La Quinta Inns & Suites Franchise Opportunities - History

Brothers Sam and Bill Barshop founded La Quinta Inn in 1968. The first location opened in San Antonio, Texas and the brothers soon began to expand into other parts of the state. The hospitality franchise prospered in the 70s and 80's with its primary focus being on business travelers. Locations included amenities specifically useful to corporate road warriors, rather than typical hotel features such as swimming pools and restaurants. 

Their business model was a success, with La Quinta Inn outshining competitors such as Holiday Inn and Rodeway. Wyndham Worldwide acquired La Quinta's hotel management and franchising business in 2018 for nearly $2 billion in cash. There are currently over 900 La Quinta locations operating across the U.S., Canada, and Latin America.

What Does A La Quinta Franchise Cost?

Initial Investment

Opening a newly constructed, 109-room La Quinta Inn & Suites hotel franchise requires a total initial investment of $8,302,253 to $11,745,002, excluding the cost of securing the underlying real estate. Converting and opening an existing hotel property as a 100-room La Quinta Inn & Suites franchise requires a total investment of $3,885,409 to $6,160,957, excluding real estate costs.

Franchise Application Fees

Prospective franchisees must pay a $59,950 application fee and initial fee for a newly constructed La Quinta hotel. For conversion from an existing hotel property into a La Quinta location, there is a $55,000 application and initial fee. In addition, La Quinta strongly encourages prospective franchisees to obtain an independent market or feasibility study, at an estimated cost of $10,000 to $17,000, to validate the geographic site selection and to furnish potential capital sources with objective information on the economic prospects for the chosen location.

Ongoing Royalties and Program Contributions

La Quinta Inns & Suites franchisees must pay a monthly royalty of 4.5% of gross room revenue (growing to 5.0% after the first two years of the franchise agreement term). In addition, La Quinta Inns & Suites franchisees must contribute 4.5% of monthly room revenue toward a System Assessment Fee meant to cover costs of marketing, national advertising, training, reservation, and other support services.

La Quinta Franchise System Size and Composition

As of year-end 2018, there were approximately 914 La Quinta hotels active across the U.S., Canada, and Latin America, with another 250 hotels in the brand's development pipeline. Approximately 35% of La Quinta's locations are corporate-owned, with approximately 65% franchised. Systemwide, La Quinta properties generate an estimated $2 billion in annual sales. 

La Quinta is part of the broader Wyndham Hotels & Resorts portfolio, which spans over 9,000 hotels (active or in development) and almost 800,000 guest rooms across 20 brands.

Other than La Quinta, hotel brands in the Wyndham family include:

• Wyndham Grand
• Dolce Hotels & Resorts by Wyndham
• Esplendor Boutique Hotels by Wyndham
• Dazzler by Wyndham
• Wyndham
• TRYP by Wyndham
• Trademark Collection by Wyndham
• Wingate by Wyndham
• Wyndham Garden
• Hawthorn Suites by Wyndham
• AmericInn by Wyndham
• Ramada by Wyndham
• Baymont by Wyndham
• Microtel by Wyndham
• Days Inn by Wyndham
• Super 8 by Wyndham
• Howard Johnson by Wyndham
• Travelodge by Wyndham