From Big Franchise Fees to Bigger Profits: Multiple Hotels Switch to StayExpress

Mobile, Alabama / Union City, Tennessee / Tyler, Texas — In a notable shift within the midscale hospitality segment, two independent hotel owners have transitioned their properties to the growing Stay Express brand, citing improved profitability, lower franchise costs, and sustainable long-term returns.

The conversions—spanning Mobile, Alabama, Union City, Tennessee, and Tyler, Texas—highlight an emerging trend among hoteliers seeking operational efficiency without sacrificing performance.

A Turnaround Story in Mobile and Union City

One of the most compelling transformations comes from a multi-property owner who began with a single hotel in Union City.

The property, now known as Stay Express Inn & Suites Union City, was previously operating under Microtel by Wyndham. After converting to Stay Express, the owner reported a significant improvement in financial performance.

Encouraged by increased net operating income and reduced franchise-related expenses, the owner described the move as a turning point in both business and personal financial stability.

Building on this success, the same owner later acquired a second property in Mobile, Alabama, which had previously operated under La Quinta by Wyndham. After transitioning this property to Stay Express as well, the results mirrored the first conversion—stronger margins and improved cost control.

According to the owner, the ability to save substantially on franchise fees while maintaining competitive performance made expansion feasible—something that was previously out of reach under higher-cost franchise systems.

Tyler, Texas: A Full-Circle Conversion

A second case in Tyler, Texas further reinforces the trend. The property, now operating as Stay Express Inn & Suites Tyler, had an unusual journey. Initially converted to Stay Express, the hotel later shifted to Quality Inn due to internal partner pressure.

However, the move did not deliver the expected gains. Despite maintaining similar levels of business, the hotel experienced a noticeable drop in return on investment due to significantly higher Property Improvement Plan (PIP) requirements and ongoing franchise fees—reportedly nearly three times higher than Stay Express.

When the property was eventually sold, the previous owner strongly recommended a return to Stay Express. The new owner agreed, citing the brand’s ability to deliver comparable business results with far lower financial burden.

The former owner summarized the experience succinctly: after trying multiple brands, Stay Express proved to be the most profitable and practical option for that specific market.

A Broader Industry Signal

These conversions point to a growing sentiment among independent hotel owners: profitability is no longer just about revenue—it’s about cost structure.

Stay Express appears to be positioning itself as a viable alternative for owners seeking:

• Lower initial and ongoing franchise fees
• More flexible and sensible PIP requirements
• Comparable operational performance to big brands
• Access to modern hotel technology which previously could only be accessed by joining the big brands 
• Faster path to profitability and expansion
• A relationship built on fair franchising principles

As rising costs continue to pressure hotel margins, such owner-driven transitions may become more common across secondary and tertiary U.S. markets.

Looking Ahead

The success stories from Mobile, Union City, and Tyler suggest a broader shift in how hotel owners evaluate brand affiliations. Instead of prioritizing brand recognition alone, many are now focusing on net operating income, ROI, and long-term sustainability.

If this trend continues, cost-efficient franchise models like Stay Express could play an increasingly important role in reshaping the economics of the midscale hotel segment.