Sleep Inn

Sleep Inn is a midscale hotel franchise operated under Choice Hotels International, Inc., a publicly traded company listed on the NYSE as CHH. Its headquarters are in Rockville, MD, and Patrick Pacious is CEO as of March 2026. Quality Inns launched Sleep Inn in 1986 to provide comfortable, reliable lodging for value conscious travelers. Choice Hotels traces its current structure to the 1980 merger of Quality Inns with Manor Care, Inc. Sleep Inn has 283 franchised units. Nearly 550 properties were open or in development worldwide as of October 2018, and more than 550 Sleep Inn hotels are now open or in the pipeline globally. The brand focuses exclusively on all new construction, with an efficient footprint and timeless design introduced through its evolved prototype in 2016. Its Loan Activity Score is 65, rated Strong.

The global hospitality market was valued at approximately $4.9 trillion in 2024 and is projected to reach about $6.9 trillion by 2029, representing a CAGR of roughly 6% over the next five years. Travel and Tourism is expected to generate a record $11.7 trillion in 2025, equal to approximately 10.3% of global GDP. The global hotels market was valued at $2,080.57 billion in 2025 and is forecast to increase from $2,197.80 billion in 2026 to $3,931.42 billion by 2034, at a CAGR of 7.54%. Europe held a 36.04% share in 2025. The U.S. hotels market was estimated at $263.21 billion in 2024 and is projected to grow at a CAGR of 7.1% from 2025 to 2030. Chain hotels accounted for about 70% of the U.S. hotels market in 2024. Business and leisure travel, higher consumer spending, online booking, and digital check in are shaping demand. Leisure travel held a 65.74% market share in 2025, while digital check in was used by 60% to 68% of travelers globally. The midscale hotel segment is projected to grow at a CAGR of 7.6% from 2025 to 2030 as travelers seek essential amenities, affordability, and quality without luxury pricing. Sleep Inn is positioned for this value focused segment.

The initial Sleep Inn franchise fee is $45,000. The 2025 FDD estimates total investment for an 84 guestroom Sleep Inn & Suites hotel at $8,380,445 to $12,746,895. Of that amount, $53,945 to $109,895 is allocated to payments to the franchisor or its affiliates for initial services and support. Other industry sources estimate $5,923,880 to $8,294,745 or $3,525,533 to $5,923,776, depending on property characteristics, location, and development scope. Typical liquid capital requirements range from $1,895,000 to $3,000,000. Estimated working capital is $50,000 to $75,000. The royalty fee is 6% of gross sales, compared with a typical hotel franchise range of 4% to 8%. Some disclosures do not state a specific Sleep Inn advertising fee percentage. Choice Hotels International spends $50 million each year on multi brand national and cooperative advertising and marketing programs. Qualified candidates may receive financing assistance through third party providers. Veterans may qualify for a 10% discount on certain fees and a $2,500 per room incentive, capped at $200,000 and paid shortly after the hotel opens, if they were honorably discharged from service.

A Sleep Inn franchisee is responsible for developing, constructing, or acquiring an appropriate hotel site and obtaining the permits and approvals required by local authorities and the brand. Daily responsibilities include staffing and meeting service standards. The design removes non revenue generating square footage, which can reduce heating, cooling, cleaning, and maintenance expenses. Sleep Inn uses purpose built, all new construction, supported by the evolved 2016 prototype. The brand is also expanding through a dual brand concept with MainStay Suites, its extended stay brand. Ten such hotels are open, and more than 90 dual brand projects are expanding across the U.S. New franchisees complete an intensive training program of approximately two weeks at a designated Sleep Inn training facility. Choice Hotels International provides operational resources, services, training, property management systems, and field support. Sleep Inn does not offer territory protections, so buyers must assess local market conditions and the possibility of future brand locations.

Industry conditions provide broader context. The global hospitality market is expected to reach $6.9 trillion by 2029, and the global hotels market is projected to reach $3,931.42 billion by 2034. The U.S. hotels market was estimated at $263.21 billion in 2024 and is projected to grow at a CAGR of 7.1% from 2025 to 2030. The midscale segment is forecast to grow at a CAGR of 7.6% during that period. Sleep Inn has a Loan Activity Score of 65, rated Strong. It was rated among the top five hotels in the midscale without food and beverage segment for guest satisfaction in a recent Market Metrix Hospitality Index and is recognized as a leader in guest satisfaction among midscale hotel competitors. Franchisees cite low development and operating costs. The design can reduce land, construction, equity, debt service, heating, cooling, cleaning, and maintenance expenses by limiting non revenue generating space. Sleep Inn also receives a strong contribution from central reservations.

Sleep Inn has 283 franchised units and more than 550 hotels open or in development worldwide. Nearly 500 properties are open or under development in North America, including 410 locations in the U.S. and more than 400 across the United States and Canada. Product updates include new bedding, bath, and breakfast programs. These include ZENSES® bath products infused with essential oils, Dream Cup coffee and tea with the signature BE Rested®: Perfect Sleep tea blend, and white, nature inspired bed linens. Hotels offer free Wi Fi, a complimentary Morning Medley breakfast buffet with hot and cold options, and a swimming pool and or fitness center. Choice Hotels International operates close to 7,500 hotels in 46 countries and territories. Its central reservations system and $50 million in annual national and cooperative advertising support brand visibility. Sleep Inn's all new construction model and 2016 prototype are designed for operating efficiency and guest satisfaction. The dual brand MainStay Suites concept has 10 open hotels and more than 90 projects in the U.S. pipeline, allowing one development to serve transient and extended stay demand.

The prospective Sleep Inn franchisee needs business judgment and enough capital for a substantial hotel development. Prior hospitality experience can help, while Choice Hotels International's training and support can provide operational instruction for qualified candidates. Estimated liquid capital requirements range from $1,895,000 to $3,000,000. Hotel ownership is hands on, and an owner operator is often involved in daily management, staffing, and local market activity. The efficient design can reduce some operating responsibilities and expenses. The more than 90 MainStay Suites dual brand projects in the U.S. pipeline may appeal to multi unit developers seeking to expand within the Choice Hotels system. Sleep Inn is expanding across the United States and Canada, while Choice Hotels International operates in over 40 countries and territories globally. The brand historically projected openings in Denver, Fort Worth, Houston, and Jacksonville in 2018. New construction can create a substantial period between signing and opening, and the franchise agreement term length is not specified.

Sleep Inn operates in the midscale segment, which is projected to grow at a CAGR of 7.6% from 2025 to 2030. The brand has a Loan Activity Score of 65, rated Strong, and is supported by Choice Hotels International, which operates close to 7,500 hotels in 46 countries. Its all new construction model is designed around lower development and operating costs, while its guest satisfaction ratings support the brand's position among midscale competitors. More than 550 Sleep Inn hotels are open or in the pipeline worldwide, including dual brand developments with MainStay Suites. PeerSense provides franchise research 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 and is not a lender.