Business research training for motels

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The word "training" itself has many deep and significant meanings. Training may have varied "flavors," but of those, I have only tasted industrial training. True education does not prepare us for something specifically; rather, it is a continuous process and a significant part of one's life.

For my business research training, I have chosen the topic "Study of Factors Involved in Acquiring a Super 8 Motel." This study will investigate the factors that affect the purchase of a motel and will also prioritize the most important aspects when considering such a major purchase. These factors may include the brand name of the motel, location, investment, number of rooms, additional services, education level of people, price per room, etc.

Chapter 1 Introduction

Meaning of Motel

The word "motel" originated from the Motel Inn in San Luis Obispo, first built in 1925 by Arthur Heinman. The word motel initially referred to a single building that was connected by rooms with doors that faced a parking lot or common area. ( The dictionary describes a motel as a lodging establishment, which has a number of rooms and a parking lot whereby people can also easily access their automobiles. Motels are typically located near major highways; in fact, the word "motel" is a combination of the words "motorists" and "hotel." Motels came into existence when the United States highway system began to allow easy cross country travel. Motorists needed a place to stay while travelling, and, thus, the concept of the motel was originated.

The difference between a motel and hotel lies in the interaction between the owner and occupant. Motels are always situated on the highways and have their entrances facing a parking lot, whereas hotels have their doors facing the hallway. Motels are mostly family owned. Motels are at times used by people who have lost their belongings or cannot afford an apartment, so for long stays, motels prove to be a good choice of lodging.

About Wyndham World Wide Corporation Group

Mission Statement

The mission statement of the Wyndham Corporation states, "We are the global leader in leisure and business travel accommodations welcoming over 240 million owners, members and customers each year to iconic brands, resorts and vacation destinations with our signature "Count on Me" service.


Core Values

  • Act with integrity
  • Respect everyone, everywhere
  • Provide individual opportunity and accountability
  • Improve customers' lives
  • Support our communities

Wyndham Worldwide has nearly 7,000 motel representing more than 5,880,000 rooms in 66 countries. Super 8's are a group of motels owned and operated by the Wyndham Worldwide Corporation, which is one of the largest hospitality companies. It offers individual consumers and business customers broad areas of hospitality products, various accommodation services, and reasonable prices.

Wyndham Worldwide Corporation consists of the following groups of motels:

  • Wyndham
  • Ramada
  • Days Inn
  • Super8
  • Wingate
  • Baymont Inn & Suites
  • Microtel Inns & Suites
  • Hawthorn Suites
  • oward Johnson
  • Travelodge
  • Knights Inn

About Super 8 Motel

Super 8 is one of the giant motel chains in the hospitality industry. It is the largest hotel budget chain in the world, operating primarily in the U.S. and Canada, although there are a few motels in China. With regard to the ownership, they are a subsidiary of Wyndham Worldwide.

Super 8 was founded in 1972 by Dennis Brown as a motel referral system, which was soon dissolved and replaced with a franchise operation in 1973. The first Super 8 Motel was opened in 1974 in Aberdeen, South Dakota. It had 60 rooms, and the original room rate was $8.88; hence the numeric brand name.

Today, Super 8 Motels offer guests standard amenities at every hotel, including a new SuperStart continental breakfast, free high-speed Internet access, and a lobby area. Some locations have pools and meeting rooms. A few of the larger Super 8 "Lodges" even have a restaurant on the property. However, it still remains the lowest-priced offering in the Wyndham Worldwide family.

Super 8 had a frequent traveler program, the V.I.P. club, which was introduced in 1976, and it grew to over 7.6 million members. The program was purchased by Hospitality Franchise Systems, which later became Cendant in 1993. The V.I.P. program was dissolved in December 2003 and replaced with the TripRewards program, which was renamed Wyndham Rewards in 2008.

Super 8 maintains high consumer awareness through various marketing tools. These tools are used to convey their message to prospective customers at the right place and right time. The motel chain uses marketing tools such as TV, radio, e-net advertising, billboards, posters, etc. Additionally, the company utilizes various sponsorships to gain effective awareness regarding the Super 8 brand and its services. Those sponsorships include an association with NASCAR Nextel racing, including both horse and car racing

Chapter 2 Literature review

Buying Behavior

Which criteria/factors influence consumers to purchase a product or services? The buying process is complex in nature, because many internal and external factors have an impact on the buying decisions of the consumer. These factors include education, culture, family type, opinion leaders, self esteem, friends, relatives' views, etc.

Consumer purchase behavior includes a five-stage process:

  1. Problem/need reorganization
  2. Information search
  3. Evaluation of alternatives
  4. Purchase decision
  5. Post-purchase behavior
  1. Problem/need Reorganization
  2. How do you decide to buy a particular product or service? It is at this stage the consumer decides that he wants to buy a motel. What factors create the need for the purchase of a motel?

  3. Information Search
  4. When customers have decided to purchase a particular product or service, they begin to search for information regarding the specific product, such as which brand to purchase, how many brands are available, which is the better brand, etc. This information is acquired from family, friends, the Internet, newspapers, magazines, etc. Consumers can also ask the dealer or franchiser for product and quality information.

  5. Evaluation of Different Purchase Options
  6. After searching many brands and products, the customer must decide on one particular brand. That selection of brand depends on the desired features of the consumer. Suppose the consumer has three alternative motels from which to choose, i.e., American Inn, Days Inn, and Super 8 Motel. If the consumer desires maximum room availability, and if the Super 8 has a more rooms then the American Inn or the Days Inn, the customer will continue to evaluate the Super 8.

  7. Purchase Decision
  8. Through the evaluation process, the consumer finally reaches a final purchase decision and enters the final process of purchase action. After evaluating Super 8, the consumer is ready to buy the Super 8 Motel.

  9. Post-purchase Behavior

After a thorough investigation and removal of all doubts about the product, the consumer purchases the product. However, questions may arise that later cause the consumer dissatisfaction. When a customer buys any product, he/she has two types of parameters for recognizing if this is a good purchase: one is an evaluation parameter and the other a belief parameter. The evaluation parameter means that the customer wants and expects some general attributes contained in the product. The belief parameter becomes apparent after purchasing the product, and determining if the customer is actually getting the product that he/she expected. Ultimately, there is pre-purchase behavior and post- purchase behavior. Post-purchase behavior includes the satisfaction parameters (

The Process of Becoming a Franchisee of a Super 8 Motel


The first course of action is to complete a "Contact Questionnaire," which is available on the Super 8 website. After submitting this form, a representative from Wyndham Hotel group will discuss your questionnaire and provide information regarding franchising opportunities.

Step 2:

In order to secure a Super 8 franchise, the potential franchisee must commit to a 20-year agreement. Additionally, he/she must have sufficient business experience to complete the purchase and become a franchisee.

Step 3:

The range of total investment is from $285,000 to $2,800,000 and 5% of all royalties go to the Wyndham Hotel Group.

Step 4:

If you do not have sufficient funds to purchase the franchise, business loans are available from the Small Business Administration (SBA). According to past records, 253 SBA loans were granted for Super 8 Motels, and of those, only 1.58% have failed to repay the loan.

Step 5:

After accessing funding for the purchase of a Super 8, the buyer must recruit employees to operate the franchise. For a smooth operation, the owner will need to hire approximately 38 employees and one manager.

Step 6:

As a franchise owner of Super 8, training will be provided from the Wyndham Hotel Group. The initial training workshop takes place at the Wyndham Hotel Group headquarters for five days and at the franchise location for an additional two days. Wyndham creates customized training for one to three days.

Step 7:

The Wyndham Hotel Group provides various ongoing support to generate business. This support includes newsletters, phone line support, company meetings, cooperative meetings with other franchise owners, and a grand opening

Types of Hotel Franchise Fees

There are various types of hotel franchise fees. The most important role played by a brand name is that it attracts the investors to purchase the franchise. The hotel franchise fees are taken from the franchisee by the franchisor, in exchange for the use of the brand name, logo, goodwill, marketing and referral and reservation systems. Franchise fees also include the initial fees with the franchise application and continuing fees.

Typically initial fees are based on the number of rooms available in the motel. For example, the initial fee may be a minimum of $45,000 plus $300 per room for each room over 150. Thus the motel with 125 rooms would pay $45,000 and the motel with 200 rooms would pay $60,000. The initial fee is paid upon submission of the franchise application. The amount of initial fees covers the franchise cost of processing the application, reviewing the site, accessing market potential, evaluating plans and existing layout, and inspecting the property during construction.

The continuing franchise fees are usually paid monthly over the tenure of the agreement. The continuing fees are as follows:

Royalty Fees

Almost all franchisors collect a royalty fee, because the franchisee uses the company's trade name, service marks and associated logos, goodwill and other franchise services. The royalty fee is a major source of revenue for a franchisor.

Advertising or Marketing Contribution Fee

There are various advertising tools which are used by hotel owners. The advertising may be national or regional.

Reservation Fees

If the franchise has a reservation system, the reservation fee supports the cost of operating the central office, telephones, and computer equipment and reservation personnel.

Frequent Travel Program Fee

Many franchisors offer incentive programs that reward guests for frequent visits. These programs create added value in establishing brand loyalty.

Other Miscellaneous Fees

These fees include fees related to training programs and national and regional annual conferences. Frequently hotels need various services like consulting, purchasing assistants, computer equipment, rental equipment and marketing campaigns (

What is the Total Investment?

Initial Investment for a Brand Hotel

Initial Investment for a Newly Built Hotel

The following table represents the range of initial investment for a 50-room, new building, chain hotel

Different Hotel Companies (Chains)

  • SUPER 8


Intentions of Buying a Hotel

The motives for buying a motel vary among the different purchasers. Such decisions may be profit driven, lifestyle driven, potential driven, or a combination of all three. Buying a motel is a crucial decision, and it must be considered and analyzed carefully. In short, it is a major life decision.

There are different types of people who own and manage motels. Some owners will buy a motel, operate it for a few years, and then sell it and leave the industry feeling satisfied. Others may sell and look for another motel to expand the business and create higher turnover and profits.

Many people own and operate motels over a number of years. They manage motels very well, earn good money, and live a prosperous lifestyle. It is possible to earn a very good income in the motel industry.

There are many benefits of owning and operating motels. These are as follows:

  1. Higher Return and Investment
  2. Not only in the motel industry, but all business have an aim, which is first and foremost, to receive optimum profit from their total investment. To do so, a company needs the proper allocation and management of the investment. The formula of higher return = Income - Total investment.

  3. Lifestyle
  4. Why do people work? Work provides value to people's lives and provides a means for earning money. Money allows people to live a good lifestyle and fulfill the needs and desires of their families. The motel business offers a good working lifestyle for owners and operators.

  5. Residence and Living
  6. The construction and establishment of a motel requires a large amount of space. Each motel has a number of rooms, so the operators/owners can live in the motel, and thereby decrease their living costs substantially.

  7. Market
  8. Many factors are studied by investors when buying a motel. A major concern is that of resale. If an investor wanted to sell the motel, a buyer is necessary for purchase at that time. In the motel industry, there are always people who wish to buy a motel.

  9. Cash Flow
  10. There are two types of cash flow: cash inflow and cash outflow. For the smooth operation of a motel, the owner must have working capital (cash outflow), which requires sufficient cash inflow. Most customers pay their bills through cash, credit cards, or checks.

  11. Capital gains
  12. Capital gains occur when, after some time, the value of the motel increases. Suppose you bought a motel in 2008 for $200,000, and in 2009 its value increased to $250,000. The difference of $50,000 is the capital gain. Reviewing the trends of the motel industry over the past ten years, the value of motels has increased steadily and consistently.

  13. Finances

Financial companies consider the motel industry to be a good risk, and have confidence in lending money to those who are interested in purchasing motels.

Return on Investment

Return on investment is a very crucial factor for owners. There are many factors which affect these returns. There is no single answer to the question of what is market return; however, the factors which affect return on investment are as follows:

  1. Location
  2. A primary factor that affects one's return is the location. To make a wise decision, investors must evaluate and analyze such considerations as the lifestyle of people, land value, price for equipment and premises required for establishing the motel, education of people in that area, etc. Where to locate the motel is an important decision for an investor.

  3. Conditions and Standards
  4. Given a choice of two motels, one of which is well equipped and established and the other which is in poor condition and requires repairs and maintenance or refurbishment, the obvious choice would be to select the motel that is in good condition and well established if you want a higher return on your investment.

  5. Age of Building
  6. A newer more modern building/motel will be in higher demand than an older building/motel, and will, therefore, sell at a higher return on investment.

  7. Size

The larger motel will give a higher return on investment because of the larger availability of rooms. The reason for giving a higher return is that the fixed costs remain the same in both large and small motels.

Specialist Advice for Purchasing a Motel

Investors need advice from specialists in accounting during the purchase of a motel. The accountant should be experienced within the motel and restaurant industry. There are many considerations when purchasing a motel and these require an accounting specialist.

The Following Are Some Areas That Require Specialized Accounting Advice:

  1. Entity Set Up
  2. There are different structures of entity set up available when purchasing a motel, such as sole proprietorship, partnership, company, trusts and even combinations among them. Each structure has its own strengths and weakness.

  3. Analysis of Sales Figures
  4. It is important for the purchaser to examine whether the sales figures are fair, given the previous net profit, trading figures and industry trends.

  5. Due Diligence Process
  6. Purchasers need to reassure the accuracy of sales figures that are provided by the seller during the purchasing process. The purchaser must be able to fully analyze the seller's profit and loss statement.

  7. Finance
  8. At this stage you are ready to purchase the motel, but first you will probably require financing from the bank. The bank is ready to serve you on the basis of cash flow and profit and loss projections. Here your specialist accountant can assist you in how you can acquire financing.

  9. Save on Tax/Capital Gains Advice
  10. Every organization has to pay tax on capital gains. Owners can earn capital gain when they sell the motel. An accounting specialist can assist you in setting up a strategy to minimize taxes.

  11. Bookkeeping

Bookkeeping is an often overlooked part of the business which, of course, must be done well. Accounting specialists can be of great assistance in setting up a bookkeeping system and keeping the books up to date and easy to manage (

Chapter 3 Research Methodology

Why I Chose This Topic

Study of Factors Involved in Acquiring a Super 8 Motel

Studying the current scenario of the motel and hotel industry is developmental in its nature. Most of my family is connected with the motel business, so I wanted to learn and understand the particular process of obtaining a franchise in a motel chain. After completing my studies, I would like to start my own motel. Searching the data from the past four years, I have found that the growth of the Super 8 Motels has increased 62%. I would like to start my own business and want to become a unique identity in the world.

My investigation of motels led me to the Wyndham World Wide Corporation, which owns 11 different motels. Super 8 is one of the Wyndham group and provides excellent services, such as front door parking, swimming pools, well designed rooms, etc. There is a wide availability of rooms, and the past performance of Super 8 franchisers has been profitable.

Another reason for choosing this topic is that before buying any product, you should have sufficient knowledge regarding the product, such as company, price, competitive products, quality, product features, product past performance, product resale value, etc. The same is also required in the motel industry. With the information garnered from this research, we will find the amount of investment, the motel location, the number of rooms required, the number of staff needed to operate, etc. That is why I have chosen this topic.

The term "business research" refers to a systematic inquiry that provides necessary information to guide managerial decisions. More specifically, it is the process of planning, acquiring, analyzing and disseminating relevant data, information, and insights to decision makers in ways that mobilize the organization to take appropriate actions that, in turn, maximize business performance.

Research Objective

Primary Objective

  1. To understand the process of buying a Super 8 Motel.

Secondary Objective

  1. To understand the factors which affect the purchase of a Super 8 Motel.
  2. To understand the factors which influence investors to buy a Super 8 Motel.
  3. To understand the strongest and weakest points of a Super 8 Motel.

Research Design

In this thesis, a descriptive method will be used which describes the factors involved in acquiring a Super 8 Motel. Additionally, the recommendations and findings are specific to this study.

Descriptive studies are undertaken in many circumstances. When the researcher is interested in knowing the characteristics of certain groups such as age, sex, educational level, occupation or income, a descriptive study may be advantageous. A descriptive study could also be helpful when one is interested in knowing the proportion of people in a given population who behave in a particular manner or when making projections and determining the relationship between two of more variables. The objective of such studies is to answer the who, what, when, where, and why of the subject under investigation. Descriptive studies can be complex, demanding a high degree of scientific skill on the part of the researcher.

Type of research

Survey questions contain a combination of qualitative and quantitative questions.

Sampling Design

A non-probability convenience sampling method has been used.

Sampling Size

In this thesis I have used two types of samplings; in one sample I have surveyed 25 future owners' respondents, and in the other, I have surveyed 10 current motel owners.

Research Instrument

Questionnaires were used for the purpose of primary data collection as the research instrument. The types of questions used were:

  1. Close ended questions (many questions include the use of the scale)
  2. Open ended questions

Source of Data Collection

  1. Primary Data
  2. Primary data were collected through direct contact with the customers with the help of the questionnaire.

  3. Secondary Data

The sources of secondary data collection include the literature review of referenced books. The Internet and magazines were the main sources of secondary data collection.

Chapter 4 Analysis and Findings

Findings for Future Owners

  1. Are you planning to purchase a motel franchise?
  2. Of the 25 respondents, 72% stated that they planned to purchase a motel franchise. It is very beneficial for our research that a majority of respondents want to buy a motel franchise. Those who do not plan to buy a motel franchise (28%), could be a topic of further research as to why they do not want to purchase a motel. In this study, the majority of respondents want to purchase a motel, so the results can be considered quantitative.

  3. Which motel chain are you interested in purchasing?
  4. The purpose of asking this question is to determine whether the majority of respondents want to purchase a Super 8. The above graph represents that the largest number of respondents (35%) are interested in purchasing a Super 8 Motel. This suggests that Super 8 has a very good name and reputation when compared to other motels. However, 65% of the respondents are interested in purchasing other motels, which suggests that there are many competitive motels available providing competitive services.

  5. Do you feel you completely understand the application process?
  6. Of the 25 respondents surveyed, it was found that 70% of the respondents did not understand the process of buying a Super 8. The purpose of asking this question was to determine if the respondents were aware of the process of buying a Super 8 motel. This is, first and foremost, the most important aspect for any buyer. If you want to purchase any product, first you must be aware of its availability, price, competitors' prices, quality and services of product, and the quality and services of the competitors' product. From this question it can be surmised that the majority of respondents do not understand the process of buying a Super 8 Motel. This research can provide the guidelines for such a purchase.

  7. Have you decided on the location?
  8. According to the above graph, 75% of the respondents had not decided upon the location of the Super 8 Motel. This question is linked with our previous question, i.e., if, according to the third question, the majority of respondents do not understand the process of buying a Super 8, clearly they have not yet decided on a location. The first question found that a majority of respondents wanted to purchase a motel, and this question suggests that they have not yet decided the location. We advise them that location should play a very important role in making the decision to purchase a Super 8 Motel.

  9. How would you recruit your employees?
  10. The above graph represents ways in which a buyer can recruit employees. The process of recruitment plays a very important role in any organization, because the organization's performance depends on the employees' performance. Recruiting competent people is a crucial factor in the motel's success. Three options for recruiting are provided: monthly meetings with managers, recreational training, and corporate training.

    It was found that 65% of the respondents wished to recruit their employees from arranging monthly meetings with their managers.

  11. How will you market your hotel?
  12. The purpose of this question is that since marketing plays a very important role in business success, a potential owner should have a marketing plan. This graph represents the tools through which investors can market their motel. It was found that 70% of the respondents wanted to market through the Internet. In today's world, Internet usage is rapidly increasing day by day, thus decreasing the communication gap among countries. The Internet provides a tool through which a person can see, listen, and understand information. Super 8 has an Internet reservation facility on its web site, and it is very user friendly.

  13. What size motel do you plan to have?
  14. The above graph indicates that the majority (68%) of respondents were interested in purchasing a 40-50 room motel. So, we can determine that future buyers would look for a Super 8 Motel which has 40-50 rooms available.

  15. How much capital do you plan to invest in the motel?

The purpose of this question is to determine the buyers' financial willingness to purchase a motel. It also shows the amount of money that the buyer is prepared to pay for purchasing a Super 8 Motel. The above graph indicates that the majority of respondents were willing to invest $300,000-$400,000 to purchase a Super 8 Motel. It also shows that most of the investors expect to invest more than $200,000. (28% - $200,000-300,000, 33% -$300,000- 400,000, 22% more than $400,000).

Findings for Current Owners

  1. Do you like the support provided by the parent company to the Super 8 owners?
  2. The above graph represents that all respondents (100%) approve of the support which is provided by the parent company. It is necessary for all individual organizations to require some kind of support initially and until the company is well settled. This kind of support may include financing, marketing guidelines, training of employees, proper selection of location, etc. From the above graph, we can determine that all respondents want support from the parent company.

  3. What were the biggest challenges in acquiring a motel?
  4. Looking at the above graph, the majority (86%) of respondents indicated that the biggest challenge related to determining a location for establishing the motel. As we discussed in future owner related questions, the proper selection of location will play an important role in the smooth operation of the business. A proper location is one that is convenient to the customer and easily approachable. There are certain factors that should be investigated when searching for a location, such as income of people, education level of people, availability of transportation facilities, electrical facilities, etc.

  5. If you have owned your motel for five years or more, have you made a reasonable profit overall?
  6. All respondents have made a profit over the last five years, and it can be concluded that the motel industry has been profitable during the past five years.

  7. Do you own any other motels besides the Super 8?
  8. The above graph indicates that a majority of respondents had owned other motels besides the Super 8. In percentage terms, 57% of respondents had motels besides the Super 8. This shows that most owners are familiar with Super 8 motel services and realize the competition among them. Currently, 29% of respondents own other motels in addition to the Super 8.

  9. How much capital did you have to invest?
  10. As we have found from the future owner analysis, the majority of respondents expect to invest more than $300,000, which is similar to the amount that the existing motel owners invested.

    The above graph indicates that 71% of respondents have invested $300,000-400,000 in the motel, and 29% of the respondents have invested more than $400,000.

  11. Has your motel been profitable during the last year?
  12. The purpose for asking this question is that the buyer needs to analyze the past performance of the motel. On the basis of past performance, one can determine if the motel has generated profits from the past year. The first and primary aim of any business is to earn optimum profits. Looking at the above graph, 100% of the respondents claimed profits from the past year.

  13. How many rooms does your motel have?
  14. The above graph indicates that 86% of the respondents owned motels that have 40-50 rooms available, and 14% of the respondents have more than 50 rooms. This suggests that in acquiring a Super 8, you have to manage more than a 40-room motel. As per our earlier findings, future owners also have to be interested in buying a 40-50 room motel.

  15. How many individuals do you employ?
  16. The most critical task performed by the manager is the optimum utilization of human resources. As per the above graph, in the majority of instances, 20-30 employees are sufficient for operating a Super 8.

  17. How do you manage your Super 8 motel staff?
  18. Current owners want to manage staff through monthly meetings with managers. This finding is consistent with that of the future owners. The above graph indicates that 86% of respondents want to manage their staff through monthly meetings with their managers. Therefore, it is advisable that owners need to manage their staff through monthly meeting with their managers.

  19. Do you like owning/managing a motel?

As per the above graph, 100% of the respondents enjoy owning/managing a motel. This means that all respondents are ready to own a motel.

Chapter 5 Conclusion

From this study, we can conclude that a majority of respondents are interested in buying a Super 8 Motel. Therefore, the outcome of this research is qualitative. Additionally, the majority of respondents do not understand the applicant process in acquiring a Super 8. First and foremost, the investor must be clear on location and where to locate the motel. This is a crucial task for each and every motel owner. Furthermore, both the future motel owner and the existing motel owner want to recruit their employees through monthly meeting with their managers. Future motel owners and existing motel owners both want to market their motel through the Internet. Per the findings, the Internet is the best way to market a motel. The research also concludes that the room availability of the motel should be 40-50 rooms, so it will more profitable. In order to purchase a Super 8, investors need more than $1,800,000.


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