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How Much Does It Cost to Open La Quinta Franchise?

La Quinta Inns & Suites is a chain of limited service hotels that are mostly situated in the United States, Canada, Mexico and Honduras. The hotel chain owns, operates, and franchises select-service hotels that primarily serves the upper-midscale and midscale segments of the society.

Its portfolio consists of approximately 900 properties representing 88,500 rooms under the La Quinta Inn & Suites, La Quinta Inn, and LQ Hotel brands which are located in 48 states in the United States, as well as in Canada, Mexico, Honduras, Colombia, and Chile.

Brothers Sam and Bill Barshop are the founders of La Quinta Inn and the concept saw the light of day in 1968. The first location opened in San Antonio, Texas and the brothers soon began to expand into other parts of the state after a successful first outing.

The company is currently headquartered in Irving, Texas. La Quinta also provides franchise opportunities. As of 2018, the company operates 576 franchises in the United States and 16 outside the country.

This hotel franchise concept prospered in the 70’s and 80’s with its primary focus being on business travelers. Its locations have sturdy amenities that are specifically useful to corporate travelers who are always on the road, rather than the typical hotel features such as swimming pools and restaurants.

Their business model was a success, with La Quinta Inn outshining competitors such a Holiday Inn and Rodeway. Wyndham Worldwide acquired La Quinta’s hotel management and franchising business in 2018 for nearly $2 billion in cash. There are currently over 900 La Quinta locations operating across the U.S., Canada, and Latin America.

La Quinta Inn & Suites by Wyndham is a contemporary, upper midscale hospitality franchise within the broader Wyndham Hotels & Resorts portfolio. The brand has a targeted focus on serving business travelers, with hotels positioned in 24 of the top 25 U.S. markets.

As owners of a limited-service hotel, La Quinta Inns & Suites franchisees offer affordable pricing tailored to the specific needs of each guest. Some amenities include free Wi-Fi, pillow top beds and complimentary breakfast. The main purpose of the hotel franchise is to provide a refreshing and engaging environment that builds long-lasting, valuable relationships with employees, guests, owners and partners.

As of year-end 2018, there were approximately 914 La Quinta hotels active across the U.S., Canada, and Latin America, with another 250 hotels in the brand’s development pipeline. Approximately 35% of La Quinta’s locations are corporate owned, with approximately 65% franchised. Systemwide, La Quinta properties generate an estimated $2 billion in annual sales.

La Quinta is part of the broader Wyndham Hotels & Resorts portfolio, which spans over 9,000 hotels (active or in development) and it boasts of almost 800,000 guest rooms across 20 brands.

La Quinta is a proud participant in VetFran, and is honored to offer veterans of the armed forces great incentives and enhanced resources for becoming a part of the La Quinta family.

Financial Investment Required to Open La Quinta franchise

Franchise profits depend on a number of variables, including local demand for your product, labor costs, commercial lease rates and several other factors. Typically, franchise profits are proportionate to the size of investment. Here, we will attempt to figure out how much money you can make by reviewing your personal situation.

La Quinta hotel franchise offers a relationship-based franchise program and operates by the motto “Promises made. Promises kept”. They see their franchisees are true partners and not customers.

La Quinta has the franchise fee of up to $55,000, with total initial investment range of $452,400 to $11,052,800.

1. Initial investments

Opening a newly constructed, 109-room La Quinta Inn & Suites hotel franchise requires a total initial investment of $8,302,253 to $11,745,002, excluding the cost of securing the underlying real estate. Converting and opening an existing hotel property as a 100-room La Quinta Inn & Suites franchise requires a total investment of $3,885,409 to $6,160,957, excluding real estate costs.

2. Initial Franchise Fee

Prospective franchisees must pay a $59,950 application fee and initial fee for a newly constructed La Quinta hotel. For a conversion from an existing hotel property into a La Quinta location, there is a $55,000 application and initial fee.

In addition, La Quinta strongly encourages prospective franchisees to obtain an independent market or feasibility study, at an estimated cost of $10,000 to $17,000, to validate the geographic site selection and to furnish potential capital sources with objective information on the economic prospects for the chosen location.

3. Ongoing Royalty Fee

La Quinta Inns & Suites franchisees must pay a monthly royalty of 4.5% of gross room revenue (growing to 5.0% after the first two years of the franchise agreement term). In addition, franchisees must contribute 4.5% of monthly room revenue toward a System Assessment Fee meant to cover costs of marketing, national advertising, training, reservation and other support services.

Ad Royalty Fee: 2.5%

Support Options

  • On-The-Job Training: 3 – 4 days
  • Classroom Training: 4 days
  • Absentee Ownership Allowed
  • Number of Employees Required to Run: 20 – 25