HomeTowne Studios by Red Roof
Franchise research report · reviewed 2026 disclosure data
Researching HomeTowne Studios by Red Roof franchise opportunities? Every figure below is cited to the FDD.
HomeTowne Studios by Red Roof franchise specializes in extended-stay accommodations, offering affordable weekly and monthly rates for guests seeking longer-term
Headline figures
HomeTowne Studios by Red Roof quick facts
- Is HomeTowne Studios by Red Roof a franchise?
- Yes. HomeTowne Studios by Red Roof offers franchises through a Franchise Disclosure Document. At the end of 2025, it reported 53 franchised and 0 company-owned outlets (2026 FDD, Item 20, PDF p. 67).
- How much does it cost to open a HomeTowne Studios by Red Roof franchise?
- The HomeTowne Studios by Red Roof Franchise Disclosure Document reports separate estimated initial investments by format: $11,734,393–$14,457,291 for table 1 124-room new build hts/hometown/hometowne inn — as arranged as incurred vendors & employees total (excludes land acquisition costs) (note 21) (2026 FDD, Item 7, PDF p. 28); $11,894,393–$14,857,291 for table 2 124-room new build hts suites — as arranged as incurred vendors & employees total (excludes land acquisition costs) (note 21) (2026 FDD, Item 7, PDF p. 30); $13,588,418–$15,860,090 for table 4 140-room new build red roof plus plus hts — as arranged as incurred vendors & employees total (excludes land acquisition costs) (note 21) (2026 FDD, Item 7, PDF p. 34); $420,000–$1,354,100 for conversion only (table 5 65-room conversion hts/hometown/hometowne inn — as arranged as incurred vendors & employees total (note 14)) (2026 FDD, Item 7, PDF p. 38); $428,500–$1,362,100 for conversion only (table 6 65-room conversion hts suites — as arranged as incurred vendors & employees total (note 14)) (2026 FDD, Item 7, PDF p. 39); $693,268–$2,284,813 for conversion only (table 7 120-room conversion red roof inn plus hts — as arranged as incurred vendors & employees total (note 14)) (2026 FDD, Item 7, PDF p. 41); $13,569,518–$15,836,090 for table 3 140-room new build red roof inn plus hts — as arranged as incurred vendors & employees total (excludes land acquisition costs) (note 21) (2026 FDD, Item 7, PDF p. 32). These formats are not combined. Each is the franchisor's disclosed estimate, not a quote. Details
- What ongoing fees does HomeTowne Studios by Red Roof charge?
- The disclosed ongoing royalty is 5.5% (2026 FDD, Item 6, PDF p. 17). The brand or advertising fund contribution is 3% (2026 FDD, Item 6, PDF p. 17). Other recurring fees are listed in Item 6. Details
- Does HomeTowne Studios by Red Roof disclose financial performance (Item 19)?
- Yes. The HomeTowne Studios by Red Roof FDD includes an Item 19 financial performance representation (2026 FDD, Item 19, PDF p. 65). Figures apply only to the locations and period each one covers. Details
- How many HomeTowne Studios by Red Roof locations are there?
- The FDD reports 53 outlets at the end of 2025 (2026 FDD, Item 20, PDF p. 67). Existing locations do not indicate territory availability. Details
- Is HomeTowne Studios by Red Roof a good franchise to buy?
- Franopolis does not rate or recommend franchises. From the reviewed FDD: Item 19 includes financial performance figures; check which locations and period they cover; Item 20 lists outlet openings, closures and transfers; Item 6 includes a brand or advertising fund contribution on top of royalty; Item 20 also lists current and former franchisees you can contact. Review the full FDD with a franchise attorney and accountant before deciding.
From reviewed FDD figures only. Not a recommendation or projection.
What the disclosures show
- 1The 2026 FDD (Item 7) estimates opening costs separately by format: $11,734,393 – $14,457,291 (Table 1 124-room new build HTS/HomeTown/HomeTowne Inn — As Arranged As Incurred Vendors & Employees TOTAL (excludes land acquisition costs) (Note 21)); $11,894,393 – $14,857,291 (Table 2 124-room new build HTS Suites — As Arranged As Incurred Vendors & Employees TOTAL (excludes land acquisition costs) (Note 21)); $13,588,418 – $15,860,090 (Table 4 140-room new build Red Roof PLUS plus HTS — As Arranged As Incurred Vendors & Employees TOTAL (excludes land acquisition costs) (Note 21)); $420,000 – $1,354,100 (Table 5 65-room conversion HTS/HomeTown/HomeTowne Inn — As Arranged As Incurred Vendors & Employees TOTAL (Note 14)); $428,500 – $1,362,100 (Table 6 65-room conversion HTS Suites — As Arranged As Incurred Vendors & Employees TOTAL (Note 14)); $693,268 – $2,284,813 (Table 7 120-room conversion Red Roof Inn plus HTS — As Arranged As Incurred Vendors & Employees TOTAL (Note 14)); $13,569,518 – $15,836,090 (Table 3 140-room new build Red Roof Inn plus HTS — As Arranged As Incurred Vendors & Employees TOTAL (excludes land acquisition costs) (Note 21)); several initial fee options apply.
- 2Item 19 covers 6 separate groups: other measures for 78 locations; other measures for 27 Affiliate-owned locations; other measures for 51 Franchised locations; other measures for 78 Combined affiliate and franchised locations; other measures for 27 locations; other measures for 51 locations. They are not combined.
- 3Outlets grew by 8 in 2025, to 53 (United States, as labeled in the FDD, Item 20).
From reviewed FDD figures only. Not a recommendation or projection.
HomeTowne Studios by Red Roof head-to-head
Closest peers in the same subcategory, side by side from reviewed FDD figures. Not a ranking or recommendation.
Costs · Items 5–7
What does it cost to open?
Estimated opening costs and the fees payable to the franchisor.
Startup Investment — Item 7
Range across 7 single-unit formats
2026 FDD · Item 7
Formats disclosed in Item 7 (7)
Each format has its own total. The total depends on the format you choose.
- Table 5 65-room conversion HTS/HomeTown/HomeTowne Inn — As Arranged As Incurred Vendors & Employees TOTAL (Note 14)PDF p. 38$420,000 – $1,354,100
- Table 6 65-room conversion HTS Suites — As Arranged As Incurred Vendors & Employees TOTAL (Note 14)PDF p. 39$428,500 – $1,362,100
- Table 7 120-room conversion Red Roof Inn plus HTS — As Arranged As Incurred Vendors & Employees TOTAL (Note 14)PDF p. 41$693,268 – $2,284,813
- Table 1 124-room new build HTS/HomeTown/HomeTowne Inn — As Arranged As Incurred Vendors & Employees TOTAL (excludes land acquisition costs) (Note 21)PDF p. 28$11,734,393 – $14,457,291
- Table 2 124-room new build HTS Suites — As Arranged As Incurred Vendors & Employees TOTAL (excludes land acquisition costs) (Note 21)PDF p. 30$11,894,393 – $14,857,291
- Table 3 140-room new build Red Roof Inn plus HTS — As Arranged As Incurred Vendors & Employees TOTAL (excludes land acquisition costs) (Note 21)PDF p. 32$13,569,518 – $15,836,090
- Table 4 140-room new build Red Roof PLUS plus HTS — As Arranged As Incurred Vendors & Employees TOTAL (excludes land acquisition costs) (Note 21)PDF p. 34$13,588,418 – $15,860,090
Ongoing Fees — Item 6
Selected recurring charges; payment bases and conditions remain attached to each fee.
- Royalty percentage of Gross Room RevenuesMain ongoing fee
101 reported fees, each with its payment basis, are listed below; they haven't been sorted into recurring, initial and occasional groups yet.
Financial Performance — Item 19
What results are disclosed—and for which locations?
6 separate populations, shown apart. Revenue is not owner income.
78 locations
Other measures · 78 locations
- Who is counted
- Combined affiliate-owned and franchised HomeTowne Studios hotels open and operating for at least one year in the reporting period
- Period
- RevPAR index against compset
- Excluded
- Two franchised hotels opened in the reporting year excluded; franchised group includes six previously affiliate-owned hotels sold to franchisees.
- Method
- STR competitive group approximately five comparable local hotels.
These groups are never combined.
Outlet Changes — Item 20
How has the outlet count changed?
United States, as labeled in the FDD · counts as of 2025 of each year.
2026 FDD · Item 20 · PDF p. 67
Net +35 outlets, 2022–2025
Year-end counts reported in Item 20. The scale starts at zero; the labels between the dots show each year's change. Openings and closures for 2025 haven't been pulled from the Item 20 tables yet, so no turnover or churn is shown.
Questions to investigate
Prompts based on what this brand's reviewed disclosures do and don't show — not conclusions. Join free as a member to save questions to your research.
For the franchisor
Which line items in the 2026 Item 7 estimate ($420,000 – $15,860,090) vary most by market, and why?
Which initial fee option would apply to my situation, and what conditions or discounts affect it?
Which locations are included in the Item 19 figures, and which were excluded?
Reported units went from 45 to 53 in 2025. How many new units opened, closed or changed hands?
Is a territory available in my area, and how is it defined in my agreement?
For current and former owners
How did your actual startup costs and timeline compare with the Item 7 estimate?
How many hours a week do you work in the business, and in what role?
How do your results compare with the Item 19 figures, and what explains the difference?
What support from the franchisor has been most and least useful?
For your advisors
Ask a franchise attorney to review the territory, renewal, transfer and termination terms.
Ask an accountant to build a cash-flow plan using your own assumptions, not the franchisor's.
Sources & vintage history
Every displayed fact is retained with its disclosure vintage, item, page, and reviewed status. Prior vintages remain on file rather than being overwritten.
Citations (2026 FDD)
- [1]Item 19 — Locations counted not stated in the reviewed record — Combined affiliate-owned and franchised HomeTowne Studios hotels open and opera… · PDF p. 65
- [2]Item 19 — Locations counted not stated in the reviewed record — Affiliate-owned hotels open at least full year · PDF p. 65
- [3]Item 19 — Locations counted not stated in the reviewed record — Franchised hotels open at least full year · PDF p. 65
- [4]Item 19 — Locations counted not stated in the reviewed record — Combined affiliate and franchised hotels open at least full year · PDF p. 65
- [5]Item 19 — Locations counted not stated in the reviewed record — Affiliate · PDF p. 65
- [6]Item 19 — Locations counted not stated in the reviewed record — Franchised · PDF p. 65
- [7]Outlet counts — Item 20, Table 1 · PDF p. 67
"PDF p." is the page in the PDF file; "printed p." is the number printed on the FDD page. Source document: FDD
Territory & operations
73 addresses in Franopolis's imported location list. Coverage may differ from Item 20 outlet counts.
These are contract disclosures, not confirmation that any territory is currently available.
Legal & agreement
Franchisor financial statements
| Fiscal year | Measure | Reported value |
|---|---|---|
| 2025 | deferred franchise sales commissionsMore than one value recorded for this year — open the FDD source before comparing | $3,686,955 |
| 2025 | operating lease right-of-use assetMore than one value recorded for this year — open the FDD source before comparing | $1,693,482 |
| 2025 | total assetsMore than one value recorded for this year — open the FDD source before comparing | $51,774,141 |
| 2025 | payable to affiliatesMore than one value recorded for this year — open the FDD source before comparing | $5,099,436 |
| 2025 | note payable, affiliateMore than one value recorded for this year — open the FDD source before comparing | $3,900,000 |
| 2025 | revenuesMore than one value recorded for this year — open the FDD source before comparing | $84,832,782 |
| 2025 | personnel costsMore than one value recorded for this year — open the FDD source before comparing | $28,027,271 |
| 2025 | sales and marketingMore than one value recorded for this year — open the FDD source before comparing | $19,309,597 |
| 2025 | general and administrativeMore than one value recorded for this year — open the FDD source before comparing | $19,480,057 |
| 2025 | amortizationMore than one value recorded for this year — open the FDD source before comparing | $271,844 |
| 2025 | depreciationMore than one value recorded for this year — open the FDD source before comparing | $191,849 |
| 2025 | total expensesMore than one value recorded for this year — open the FDD source before comparing | $67,280,618 |
These figures describe the franchisor company, not individual franchise locations.
What changed from 2025 to 2026
- Franchise fee: $300 → $30,000
- System size: 90 → 53 units
SBA-backed loans to franchisees
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Source: U.S. Small Business Administration 7(a) & 504 FOIA data. Loan volume is not a measure of franchisee success.
Related research
Brands in the same subcategory first, then the wider industry, ordered by shared business format, overlapping investment range, Item 20 outlet count and search interest. This is not a ranking or recommendation.
Comfort Inn
Quality Inn
SpringHill Suites By Marriott
Residence Inn by Marriott
Red Roof Inn / Red Roof Plus
Red Roof InnHead-to-head comparisons
At a glance
Business history
Not reviewed
Owner participation
Not reviewed
Territory language
Litigation disclosure
Not reviewed
Bankruptcy disclosure
Not reviewed
Agreement term
Not reviewed
Reader notes on wording
Our automated check found that these summaries may not match the FDD's exact wording. Read the FDD excerpt itself; it is the authoritative text. Core cost, fee, Item 19 and outlet figures are not affected.
Item 21 · PDF p. 89 · 2025 FDD
Our summary: Cash and cash equivalents end of period — 2022
“Cash and cash equivalents end of period 22,445,012 $ 32,416,728 $ 45,860,206 $”
Note: Supplied quote could not be confirmed on the cited PDF page excerpt.
Item 21 · PDF p. 89 · 2025 FDD
Our summary: Cash and cash equivalents end of period — 2024
“Cash and cash equivalents end of period 22,445,012 $ 32,416,728 $ 45,860,206 $”
Note: Supplied quote could not be confirmed on the cited PDF page excerpt.
Independent analysis of franchisor-provided data. Not investment advice. Franopolis does not distribute FDDs.
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