Opening a Days Inn franchise is a proven path into the hospitality industry. As part of the Wyndham Hotels and Resorts family, Days Inn carries decades of brand recognition and a loyal traveler base. But like any franchise opportunity, the road to ownership begins with a significant financial commitment. Whether you are buying into a brand-new location or acquiring an existing property, securing the right financing makes all the difference.
This guide breaks down exactly what it costs to open a Days Inn franchise, which loan products are best suited for hotel franchises, how to qualify, and how Crestmont Capital can help you fund your hospitality business from start to finish.
Days Inn by Wyndham is one of the largest budget hotel chains in the world, with thousands of properties spread across the United States and internationally. Founded in 1970, the brand has built a reputation for affordable, reliable lodging that appeals to road trippers, business travelers, and families alike.
As a Wyndham Hotels and Resorts brand, Days Inn benefits from the parent company's global loyalty program, centralized booking systems, and extensive marketing infrastructure. This makes it an attractive franchise option for entrepreneurs entering the hospitality market who want the support of an established system rather than building a hotel brand from scratch.
The Wyndham Hotels franchise system encompasses multiple tiers of hotel products, and Days Inn sits in the economy segment, giving franchisees access to a broad customer base that prioritizes value without sacrificing comfort.
Understanding the full scope of investment is critical before you approach any lender. The costs associated with opening a Days Inn franchise are significant and vary depending on whether you are converting an existing hotel, building from the ground up, or acquiring a franchise resale.
The initial franchise fee for Days Inn typically ranges from $35,000 to $60,000 depending on the size of the property and the specific agreement terms negotiated with Wyndham. This fee grants you the right to operate under the Days Inn brand and access the franchisor's systems and support.
If you are converting an existing property or building new, expect construction and renovation costs to represent a substantial portion of your total investment. For a mid-size Days Inn property with 60 to 120 rooms, renovation costs can range from $1.5 million to over $5 million. New construction projects may exceed that depending on land, labor, and materials in your market.
The cost of the underlying property is often the single largest line item in your investment. Depending on your location, purchasing land and a building suitable for hotel conversion can range from $500,000 in rural markets to several million dollars in suburban or urban settings.
Days Inn franchisees must meet brand standards for guest rooms, common areas, and amenities. This means budgeting for beds, linens, furniture, HVAC systems, security systems, pool equipment (if applicable), and more. FF&E costs typically run between $3,000 and $8,000 per room.
Lenders and the franchisor will want to see that you have sufficient working capital to cover pre-opening expenses and the first several months of operations. Expect to budget at least $150,000 to $300,000 in liquid reserves.
After opening, Days Inn franchisees pay ongoing royalty fees typically around 5.5% of gross room revenue, plus marketing and reservation system fees of approximately 3.5% to 5%. These recurring obligations must be factored into your cash flow projections and loan repayment planning.
All-in, the total investment to open a Days Inn franchise ranges roughly from $2.5 million to $12 million or more, depending on property size, location, and whether you are building new or converting. This is why franchise financing is not just helpful, it is essential.
Very few franchisees have the capital to self-fund an investment of this size. Even high-net-worth individuals typically prefer to use leverage to preserve liquidity and maximize their return on invested capital. Financing allows you to acquire and operate a Days Inn property while spreading the repayment cost over many years, aligning debt service with the revenue the business generates.
Additionally, lenders familiar with the hospitality sector understand hotel economics, including seasonality, occupancy rates, and RevPAR (Revenue per Available Room). Working with a lender like Crestmont Capital that understands your business model gives you a significant advantage in structuring a loan that fits your actual cash flow cycles.
According to data from the U.S. Census Bureau's Statistics of U.S. Businesses, the traveler accommodation industry employs hundreds of thousands of Americans and generates tens of billions in annual revenue, underscoring the scale and economic significance of hotel franchise investment.
Crestmont Capital works with hotel franchise investors across the country. Get matched with the right loan product for your hospitality project today.
Apply NowThere is no single loan product that works for every franchisee. The right financing structure depends on your credit profile, existing assets, the size and scope of your project, and how you plan to use the funds. Below are the primary financing options available to Days Inn franchise investors.
The SBA 7(a) loan is the most versatile government-backed financing option available to small business owners. It can be used for real estate acquisition, renovation, working capital, and equipment. Loan amounts go up to $5 million, with repayment terms up to 25 years for real estate and 10 years for working capital or equipment.
For Days Inn franchisees, the SBA 7(a) is often the first loan to explore because it offers government-backed guarantees that reduce lender risk, making approval more accessible even for borrowers without substantial collateral. Interest rates are competitive and typically tied to the prime rate plus a lender's spread.
The SBA 504 program is specifically structured for acquiring fixed assets, including real estate and major equipment. It involves a split structure: a bank or lender funds approximately 50% of the project, the SBA-backed Certified Development Company (CDC) funds 40%, and the borrower contributes 10% as a down payment.
This makes the SBA 504 ideal for Days Inn franchisees who are purchasing a hotel property or undertaking major construction. Loan amounts can reach $5.5 million (or higher in some cases), and the below-market fixed interest rates on the CDC portion provide long-term payment stability.
Learn more about SBA loan programs available through Crestmont Capital.
For franchisees with strong credit, significant equity, or existing real estate holdings, a conventional commercial mortgage may offer more flexibility than SBA programs. These loans are not government-backed, so underwriting is entirely at the lender's discretion, which can mean faster approvals and fewer documentation requirements in some cases.
Terms typically range from 5 to 20 years with amortization schedules extending to 25 or 30 years. Loan-to-value ratios for hotel properties generally range from 60% to 75%, meaning you will need meaningful equity or a down payment.
Beyond SBA programs, traditional small business loans can help Days Inn franchisees cover working capital needs, pre-opening expenses, or smaller renovation projects. These loans are typically unsecured or lightly secured and fund faster than SBA loans, often within days rather than weeks.
For franchisees who need capital for expansion or significant operational upgrades, long-term business loans provide extended repayment periods that make large investments more manageable. Terms of 3 to 10 years are common, with fixed or variable rates depending on the lender and loan structure.
The SBA has long recognized the hospitality sector as a priority area for small business lending. The agency's programs are designed to bridge the gap between what borrowers can self-fund and what traditional lenders are willing to extend without government guarantees.
To qualify for an SBA loan for a Days Inn franchise, you will generally need:
Because Wyndham Hotels and Resorts brands appear on the SBA Franchise Registry, lenders can process your application without conducting their own independent review of the franchise agreement. This streamlines the approval process and can reduce your time to funding.
As noted by CNBC's Small Business coverage, SBA-backed hotel loans have become increasingly competitive in recent years as the hospitality sector has demonstrated strong recovery fundamentals post-pandemic.
Crestmont Capital has helped franchise owners navigate SBA 7(a) and SBA 504 programs for hotel acquisitions, conversions, and new builds. Let us guide you through the process.
Apply NowA Days Inn property requires substantial equipment investment beyond furniture. Kitchen equipment, laundry systems, HVAC units, security and surveillance systems, pool maintenance equipment, and point-of-sale technology all represent significant capital outlays that can be financed separately from your real estate loan.
Equipment financing is specifically structured to fund these purchases. The equipment itself serves as collateral, which typically means lower interest rates and easier qualification compared to unsecured business loans. Terms usually range from 2 to 7 years depending on the expected useful life of the equipment.
For a Days Inn with 80 rooms, here is a rough breakdown of equipment financing categories you might consider:
Using equipment financing to fund these purchases preserves your working capital and SBA loan capacity for higher-priority needs like real estate and renovation. It also allows you to upgrade equipment on a rolling basis without disrupting your primary financing structure.
Hotel operations are inherently seasonal and cyclical. Occupancy rates fluctuate by month, season, and local events. A business line of credit gives Days Inn franchisees flexible access to capital exactly when they need it without requiring them to draw and repay a lump-sum term loan.
Lines of credit are revolving: you draw what you need, repay it, and draw again. Interest accrues only on the outstanding balance, making this an efficient tool for managing cash flow gaps during slow travel seasons, funding marketing campaigns, covering payroll during off-peak periods, or bridging the gap before a busy season generates sufficient revenue.
For a Days Inn franchise owner, a business line of credit of $100,000 to $500,000 can serve as a powerful operational safety net alongside your primary term financing.
Lenders evaluating hotel franchise loans look at a combination of factors related to your personal financial profile, the business's projected performance, and the strength of the franchise brand. Here is what you need to prepare.
Most SBA and conventional hotel franchise lenders want to see a personal credit score of at least 680. Higher scores (720+) will qualify you for better rates and terms. If your score is below 650, work on improving it before applying, or explore alternative financing options that weigh other factors more heavily.
Expect to inject between 10% and 30% of the total project cost as equity. SBA 504 loans require as little as 10%, while conventional lenders may require 25% to 35%. This equity injection demonstrates commitment and reduces lender exposure.
A thorough business plan is non-negotiable for hotel franchise financing. Your plan should include market analysis, competitive landscape, occupancy projections, RevPAR estimates, revenue and expense forecasts for at least 3 years, and a clear debt service coverage analysis showing that your projected revenue will comfortably cover your loan payments.
Lenders will require an independent appraisal of the property. For construction or renovation projects, they will want a feasibility study and cost estimates from licensed contractors. Make sure your appraiser has hospitality sector experience.
While not always required, prior hospitality management experience can significantly strengthen your application. Lenders are more comfortable financing hotel franchises when the borrower has demonstrated ability to run hotel operations or has hired an experienced management team.
You must receive conditional approval from Wyndham before a lender will finalize your hotel franchise loan. The franchisor's approval confirms that the property and location meet brand standards and that you have passed their franchisee vetting process.
Understanding how each financing product stacks up helps you choose the right mix for your Days Inn project. Most franchisees end up using a combination of loan products rather than relying on a single source of capital.
| Loan Type | Best For | Max Amount | Max Term | Down Payment |
|---|---|---|---|---|
| SBA 7(a) | Real estate, renovation, working capital | $5 million | 25 years | 10-20% |
| SBA 504 | Property acquisition, major construction | $5.5 million+ | 25 years | 10% |
| Conventional Commercial | Strong credit borrowers, faster closing | Varies | 20 years | 25-35% |
| Equipment Financing | FF&E, HVAC, laundry, tech | $500,000+ | 7 years | 0-10% |
| Business Line of Credit | Working capital, cash flow management | $500,000 | Revolving | None |
| Long-Term Business Loan | Expansion, upgrades, acquisitions | Varies | 10 years | Varies |
Hotel franchise loans are complex, and lenders scrutinize them carefully. These strategies can significantly improve your odds of approval and help you secure better terms.
The Franchise Disclosure Document from Wyndham is the foundational document lenders need to evaluate a franchise loan. Request it early and be prepared to share it as part of your application package. Lenders familiar with Days Inn will move faster once they have it.
General business accountants may not understand hotel-specific metrics like RevPAR, ADR (Average Daily Rate), and occupancy projections. A hospitality-focused CPA can help you prepare financial statements and projections that speak directly to what hotel lenders want to see.
The SBA loan process, in particular, can take 60 to 90 days from application to funding. Starting the lender relationship early, before you need the money, gives you time to address any gaps in your documentation without delaying your project.
Not every lender understands the franchise model. Crestmont Capital specializes in franchise financing and has worked with hotel investors across the country. Having a knowledgeable partner in your corner can mean the difference between a smooth closing and months of delays.
Rather than trying to fund everything with one loan, consider stacking products strategically. Use an SBA 504 for the real estate, equipment financing for FF&E, and a line of credit for working capital. This approach maximizes your access to capital while optimizing terms for each category of expense.
Days Inn's position within the Wyndham Hotels and Resorts portfolio is a key advantage for franchisees seeking financing. Wyndham is one of the world's largest hotel franchise companies, and its brands are well-known to commercial lenders and SBA-approved institutions. The brand's inclusion on the SBA Franchise Registry further simplifies the loan process.
Wyndham provides franchisees with operational support, a centralized reservations system, the Wyndham Rewards loyalty program, and ongoing training. These support structures reduce operational risk, which in turn makes lenders more comfortable extending credit to Days Inn franchisees compared to independent hotel operators.
If you are considering other properties in the Wyndham family, you may also want to review financing options for other Wyndham brands through Crestmont Capital's hospitality financing resources.
Tell us about your project and we will match you with the right financing solution. Fast decisions, competitive rates, and a team that understands hotel franchise financing.
Apply NowThe total investment to open a Days Inn franchise typically ranges from $2.5 million to $12 million or more. This includes the franchise fee ($35,000 to $60,000), real estate acquisition, construction or renovation, furniture and equipment, and working capital reserves. The exact amount depends heavily on property size, location, and whether you are building new or converting an existing property.
Can I get an SBA loan for a Days Inn franchise?Yes. Days Inn, as a Wyndham Hotels and Resorts brand, is listed on the SBA Franchise Registry, which streamlines the SBA loan approval process. Both the SBA 7(a) and SBA 504 programs are commonly used to finance hotel franchise acquisitions, renovations, and new builds.
What credit score do I need to finance a Days Inn franchise?Most lenders require a minimum personal credit score of 680 for SBA or conventional hotel franchise loans. A score of 720 or higher will typically qualify you for better interest rates and more favorable terms. If your score is below 650, consider working on credit improvement before applying.
How much of a down payment is required for a Days Inn franchise loan?Down payment requirements vary by loan type. SBA 504 loans require as little as 10% equity injection. SBA 7(a) loans typically require 10% to 20%. Conventional commercial real estate loans for hotels often require 25% to 35%. The stronger your financial profile, the more negotiating power you have on the equity requirement.
What is the difference between the SBA 7(a) and SBA 504 loan programs for hotel franchises?The SBA 7(a) is a flexible loan that can be used for real estate, renovation, equipment, and working capital, with a maximum of $5 million. The SBA 504 is specifically structured for fixed-asset purchases like real estate and major construction, with a split funding structure between a conventional lender, an SBA Certified Development Company, and the borrower. The 504 often offers lower fixed rates on the CDC portion, making it advantageous for large property acquisitions.
Can I use equipment financing for a Days Inn property?Absolutely. Equipment financing is an excellent tool for funding laundry systems, HVAC units, kitchen equipment, surveillance and security systems, pool equipment, and property management technology. The equipment serves as collateral, making qualification easier, and using separate equipment financing preserves your SBA loan capacity for real estate and renovation costs.
How long does it take to get a Days Inn franchise loan approved?Timelines vary by loan type. SBA loans typically take 60 to 90 days from application to funding. Conventional commercial loans may close in 30 to 60 days. Business lines of credit and equipment financing can fund in as little as a few days. Starting the process early, ideally before you have finalized the franchise agreement, gives you the best chance of meeting your project timeline.
What documents do I need to apply for a Days Inn franchise loan?You will generally need the Franchise Disclosure Document from Wyndham, personal and business tax returns for the past 2 to 3 years, personal financial statements, a business plan with financial projections, a property appraisal, construction or renovation estimates, your credit report, and bank statements. Your lender may request additional documents depending on the loan program.
Does Wyndham offer financing directly to Days Inn franchisees?Wyndham does not typically serve as a direct lender, but they may have relationships with preferred financing partners and can guide franchisees toward appropriate resources. The primary financing for Days Inn franchise projects comes from SBA-approved lenders, commercial banks, and specialty franchise lenders like Crestmont Capital.
What are the ongoing royalty fees for Days Inn?Days Inn franchisees pay ongoing royalty fees of approximately 5.5% of gross room revenue, plus combined marketing, reservation system, and loyalty program fees that typically add another 3.5% to 5%. These fees must be factored into your revenue projections and loan repayment planning to ensure adequate debt service coverage.
What is a business line of credit and how can it help a Days Inn owner?A business line of credit is a revolving credit facility that allows you to draw funds up to a set limit, repay them, and draw again. For Days Inn owners, it is an ideal tool for managing seasonal cash flow fluctuations, covering payroll during slower travel months, funding marketing campaigns, and addressing unexpected maintenance expenses without disrupting your primary loan structure.
Is prior hotel management experience required to get a Days Inn franchise loan?Prior hospitality experience is not always required by lenders, but it can significantly strengthen your application. If you do not have direct hotel management experience, partnering with or hiring an experienced hotel management team can address this concern and increase lender confidence in your ability to generate the projected revenue needed to repay the loan.
Can I refinance an existing Days Inn property?Yes. Refinancing an existing Days Inn property is a common strategy for reducing interest rates, extending loan terms to lower monthly payments, or accessing equity for renovations and improvements. Both SBA and conventional refinance options are available, and Crestmont Capital can help you evaluate whether a refinance makes financial sense for your situation.
What is the Franchise Disclosure Document and why do lenders want it?The Franchise Disclosure Document (FDD) is a legally required document that Wyndham must provide to prospective franchisees at least 14 days before signing any agreement. It contains detailed information about the franchise system, fees, obligations, litigation history, and financial performance of existing franchisees. Lenders use the FDD to assess the strength and stability of the franchise system before approving a loan.
How can Crestmont Capital help me finance a Days Inn franchise?Crestmont Capital is a business lender specializing in franchise financing, including hotel and hospitality projects. We can help you identify the right mix of SBA loans, equipment financing, long-term business loans, and lines of credit for your Days Inn project, guide you through the application process, and connect you with competitive rates. Our team understands hotel franchise economics and works to structure financing that fits your actual cash flow and operational needs.