Hampton by Hilton vs Motel 6
Hampton by Hilton vs Motel 6: Hampton by Hilton costs $6.9M–$22.2M to open; Motel 6 costs $195K–$8.2M. Hampton by Hilton has 479 units, Motel 6 has 1,195. SBA loan history: Hampton by Hilton = 582 loans (3.8% default); Motel 6 = 613 loans (2.3% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet — see the comparison below.
Hampton by Hilton vs Motel 6 — 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
Motel 6 requires the lower minimum capital commitment ($195K vs $6.9M for Hampton by Hilton), a 3436% spread. Initial franchise fees come in at $75K for Hampton by Hilton versus $25K for Motel 6 — Motel 6 has the lower entry fee. Ongoing royalty load is 6% for Hampton by Hilton and 5% for Motel 6, giving Motel 6 the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Motel 6 operates 1,195 units to Hampton by Hilton's 479 — roughly 2× the system size. Motel 6 has been operating 64 years (founded 1962) versus 42 for Hampton by Hilton (founded 1984) — a 22-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Motel 6 has the deeper SBA lending track record with 613 historical 7(a) approvals versus 582 for Hampton by Hilton. Hampton by Hilton's peak SBA year was 2012 (37 loans); Motel 6's peak was 2021 (78 loans). Motel 6's more recent peak generally indicates fresher lender appetite. Geographically, Hampton by Hilton concentrates in TX (51 SBA-funded units) while Motel 6 leads in CA (109) — pick the brand whose strongest state matches yours for warmest lender introductions. Average SBA loan size on funded Hampton by Hilton deals is $1.8M vs $2.1M for Motel 6 — useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 3.8% for Hampton by Hilton and 2.3% for Motel 6 — Motel 6 has the cleaner historical loss profile by 1.5 points. PeerSense FPI scores come in at 59 (Moderate) for Hampton by Hilton and 69 (Strong) for Motel 6, giving Motel 6 the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 59/100 | 69/100 |
Health Tier | Moderate | Strong |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 582 | 613 |
SBA Volume | — | — |
Default Rate | 3.8% | 2.3% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $6.9M – $22.2M | $195K – $8.2M |
Franchise Fee | $75K | $25K |
Royalty Rate | 6% | 5% |
Ad Fund | 4% | 3% |
Liquid Capital | N/A | $100K |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Disclosed |
System Size & Operations
Total Units | 479 | 1,195 |
Franchised Units | 479 | 1,195 |
Company-Owned | — | — |
Term Length | 22 yrs | 15 yrs |
Brand Information
Year Founded | 1984 | 1962 |
Franchising Since | 1960 | 2005 |
Years Franchising | 66 yrs | 21 yrs |
Headquarters | HOUSTON, TX | Carrollton, TX |
Category | Hotels | Hotels |
Website | ||
FDD Year | 2023 | 2026 |
Which Is Better — Hampton by Hilton or Motel 6?
Lower upfront capital required
Motel 6
Hampton by Hilton: $6.9M starting · Motel 6: $195K starting
More SBA lender confidence
Motel 6
Hampton by Hilton: 582 SBA loans · Motel 6: 613 SBA loans
Lower historical default rate
Motel 6
Hampton by Hilton: 3.8% · Motel 6: 2.3%
Larger system & brand presence
Motel 6
Hampton by Hilton: 479 units · Motel 6: 1,195 units
Lower ongoing royalty load
Motel 6
Hampton by Hilton: 6% · Motel 6: 5%
More lender financing options
Hampton by Hilton
Hampton by Hilton: 215 unique lenders · Motel 6: 192 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.
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About These Franchises
Hampton by Hilton vs Motel 6: Franchise Funding Comparison
Comparing Hampton by Hilton and Motel 6 is about more than brand preference — it's about which franchise fits your financial profile and funding strategy. Investment ranges from $195K to $22.2M.
Both brands have active SBA lending histories — Hampton by Hilton with 582 SBA loans and Motel 6 with 613. 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.