Should I open or buy a Days Inn franchise in 2027?
Curated by Kory White · Fractional CRO, CRO Syndicate
Direct Answer
Open or buy a Days Inn franchise if you want one of the lowest-cost, most conversion-friendly entries into branded lodging — Days Inn is a Wyndham economy flag built for roadside and value-segment hotels, not upscale new builds. Days Inn by Wyndham carries an initial franchise fee around $35,000 (commonly the greater of a flat fee or ~$300–$350 per room), a royalty of roughly 5% of gross rooms revenue, and a marketing/reservation fee of about 4.5% of gross rooms revenue.
Because most Days Inn properties are conversions of existing economy hotels, all-in project cost is typically $1M–$8M+, dominated by acquisition and the required Property Improvement Plan (PIP), rather than ground-up construction. The economic engine is Wyndham Rewards, one of the largest hotel loyalty programs in the world.
If you own or are buying a solid economy or roadside hotel and want a recognized flag with national reservations and loyalty at a low capital threshold, Days Inn is one of the easiest paths in. As always, this is a real-estate play first — your basis and management discipline drive the returns more than the sign.
The Real Numbers
Days Inn is an economy brand within Wyndham's portfolio, so the numbers center on conversions. Below is an FDD-style breakdown for a representative Days Inn conversion of ~70 rooms.
| Line Item | Low | High | Notes |
|---|---|---|---|
| Initial franchise fee | $35,000 | $45,000 | ~$300–$350/room with minimums |
| Property acquisition (conversion) | $800,000 | $6,000,000 | Existing economy-hotel basis |
| Property Improvement Plan (PIP) | $300,000 | $2,000,000 | Brand-standard renovation |
| FF&E refresh | $150,000 | $900,000 | Soft + case goods |
| Signage & exterior | $50,000 | $250,000 | Brand-prescribed |
| Technology & systems | $40,000 | $200,000 | Wyndham PMS/reservations |
| Working capital | $80,000 | $300,000 | First 3 months |
| Total project (conversion) | $1,455,000 | $9,695,000 | Economy Days Inn flag |
| Ongoing royalty | ~5% of gross rooms revenue | ||
| Marketing/reservation fee | ~4.5% of gross rooms revenue | Funds loyalty + reservations | |
| Term | 15–20 years (new build); shorter for conversions | Mid-term PIP cycle |
Revenue reality: Days Inn operates roughly 1,500+ hotels worldwide as one of Wyndham's largest economy brands, plugged into Wyndham Rewards' 100 million+ members. Economy flags commonly run $50–$90 RevPAR depending on market, with the value proposition being strong franchisee returns per dollar invested rather than rate.
Net effective fees across royalty, marketing, and loyalty land in the 9%–11% of rooms revenue range — underwrite to that.
Who Wins With This Business
The winning Days Inn operator profile is the hands-on economy owner-operator:
- Capital required: $300K–$1M liquid equity for a typical conversion — among the lowest in branded lodging.
- Experience: tight cost and labor control — economy margins are thin, so operational discipline matters more than amenities.
- Skills: local-market hustle — direct sales to nearby employers, sports teams, and contractors fill rooms beyond the reservation system.
- Geographic fit: interstate corridors, secondary markets, and leisure/roadside demand where economy products perform.
- Strategy: convert and reposition a tired independent or competitor economy flag to gain instant reservations and loyalty.
Days Inn fits first-into-lodging owners and value-investors who can squeeze margin from a no-frills product.
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Who Loses With This Business
Owners who expect upscale rate or passive income lose. Common failure modes:
- PIP underestimation. Conversions require mandatory renovations; under-budgeting the PIP wrecks the deal.
- Bad asset selection. A poorly located or functionally obsolete economy hotel never stabilizes regardless of flag.
- Thin management. Economy margins punish weak GMs and loose labor control.
- Brand-standard drift. Wyndham enforces standards; chronic quality misses risk fees or loss of the flag.
- Over-leverage. Even cheap deals feel the 2027 refinancing environment when debt rolls at elevated rates.
2027 Market Conditions
- Demand: value-segment lodging stays resilient as budget-conscious leisure and business travelers trade down entering 2027.
- Conversions dominate. With new-build financing constrained, Wyndham's conversion-friendly economy brands are a tailwind for independents seeking a flag.
- Loyalty: Wyndham Rewards continues to grow past 100 million members, lifting direct-booking share for economy properties that otherwise lean on OTAs.
- OTA dependence: economy hotels are most exposed to OTA commissions — the flag's reservation engine and loyalty base directly reduce that leakage.
- Technology: Wyndham's PMS and revenue tools give small economy operators distribution they could not build alone.
The 90-Day Decision Tree
- Days 1–15: Read the Wyndham/Days Inn FDD — Items 5, 6, 7, 17, 19 — and confirm the economy tier fits your market.
- Days 16–30: Validate demand with STR/CoStar comps; confirm the economy segment supports your pro forma.
- Days 31–45: Get a precise PIP estimate by walking the property with a brand-standards consultant.
- Days 46–60: Secure financing; SBA 504/7(a) is common given the low capital requirement.
- Days 61–75: Engage a hospitality attorney to review the franchise agreement and PIP schedule.
- Days 76–90: Submit the Wyndham application and complete the property inspection and approval.
Alternative Plays
If Days Inn is not the fit, these competing economy and mid-scale flags match different markets:
- Super 8 by Wyndham — Wyndham's largest economy brand, even lower-cost roadside positioning.
- Econo Lodge / Rodeway Inn (Choice) — economy Choice flags with Choice Privileges.
- Travelodge by Wyndham — value brand with leisure-corridor strength.
- Baymont by Wyndham — a step up into mid-scale with breakfast and more amenities.
- Independent operation — no royalty, but no national reservations or loyalty engine.
FAQ
How much does it cost to open a Days Inn franchise in 2027?
A typical Days Inn conversion runs $1.5M–$9.7M all-in depending on the underlying asset and PIP, plus a ~$35,000 franchise fee. It is one of the lowest-capital entries into branded lodging.
What is the royalty fee for Days Inn?
Days Inn charges a royalty of about 5% of gross rooms revenue, plus a ~4.5% marketing/reservation fee, putting effective fees around 9%–11% of rooms revenue.
Is Days Inn a good franchise to own in 2027?
For owners of economy and roadside hotels, yes — it offers a recognized flag, the large Wyndham Rewards loyalty base, and strong franchisee economics per dollar invested, at a low capital threshold. It is not suited to upscale ambitions.
Can I convert my independent hotel to a Days Inn?
Yes — conversion is the core Days Inn play. You complete a Property Improvement Plan to brand standard, pass inspection, and connect to Wyndham's reservation and loyalty systems, often in 3–6 months.
How long does it take to open a Days Inn?
A conversion typically opens in 3–6 months depending on PIP scope; a ground-up economy new build runs 12–24 months.
Is the territory exclusive?
No. Wyndham evaluates market impact during the application but does not grant exclusive territories.
Bottom Line
Days Inn is the low-cost, conversion-friendly flag for economy and roadside operators. Its modest capital requirement, fast conversion timeline, and access to the large Wyndham Rewards base make it one of the easiest entries into branded lodging for first-into-lodging owners and value-add investors.
If you own or are buying a sound economy hotel and want branded distribution and loyalty without upscale capital requirements, Days Inn belongs on your shortlist. If you want rate and group demand, step up to a mid-scale or upscale flag instead.
Sources
- Wyndham Hotels & Resorts — Development (Days Inn)
- Wyndham Rewards — Loyalty Program
- U.S. Small Business Administration — 504 Loan Program
- American Hotel & Lodging Association — Industry Data
- STR / CoStar — Hotel Performance Benchmarks
- FTC — Franchise Rule & FDD Guidance
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