hihotels

hihotels

Information based on 2024 FDD

Lodging & Hospitality · Hotels, Resorts

Investment min
$1M
Total: $1M–$3M
Avg gross revenue
N/A
Unit-level, 2024
Franchise fee
$2K
Per current disclosure
Royalty
$25/room
Locations
203
Franchising since 1982

Description

What is hihotels?

hihotels, established in 1982, represents a significant player in the American lodging industry with a nationwide presence in the economy hotel segment. As a franchise system, hihotels aims to provide affordable accommodation solutions while maintaining essential comfort standards for travelers.

The brand operates with a streamlined business model that appeals to both experienced hoteliers and newcomers to the hospitality industry. Their franchise support system includes comprehensive training programs, operational guidance, and marketing assistance to help property owners maximize their potential in the competitive hotel market.

While hihotels positions itself in the economy segment, the brand faces significant opportunities for improvement in guest experience and service delivery. The franchise is currently working to strengthen its quality control measures and implement more rigorous property standards across its network. This presents an opportunity for hands-on owners who are passionate about hospitality and committed to elevating service standards.

For potential franchisees, hihotels offers the advantage of joining an established brand with four decades of industry experience. The franchise system provides the framework for operating a hotel business, including reservation systems, property management solutions, and brand standards. Success in this franchise requires strong operational management skills, dedication to customer service excellence, and a commitment to maintaining consistent quality standards.

Ideal candidates for a hihotels franchise should possess strong business acumen, excellent people management skills, and the ability to oversee daily hotel operations while focusing on guest satisfaction and property maintenance. The franchise opportunity may particularly appeal to those looking to enter the hotel industry with a recognized brand name while having the potential to implement positive changes in service delivery and guest experience.
  • Four decades of proven operations since 1982
  • 203 established locations across the network
  • Investment costs 70% lower than industry average
  • Multiple economy hotel brand portfolio
  • Accessible entry point for hotel ownership
  • Established presence in budget traveler market

Location Analysis

Where hihotels wins

hihotels maintains a limited visible footprint across parts of the Southeast region, with documented presence in Georgia and North Carolina, suggesting potential data limitations or a unique operational structure. The franchise's presence is notably concentrated in select Southeastern markets, with locations in Tucker, GA and Charlotte, NC serving as key market anchors. The average rating of 1.0 across limited reviews indicates significant challenges in customer satisfaction that warrant careful investigation by prospective franchisees.

The hotel's current geographic distribution presents both challenges and opportunities. While the Southeast market offers strong tourism potential and business travel corridors, the limited regional coverage suggests substantial room for expansion into neighboring high-potential markets like Florida, South Carolina, and Tennessee. Ideal locations for new franchises should target mid-sized cities with strong business districts, proximity to highways or airports, and steady tourist or business traveler flow.

Prospective franchisees should conduct thorough due diligence regarding the apparent disconnect between reported system size and visible market presence, as well as addressing the concerning customer satisfaction metrics. Success factors for new locations include positioning near business parks, entertainment districts, or major transportation hubs, while maintaining competitive pricing and service quality to improve upon current satisfaction ratings.
Total US locations
203
Franchise units
203
Corporate locations
0
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind hihotels

Avg gross revenueN/A
Investment range$1,384,850 – $2,611,950
Investment midpoint$1,998,400
Brand fund$15/room
Royalty$25/room
Franchise fee$1,950
Min. net worth
Min. liquid capital
hihotels presents a significantly lower investment barrier compared to the broader hotels and resorts sub-sector, with total investment requirements of $1,384,850 - $2,611,950 versus sub-sector averages of $8.4 - $9.3 million. This positions the franchise as an accessible entry point into the lodging industry for investors seeking hotel ownership without premium brand capital requirements.

The franchise operates multiple economy hotel brands targeting the budget lodging segment. With 203 active units and 41 years of operation since 1982, the system demonstrates operational stability and proven franchise infrastructure. The economy hotel sector benefits from consistent demand drivers including business travel, family vacations, and price-conscious consumers seeking reliable accommodations.

The investment structure likely includes property acquisition or lease costs, renovation requirements, furniture/fixtures/equipment, working capital, and franchise fees. Given the lower investment threshold, this franchise may appeal to first-time hotel operators or experienced hospitality investors seeking portfolio diversification into the budget segment.

Key considerations include the competitive nature of economy lodging, operational complexity of hotel management, and the need for strong local market analysis. The franchise's multi-brand portfolio provides operational flexibility and market segmentation opportunities. Note: Revenue data is not currently available for analysis. Prospective franchisees must review the FDD thoroughly and conduct comprehensive due diligence on territory demographics, competition, and operational requirements before investment commitment.

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$1M–$3M
Most common
$1,384,850
Minimum
$1,998,400
Midpoint
$2,611,950
Maximum

Per FDD Item 7, total initial investment ranges from $1,384,850 to $2,611,950. The midpoint $1,998,400 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

Growth over time

Franchise footprint

0% YoY
300240180120600
2017
2018
2019
2020
2021
2022
2023
2024
203 units open as of 2024 FDD-1 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for hihotels's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a hihotels franchise typically ranges between $1,384,850.00 and $2,611,950.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

hihotels
hihotels
N/A avg revenue · 203+ US franchises

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