Hampton by Hilton vs Motel 6
Hampton by Hilton vs Motel 6: Hampton by Hilton costs $6.9M to $22.2M to open; Motel 6 costs $195K to $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, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Hampton by Hilton vs Motel 6: Capital, Scale & Lending Analysis
Analysis based on 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 7(a) approvals compared with 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. Hampton by Hilton has the most SBA funded units in TX, with 51. Motel 6 leads in CA, with 109. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer 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 SBA loss record 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 to $22.2M | $195K to $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 | 2025 |
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 SBA 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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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.
Hampton by Hilton has 582 SBA loans on record and Motel 6 has 613. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
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.
Hampton by Hilton vs Motel 6, Frequently Asked Questions
Which is a better franchise investment, Hampton by Hilton or Motel 6?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman