Best Western vs Red Roof Inn
Best Western vs Red Roof Inn: Best Western costs $510K–$2.8M to open; Red Roof Inn costs $5.9M–$8.9M. Best Western has 702 units, Red Roof Inn has 345. SBA loan history: Best Western = 882 loans (9.0% default); Red Roof Inn = 461 loans (3.0% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet — see the comparison below.
Best Western vs Red Roof Inn — Capital, Scale & Lending Analysis
Data-driven differentiation pulled from FDD filings and SBA 7(a) loan-level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Best Western requires the lower minimum capital commitment ($510K vs $5.9M for Red Roof Inn), a 91% spread. Initial franchise fees come in at $50K for Best Western versus $30K for Red Roof Inn — Red Roof Inn has the lower entry fee.
System Scale & Tenure
On scale, Best Western operates 702 units to Red Roof Inn's 345 — roughly 2× the system size. Best Western has been operating 80 years (founded 1946) versus 53 for Red Roof Inn (founded 1973) — a 27-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Best Western has the deeper SBA lending track record with 882 historical 7(a) approvals versus 461 for Red Roof Inn. Best Western's peak SBA year was 2016 (53 loans); Red Roof Inn's peak was 2021 (50 loans). Red Roof Inn's more recent peak generally indicates fresher lender appetite. Both systems concentrate the most SBA-funded units in TX — borrowers in that state will find the deepest lender familiarity with either brand. Average SBA loan size on funded Best Western deals is $1.4M vs $2.1M for Red Roof Inn — useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 9.0% for Best Western and 3.0% for Red Roof Inn — Red Roof Inn has the cleaner historical loss profile by 6.0 points. PeerSense FPI scores come in at 41 (Fair) for Best Western and 68 (Strong) for Red Roof Inn, giving Red Roof Inn the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 41/100 | 68/100 |
Health Tier | Fair | Strong |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 882 | 461 |
SBA Volume | — | — |
Default Rate | 9.0% | 3.0% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $510K – $2.8M | $5.9M – $8.9M |
Franchise Fee | $50K | $30K |
Royalty Rate | N/A | 4.5% |
Ad Fund | N/A | N/A |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 702 | 345 |
Franchised Units | 702 | 345 |
Company-Owned | — | — |
Term Length | N/A | 5 yrs |
Brand Information
Year Founded | 1946 | 1973 |
Franchising Since | 1960 | N/A |
Years Franchising | 66 yrs | N/A |
Headquarters | Phoenix, AZ | Columbus, OH |
Category | Hotels | Hotels |
Website | ||
FDD Year | 2021 | 2025 |
Which Is Better — Best Western or Red Roof Inn?
Lower upfront capital required
Best Western
Best Western: $510K starting · Red Roof Inn: $5.9M starting
More SBA lender confidence
Best Western
Best Western: 882 SBA loans · Red Roof Inn: 461 SBA loans
Lower historical default rate
Red Roof Inn
Best Western: 9.0% · Red Roof Inn: 3.0%
Larger system & brand presence
Best Western
Best Western: 702 units · Red Roof Inn: 345 units
More lender financing options
Best Western
Best Western: 275 unique lenders · Red Roof Inn: 154 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation — your best franchise depends on capital, market, operating capacity, and risk tolerance.
Need Funding for Best Western or Red Roof Inn?
PeerSense connects you with 500+ SBA lenders and capital sources. Our referral fee is established upfront and paid at closing. No retainers.
SBA Lenders & Capital Sources
Retainers or Consulting Fees
10% Down Franchise Loans
About These Franchises
Best Western vs Red Roof Inn: Franchise Funding Comparison
Comparing Best Western and Red Roof Inn is about more than brand preference — it's about which franchise fits your financial profile and funding strategy. Investment ranges from $510K to $8.9M.
Both brands have active SBA lending histories — Best Western with 882 SBA loans and Red Roof Inn with 461. This means proven lender acceptance and established underwriting paths for franchise buyers.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands — not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice — consult with a lending professional before making investment decisions.
Best Western vs Red Roof Inn — Frequently Asked Questions
Which is a better franchise investment — Best Western or Red Roof Inn?
How much does a Best Western franchise cost compared to Red Roof Inn?
Can I finance Best Western or Red Roof Inn with an SBA loan?
Which has a lower SBA default rate — Best Western or Red Roof Inn?
Financing a franchise? Get matched to an SBA lender.
Tell us which brand and your budget. We route you to lenders who have already funded deals in these systems.
Franchise / SBA 7(a) — Response within 4 business hours. No obligation.