Howard Johnson

Overview

Howard Johnson by Wyndham is a hotel brand whose origins lie in American roadside hospitality. Today, it belongs to Wyndham Hotels & Resorts and operates principally through independently owned franchised hotels rather than a single portfolio of company-owned properties. In North America, its positioning is generally economy lodging, serving travellers looking for recognisable accommodation at accessible prices.

That description does not capture every international property. Howard Johnson hotels in some overseas markets have larger facilities and a more upscale positioning than the traditional American roadside hotel. For prospective franchisees, the relevant proposition is therefore the brand offering in their particular territory, not an assumption that every Howard Johnson follows an identical format.

History and growth

The business traces its beginnings to 1925, when Howard Deering Johnson opened a small shop in Quincy, Massachusetts. Ice cream and prepared food helped establish the name, which subsequently developed into a restaurant chain. Franchising was central to its expansion, making Howard Johnson an important early example of a standardised hospitality business built through local operators.

The first Howard Johnson motor lodge opened in Savannah, Georgia, in 1954. Hotels and restaurants became closely associated with American highway travel, supported by distinctive orange roofs and a consistent roadside identity. Changes in ownership and consumer habits later separated the hotel and restaurant businesses, and the restaurant chain ultimately disappeared.

The hotel brand continued through the corporate structures that preceded Wyndham. Wyndham Worldwide became a separate public company in 2006, and Wyndham Hotels & Resorts emerged as a standalone hotel franchising business in 2018. Howard Johnson’s present franchise opportunity concerns accommodation, not a revival of its former restaurant network.

Global footprint

Howard Johnson has a presence in North America and selected markets in Latin America and Asia, including China. Its network comprised several hundred hotels worldwide, as of 2023. That broad scale should not be confused with the much larger Wyndham portfolio, which includes numerous other hotel brands operating under separate identities.

International expansion has produced a varied estate, encompassing roadside accommodation, urban hotels and properties with broader leisure or business facilities. Room numbers, food and beverage provision, meeting space and service levels can differ substantially between countries. Development arrangements can also differ by territory, including relationships with regional partners.

A worldwide total is less useful for evaluating an individual project than the brand’s local presence. Prospective operators should establish how many comparable Howard Johnson hotels serve their intended market, which customer groups recognise the name and whether the proposed property would compete with other Wyndham-affiliated hotels nearby.

How the franchise model works

Under the franchise model, the property owner receives the right to operate using the Howard Johnson name, subject to an agreement and brand standards. The franchisee typically funds the property and remains responsible for hotel operations, employing staff directly or appointing a management company. A franchise agreement does not, by itself, mean Wyndham manages the hotel.

Affiliation provides access to Wyndham’s reservation and distribution infrastructure, brand marketing and the Wyndham Rewards loyalty programme. These systems can connect a hotel with customers booking through group channels, alongside business generated locally and through online travel agencies. Participation also brings contractual obligations, technology requirements and associated charges.

Existing hotels may be considered for conversion, subject to approval and the work required to meet brand standards. The scope can extend beyond signage to bedrooms, bathrooms, public areas and operating systems. Development availability and the precise relationship with the franchisor or regional partner must be confirmed for the relevant country.

Investment and requirements

There is no single globally applicable cost for opening a Howard Johnson. Acquiring an operating hotel, converting an independent property and constructing a new building involve very different budgets. Location, room count, building condition and facilities can outweigh the initial franchise payment in determining the total capital required.

For US opportunities, franchise fees and estimated investment information are set out in the applicable franchise disclosure document. Prospective franchisees should request the current document rather than rely on figures reproduced by third-party directories. Equivalent information should be requested from the relevant brand representative elsewhere; a US disclosure should not be treated as an international quotation.

The budget needs to account for refurbishment, equipment, technology, working capital and ongoing franchise-related charges, as well as the property itself. Applicants should expect assessment of their financial capacity, proposed site and operating arrangements. Any required property improvement plan should be examined alongside the agreement, since its timing and scope materially affect the project.

What franchisees should consider

The first question is whether the brand fits the property and its demand base. A roadside hotel dependent on passing motorists faces different trading conditions from an urban hotel serving corporate customers. Local room supply, seasonal demand, staffing availability and the condition of competing properties matter more than national brand recognition alone.

Older buildings deserve particular scrutiny because visible refurbishment may not address underlying maintenance needs. Owners should distinguish mandatory brand improvements from other work needed to keep the asset competitive. They should also understand obligations concerning quality assurance, reservation systems, loyalty participation and future upgrades.

Commercial review should cover the agreement’s duration, renewal provisions, transfer conditions, termination provisions and any territorial protections. Distribution warrants equal attention: brand-generated reservations can be valuable, but channel charges and the mix of direct, loyalty and third-party bookings influence the economics of each occupied room.

Competitive landscape

In the North American economy segment, Howard Johnson competes with brands including Super 8, Days Inn, Motel 6 and Red Roof Inn. Quality Inn can also be relevant where location, facilities and pricing overlap. Super 8 and Days Inn share Wyndham ownership, but remain distinct brands competing for guests and potential hotel owners.

Competition is highly local. An independent hotel with recent renovations may be a stronger rival than a nationally recognised chain farther away. In overseas markets where Howard Johnson properties offer more extensive facilities, the appropriate comparison may instead be with local midscale or upscale hotels.

Outlook

Howard Johnson’s continuing relevance rests on combining a long-established identity with properties that meet contemporary guest expectations. Wyndham affiliation provides distribution and loyalty infrastructure, but the guest experience remains dependent on each hotel’s condition, service and management.

For prospective franchisees, the practical assessment is property-specific: whether the name and systems justify the required expenditure and contractual commitments in that location. Neither the brand’s history nor the size of its parent network guarantees demand or operating performance.