Rodeway Inn
The total investment to open a Rodeway Inn franchise ranges from $508,300 to $2.9M. The initial franchise fee is $20,000.
What is the Rodeway Inn franchise?
Rodeway Inn is an economy hotel brand under Choice Hotels International. It serves budget conscious guests and road trippers who want essential amenities and comfortable lodging at an affordable price. The brand began in Phoenix, Arizona, in 1962, when Michael Robinson and his son in law, Joe Simmons, established Rodeway Inns of America. Robinson had opened the Flamingo Motor Hotel in McAllen, Texas, in 1951, and co founded Ramada Inns in 1954. Early Rodeway properties often used colonial style architecture similar to Ramada Inns of that period, generally at a smaller scale with fewer than 100 rooms. The brand now has more than 600 locations worldwide. As of December 31, 2024, it had 456 locations in North America and approximately 25,458 rooms. Another source reported 472 active units in 2024. Rodeway Inn operates in the economy lodging segment, with an emphasis on predictable quality and affordability. Its scale and market position make it a potential consideration for investors evaluating demand for accessible travel accommodations. PeerSense provides this independent research separately from brand marketing materials so prospective investors can review information for their own decisions.
Hotels and motels, excluding casino hotels, represent a multi billion dollar global market supported by leisure and business travel. Demand in economy lodging changes with economic cycles, although the broader hospitality sector continues to serve essential travel needs. Road trips remain an important consumer trend, while economic pressure increases attention to value. Travelers also continue to seek clean, reliable and affordable rooms. Rodeway Inn's core offer is directed toward budget conscious guests, families and business travelers seeking lower cost lodging. The industry's recovery from global disruptions highlighted domestic travel and demand for accessible accommodations. Franchise investors may be attracted to the category because hotel properties are tangible assets, lodging can produce recurring revenue, and established franchisors provide operating systems. Competition includes independent operators and large brand families such as Choice Hotels International, Wyndham, Hilton and Marriott. Fuel prices can affect road trip volume, while disposable income influences travel budgets. Rodeway Inn's focus on affordability and essential amenities gives it a position aimed at travelers seeking value as those conditions change.
A Rodeway Inn investment includes a franchise fee that varies across the cited sources and Franchise Disclosure Document versions. One source reports $20,000. Another reports a minimum of $5,250 and a maximum of $9,250. A third reports a franchise fee of $25,000, with a range of $25,000 to $25,000. The total initial investment is reported from $508,300 to $2.85 million. The amount can depend on whether the buyer converts and renovates an existing property, builds a new hotel, or renovates an older property to current brand standards. Geographic location, hotel size, local construction costs and market conditions also affect the capital required. A conversion in a lower cost market could be nearer the lower end, while a major renovation or new construction project in a high cost urban market could approach the upper end. The provided information does not list public liquid capital or net worth requirements. It also does not provide royalty rates, advertising fund contributions, technology fees or marketing fees. Based on the stated investment range, Rodeway Inn falls within a middle tier of hospitality investments and may be accessible to investors or groups with substantial capital, while requiring less capital than some luxury or full service hotel brands. Choice Hotels International is headquartered at 915 Meeting Street, Suite 600, North Bethesda, MD 20852. It franchises nearly 7,500 hotels with approximately 630,000 rooms across 46 countries and territories. Its corporate infrastructure includes brand recognition, reservation systems, marketing and operating guidance. The supplied information does not detail SBA eligibility or veteran incentives. Franchises connected to large hospitality groups such as Choice Hotels may qualify for financing options because of established business models and broad operating histories.
The Rodeway Inn operating model centers on value oriented lodging, daily management and operating efficiency. A franchisee may oversee guest services, room cleanliness and maintenance, front desk activity, reservations and local marketing. Staff management is central because properties require front desk, housekeeping and general maintenance roles. Staffing is generally leaner than at full service hotels, which aligns with the economy segment and can help control labor costs. The available information does not describe format options beyond traditional hotel properties. Early locations used colonial style architecture and generally had fewer than 100 rooms, suggesting a manageable property scale. The brand emphasizes essential lodging services rather than extensive food and beverage or recreational facilities. Specific training duration, location and hands on hours are not provided. As part of Choice Hotels International, franchisees can expect initial training and continuing corporate support, including field consultants, reservation and property management technology, national marketing programs, and access to Choice Hotels loyalty programs. Choice Hotels' global supply chain may provide pricing on hotel supplies and services. Kevin Bradt, Division President for Economy Market Brands, helped reorganize the franchise fee structure in 2005. Craig Mustard was identified as head of economy brands at Choice Hotels in 2018. The supplied information does not specify territory structures or exclusivity. Large hospitality systems often encourage ownership of multiple properties, which can create operating efficiencies across locations. The model may suit an owner operator involved in daily management or a semi absentee owner who hires a strong general manager, since hotels operate around the clock.
Potential revenue can still be considered through industry benchmarks, the brand's market position and its historical unit growth. Rodeway Inn offers essential amenities at an affordable price to road trippers and other guests seeking economical travel, allowing franchisees to address a broad segment that may remain active across different economic conditions. The brand grew from 136 locations by 1973 to 474 in 2014 and 600 hotels by the end of 2019. It celebrated the opening of its 600th hotel on January 17, 2018, in Osceola, Arkansas. More recent figures report 456 North American locations as of December 31, 2024, and 472 active units in 2024. More than 570 Rodeway Inns were franchised across America in 2020. Although the unit figures vary by source and period, they show a long operating history and broad presence within Choice Hotels International. Choice Hotels' nearly 7,500 hotels provide access to its reservation system, national marketing campaigns and Choice Privileges loyalty program, which can support bookings and revenue generation.
Rodeway Inn's growth history includes expansion and later changes within the Choice Hotels International system. The brand had 136 locations by 1973, 474 properties by 2014, and 600 hotels with 34,727 rooms in the United States by the end of 2019. Its 600th hotel opened in Osceola, Arkansas, on January 17, 2018. Choice Hotels had franchised over 570 Rodeway Inns across America in 2020. Current information reports more than 600 locations worldwide, 456 locations in North America as of December 31, 2024, and 472 active units in 2024. The changes in unit counts reflect expansion and strategic adjustments within the parent company's portfolio. Rodeway Inn was acquired by the Vantage Company in 1971. The British company Ladbroke Group purchased the brand in 1985 and sold it to Ramada Inns in 1987. After Ramada Inns was acquired by Prime Motor Inns, the Rodeway brand was sold to New Image Realty in 1990. One month later, Choice Hotels International acquired New Image Realty and gained Rodeway Inn, Econo Lodge and Friendship Inn. In 1997, Friendship Inn was absorbed into the Rodeway Inn and Econo Lodge brands. Rodeway Inn's competitive advantages include Choice Hotels' nearly 7,500 hotels and approximately 630,000 rooms in 46 countries and territories, along with its central reservation system, marketing reach and Choice Privileges loyalty program. The brand's affordable rooms and essential amenities appeal to budget conscious travelers and road trippers. Rodeway Inn also promotes an International Presence intended to support small businesses and attract leisure and business travelers, even though its direct operations are concentrated in the United States and Canada. That message relies in part on the broader international reach of its parent company.
A prospective Rodeway Inn owner generally benefits from business judgment and a basic understanding of hospitality. Direct hotel ownership is not always required when the candidate has strong management experience. Backgrounds in managing multiple locations or customer service businesses may be useful because hotel operations require organization and people management. Knowledge of local tourism, corporate demand and competing lodging options can help with property performance. The supplied information does not state a requirement to own multiple units. However, the scale and structure of Choice Hotels International can make ownership of multiple properties an attractive path for investors seeking to expand across locations and gain operating efficiencies. Rodeway Inn operates throughout North America, including the United States and Canada. In 2017, the brand had 600 franchised locations in 48 U.S. states, including 210 locations in the Southern region. Available markets may include busy roadside areas for road trippers, locations near tourist attractions and areas near business centers. Economy brands often seek markets with steady transient demand, including major highways, airports and regions with continuing leisure and business travel. The time from signing a franchise agreement to opening can vary based on whether the project is new construction, a conversion or a renovation. Specific timelines are not provided, although hotel projects typically range from 12 to 24 months. The available information does not specify the franchise agreement term or renewal terms. Standard franchise agreements generally address transfer and resale subject to franchisor approval, which can give an owner a path to sell the asset under established conditions.
Rodeway Inn is positioned in the economy lodging segment, where demand is tied to travelers seeking affordable rooms and essential amenities. Choice Hotels International supplies broad brand recognition, reservation access, marketing resources and international reach. The brand has operated since 1962 and has recorded growth from 136 locations in 1973 to 600 hotels by the end of 2019, while current sources report more than 600 locations worldwide, 456 North American locations as of December 31, 2024, and 472 active units in 2024. Its Loan Activity Score is 68 and is classified as Strong, indicating positive reported franchisee satisfaction and system health. PeerSense provides exclusive due diligence data including SBA lending history,
Loan Activity Score
68/100
SBA Default Rate
2.1%
Active Lenders
135
According to its Franchise Disclosure Document or public business records, Rodeway Inn has 283 locations, all owned by franchisees. Public SBA loan records show 135 lenders made 339 loans to franchisees of Rodeway Inn. PeerSense calculates Rodeway Inn's score as 68 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2025 Franchise Disclosure Document.
Franchising since 1962 · 283 locations
$508,300 to $2.9M
$20,000
283
283 franchised
Proprietary PeerSense metric
StrongDistinct lenders in public SBA records for Rodeway Inn
339
Total SBA loans
$1.5M
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Rodeway Inn
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
2.1%
vs 10.3% peer avg
SBA Loans
339
Total Volume
$520.7M
Active Lenders
135
25 selective
States
43
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 Rodeway Inn based on SBA lending data
SBA Default Rate
2.1%
8.2% below peer avg
SBA Loan Volume
339 loans
Across 135 lenders
Lender Diversity
135 lenders
Avg 2.5 loans per lender
Investment Tier
Premium investment
$508,300 to $2,850,000 total
Rodeway Inn: 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
2020
27 approvals. The best year on record for Rodeway Inn.
Top SBA State
California
40 SBA financed Rodeway Inn locations, the densest operator footprint.
Average Loan Size
$1.5M
Median $1.6M. Use as a sizing anchor when modeling your own Rodeway Inn unit.
Lender Concentration
23%
Moderately Spread
Share of Rodeway Inn approvals captured by the top 3 SBA lenders.
Rodeway Inn's SBA lending pipeline peaked in 2020 (27 approvals). The last five fiscal years account for 21% of cumulative volume ($158M approved). Operator density is highest in California with 40 SBA financed locations. Average funded ticket sits at $1.5M, with the median at $1.6M. Lender mix is moderately spread: the top three SBA lenders account for 23% of approvals. Borrowers have leverage to shop multiple credit boxes.
Payment Estimator
Estimated Monthly Payment
$5,262
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
Rodeway Inn, 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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