La Quinta by Wyndham
The total investment to open a La Quinta by Wyndham franchise ranges from $3.9M to $6.2M. The initial franchise fee is $55,000. Ongoing royalties are 6%.
What is the La Quinta by Wyndham franchise?
Hospitality franchising requires substantial capital, and returns are not assured. La Quinta by Wyndham operates in the upper midscale hotel segment and is supported by Wyndham Hotels & Resorts, recognized as the world's largest hotel franchising company. Sam and Phil Barshop opened the first La Quinta Inn in San Antonio, Texas, in 1968, across from the HemisFair '68 World's Fair. Their original goal was to offer moderately priced lodging for commercial business travelers. La Quinta began franchising in 2000. The Blackstone Group acquired the company in 2005 for $3.4 billion. In 2018, Wyndham Hotels & Resorts purchased La Quinta's hotel management and franchising business for $1.95 billion in a transaction involving cash and debt. As of December 31, 2023, the brand had 918 properties and 89,391 rooms. Other reported figures include approximately 909 units as of 2025 and nearly 940 hotels worldwide as of April 2021. As of December 2022, the system included over 600 hotels in the United States and more than a dozen in other countries. Its stated markets include the United States, Canada, Mexico, Honduras, Chile, Colombia, Turkey, the Dominican Republic, New Zealand, China, the United Arab Emirates, and Georgia. The global hotels market was valued at USD 1071.49 billion in 2024 and is projected to grow at a compound annual growth rate of 9.2% from 2025 to 2032, reaching USD 2166.55 billion. That market context places La Quinta by Wyndham in a large and expanding industry, though buyers still need to assess the property, financing, and operating assumptions for a specific opportunity.
The global hotels market, where La Quinta by Wyndham competes, was valued at USD 1071.49 billion in 2024 and is projected to reach USD 2166.55 billion by 2032, based on a compound annual growth rate of 9.2% from 2025 to 2032. Another forecast places the market at USD 2,080.57 billion in 2025 and USD 3,931.42 billion by 2034, with a compound annual growth rate of 7.54%. Europe held the largest regional share in 2025, at 36.04%. In the United States, the hotels market was estimated at USD 263.21 billion in 2024 and is projected to grow at a compound annual growth rate of 7.1% from 2025 to 2030. The forecast gives the U.S. market a value of USD 280.63 billion in 2025 and USD 395.69 billion by the end of the decade. Hotels and motels represented 68.9% of the total market in 2021 and are forecast to be its fastest growing component from 2021 to 2026, with a compound annual growth rate of 13.6%. Leisure and professional travelers are the main consumer groups. Leisure travel held a 65.74% share in 2025, supported by rising personal wealth and demand for personalized, wellness focused travel. Professional travel is projected to grow at a compound annual growth rate of 9.03% during the forecast period. Demand for midscale hotels is projected to rise at a compound annual growth rate of 7.6% from 2025 to 2030. This segment attracts budget conscious guests seeking a balance of price and quality, including amenities such as complimentary breakfast and Wi Fi. Online bookings held a 55.25% share in 2025 and are projected to be the fastest growing booking segment, with a compound annual growth rate of 8.17%, supported by digital adoption and easier access. Wyndham Hotels & Resorts operates across approximately 90 countries with 9,300 hotels, giving the brand access to a large international system in a competitive market shaped by continuing travel demand and changing booking habits.
A La Quinta by Wyndham franchise requires a significant financial commitment. The initial franchise fee is reported at $55,000 to $60,500 and is paid once for the right to use the brand's trademarks, name, and business systems. Reported total initial investment ranges include $4,339,306 to $17,222,029, $12,771,504 to $16,221,888, and $12,809,423 to $17,222,029. Another source gives an approximate range of $4 million to $13.5 million, while the PeerSense database reports $3.89 million to $6.16 million. These estimates can include real estate, construction, equipment, supplies, business licenses, working capital, and the franchise fee. The investment ranges are above the stated average for similar hotel concepts, which is typically $8.4 million to $9.3 million, and reflect the brand's position in the select service hotel segment. The minimum required liquid capital is $2,785,000. Franchisees also contribute 2.5% to the advertising fund, described as an Ad Royalty Fee or marketing contribution. Wyndham Hotels & Resorts is headquartered in Parsippany, New Jersey. Military veterans receive a 50% discount on application and franchise fees, along with a development incentive of up to $4,000 per room. The required capital and recurring charges should be considered alongside property costs, construction risk, working capital needs, and the terms of any proposed financing.
Franchisees are responsible for daily hotel operations, including guest services, employee management, property maintenance, and local marketing, while following brand standards. The available information does not provide a specific staffing requirement. New construction is the main development method, representing approximately 90% of the 260 hotels in the pipeline as of March 31, 2019. Franchisees may use La Quinta by Wyndham prototype designs or work with the development team to convert an existing hotel to brand specifications. Training generally lasts several weeks and combines in person instruction with virtual learning, often at a Wyndham training facility. Corporate assistance covers marketing, operating guidance, brand standards, site selection, property development, grand opening support, meetings, conventions, and security. Franchisees also gain access to Wyndham reservation technology and brand recognition. In April 2019, La Quinta was fully integrated into Wyndham's cloud based technology platforms and added to the Wyndham Rewards loyalty program. These systems support reservations, guest retention, and operating processes, but they do not remove the franchisee's responsibility for staffing and property management.
Since Wyndham acquired La Quinta in 2018, the brand has signed 122 new franchise contracts, representing 8% growth in its franchise system. Fifty five new hotels have opened globally since the acquisition. The development pipeline included 260 hotels as of March 31, 2019 and 175 La Quinta hotels as of April 2021. Planned openings included Nashville, Santa Cruz, Austin, Brooklyn, Denver, and Corpus Christi. The U.S. hotels market is projected to reach USD 395.69 billion by 2030, while the midscale hotel segment is projected to grow at a compound annual growth rate of 7.6% from 2025 to 2030.
Since its addition to the Wyndham Hotels & Resorts portfolio, La Quinta by Wyndham has continued to expand. The brand had 918 properties and 89,391 rooms as of December 31, 2023. Other reported counts include approximately 909 units as of 2025 and nearly 940 hotels worldwide as of April 2021. As of December 2022, the system had over 600 hotels in the United States and more than a dozen in other countries. The 122 new franchise contracts signed since the 2018 acquisition contributed to 8% growth in the franchise system, and 55 new hotels opened globally during that period. New construction represented approximately 90% of the 260 hotels in the pipeline as of March 31, 2019. The pipeline included 175 La Quinta hotels in April 2021, with planned openings in Nashville, Santa Cruz, Austin, Brooklyn, Denver, and Corpus Christi. Wyndham's 2018 purchase of the La Quinta hotel management and franchising business cost $1.95 billion. In April 2019, La Quinta joined Wyndham's cloud based technology platforms and the Wyndham Rewards loyalty program. Wyndham operates across approximately 90 countries with 9,300 hotels, supporting international marketing, reservations, and other shared systems. The brand's development strategy favors new construction, which can support consistency in building design and facilities. International activity includes a deal for eight new hotels in the Dominican Republic, with four slated to open in 2021. La Quinta also entered Turkey with La Quinta by Wyndham Istanbul Gunesli, Giresun, and Bodrum, its first locations outside the Americas. Plans announced in early 2020 called for two hotels in New Zealand. In April 2021, further expansion into China, the United Arab Emirates, and Georgia was announced. The brand debuted in Santiago, Chile, and León, Mexico, in early 2018. Other stated countries include Canada, Honduras, and Colombia. These developments show continued geographic expansion, though each new property remains subject to local demand, development costs, and execution.
The typical target franchisee is a well capitalized investor, business operator, or real estate developer with the capacity to manage a large hotel asset. The minimum liquid capital requirement is $2,785,000, and reported total initial investment can reach $17,222,029. Hotel management experience may help, although Wyndham's training and support are intended to provide qualified franchisees with operational knowledge. New franchises are offered throughout the United States and internationally. Scheduled U.S. markets include Nashville, Santa Cruz, Austin, Brooklyn, Denver, and Corpus Christi. International markets include Canada, Mexico, Honduras, Chile, Colombia, Turkey, the Dominican Republic, New Zealand, China, the United Arab Emirates, and Georgia. The available information does not state the time from signing a franchise agreement to opening a hotel. The emphasis on new construction indicates that development may require an extended period. The available data also does not specify the agreement term, renewal provisions, transfer conditions, or resale process. Long term agreements are common in the hotel industry, with renewal often dependent on brand standards and performance requirements, but a buyer should review the actual agreement for governing terms.
La Quinta by Wyndham combines a large hotel system with a substantial development and operating commitment. Since 2018, the brand has signed 122 new franchise contracts and recorded 8% franchise system growth. It has expanded into the Dominican Republic, Turkey, New Zealand, China, the United Arab Emirates, and Georgia, in addition to its established markets. Reported initial investment ranges from $4,339,306 to $17,222,029. The global hotels market is projected to reach USD 2166.55 billion by 2032. Wyndham's cloud based technology platforms and the Wyndham Rewards loyalty program add shared reservation and guest retention resources.
Loan Activity Score
58/100
SBA Default Rate
5.0%
Active Lenders
185
According to its Franchise Disclosure Document or public business records, La Quinta by Wyndham has 422 locations, all owned by franchisees. Public SBA loan records show 185 lenders made 539 loans to franchisees of La Quinta by Wyndham. PeerSense calculates La Quinta by Wyndham's score as 58 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2023 Franchise Disclosure Document.
Franchising since 1968 · 422 locations
$3.9M to $6.2M
$55,000
422
422 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for La Quinta by Wyndham
539
Total SBA loans
$2.9M
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for La Quinta by Wyndham
Loan Activity Score Breakdown
Major Brand (100+ loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
5.0%
vs 10.8% peer avg
SBA Loans
539
Total Volume
$1551.8M
Active Lenders
185
23 selective
States
44
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for La Quinta by Wyndham based on SBA lending data
SBA Default Rate
5.0%
5.8% below peer avg
SBA Loan Volume
539 loans
Across 185 lenders
Lender Diversity
185 lenders
Avg 2.9 loans per lender
Investment Tier
Premium investment
$3,885,409 to $6,160,957 total
La Quinta by Wyndham: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2021
62 approvals. The best year on record for La Quinta by Wyndham.
Top SBA State
Texas
168 SBA financed La Quinta by Wyndham locations, the densest operator footprint.
Average Loan Size
$2.9M
Median $3.7M. Use as a sizing anchor when modeling your own La Quinta by Wyndham unit.
Lender Concentration
17.8%
Highly Diversified
Share of La Quinta by Wyndham approvals captured by the top 3 SBA lenders.
La Quinta by Wyndham's SBA lending pipeline peaked in 2021 (62 approvals). The last five fiscal years account for 30% of cumulative volume ($599M approved). Operator density is highest in Texas with 168 SBA financed locations. Average funded ticket sits at $2.9M, with the median at $3.7M. Lender mix is highly diversified: the top three SBA lenders account for 17.8% of approvals. Borrowers have leverage to shop multiple credit boxes.
Payment Estimator
Estimated Monthly Payment
$40,221
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
La Quinta by Wyndham, unit breakdown
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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; it does not lend, fund, or approve loans, and 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
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