Operating business8% entry signalMarket screen5 sourced figuresStructure decidescapital intensity

Small Motel & Roadside Accommodation Acquisition

Prepared 2026-09-09

The industry — Traveller accommodation

Base industry report for 7211 →
Establishments · CanadaA
7,387
with employees
Under 10 employeesA
49%
most common size: 1–4

Of 7,387 Canadian establishments with employees, 49% have fewer than ten — weighted toward mid-sized establishments.

Entry signal — what decides who wins here

Structure decides
Structure decides One thing must be true Execution decides

The binding constraint is not executional. Being better than the incumbent does not, by itself, get you in — this one is cleared with capital, an asset, or a permission.

What you would have to beat

Come with the asset, or buy the business that owns it. Plant, fleet, land or quota decide this market before any operating skill does. Operators here are bought, not started.

How it was read
Binding constraintUNVERIFIEDcapital intensity — Capital — being better does not, by itself, clear it.
How fragmented the field isA49% of establishments have fewer than ten employees — Mixed — neither a field of micro-operators nor one dominated by large establishments.
What it costs to be in the businessUNVERIFIEDhigh capital — The structural profile of subsector 721, inherited by every industry beneath it.
How many new establishments are still tradingA
Accommodation and Food Services, US · opened 2020
85.5%
1 year
72.1%
3 years
59.3%
5 years
41.6%
10 years
opened 2015

Measured, not forecast: the share of US establishments opening in one year that were still active later. It counts good operators and bad ones together, which is exactly why it is the honest answer to “what are the odds”. It is for the whole sector rather than this market, and the ten-year figure comes from an older cohort because no younger one has reached ten years.

This is not a probability of success, and it is not a verdict on you. No survival probability is published per market, and inventing one would be worse than saying so. What the bar reads is how much of the outcome sits inside an operator's control: green means the hurdles are ones a better operator clears, red means the binding constraint is capital, an asset or a permission rather than execution. Someone arriving with an advantage this screen did not assume can win a market shown in red.

Companies named in this market · 7

The binding constraint — capital intensity

The listings that look cheap are cheap for a reason: deferred capital sits behind the walls — roofs, envelopes, plumbing runs — and it comes due on the new owner's watch. Revenue arrives through OTAs that take a fifth of the rate, the season is short outside the major corridors, and short-term-rental supply has taken the price-sensitive traveller. The property management software at this code is screened separately.

Market scalelocalunit: one property and its corridor traffic

Occupancy depends on one highway, one season and the OTA ranking for one town. A national accommodation figure includes urban hotels with entirely different economics and is not applicable. Sized by rooms × occupancy × ADR, on one corridor.

Handle — Wyndham's brand table. Wyndham publishes RevPAR and property and room counts brand by brand and region by region, including Canada, which is the only place a Canadian economy-motel benchmark exists in a filing. RevPAR already nets occupancy against rate, so one disclosed number does the work of two assumptions — with the caveat, stated on the figure, that the RevPAR column is global and the property columns are regional.

Wyndham economy-brand presence in Canada, 31 December 2025A 359 properties and 26,791 rooms: Super 8 113 properties / 7,345 rooms, Days Inn 108 / 8,557, Travelodge 94 / 7,439, Microtel 27 / 2,368, Howard Johnson 17 / 1,082 (Wyndham Hotels & Resorts FY2025 10-K)
Branded economy RevPAR, full year 2025A US$37.06 across Wyndham's economy chain scale — Super 8 US$39.32, Travelodge US$39.64, Days Inn US$36.91, Microtel US$44.27, Howard Johnson US$26.17. These are global full-year brand figures as the 10-K presents them, not Canadian ones
Direction of travel, 2025A Wyndham's global RevPAR fell 3% excluding currency, with the US down 4% on both lower average daily rate and lower occupancy; the company described international RevPAR as flat, citing continued pricing power in Latin America, EMEA and Canada against pressure in Asia Pacific
Wyndham royalty contribution by geography, 2025A US 77%, Canada 6%, EMEA 8%, Asia Pacific 6%, LATAM 3% — and Wyndham's brands are approximately 19% of branded rooms in the United States across the economy, midscale and upper-midscale scales
Canadian establishments with employeesA 7,387 (Statistics Canada, December 2023); 3,632 (49%) have fewer than ten employees and 4,876 (66%) fewer than twenty — the roadside motel is most of the count and very little of the rooms
National addressable figureUNVERIFIED Not stated — this market is a set of unconnected local ones
Annual revenue per branded economy room~US$13,500B

US$37.06 of full-year economy RevPAR × 365 days. Derived from one reported figure and the calendar. RevPAR already accounts for empty nights, so this is what a room in a branded economy hotel produced across 2025 — globally, not in Canada. On that arithmetic a twenty-room independent grosses on the order of US$270,000 a year, before it pays for a roof, and before the online travel agency takes its cut.

Angel-backed companies3
in the Canadian portfolio dataset
Province mixQC 2, NL 1

Sectors joined: Platform - Hospitality · Hospitality · Hospitality AI

[UNVERIFIED] Sector-to-NAICS mapping is analyst judgment — see data/angel-sector-map.json. Counts are a per-record cross-reference and are not additive across records.

I

Who you would be competing with

The operators already at scale here, and whoever is buying these businesses. In most of these industries the competition an entrant meets is local, so this is who sets the terms rather than a list of everyone in the trade.

Largest operator
Wyndham Hotels & Resorts (NYSE: WH) — not an owner but the franchisor whose sign an independent motel ends up renting
Scale
Over 8,300 affiliated hotels and about 869,000 rooms in roughly 100 countries. In Canada, 359 economy-chain-scale properties and 26,791 rooms at 31 December 2025, across Super 8, Days Inn, Travelodge, Microtel and Howard Johnson. Canada supplied 6% of 2025 royalties against 77% from the US.
Concentration
Wyndham's brands represent approximately 19% of branded rooms in the United States across the economy, midscale and upper-midscale scales. No Canadian share is published, and the Canadian number that matters is the other one: 359 branded economy properties against 7,387 counted establishments.
Others in the field
Choice Hotels and IHG at the same chain scales, competing for the same conversions; Airbnb and Vrbo, which took the price-sensitive traveller outright; Booking.com and Expedia, which own the booking and price the independent's distribution; and 3,632 Canadian establishments with fewer than ten employees, which is what a roadside motel is.
Lock-in mechanism
Not assessed — screened before diligence. The lock-in on offer is the franchise agreement itself: a royalty calculated on room revenue, plus marketing and reservation contributions, in exchange for the sign and the reservation system. The specific rate and term were not read for this record.
Price movement
Down. Wyndham's global RevPAR fell 3% excluding currency in 2025 and US RevPAR fell 4%, on both lower rate and lower occupancy. Canada was among the regions the company described as holding pricing power, which is the best that can be said of it.
Is the buyer consolidating?
No — Not the small ones. There is no roll-up buying twenty-room roadside motels, because the listed money in this industry is asset-light franchising — it wants the sign on the building, not the building. Wyndham's development pipeline is about 2,200 hotels and 259,000 rooms, 77% of it new construction. The capital is going into new-build, not into rescuing deferred maintenance on a 1970s corridor property, which is exactly why those properties are cheap.
F

Financials & market size — sourced

Figures that came from a filing, a results release or reputable reporting, each carrying its evidence tier.

Wyndham economy-brand presence in Canada, 31 December 2025A 359 properties and 26,791 rooms: Super 8 113 properties / 7,345 rooms, Days Inn 108 / 8,557, Travelodge 94 / 7,439, Microtel 27 / 2,368, Howard Johnson 17 / 1,082 (Wyndham Hotels & Resorts FY2025 10-K)
Branded economy RevPAR, full year 2025A US$37.06 across Wyndham's economy chain scale — Super 8 US$39.32, Travelodge US$39.64, Days Inn US$36.91, Microtel US$44.27, Howard Johnson US$26.17. These are global full-year brand figures as the 10-K presents them, not Canadian ones
Direction of travel, 2025A Wyndham's global RevPAR fell 3% excluding currency, with the US down 4% on both lower average daily rate and lower occupancy; the company described international RevPAR as flat, citing continued pricing power in Latin America, EMEA and Canada against pressure in Asia Pacific
Wyndham royalty contribution by geography, 2025A US 77%, Canada 6%, EMEA 8%, Asia Pacific 6%, LATAM 3% — and Wyndham's brands are approximately 19% of branded rooms in the United States across the economy, midscale and upper-midscale scales
Canadian establishments with employeesA 7,387 (Statistics Canada, December 2023); 3,632 (49%) have fewer than ten employees and 4,876 (66%) fewer than twenty — the roadside motel is most of the count and very little of the rooms
V

The field

Every operator named on this record, and what each one discloses. A private single-site operator discloses nothing, which is the normal case — the listed consolidators are the only window in.

Competitor set · 5 named · 0 disclose revenue

NameRevenueShareNote
Wyndham Hotels & ResortsNYSE: WHA not disclosed — A franchisor, so its own revenue is not the comparable figure and was not extracted. What matters here is the disclosure: 359 Canadian economy properties, 26,791 rooms, US$37.06 of full-year economy RevPAR and 6% of royalties from Canada
Choice Hotels / IHGC not disclosed — Competing economy and midscale franchisors chasing the same conversions; not researched for this record
Airbnb / VrboC not disclosed — Took the price-sensitive traveller the roadside motel used to own. Not researched for this record; the adjacent vacation-rental management record at 721198 covers that side
Booking Holdings / ExpediaC not disclosed — The distribution channel and the commission on it. No take-rate was opened for this record, and the 'fifth of the rate' in the reason is unsourced
The 3,632 Canadian establishments with fewer than ten employeesA not disclosed — Statistics Canada, December 2023. The independent motel majority — the competitive structure, and the seller on the other side of the table

Nobody here publishes revenue. The market is not sized for that reason — an estimate built on nothing would only look like knowledge.

Evidence

Evidence. One filing carries this record: Wyndham Hotels & Resorts' 10-K for the year ended 31 December 2025 [A]. Its brand table was read directly for the Canadian property and room counts by brand (Super 8 113/7,345; Days Inn 108/8,557; Travelodge 94/7,439; Microtel 27/2,368; Howard Johnson 17/1,082, summing to the stated 359 and 26,791) and for the full-year RevPAR column. That column is global, not Canadian — the 10-K presents one RevPAR figure per brand and then splits properties and rooms by region — so the US$37.06 economy RevPAR is used here as a branded-economy benchmark and is labelled as such, not as a Canadian number. The same filing gives the 3% global and 4% US RevPAR decline excluding currency, the royalty split by geography (Canada 6%), the roughly 19% share of US branded rooms across three chain scales, and the pipeline of about 2,200 hotels and 259,000 rooms at 77% new construction. The establishment count and size bands are Statistics Canada, December 2023; the work list carried no US count for this group, so none is quoted. What it establishes: what a branded economy room earns, what joining a banner gets an independent, and that the money entering this industry is building rather than buying. What it does not establish: the economics of an unbranded corridor motel, which has neither the RevPAR nor the reservation system. UNVERIFIED and material: the 'fifth of the rate' attributed to online travel agencies in the reason was not sourced — no commission or take-rate document was opened — and the deferred-capital argument rests on no survey or cost series. Choice, IHG, Airbnb, Booking and Expedia are named from structure with nothing opened, and are tiered C. The cut factor is analyst judgment.

#

Where the industry talks

The associations, forums and events where people in this trade actually talk shop — where to listen before entering, and where the first customers are found. Each link was opened on the date shown.

AssociationCanadaA
Hotels Canada (formerly Hotel Association of Canada)
hotelscanada.ca

National hotel and lodging association; hotelassociation.ca now redirects here. Runs Green Key Global and No Room for Trafficking.

Checked 2026-09-22
AssociationUSA
AAHOA (Asian American Hotel Owners Association)
aahoa.com · 20,000 members (2026-09)

Hotel owners' association; home page states 20,000 hotel owners and 60% of American hotels. Known for franchise-relations work (12 Points of Fair Franchising).

Checked 2026-09-22
AssociationOntarioA
Ontario Restaurant Hotel & Motel Association
orhma.com

Says it has over 5,000 members representing more than 11,000 establishments, the largest provincial hospitality association in Canada.

Checked 2026-09-22
AssociationBritish-ColumbiaA
BC Hotel Association
bcha.com

Provincial association; work includes short-term-rental policy, hotel valuation and property tax, and InnFocus magazine.

Checked 2026-09-22
EventCanadaA
Canadian Hotel Investment Conference (Big Picture Conferences)
bigpictureconferences.ca

Organiser of CHIC, CHIC Capital and the Quebec Hotel Investment Conference; CHIC has run more than 28 years, next spring 2027 in Toronto.

Checked 2026-09-22

hoteliermagazine.com (Hotelier, the Canadian trade title) blocks automated access and is not listed.

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Software serving this industry

Vertical software markets filed along the same branch of NAICS — who sells to these businesses, and who an entrant would have to displace.

Other records in this industry