Friday, January 2, 2009

Motel 6 - Did You Know???


Motel 6 was founded in 1962 in Santa Barbara, California, by two local building contractors, William Becker and Paul Greene. The partners developed a plan to build motels with rooms at bargain rates. They decided on a $6 room rate per night that would cover building costs, land leases, mortgages, managers' salaries and maid service, hence the company name.

Before starting Motel 6, Becker and Greene specialized in building low-cost housing developments, and they wanted to provide an alternative to other major hotel chains such as Holiday Inn, whose locations were becoming increasingly upscale in quality and price in the 1960s, after starting out with a budget-oriented concept. Becker and Greene spent two years formulating their business model, and searched for ways to cut costs as much as possible: during the chain's early years, Motel 6 emphasized itself as a "no-frills" lodging chain with rooms featuring coin-operated black-and-white TVs instead of the free color TVs found in the more expensive motels, along with functional interior decor (to reduce the time it took to clean the rooms). The first location in Santa Barbara had no restaurant on-site, a notable difference from other hotels of the era; most locations to this day have no on-site dining, though there is a considerable choice of restaurants nearby most properties.

As the 1960s progressed, the Motel 6 idea became very popular in the lodging industry and other chains began to imitate the concept, as Motel 6 was slowly beginning to take a small share of the market away from the traditional hotels. Becker and Green set out on an ambitious expansion program and had 26 locations in operation by 1966. The occupancy rate by then was about 85 percent, well above the industry average, and as a result of the overwhelming success, Motel 6 became an attractive acquisition target. Becker and Greene sold the chain to an investment group in 1968.

In the 1970s, the coin-operated black-and-white TVs were replaced by free color TVs that received local over the air channels, plus HBO and later ESPN and CNN at no extra cost. By the 1980s, these rooms cost 25 dollars a night nationwide. Rooms also have telephones (with free local and toll free calls, and long distance calls charged to a major credit card), towels, soap, shampoo, and cabinets, and free wake-up calls. The chain does not provide extras that might increase costs, like hair dryers, continental breakfasts, or clock radios. But free coffee is served in the morning in the lobby. In most locations, an outdoor pool and a guest laundry are also offered.

Motel 6 founder William Becker died on April 2, 2007, of a heart attack. He was 85 years old.

Motel 6 No. 1, which opened in 1962 in Santa Barbara, California. It is still in business today. (pictured above)

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