Sky-Palace Inn & Suites
Hospitality · Hotels & Extended Stay
- Active units
- 410
- Royalty
- 5.5%
Franchised, year-end 2024
of weekly Net Sales
About Sky-Palace Inn & Suites
Blue Way Inn & Suites is an imminent, highly-sought budget cum luxurious hotel that offers relaxing accommodation to business and leisure travelers.
Key terms
- Franchise fee
$40k
- Application fee credit
$5,000 application fee credited toward the affiliation fee
- Potential reductions
Affiliation fee may be reduced in certain instances (multi-unit, larger hotels, prior relationships, departing other chains, special circumstances)
- Incentive Program (incl. veterans/diverse owners)
$2,500 per room forgivable incentive note, up to $200,000; amortized over 10 years if no defaults
- Re-licensing Incentive
50% discount on the then-current affiliation fee for qualifying franchisees re-licensing an existing Sleep Inn
- Affiliation fee financing
Franchisor may finance the affiliation fee without interest; note generally due in one lump sum within three months
- Brand fund
3.5% of Net Sales
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2025 filing).
Growth
- Total locations410
Franchised units open at year-end
- New openings6
Gross new units opened during the calendar year
- 1-year unit growth rate-4.0%
Net unit growth versus prior year
- 3-year unit CAGR-1.5%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio6.0×
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$10.6M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open21 months
Midpoint of average time from agreement to opening
↓ Lower is better - 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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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.