Econo Lodge

An Econo Lodge franchise gives buyers an entry point into the economy lodging segment through Choice Hotels International. The brand began in 1969 in Norfolk, Virginia, under the name Econo Travel, created by developer Vernon Myers and his son, Vernon Jr. Local businessman Lloyd Tarbutton later joined them, securing funding, locating investors, and conducting market research. The first Econo Travel hotel opened at 865 North Military Highway in Norfolk for $275,000. It remains open and initially charged $7 for a single room, $9 for a double room, and $11 for four people. The brand adopted the Econo Lodge name in the 1980s. Ownership changed several times, including a 1983 sale by Lloyd Tarbutton for $836 million when the chain had 306 locations. Choice Hotels International acquired the brand in 1990. Choice Hotels International, Inc. was formed as Quality Inns International, Inc. on January 8, 1963, and adopted its current name on October 15, 1997. Its headquarters are at 1 Choice Hotels Circle, Suite 400, Rockville, Maryland 20850, and Patrick Pacious serves as President and CEO. One alternative account places the brand's founding in 1965 in Parsons, Kansas, by Robert Poynter and Ralph Dellevie, followed by an Econo Travel acquisition in 1972. Most historical sources, however, identify the Myers and Tarbutton venture in Norfolk in 1969 as the brand's origin. As of December 31, 2024, the network included 698 open hotels and 40,088 rooms. Other reported figures include 677 U.S. franchises in 2026 and more than 800 motels across North America in 2020. Econo Lodge operates in every U.S. state and Canadian province. The global Hotels Market was valued at USD 1071.49 Billion in 2024 and is projected to reach nearly USD 2166.55 Billion by 2032, with a CAGR of 9.2% from 2025. Choice Hotels has more than 5,300 hotels in 46 countries. Econo Lodge's total capital requirements are below the lodging subsector average of $8.4 million to $9.3 million, giving buyers a recognized brand and an established operating model at a lower reported capital level than that average.

The hotels and motels industry is the main operating market for Econo Lodge. The global Hotels Market was valued at USD 1071.49 Billion in 2024 and is projected to reach nearly USD 2166.55 Billion by 2032, growing at a CAGR of 9.2% from 2025. In the United States, Hotels and Motels industry revenue is forecast to grow at a CAGR of 15.2% over the five years through 2025 and reach $286.5 billion, including growth of 0.5% in 2025. The broader global hospitality industry was estimated at USD 5,753.3 billion in 2025 and is expected to reach USD 10,267.8 billion by the end of 2034, with a CAGR of 6.6% during the forecast period. Demand comes from business travel, leisure tourism, and guests seeking clean, comfortable accommodations at budget prices. Business and leisure travel increasingly overlap through bleisure trips, which can support room occupancy. Digital bookings account for more than 60% of accommodation reservations in OECD countries, making online platforms and mobile applications central to travel planning. Econo Lodge presents itself as an Easy Stop on the Road, with convenient stays at competitive prices. Buyers should therefore assess how the brand's value proposition and operating model fit a competitive market that continues to grow overall.

Reported costs vary according to the property, project type, and information source. The initial franchise fee is $25,000. Other sources report a fee from $25,000 to $250,000, while more recent information lists a $35,000 fee for some offerings and a minimum of $30 in direct fees to Choice Hotels. Reported total initial investment ranges from $470,000 to $2.76 million. Other figures are $161,450 to $901,895, $175,045 to $954,895, $126,150 to $767,599, and $185,645 to $1,047,895. The difference can reflect a new build compared with a conversion, property development costs, furnishings and equipment, and working capital required to begin operations. These totals are below the lodging subsector average of $8.4 million to $9.3 million. Ongoing fees include a royalty of 6% of gross sales, compared with a typical industry range of 4% to 8%, and an advertising fee of 7.9%. These payments support the brand relationship, franchisor assistance, and marketing resources. Reported liquid capital requirements also differ. One source calls for at least $2,000,000 in liquid capital, while another lists a minimum cash requirement of $80,000. The actual amount may depend on the property, financing structure, and use of third party financing, which Econo Lodge actively facilitates. Eligible veterans may receive a 15% discount on the franchise fee.

An Econo Lodge franchise centers on operating a budget hotel that delivers an Easy Stop on the Road, with clean and comfortable accommodations at a competitive price. Franchisees manage daily hotel operations and may use the Choice Privileges rewards program to support guest loyalty. Choice Hotels' Pre Opening Operations Training covers front office and guest services, maintenance, housekeeping, the Choice Central Reservations System, and programs such as the 100% Satisfaction Guarantee. Flexible design standards support conversions and allow owners to use a modern, clean guest room design with timeless signature artwork. New franchisees receive 96 hours of initial training, including 49 hours of classroom instruction and 47 hours of hands on, on the job training. The program typically lasts two weeks and takes place at a dedicated Econo Lodge training facility. Choice Hotels also provides the Total Lodging by Choice, or TLC, orientation program. It addresses competition analysis, marketing strategies, hotel construction guidance, reservation system use, guest relations, staffing, operating practices, and budgeting. Support continues after training through the reservation system, marketing resources, and operational guidance. A New Hotel Opening specialist visits new locations and provides sales and marketing techniques, including help with early activities intended to reach fair market share. A Brand Performance Consultant and Sales Support Director assist with the grand opening, press release development, and event ideas. Operational manuals and marketing support are also available. Econo Lodge does not provide territory protection, so owners should consider the possibility of multiple units and competition from other locations in the same market.

Choice Hotels reported consistent growth across its core brands, including Econo Lodge, in 2025, with strong conversion activity. That activity may support further expansion despite slower industry conditions. Buyers should use the available figures and industry benchmarks to build their own financial model and review the current disclosure document before making an investment decision.

Econo Lodge has reported different unit counts across periods and sources. Franchise data lists 607 total units, all franchised. Separate research reports 698 open Econo Lodge hotels with 40,088 rooms as of December 31, 2024, and 677 U.S. franchises in 2026. Data from 2020 reported more than 800 motels across North America. The 2016 Franchise Disclosure Document listed 857 franchised Econo Lodge locations in the United States, including 426 in the South. The changes suggest a mature brand with continued conversion activity and measured expansion in established markets. Choice Hotels has also pursued broader portfolio growth. In 2025, it acquired the remaining 50% interest in the Choice Hotels Canada joint venture, giving it operational control in Canada. The company expanded its European presence through multi unit development agreements, including a 50 unit Quality Suites agreement in France and an Ascend Collection property in Poland. Its international portfolio reached nearly 160,000 rooms outside the United States, representing 13% room growth in 2025. Choice Hotels awarded 247 U.S. franchise agreements for its core brands in 2025, while Econo Lodge continued to show growth through conversions. In September 2024, M&G Hotel Group added Econo Lodge Port Augusta and Econo Lodge Dockside Glenelg in South Australia as part of seven franchise agreements with Choice Hotels. Econo Lodge's market position rests on brand recognition dating to 1969 and Choice Hotels' reservation system, marketing resources, and Choice Privileges program. Its Easy Stop on the Road positioning, flexible design standards, and conversion focus address demand for value priced accommodations. Digital bookings account for more than 60% of accommodation reservations in OECD countries, making those distribution resources relevant to the operating model.

An Econo Lodge candidate may be an investor seeking an established economy lodging brand supported by a global hospitality company. The source does not state specific experience requirements, though management or hospitality operations experience could help an owner use the support offered by Choice Hotels. Reported liquid capital requirements range from $80,000 to $2,000,000, depending on project scope and financing structure, so buyers need to assess their available cash and total funding plan carefully. Econo Lodge operates in every U.S. state and Canadian province, creating potential development and conversion opportunities in a broad territory. The 2016 Franchise Disclosure Document reported 426 locations in the South. The addition of two Econo Lodge properties in South Australia in 2024 reflects continued international development. The timeline from signing to opening includes 96 hours of initial training, usually over two weeks, followed by pre opening operational assistance from New Hotel Opening specialists and Brand Performance Consultants. The franchise agreement term length is not available. The brand's history and continued expansion indicate a long term operating model, but buyers should confirm the term and renewal provisions in the current franchise documents. Because Econo Lodge does not offer territory protection, a buyer may consider multi unit development to increase market presence and operating efficiencies. That approach is consistent with Choice Hotels' broader expansion strategy.

Econo Lodge may suit buyers seeking an established value oriented hotel brand with a lower reported capital requirement than the lodging subsector average of $8.4 million to $9.3 million. The global Hotels Market was valued at USD 1071.49 Billion in 2024 and is projected to reach nearly USD 2166.55 Billion by 2032 at a CAGR of 9.2% from 2025. The U.S. hotel industry entered a slow growth period in 2025, but Choice Hotels reported growth across its core brands, including Econo Lodge, supported by conversion activity and demand for budget accommodations. Reported investment figures include a $25,000 initial franchise fee, a 6% royalty, and a 7.9% advertising fee. New franchisees receive 96 hours of training, along with access to Choice Hotels' reservation system, marketing resources, operating guidance, and opening support. PeerSense provides franchise due diligence information that includes SBA lending history, Loan Activity Score, location maps with Google ratings, FDD financial data, and side by side comparison tools. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders. It is not a lender and does not approve or fund loans. Buyers can review the complete Econo Lodge franchise profile on PeerSense as part of their independent research.