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The Hotelier Times

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Hotel franchise fees › The Red Collection

The Red Collection Franchise Fees 2026: Royalty, Marketing and Initial Fee

The Red Collection is a soft-brand brand from Red Roof. Here is what it charges to join and to stay in the system, where the numbers come from, and how they compare with similar brands.

4.5% of GRRRoyalty
3% of GRRMarketing or program fee
7.5%Royalty plus marketing

The Red Collection fees at a glance

Initial feeNot found
Royalty4.5% of GRR
Marketing or program fee3% of GRR
Royalty plus marketing7.5% of rooms revenue
FranchisorRed Roof
SegmentSoft brand
Disclosure year—

Source: Fees the franchisor supplied to a trade publication. Confirm them in the brand’s current FDD before you sign. Source 1

How The Red Collection compares

The Red Collection’s royalty and marketing fees add up to 7.5% of rooms revenue. That is below the 8.3% average for the 11 soft-brand brands in our table with a comparable headline figure, the 4th-lowest of the 11.

Soft brand brandFranchisorRoyaltyMarketingHeadline
Trademark Collection by WyndhamWyndham5.5% (membership fee)2% (marketing fee)7.5%
Classico Collection by SonestaSonesta5%2.5% (Brand Promotion Fee; can rise to 3.5%)7.5%
MOD Collection by SonestaSonesta5% of GRR2.5% of GRR7.5%
Ascend Hotel CollectionChoice Hotels5% (membership fee)3% (Marketing and Reservation Fee)8%
Vignette CollectionIHG5%3.5% (Sales and Marketing Services Contribution)8.5%
Noted CollectionIHG5%3.5%8.5%
Curio Collection by HiltonHilton5%4%9%
Tapestry Collection by HiltonHilton5%4%9%
Outset Collection by HiltonHilton5%4%9%
Radisson IndividualsChoice Hotels6%3% (Marketing and Reservation Fee)9%

What the headline number leaves out

Royalty and marketing are only the start. Most brands also charge for reservations and distribution, loyalty-program assessments on member stays, required technology and property-management systems, training and quality assurance. Brands also negotiate: ramp-up royalty discounts, key money and conversion incentives are common. Ask Red Roof for its estimate of total fees as a share of rooms revenue, and read Items 5 and 6 of the current FDD before you sign. Our analysis of what owners really pay a brand puts the typical all-in bill at 10% to 13% of rooms revenue.

Other Red Roof brands

Red Roof Inn · Red Roof PLUS+ · HomeTowne Studios by Red Roof

Keep going

The Hotelier Times is a publisher, not a franchise adviser. Fees change; confirm every figure in the brand’s current Franchise Disclosure Document. Spot an error? Email nathan@hoteliertimes.com.

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