Top 250 Franchise by Entrepreneur – Rank no.50 – Super 8 – US
Products & Services: Hotels
Number of Locations: 2,356
Total Investment: $176.16K – 3.84M
Began Franchising: 1976
About Super 8
Super 8’s name is derived from its original room rate–$8.88 per night–when the first location opened in 1974 in Aberdeen, South Dakota. Since Super 8 began franchising in 1976, the motel chain has grown to more than 2,000 locations throughout the United States and Canada.
Super 8’s parent company, Wyndham Worldwide, also owns Travelodge Hotels, Days Inn Worldwide, Howard Johnson Int’l., Ramada Worldwide, Knights Franchise Systems, Wingate by Wyndham, Baymont Inns & Suites, Microtel Inns & Suites, Hawthorn Suites, and Wyndham Hotels & Resorts.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $25,000 – $25,500
Ongoing Royalty Fee: 5.5%
Term of Franchise Agreement: 20 years
|FINANCING TYPE||IN-HOUSE||THIRD PARTY|
How This Franchise Supports Franchisees
Franchise Ranking History
|Type||Subsidiary of Wyndham Worldwide|
|Headquarters||Parsippany, New Jersey,United States|
|Number of locations||2,200 as of November 2011, in United States, Canada, China|
Super 8 Worldwide, formerly Super 8 Motels, is the world’s largest budget hotel chain, with motels in the United States andCanada, as well as newer properties in China. The company is a subsidiary of Wyndham Worldwide, formerly a part of Cendant.
Super 8 has it roots in a marketing association for individually owned hotels that were already in business started by Ron Rivett in 1972. After only a year, in 1973 Rivett and Dennis Brown canceled the association and created their new Super 8 Motel corporation with each of them owning 50% of the stock in the new company. The original room rate was US$8.88, hence the numeric brand name. The first Super 8, with 60 rooms, was opened in 1974 in Aberdeen, South Dakota. The first Super 8 was built near a Holiday Inn with just some drawings made by Rivett as blue prints. The stucco exterior with an English Tudor style was inspired by Rivett’s father-in-law, who was a stuccoer; the English Tudor style and placing or Super 8’s near Holiday Inns was an established procedure for setting up new Super 8’s for years to come. The first franchise was sold in 1976 and established in Gillette, Wyoming. By 1978 Super 8 stretched from the state of New York to the state of Washington and was no longer just a Midwestern United States company.
Super 8 had a frequent traveler program, the VIP club, which was introduced in 1976; it grew to over 7.6 million members. The program was purchased by Hospitality Franchise Systems, which later became Cendant, in 1993. The VIP program was dissolved in December 2003 and replaced with the TripRewards program, which was renamed Wyndham Rewards in 2008.
Groundbreaking for the 100th Super 8 Location began in Aberdeen, South Dakota; the birthplace of Super 8.
As per the 2006 company reports, Super 8 had 2,039 properties open with 123,982 rooms in the US and Canada.
Super 8 today
Super 8 now offers guests standard amenities at every motel, including a continental breakfast, free high-speed wireless Internet access, hair dryers, coffee makers, and a lobby area. Some locations have pools and meeting rooms. A few of the larger Super 8’s have restaurants.