Motel 6 franchise cost
Motel 6 (G6 Hospitality) charges a royalty of 5% of gross room revenue plus a further 3% in marketing, reservation or system fees, according to its franchise disclosure document issued March 5, 2026, as amended August 1, 2026. The franchisor estimates the total cost of a new-build hotel at $6,251,265 to $8,900,000, not counting land; converting an existing hotel runs $195,259 to $1,600,000.
- Royalty
- 5%of gross room revenue
- Marketing
- 3%of gross rooms revenue
- Fee to take over on a purchase
- None statedItem 5 lists no separate transfer fee. Ask G6 Hospitality what it charges on a change of ownership.
- Fee for a new franchise
- $25,000Item 5 formula at 60 rooms. Fees actually charged can be lower; see the notes below.
- Total investment
- $6.25M to $8.90MItem 7 estimate for a new-build hotel
Recurring fees in the 2026 FDD
| Royalty | 5% of Gross Room Revenues |
|---|---|
| Marketing or brand fund | Program Fee: 3.0% of gross room revenue; cap: may increase not more than 0.5% per 12 months; max 5.5% of Gross Room Revenues |
| Reservation, loyalty and technology | Reservation Fee currently 1% of Gross Room Revenues (max 2%); IT Services Fee currently $400/month + $4.00 per room/month; PMS Software Fee currently $4.00 per room/month; online training subscription $800-$1,200/yr; direct-connect $1.50-$2.50 per reservation; OTA/travel agent commissions up to 20% reimbursed. |
| Initial fee (Item 5) | Franchise Fee Currently $25,000; All 'currently'. Franchise fee may be reduced at franchisor's discretion (existing franchisees, multiple agreements, market conditions, LIGHT THE WAY). |
| New build (Item 7) | $6,251,265 to $8,900,000 |
| Conversion (Item 7) | $195,259 to $1,600,000 |
| What Item 7 assumes | Item 7 table for 100-room Motel (prototype Gemini): renovation/conversion column and new construction column. Separate Dual Brand and 'Motel 6 Classic' estimates in Item 7 notes not used. Excludes land. |
From the filing: LIGHT THE WAY / LIGHT HER WAY incentive programs (Item 1) may include a reduction in the Franchise Fee, 'a temporary reduction in royalty fee', waiver of Sales360 fee for a year and GM training fee waivers, at franchisor's sole discretion. Royalty may be reduced for existing franchisees, multiple agreements or market conditions. Item 7 per-room: $1,953-$16,000 renovation, $62,513-$89,000 new construction.
What the fees cost a 60-room hotel
Take a 60-room Motel 6 with $1,500,000 of rooms revenue a year. The royalty and the marketing or system fees that apply to every room night come to 9%, or $135,000 a year, and per-room fees add $5,760 ($8.00 per room per month, before the FDD's minimum and maximum). That is $140,760 a year, about $11,730 a month, before payroll or utilities. Fees charged only on some bookings, such as loyalty-member stays, central reservation bookings and online commissions, come on top.
Those fees come straight off NOI. At 1.25x coverage, $140,760 of fees is $112,608 a year of payment you can no longer borrow against, or about $1,030,000 of loan at 10% over 25 years.
Fees billed per reservation, per transaction or as a fixed amount are not in this total; they are listed in the table above as the FDD states them. Run your own numbers with Motel 6 fees filled in.
Financing a Motel 6
Lenders read the franchise agreement as closely as the appraisal. On a purchase, expect the brand to require a change-of-ownership application, a new franchise agreement on current terms and often a property improvement plan (PIP), and expect the lender to fold the PIP cost into the project. For a new build, the Item 7 range is the starting point for the construction budget a lender will test.
Most owner-operators finance a branded hotel with an SBA 7(a) or 504 loan. Read SBA 7(a) for hotels and SBA 504 for hotels, or send the deal to Janover Capital.
Source
Motel 6 Franchise Disclosure Document, issued March 5, 2026, as amended August 1, 2026, as filed with the Minnesota Department of Commerce (CARDS). Cover p.1 (PDF p.1); Item 5 FDD pp.9-11 (PDF pp.14-16); Item 6 FDD p.11-14 (PDF pp.16-19); Item 7 FDD p.22 (TOC). View the filing record. Fees change every year and the franchise agreement you sign controls. Read on 2026-10-24.
Other G6 Hospitality brands
- Studio 6: royalty 5%, all percent fees 9%
Buying or building a Motel 6?
Send the deal to Janover Capital, which runs this site and arranges hotel financing through lenders.