Scottish Inns

Franchise investing can expose buyers to weak performance and unexpected costs, especially in hospitality, where labor expenses and changing guest preferences affect margins. Scottish Inns operates in the economy lodging segment and is part of Hospitality International, Inc., giving owners a defined franchise structure rather than an independent hotel model. The brand traces its history to the late 1960s in Tennessee and has provided lodging services since 1967. It was initially formed as Scottish Inns of America, a builder and owner of modular constructed motels focused on economy lodging. Some historical accounts identify 1977 as the founding year, but the brand was operating earlier. Scottish Inns first leased its name to independent operators and began owning most properties by 1973. A 1974 directory listed 70 Scottish Inns locations. By 1978, the Scottish Inns Franchise Corporation, then based in Goodlettsville, Tennessee, had 31 properties, followed by 50 locations in 1981. The current Scottish Inns brand operates under Hospitality International, Inc., also known as hihotels. The company was incorporated in 1982 through the merger of Southern Scottish Inns, Inc. and Red Carpet Inns International, Inc. Its executive offices later moved to Atlanta, Georgia, and its corporate headquarters were established in Tucker, Georgia, a suburb of Atlanta. President and CEO Chris Guimbellot leads hihotels, which serves as the exclusive franchisor for Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, and Downtowner Inns. Across these brands, the company represents more than 300 lodging establishments and 15,000 rooms in the United States, Canada, and the Caribbean. Scottish Inns has 112 total U.S. locations and is described as steadily expanding and hihotels' fastest growing brand, with more than 100 locations from coast to coast. The system has 57 total franchised units and is 100% franchised. Its growth therefore depends on franchise owners rather than company operated hotels. The brand's history, current scale, and place within a larger hospitality group make it a developed economy lodging system for buyers considering a hotel investment.

The Hotels and Motels category is part of a broader United Kingdom market that includes Scottish tourism. That market is valued at USD 63.80 billion in 2026 and is projected to reach USD 78.28 billion by 2031, representing a Compound Annual Growth Rate of 4.18%. Scotland's hospitality sector recovered after COVID. Hotel room occupancy in Scotland reached 89.02% in May 2024, compared with 73.62% in May 2023. International visitors returned in greater numbers, with a net increase of +27% in summer 2024 compared with 2023. Foreign investment and regional development initiatives also supported the recovery, although domestic visitor numbers were -15% against 2023 figures. Independent hotels held 57.28% of the United Kingdom market in 2025, while chain hotels are forecast to grow at a 7.88% CAGR from 2026 to 2031. That difference points to continued growth for branded lodging and franchise systems. The Mid & Upper Midscale Hotel segment, where Scottish Inns operates, represented 39.38% of the market in 2025. Online Travel Agencies accounted for 37.24% of bookings in 2025, and Direct Digital channels are projected to grow at a 7.34% CAGR through 2031. Franchise owners therefore need an effective online presence and connected booking systems. Economy lodging serves budget conscious travelers and business professionals, which can provide steadier demand than luxury or narrowly focused hotel segments. The recovery in international travel, preference for branded hotels, and rising use of digital booking channels support the brand's expansion prospects in a market that is becoming more concentrated around recognized systems.

The Scottish Inns initial franchise fee is $10,000 according to FDD Item 7. Other sources place the fee for Hospitality International franchises generally at $5,000 to $15,000. The estimated total investment for a Scottish Inns franchise is $1,387,350 to $2,606,950 according to FDD Item 7. Comparable Hospitality International figures are $1,381,100 to $2,602,000. The required capital reflects the expense of developing a hotel or converting an existing property. Geographic location, construction or renovation work, and the choice between new construction and conversion can affect the final amount. Prospective franchisees must have at least $340,000 in liquid capital. Estimated additional working capital is $100,000 to $150,000. That rate falls within the hospitality industry range of 2% to 6%. A dedicated advertising fund fee for Scottish Inns or Hospitality International is listed as N/A in one source. The HVS 2020 Hotel Franchise Fee Guide reports that Scottish Inns had the lowest total franchise cost relative to rooms revenue among the economy hotel brands that participated, at 3.7%. This percentage concerns continuing franchise costs rather than the full amount needed to open a property. Buyers should still account for the substantial development or conversion investment, required liquidity, and working capital before assessing the economics of a location.

Scottish Inns gives new franchisees an initial training program that typically lasts two weeks. Training takes place at a designated Scottish Inns training facility and covers the main operating requirements of an economy lodging property through hands on instruction. Hospitality International, Inc., or hihotels, also supplies continuing operating resources and marketing materials for the opening period and ongoing operations. The company describes its service as personal and prompt common sense service. Franchisees can receive support and discounts connected to local, regional, and national marketing campaigns. The hihotels platform combines centralized support with brand standards designed for independent owners. Its approach is intended to avoid overly restrictive operating requirements. A corporate team provides continuing customer service and local sales and marketing training. Hihotels uses what it calls common sense standards, giving owners flexibility to operate according to local conditions while maintaining system quality. The company states that franchisees face no unreasonable mandates. The format supports both conversions and new construction. In February 2026, two Scottish Inns & Suites conversions were added: a 45 room property in Vinton, Louisiana, formerly a Cobblestone Inn & Suites, and a 41 room property in Kingwood, Texas, previously an Americas Best Value Inn & Suites. New construction accounts for approximately 30% of the existing 130 Scottish Inns facilities. The combination of conversions and new construction gives buyers more than one path for entering the system.

Broader hospitality figures still show the operating pressures buyers should examine. Labor costs rose 4.1% because of wage inflation and National Insurance contributions. The HVS 2020 Hotel Franchise Fee Guide's 3.7% total franchise cost relative to rooms revenue remains a favorable cost measure for Scottish Inns among the economy hotel brands surveyed. Scottish Inns is also identified as hihotels' fastest growing brand, with 112 total U.S. locations and approximately 30% of its 130 facilities represented by new construction. Reported growth supported by positive franchisee referrals offers an indirect indication of owner confidence. Since direct earnings claims are unavailable, buyers should treat these figures as industry context and cost indicators rather than as a forecast for an individual property.

Scottish Inns has expanded through several stages while remaining focused on economy lodging. After reaching 70 locations in 1974 and 50 properties in 1981 under the Scottish Inns Franchise Corporation, the brand remained part of the system's broader growth. Following the creation of Hospitality International, Inc. in 1982, the combined portfolio included Scottish Inns, Master Hosts Inns, and Red Carpet Inn. It had 126 properties by 1983, showing the immediate increase in scale after the merger. The 2017 Franchise Disclosure Document reported that Hospitality International had franchised locations in 30 U.S. states. The Southern region alone had 129 locations, indicating a concentration of the system's presence in that area. More recently, Scottish Inns has 112 total U.S. locations and is described as hihotels' fastest growing brand. It is also described as steadily expanding, with more than 100 locations from coast to coast. Corporate developments announced in February 2026 added three converted properties to hihotels' economy brand portfolio. Two of those properties were new Scottish Inns & Suites conversions, including a 45 room property in Vinton, Louisiana, formerly a Cobblestone Inn & Suites, and a 41 room property in Kingwood, Texas, previously an Americas Best Value Inn & Suites.