Travelodge by Wyndham
The total investment to open a Travelodge by Wyndham franchise ranges from $178,081 to $8.1M. The initial franchise fee is $35,000. Ongoing royalties are 5.5% plus a 2% advertising fee.
What is the Travelodge by Wyndham franchise?
Travelodge by Wyndham traces its United States history to 1939, when Scott King incorporated the brand in Southern California. The first TraveLodge opened in San Diego in 1940. After years in El Cajon, California, Travelodge Hotels, Inc. was incorporated in Delaware on January 11, 1996 as Bear Acquisition Corp. and renamed Travelodge Hotels, Inc. on January 31, 1996. It operates as a subsidiary of Wyndham Hotel Group, LLC, which is wholly owned by publicly traded Wyndham Hotels & Resorts, Inc. (WHR), headquartered at 22 Sylvan Way, Parsippany, New Jersey 07054. Wyndham Hotels & Resorts was founded in 1981 in Dallas, Texas, by Trammell Crow and is led by CEO Geoff Ballotti as of March 2026. Travelodge had 402 North American locations and 29,604 rooms open in April 2017. The 2022 FDD reported 352 franchised locations across 45 states, including 158 in the West. Separate data reports 73 total units, all franchised, with no company owned units. Across 95 countries, Wyndham Hotels & Resorts manages or franchises over 9,000 properties. The global hotels and motels market generated $1.23 trillion in 2023 and grew at a CAGR of 3.2% from 2018 to 2023.
Hotels and motels form the core market for Travelodge by Wyndham. The global industry generated $1.23 trillion in 2023, with 465,196 establishments and a 2.1% CAGR in establishment growth from 2018 to 2023. The global hotels market was valued at USD 2,080.57 billion in 2025 and is projected to reach USD 3,931.42 billion by 2034 at a CAGR of 7.54%. Europe held 36.04% of the market in 2025. The United States hotels and motels market reached $286.5 billion in 2025 after a 15.2% CAGR from 2020 to 2025. It is estimated to grow at a CAGR of 7.1% from 2025 to 2030, from USD 263.21 billion in 2024. Business and leisure travel, consumer spending, and online booking channels support demand. Leisure held a 65.74% share in 2025, while the professional segment is projected to grow at a CAGR of 9.03%. Demand for midscale hotels is projected to rise at a CAGR of 7.6% from 2025 to 2030. Tourism growth, AI, data analytics, machine learning, and loyalty programs are also shaping the sector. The budget tier remains fragmented, while large parent companies such as Wyndham provide broader scale.
The stated initial franchise fee is $35,000. Other reported figures include a fee of up to $35,000, a minimum upfront fee of $43,350 to $66,925, and a 2021 range of $44,200 to $65,875. Total initial investment is reported from $178,081 to $8.08 million, depending on factors such as new construction or conversion, land costs, property size, and facility complexity. The 2022 FDD reported $5,271,307 to $9,282,506, while Entrepreneur.com reported $226,942 to $10,986,279 in December 2022. Research cites minimum liquid capital of $178,683 or $189,849, with working capital of $148,241 to $354,856. One source reports a 5% advertising fund percentage, while franchisees generally contribute 1% to 3% of sales to national advertising funds. The franchisor may defer the initial fee for 90 days or until the facility opens, generally without interest unless payment is more than ten days late. Wyndham offers direct financing through its own operations and maintains relationships with third party finance firms for startup costs, fees, equipment, and inventory. Eligible veterans may receive a 50% reduction in application and franchise fees and a development incentive of up to $4,000 per room. Depending on the property format, the investment can range from mid tier to premium.
Franchise operations cover front desk service, reservations, housekeeping, maintenance, guest satisfaction, and local marketing. A typical location requires approximately 25 employees. Travelodge primarily uses a traditional hotel or motel format, with both new construction and conversion opportunities. Training includes 3 to 4 days of practical instruction and 4 days of classroom instruction, followed by regional workshops and customized property training. Ongoing corporate support addresses hotel management and purchasing. Wyndham provides access to its scale, sourcing resources, purchasing power, and hotel management and reservation systems. Travelodge Hotels, Inc. holds the exclusive right to use and sublicense the Travelodge System in the United States, Canada, and Mexico. The brand has locations in 45 states, with 158 in the West. A February 2026 opening in Winnipeg Airport West shows continued market development. Some families have worked with Travelodge for 40 to 50 years. Direct owner involvement is common, although a capable management team may support a semi absentee structure.
Wyndham expected overall portfolio growth of 4% to 4.5% in 2025. It increased international net rooms by 9%, with EMEA room growth of 8%, and signed 870 deals, an 18% increase from 2024. Its development pipeline grew 3% to nearly 260,000 rooms and over 2,200 hotels. The global hotels market is projected to reach USD 3,931.42 billion by 2034 at a CAGR of 7.54%, while the United States market is projected to grow at a CAGR of 7.1% from 2025 to 2030. Midscale hotel demand is projected to grow at a CAGR of 7.6% from 2025 to 2030.
Travelodge unit counts vary by reporting period. The 2022 FDD listed 352 franchised United States locations in 45 states, including 158 in the West. April 2017 data showed 402 North American locations and 29,604 rooms open. Globally, including non Wyndham entities, Travelodge had 435 properties and 31,005 rooms as of December 31, 2018. More recent data lists 73 total Travelodge by Wyndham units, all franchised. Wyndham expected overall portfolio growth of 4% to 4.5% in 2025 and continues to sign rooms for budget brands where opportunities fit. Travelodge by Wyndham opened in Winnipeg Airport West in February 2026. Wyndham increased international net rooms by 9%, grew EMEA rooms by 8%, signed 870 deals, and expanded its development pipeline 3% to nearly 260,000 rooms and over 2,200 hotels. Its Echo Suites brand had 305 signed contracts and a projection of 300 opened hotels across the USA by 2032. Travelodge’s competitive position rests on recognition dating to 1939, Wyndham’s network of over 9,000 properties across 95 countries, proprietary technology, purchasing resources, and the Travelodge System in the United States, Canada, and Mexico. Its focus on the value oriented midscale segment aligns with projected growth of 7.6% from 2025 to 2030.
A suitable Travelodge by Wyndham candidate needs business judgment and the ability to manage hotel operations. Hotel experience is not expressly required, but experience with teams, finances, and customer relations would help when overseeing approximately 25 employees, guest services, and property maintenance. Training consists of 3 to 4 days of practical instruction, 4 days in a classroom, regional workshops, and customized property training. The investment range of $178,081 to $8.08 million may require substantial liquid capital or access to financing, although the available franchise data does not specify a liquid capital requirement. Families associated with Travelodge for 40 to 50 years indicate that the model may suit long term or multi unit ownership, though specific multi unit requirements are not provided. Territories cover the United States, Canada, and Mexico, where Travelodge Hotels, Inc. holds exclusive rights to the System. The brand operates in 45 states, with 158 locations in the West, and opened in Winnipeg Airport West in February 2026. Market availability should be confirmed with franchise professionals. Opening timing depends on whether the project is a conversion or new construction and may include site selection, permits, construction, and training. Agreement and renewal terms are not provided.
Travelodge by Wyndham combines a long operating history with a position in the value oriented midscale hotel segment. Demand in that segment is projected to grow at a CAGR of 7.6% from 2025 to 2030, while the global hotels market is projected to reach USD 3,931.42 billion by 2034 at a CAGR of 7.54%. Wyndham Hotels & Resorts has over 9,000 properties across 95 countries and provides access to operating systems, purchasing resources, and a broad hotel network. The total initial investment ranges from $178,081 to $8.08 million, covering different property formats and investment levels, including conversions and new construction. The brand dates to 1939 and operates within a system covering the United States, Canada, and Mexico. PeerSense provides due diligence data that includes SBA lending history, a Loan Activity Score of 60, rated Moderate, location maps with Google ratings, FDD financial data, and side by side comparison tools.
Loan Activity Score
60/100
SBA Default Rate
0.0%
Active Lenders
49
According to its Franchise Disclosure Document or public business records, Travelodge by Wyndham has 73 locations, all owned by franchisees. Public SBA loan records show 49 lenders made 89 loans to franchisees of Travelodge by Wyndham. PeerSense calculates Travelodge by Wyndham's score as 60 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2024 Franchise Disclosure Document.
Franchising since 1939 · 73 locations
$178,081 to $8.1M
$35,000
73
73 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for Travelodge by Wyndham
89
Total SBA loans
$2.0M
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Travelodge by Wyndham
Loan Activity Score Breakdown
Established (25 to 99 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
0.0%
vs 10.3% peer avg
SBA Loans
89
Total Volume
$178.3M
Active Lenders
49
12 selective
States
27
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 Travelodge by Wyndham based on SBA lending data
SBA Default Rate
0.0%
10.3% below peer avg
SBA Loan Volume
89 loans
Across 49 lenders
Lender Diversity
49 lenders
Avg 1.8 loans per lender
Investment Tier
Premium investment
$178,081 to $8,077,783 total
Travelodge 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
2020
19 approvals. The best year on record for Travelodge by Wyndham.
Top SBA State
California
13 SBA financed Travelodge by Wyndham locations, the densest operator footprint.
Average Loan Size
$2.0M
Median $1.7M. Use as a sizing anchor when modeling your own Travelodge by Wyndham unit.
Lender Concentration
25.8%
Moderately Spread
Share of Travelodge by Wyndham approvals captured by the top 3 SBA lenders.
Travelodge by Wyndham's SBA lending pipeline peaked in 2020 (19 approvals). The last five fiscal years account for 52% of cumulative volume ($103M approved). Operator density is highest in California with 13 SBA financed locations. Average funded ticket sits at $2.0M, with the median at $1.7M. Lender mix is moderately spread: the top three SBA lenders account for 25.8% of approvals. Meaningful choice exists, but specific lenders carry the brand.
Payment Estimator
Estimated Monthly Payment
$1,843
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
Travelodge 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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