations. The company has a no frills approach, focusing on simple yet modernized room designs to minimize costs and maximize efficiency. Motel 6 operates on a global scale, with over 1,400 locations across the United States and Canada. In addition to its flagship brand, Motel 6, the company also operates Studio 6, an extended-stay brand offering larger rooms with kitchenettes. The Motel 6 brand is known for its iconic logo and iconic tagline, We'll leave the light on for you. Motel 6 is a subsidiary of G6 Hospitality, which also includes its sister brand, Studio 6. The company also has several strategic partnerships, such as its collaboration with Major League Baseball since 2018, offering exclusive discounts to fans attending games. In terms of market position, Motel 6 is a key player in the economy lodging segment. With its affordable rates and widespread presence, the brand has gained a significant customer base of budget-conscious travelers. Motel 6 competes with other economy lodging chains like Super 8, Red Roof Inn, and Days Inn. In recent years, Motel 6 has undergone various changes and expansions to maintain its strong market presence. One significant change was the implementation of energy-saving initiatives across its properties, showcasing the brand's commitment to sustainability and reducing its environmental impact. Currently, Motel 6 continues to expand its footprint, renovating existing properties, and opening new locations to cater to customers' evolving needs. The company's website and mobile app have also undergone updates to enhance the booking experience for guests. In conclusion, Motel 6 is a leading economy motel chain offering affordable accommodations with a focus on simplicity and efficiency. With a strong market position and continuous growth, the brand remains committed to providing quality lodging options for budget-conscious travelers.
Key terms
- Franchise fee
$25k
- Existing/Multi-unit/Market incentives
Franchisor may reduce fee for existing compliant franchisees, multiple agreements, market conditions/penetration, or LIGHT THE WAY incentive program
- Brand fund
3.0% of Net Sales
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations0
Franchised units open at year-end
- New openings—
Gross new units opened during the calendar year
- 1-year unit growth rate—
Net unit growth versus prior year
- 3-year unit CAGR—
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio—
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$8.0M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open—
Midpoint of average time from agreement to opening
- Royalty rate5.5%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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