How to Finance a Studio 6 Franchise: Extended-Stay Economy Hotels
By Marc Cornella
A Studio 6 franchise loan finances an economy extended-stay hotel, a property built around studios with kitchens and guests who may stay for days or weeks rather than a single night. That guest mix is exactly what the SBA Franchise Directory asks lenders to examine, which makes this brand’s financing a little different from an ordinary economy motel deal.
Below we cover how a Studio 6 franchise loan is structured for new builds, conversions and purchases, and what the brand’s SBA directory notes mean in practice.
US Professional Funding is not affiliated with, sponsored by or endorsed by Studio 6; the name is used only to describe the business. Figures from the franchisor’s disclosure document and published materials can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and accountant.
Studio 6 Franchise Loan at a Glance
- Franchisor: G6 Hospitality, which describes itself as the leading economy lodging franchisor, with nearly 1,500 locations across its brands in the United States and Canada as of 2026.
- Concept: economy extended-stay hotels marketed with the line “Extend your stay, not your budget,” with studios that include kitchen facilities.
- Growth: the company reported more than 35 new Studio 6 locations in the first quarter of 2026, a mix of conversions and new builds.
- New format: Studio 6 Plus, announced in April 2026, is a new-construction extended-stay format that the company says typically runs 60 to 150 rooms.
- Fees and investment: set out in Items 5 to 7 of the current FDD; we could not verify current figures.
- SBA Franchise Directory: listed as Studio 6 (S1633), Studio 6 Extended Stay (S8813) and Studio 6 Suites (S8814), with notes on management agreements and, for at least one listing, a requirement that more than 50% of revenue come from guests staying 30 days or less.
What Is Studio 6?
Studio 6 is the extended-stay brand franchised by G6 Hospitality, an economy lodging company headquartered in Texas. Where a typical economy motel sells a clean room for a night, Studio 6 sells a studio with a living area and kitchen for guests who need to stay a while: workers on temporary projects, people between homes, traveling medical staff and families on a budget.
A new-construction Studio 6 that opened in Katy, Texas, in 2024 shows the current design: the company describes a three-story, 55-room hotel whose studios include living areas and fully furnished kitchens, plus guest laundry and pet-friendly rooms, owned and operated by a franchisee.
Studio 6 Plus. In April 2026, G6 Hospitality introduced Studio 6 Plus, an upper-economy extended-stay format built from the ground up. The company says these hotels typically have 60 to 150 rooms, interior corridors, full kitchens with full-size refrigerators, stoves and microwaves, extra storage and commercial-grade guest laundry that produces ancillary revenue for owners. It names solo travelers, families, skilled tradespeople, traveling nurses and technicians as target guests.
How lenders see the brand. Lenders tend to view economy extended-stay hotels as having steadier occupancy and leaner staffing than nightly hotels, but they look hard at how long guests stay. Very long stays blur the line between a hotel and an apartment building, which matters for SBA eligibility.
Studio 6 Franchise Costs
We were unable to access the current Studio 6 FDD, so this section explains the cost categories rather than quoting figures. Item 5 and Item 6 of the disclosure document list the initial and ongoing fees, and Item 7 sets out the estimated initial investment for the hotel types the franchisor describes.
Application and initial franchise fees. Item 5 states the Studio 6 fees. Ask whether they differ for a conversion and a new build, and when they are refundable.
Land and construction. For a new-construction Studio 6 or Studio 6 Plus, land, site work, construction, design and permits are the largest part of the budget.
Conversion and renovation. For a hotel converting to Studio 6, the main cost is the property improvement plan (PIP), the work required to meet brand standards, which for an extended-stay brand usually includes in-room kitchen facilities, finishes, signage and technology.
Furniture, fixtures and equipment (FF&E). Studios with kitchens carry more FF&E per room than a standard motel room: cooktops or stoves, refrigerators, microwaves, cabinetry, cookware and linens, plus beds, seating, televisions and laundry equipment.
Opening costs and working capital. Pre-opening payroll, supplies, insurance and a ramp-up cushion belong in the budget.
Total investment. Item 7 of the current FDD gives the franchisor’s estimated range. Typical line items to look for include:
- Initial franchise or application fee
- Land or existing property acquisition
- Construction or conversion and PIP work
- FF&E, including in-room kitchen equipment
- Signage and brand technology systems
- Opening supplies and inventory
- Training, insurance, deposits and pre-opening expenses
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Hotel franchise agreements typically include a royalty, a marketing fee, reservation and technology fees and loyalty charges. Item 6 of the current FDD lists Studio 6’s exact amounts, along with any required renovations over the term.
A distinctive fee approach. In announcing Studio 6 Plus, G6 Hospitality said franchisees pay fees only on business the brand directly generates and are not charged on bookings from third-party online travel agencies. Confirm in the FDD and franchise agreement how that approach applies to the specific Studio 6 format you are buying.
How lenders factor fees in. Lenders deduct franchise fees, any management fee and an FF&E reserve from revenue before measuring how comfortably cash flow covers debt service. Lower effective fees mean more cash flow to support a Studio 6 franchise loan.
Franchisor Requirements for New Owners
We could not verify published net worth or liquidity minimums for Studio 6. Hotel franchisors generally evaluate an applicant’s financial strength, hotel ownership or operating experience, the proposed site or existing property and the development plan.
The approval process. G6 Hospitality’s franchise inquiry asks for the project type, such as new construction or a conversion. Expect a market and site review, a property inspection and PIP for conversions, then application approval and the franchise agreement. Most lenders want franchise approval in hand before closing.
Ways to Own a Studio 6
Build a new hotel. New construction delivers the current prototype but carries construction risk and a ramp-up with no operating history, so lenders lean on the sponsor’s experience, the market study and equity. Our hotel start-up financing page explains how these projects are structured.
Convert an existing hotel. The company reports that its 2026 Studio 6 growth includes conversions, and a conversion can be faster and less expensive than ground-up construction. Financing typically covers the purchase or refinance of the property plus the PIP. Our comparison of branded and independent hotels covers what changes when an independent property joins a brand.
Buy an existing Studio 6. Buying an operating Studio 6 lets a lender underwrite real occupancy, rate and guest-length data. The franchisor must approve the transfer, and a change-of-ownership PIP is likely. Our hotel acquisition financing page covers how purchases are structured.
Financing Options for a Studio 6 Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine a hotel purchase or conversion, the PIP, FF&E and working capital in one loan. The program maximum is currently $5 million, though program rules can change.
SBA 504 loans. An SBA 504 loan fits hotels because the main asset is long-lived real estate, and it is often used for new construction and larger acquisitions.
Conventional term loans. A conventional business loan may suit an experienced owner, a larger property or a hotel that does not meet the SBA directory conditions described below.
Construction financing. Ground-up Studio 6 Plus hotels need construction financing that funds in draws and converts to permanent debt.
PIP and renovation financing. Renovation work can be financed as part of a purchase or as a separate loan for an owner already in the system. See our article on financing a hotel PIP.
Equipment financing. FF&E such as in-room kitchen appliances, guest laundry machines, televisions and technology can sometimes be financed separately, which keeps cash available for opening.
Working capital and lines of credit. Extended-stay hotels collect from some guests weekly, carry payroll and utilities every month and need reserves for slower seasons and the post-opening ramp. Explore hotel working capital options.
Seller financing on resales. A seller may carry part of the price. A seller note is typically subordinate to the senior loan, and programs may limit how it is structured.
SBA Loans for Studio 6 Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility; a listing does not approve any borrower. Studio 6 appears three times: Studio 6 (code S1633), Studio 6 Extended Stay (code S8813) and Studio 6 Suites (code S8814). Ask your lender which listing matches your property, and confirm how Studio 6 Plus will be treated, because that name is newer than the listings.
Directory note on management agreements. The listings state that if the applicant operates under a management agreement with a third party, the lender or CDC must review that agreement under SBA rules to determine whether the applicant and the management company are affiliated. The applicant is not eligible if the management company is, or is affiliated with, the franchisor. In plain English: you can hire an independent management company, but you cannot have the hotel run by G6 Hospitality or one of its affiliates and still use SBA financing.
Directory note on transient revenue. At least one Studio 6 listing adds a second condition. The lender or CDC must review the applicant’s revenue or projected revenue, and the applicant is eligible only if more than 50% of revenue for the prior year came from transient guests staying 30 days or less at a time. For a start-up, the projections must show the same.
What that means for an extended-stay owner. A Studio 6 that fills mostly with guests staying several months could fail the test even if it performs well. Before applying, gather a report from the property management system showing revenue by length of stay, and build projections for a new hotel with a realistic stay mix.
Application tips. Bring the FDD, franchise approval, a PIP or construction budget, a market study, financials or projections and length-of-stay data.
How Lenders Evaluate a Studio 6 Deal
Personal credit and financial history. Expect a review of credit reports, tax returns and a personal financial statement, along with personal guarantees from owners above the lender’s threshold.
Net worth and liquidity. Lenders want cash left after the equity injection to cover a slow season or a PIP overrun.
Hotel experience. Prior hotel ownership or management, especially of extended-stay or economy properties, strengthens a request. First-time owners often bring on an experienced general manager or an independent management company; see our article for first-time hotel buyers.
Business plan and projections. Projections should reflect weekly and nightly rates, occupancy, length of stay, laundry revenue, staffing, utilities, franchise fees and an FF&E reserve, and for SBA deals, how transient revenue stays above the directory threshold.
The FDD and franchise agreement. Lenders look at the term, termination rights, transfer conditions, required renovations and any liquidated damages.
Real estate. The appraisal, environmental report, title and zoning matter as much as the brand. For a conversion, lenders review the property condition report and the PIP cost estimate together.
Historical financials for existing hotels. Provide several years of operating statements, occupancy and rate data, tax returns and length-of-stay reports. Our article on buying a motel covers what to request from a seller of a smaller economy property.
FF&E and Kitchen-Equipped Studios
The kitchen separates an extended-stay room from a standard economy room, and it changes the capital plan. In-room appliances and cookware wear faster under weeks-long stays. Lenders typically assume an FF&E reserve, and in-room cooking raises utility and maintenance costs, so projections should reflect both.
Multi-Unit Growth and Development Agreements
The company reported that more than 35 new Studio 6 locations opened in the first quarter of 2026, and it has signed multi-property agreements with hotel groups. For an owner, a second or third Studio 6 is usually financed property by property, with each hotel’s own debt, although lenders will look at the whole portfolio’s cash flow and the sponsor’s global debt service.
Development schedules. A development agreement can commit you to opening hotels by set dates, so make sure each project’s financing is realistic on that schedule.
Real-World Scenarios
An independent motel owner converting to Studio 6. An owner of an older economy property near an industrial corridor converts to attract project workers. The financing refinances existing debt and funds the PIP, and an SBA lender reviews the stay mix against the directory threshold.
A developer building Studio 6 Plus. An experienced hotel developer signs for a ground-up Studio 6 Plus near a growing employment center. The project uses construction financing that converts to a permanent loan, and the projections lean on the market study and the developer’s track record with other hotels.
A first-time buyer acquiring an operating Studio 6. A buyer with management experience but no hotel ownership hires an independent management company with no ties to the franchisor. The lender reviews that agreement for affiliation, as the directory requires.
Common Mistakes to Avoid
- Assuming every extended-stay hotel qualifies for SBA financing without checking the 30-day transient revenue rule
- Hiring a management company tied to the franchisor and expecting an SBA loan
- Underestimating the cost of in-room kitchens and their replacement cycle
- Budgeting a conversion before receiving the franchisor’s PIP
- Skipping length-of-stay reports when evaluating an existing hotel
- Signing a development schedule that outpaces your ability to finance each hotel
Read more about the hotel loan mistakes that cost owners the most.
Next Steps to Finance Your Studio 6 Franchise
Step 1: Decide on the project type. Choose between a conversion, a new build or an existing hotel, and which Studio 6 format fits the market.
Step 2: Request and review the FDD. Study Items 5, 6, 7 and 17 with a franchise attorney and accountant, along with the franchise agreement and any PIP.
Step 3: Gather market and property data. Obtain a market study and, for existing hotels, length-of-stay reports.
Step 4: Talk with a financing specialist early. Discuss whether SBA, conventional or construction financing fits. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 5: Line up management. Decide whether to self-manage or hire an independent management company.
Step 6: Apply and coordinate approvals. Submit the loan request with the franchise approval, budget, projections and personal financial documents, keeping the lender’s timeline in step with the franchisor’s.
Step 7: Close and open. Fund construction or the PIP and set aside working capital.
Studio 6 Franchise Loan FAQs
How much does it cost to open a Studio 6 hotel?
The cost depends on whether you build new, convert a hotel or buy an existing Studio 6, and on the room count and market. Item 7 of the current FDD gives the franchisor’s estimated investment range; we could not verify current figures.
What is the Studio 6 franchise fee and royalty?
The current fees are listed in Items 5 and 6 of the FDD. In announcing Studio 6 Plus, G6 Hospitality said franchisees pay fees only on business the brand directly generates, not on third-party online travel agency bookings.
Is Studio 6 approved for SBA loans?
Yes. The SBA Franchise Directory lists Studio 6 (S1633), Studio 6 Extended Stay (S8813) and Studio 6 Suites (S8814). Each loan still depends on the borrower and property meeting SBA rules and the listing notes.
What is the SBA 30-day rule for Studio 6?
At least one Studio 6 listing requires that more than 50% of the applicant’s revenue for the prior year, or projected revenue for a start-up, come from guests staying 30 days or less at a time.
Can I hire a management company and still use an SBA loan?
Yes, if the management company is not the franchisor and is not affiliated with it. The lender must review the management agreement for affiliation.
Can I convert my existing hotel to Studio 6?
Yes, the company reports recent conversions. A conversion requires franchisor approval and a PIP, and financing can cover both.
What is Studio 6 Plus?
Studio 6 Plus is a new-construction extended-stay format announced in April 2026, typically with 60 to 150 rooms, interior corridors and full kitchens. Confirm with your lender how it is treated on the SBA directory.
Can a first-time hotel owner get a Studio 6 franchise loan?
It is possible, but lenders weigh hotel experience heavily. First-time owners strengthen a request with an experienced general manager or an independent management company and solid reserves.
Does Studio 6 offer financing?
Review Item 10 of the current FDD for any financing the franchisor offers. Most owners arrange their own loans with outside lenders.
How long is a Studio 6 franchise agreement?
The term, renewal and transfer conditions are set out in Item 17 of the current FDD. Lenders look closely at the remaining term when financing an existing hotel.
Final Thoughts
A Studio 6 franchise loan comes down to what the project costs, how long guests stay and who runs the hotel. Owners who document their stay mix, budget for kitchen-equipped studios and choose a management structure that fits SBA rules keep the most financing options open.
US Professional Funding helps hotel owners and developers finance acquisitions, conversions, new construction, renovations and working capital for franchised properties. Learn more about our franchise financing programs and hotel and motel financing.
