HomeTowne Studios & Suites

The question every serious hospitality investor asks before committing capital to an extended-stay brand is not whether the category is growing — it clearly is — but whether this specific brand, at this specific price point, in this specific segment, is positioned to deliver returns that justify the risk. HomeTowne Studios Suites, operating as HomeTowne Studios by Red Roof, was built to answer that question with a precise value proposition: deliver the essential comforts of home at economy lodging price points to guests who need weeks or months of accommodation, not nights. The brand was launched in August 2018 as a deliberate strategic extension by Red Roof, a recognized leader in the Upscale Economy lodging segment, with corporate headquarters located in New Albany, Ohio. That August 2018 launch was not tentative — it came with an immediate phased rollout of over 30 properties across more than 20 markets, encompassing nearly 4,000 rooms, backed by over $50 million in renovation investment. Today, HomeTowne Studios Suites operates 84 units in the United States, with all locations exclusively domestic, a footprint that reflects a brand still in a deliberate, disciplined growth phase rather than one saturating markets without regard for quality control. Key leadership driving the brand's evolution includes President Zack Gharib, who assumed the role in April prior to August 2024, Chief Development Officer Matthew Hostetler, and Vice President of Design, Construction, and Procurement Michael Sharp — a leadership team with deep roots in economy and extended-stay hospitality. For franchise investors evaluating this opportunity, the HomeTowne Studios Suites franchise represents a chance to enter one of hospitality's most durable and fast-moving segments under the established umbrella of a nationally recognized parent brand, with a support infrastructure that extends from site selection through construction and into ongoing operations.

The extended-stay hotel sector is the hospitality industry's fastest-growing segment, a designation it has earned through structural demand drivers that are not cyclical but secular. In 2018, the year HomeTowne Studios Suites launched, extended-stay builds already constituted over a quarter of all hotel development projects in the entire U.S. pipeline — a signal that institutional capital had already validated the thesis before the brand opened its first converted property. The broader hotel franchise market was valued at USD 36.7 billion in 2023 and is projected to reach USD 71.9 billion by 2032, representing a compound annual growth rate of over 7.5% between 2024 and 2032. Within that broader market, the extended-stay segment alone accounted for approximately 45% of the hotel franchise market in 2023 — making it not just a subcategory but effectively the dominant force reshaping how the hospitality sector allocates new development capital. The demand drivers are straightforward and persistent: consultants, contractors, travel nurses, project-based workers, relocating families, and insurance-displaced households all generate demand for accommodations that function more like temporary apartments than traditional hotel rooms. Consumer behavior is also shifting in ways that benefit the HomeTowne Studios Suites franchise model specifically — rising demand for affordable, home-like lodging experiences, increasing preference for in-room cooking facilities, and the normalization of remote work that extends business travel duration all funnel guests toward extended-stay properties. Sustainability trends are simultaneously compelling franchise operators to adopt energy-efficient technologies and environmentally responsible materials, and extended-stay properties with in-room kitchenettes are structurally better positioned to deliver on those guest expectations than food-service-dependent hotel formats. The competitive landscape for economy extended-stay is fragmented enough that a brand with genuine national infrastructure, a corporate parent with decades of economy lodging credibility, and a clear prototype strategy can capture meaningful market share from independent operators and regional chains that lack the franchising infrastructure to scale.

Understanding the HomeTowne Studios Suites franchise cost requires examining both the entry threshold and the total cost of ownership over the life of the franchise agreement. The initial franchise fee is $35,000, a figure that has increased from the $30,000 reported in 2019, reflecting the brand's growing market credibility and the enhanced support infrastructure that has developed since the brand's 2018 launch. The total initial investment for a HomeTowne Studios Suites franchise ranges from $10,719,393 to $13,157,291, a spread that reflects the capital-intensive nature of hotel development and the variability of site conditions, geography, and construction costs across different markets. Breaking down that investment range, prospective franchisees should account for an application fee and initial franchise fee of $35,000, an opening package fee of $2,500, a market study ranging from $0 to $10,000, and a Phase I Environmental Survey ranging from $0 to $6,000. Design, testing, and related fees are estimated between $135,000 and $190,000, while site and civil work ranges from $250,000 to $400,000, and landscaping and irrigation costs start at $37,000. The minimum liquid capital required for a prospective HomeTowne Studios Suites franchisee is $2,265,000 — a threshold that appropriately screens for investors with the financial depth to manage the operational demands of a multi-suite hotel property through the ramp-up period. On an ongoing basis, franchisees are required to pay a royalty fee of 5.5% of gross room revenue, which has increased from the 3% rate reported in 2019, and contribute 3.0% of gross room revenue to the advertising fund. Hotel franchising industry norms suggest total franchise fees typically range from 8% to 12% of a hotel's gross revenue when reservation system contributions, loyalty program fees, and other ongoing charges are included, placing the HomeTowne Studios Suites franchise cost structure within industry-standard parameters. Franchisees should additionally budget for Furniture, Fixtures, and Equipment reserves and the periodic Property Improvement Plans that are standard in hotel franchise agreements. The brand's parent company Red Roof provides a Design and Construction team that works directly with franchisees on conversion opportunities and new-build development, potentially mitigating some of the cost uncertainty that typically characterizes hotel development projects.

The daily operational reality of a HomeTowne Studios Suites franchise centers on delivering a consistent, amenity-complete extended-stay experience at an economy price point — a balance that requires attentive management of both guest services and physical property standards. Every HomeTowne Studios Suites property is designed around a suite-style room format that includes kitchenettes equipped with full-size refrigerators, microwaves, stovetops, sinks, kitchen tables, and chairs, giving guests functional living spaces that reduce their cost of longer stays by enabling in-room meal preparation. Properties also include free high-speed Wi-Fi, HD flat-screen televisions with premium cable, and on-site laundry facilities — amenities that address the core needs of the brand's primary guest demographics, which skew heavily toward working professionals, project-based travelers, and individuals navigating housing transitions. The staffing model for extended-stay properties at this price point is intentionally lean, which creates both an operational efficiency advantage and a management challenge — guest reviews of the newly opened HomeTowne Studios Tampa Airport property noted occasional room readiness delays attributed to being short-staffed, a dynamic that franchise operators must actively manage through hiring and scheduling discipline. Red Roof's support structure for HomeTowne Studios Suites franchisees includes the full backing of the parent brand's established infrastructure, described by the company as offering "strong brand equity, attributes, benefits, and proven support system of Red Roof." The Design and Construction team assists franchisees through conversion projects and new-build developments, developing building plans and Property Improvement Plans and supporting potential dual-branding with Red Roof where market conditions justify it. The brand's 2021 AAHOACON conference debut of a new property prototype — shaped by input from hotel owners, franchisees, and guests — demonstrated a structured approach to incorporating operational feedback into physical design, with the prototype featuring new furniture and fixtures, increased storage space, convenient kitchenettes, and improved public area layouts designed for operational efficiency. Franchisee partner Amit Patel, CEO of Dhruv Development, offered a direct assessment of the support model: "Red Roof is not just a franchisor; they are heavily invested in any franchisee partnership from the moment they sign a deal. Their assistance has been invaluable, from securing approvals to moving dirt."

Item 19 financial performance data is not disclosed in the current Franchise Disclosure Document for HomeTowne Studios Suites, which means prospective investors cannot rely on brand-published average revenue per unit, median revenue figures, or disclosed profit margins when building their financial models. This absence of Item 19 disclosure is not uncommon in hotel franchising, where property-level performance varies significantly based on location, local market conditions, competitive supply, and operator quality, but it does place a greater due diligence burden on prospective franchisees to independently model unit economics. What is publicly available suggests a brand with growing operational scale: the brand converted nearly 70 hotels nationwide to the HomeTowne Studios brand by September 2022, reaching 84 total units by 2025, and the 2025 Franchise Registration does include Item 19 tables described as "advanced" with tables extracted from Item 19 financial performance representations — meaning some structured financial data exists within the full FDD even if headline revenue averages are not publicly syndicated. Industry benchmarks for the extended-stay economy segment provide useful context: the extended-stay segment held approximately 45% of the hotel franchise market in 2023 within a market valued at $36.7 billion, and extended-stay properties structurally benefit from lower revenue volatility than transient-focused hotels because longer-stay guests generate extended occupancy commitments rather than nightly demand fluctuations. The economy extended-stay segment specifically benefits from sustained demand even during economic downturns, as guests trading down from higher-priced accommodations and cost-conscious workers on extended assignments prioritize value — a countercyclical characteristic that is relevant to payback period analysis. For any HomeTowne Studios Suites franchise investment analysis, prospective franchisees should request the full FDD, analyze the complete Item 19 tables, and develop location-specific revenue projections based on local market occupancy rates, average daily rate data from STR or similar hospitality benchmarking services, and comparable property performance in the target geography.

HomeTowne Studios Suites has demonstrated a consistent growth trajectory since its August 2018 launch, moving from an initial portfolio of over 30 properties at launch to nearly 70 conversions by September 2022 and reaching 84 total units by 2025. The brand's most significant recent development milestone is the opening of the HomeTowne Studios Tampa Airport in August 2024 — the first property built to the new prototype unveiled at the 2021 AAHOACON conference. That 124-suite property was developed in partnership with owner and operator Dhruv Management, establishing a proof-of-concept for the new-build format that the brand is now actively replicating. Dhruv Management and its construction partner Dhruv Development are simultaneously constructing another HomeTowne Studios Suites property in Bradenton, Florida, and have four additional properties in various stages of development — representing a committed development partner that is scaling the new prototype format across multiple markets simultaneously. The leadership transition in April prior to August 2024, with Zack Gharib replacing George Limbert as Red Roof's President, signals an ongoing evolution in corporate strategy at the parent company level, with Chief Development Officer Matthew Hostetler and VP of Design, Construction, and Procurement Michael Sharp providing continuity in the operational and physical development functions most directly relevant to franchisees. The brand's competitive moat is constructed from several reinforcing elements: the credibility and reservation system infrastructure of the Red Roof parent brand, a purpose-built extended-stay room design that has been refined through franchisee and guest feedback, a Design and Construction team that reduces the execution risk of new-build and conversion projects, and a price-point positioning that captures demand from guests priced out of upscale extended-stay brands. Sustainability and technology investment trends in hotel franchising are also shaping the HomeTowne Studios Suites development roadmap, as the industry broadly moves toward energy-efficient building systems and digital guest experience tools that reduce labor costs while improving satisfaction scores.

The ideal candidate for a HomeTowne Studios Suites franchise opportunity is an investor with meaningful hospitality or real estate development experience, the financial depth reflected in the $2,265,000 minimum cash requirement, and the operational bandwidth to oversee a multi-suite hotel property through the critical ramp-up period following opening. The Dhruv Management model — an owner-operator with dedicated development infrastructure actively building multiple HomeTowne Studios Suites properties across Florida — illustrates the profile of franchisee the brand appears designed to attract: developers with construction capabilities or strong construction partnerships who can execute the new prototype build at consistent quality and cost. Geographic focus for new development is currently concentrated in the United States, with no international franchise operations as of 2025, and the new-build prototype strategy suggests the brand is prioritizing markets with available land sites that can support ground-up 124-suite-scale development. The first new-build prototype in Tampa demonstrates that major metropolitan markets with strong extended-stay demand drivers — large healthcare employment bases, corporate headquarters, logistics and construction activity — align well with the brand's target guest profile. The Tampa Airport location's guest reviews highlight the importance of site selection near demand generators, with guests specifically praising reasonable pricing, free Wi-Fi, the exercise room, guest laundry, and on-site marketplace as factors driving satisfaction. Prospective franchisees should evaluate territory availability in consultation with Red Roof's development team and conduct thorough market studies — which the FDD estimates can cost up to $10,000 — to validate local demand before committing to site acquisition and development expenditures that can reach $400,000 for site and civil work alone.

The HomeTowne Studios Suites franchise opportunity sits at the intersection of two powerful investment forces: a parent brand with decades of economy lodging infrastructure and a category — extended-stay hospitality — that represented 45% of the entire hotel franchise market in 2023 within an industry growing at a 7.5% CAGR toward a projected $71.9 billion market size by 2032. The brand's disciplined rollout since August 2018, the capital investment of over $50 million in initial renovations, the debut of a purpose-built new prototype in 2024, and the active development pipeline from committed franchisee partners like Dhruv Management all point to a brand executing a coherent long-term growth strategy rather than pursuing rapid, undisciplined unit expansion. The total investment range of $10,719,393 to $13,157,291 positions this as a premium capital commitment requiring serious financial qualification, and the absence of publicly disclosed Item 19 revenue averages means the due diligence process must go deeper than surface-level brand analysis to justify that commitment. PeerSense provides exclusive due diligence data including SBA lending history, FPI score, location maps with Google ratings, FDD financial data, and side-by-side comparison tools that allow investors to benchmark the HomeTowne Studios Suites franchise cost, revenue structure, and competitive positioning against the full universe of hospitality and extended-stay franchise opportunities. For any investor weighing a seven-figure hotel franchise commitment in one of the fastest-growing segments in American hospitality, independent data is not optional — it is the foundation of sound decision-making. Explore the complete HomeTowne Studios Suites franchise profile on PeerSense to access the full suite of independent franchise intelligence data.