FranchiseVerdict
Apartment Collection by Hilton logo
FV-00153·AVOIDStandard67

Apartment Collection by Hilton

Lodging - Hotels & MotelsFranchising since 2026Website
Investment
$1.4M
40th pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
5.0%
7th pct Hotels & Mote…
Units
0
0th pct Hotels & Mote…
SBA default

Bottom line

  • Total investment $1.4M including a $100K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated AVOID with a risk score of 85/100.
  • 14 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Hilton Franchise Holding LLC
Parent company
Hilton Domestic Operating Company Inc.
Incorporated in
Delaware
HQ
7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
Auditor
Cherry Bekaert LLP
Audited financials
Franchisor revenue
$1.5B
vs $1.6B prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Apartment Collection by Hilton unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: hospitality
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
Working capital
$
FDD reports $400K–$800K

Unlevered ROIC · per unit

5%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$94K
EBITDA margin
12.5%
Total invested
$2.0M
Payback
259 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate extended-stay apartment-style hotels under the Apartment Collection by Hilton brand, managing guest accommodations, housekeeping, front desk operations, and ancillary revenue streams. Day-to-day responsibilities include property maintenance, staff management, revenue optimization, and compliance with Hilton brand standards while paying 5% royalties on gross rooms revenue.

CEO
Christopher J. Nassetta
Founded
2007
FDD year
2026
States available
0

Item 7 · what it costs

The Vitals

Total investment
$1.4M
All-in to open one unit
Liquid capital
$400K – $800K
Cash you must have on hand
Franchise fee
$100K
Royalty
5.0%
Gross Rooms Revenue · typical 6–8%
Ad fund
2.5%
typical 3–5%
Total fee load
7.5%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
0
Opened
0
Last reporting year
Closed
0
Company-owned
0
Corporate units in the system
2024
0±0
Franchised units
2025
0
Franchised units
2026
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 13 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 13 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

85
Risk · 0-100
AVOID85 / 100

A brand with zero operating units, pending antitrust litigation, going concern doubts, and no performance data represents extreme investment risk with minimal viability validation.

Score breakdown · what drove the 85 / 100 rating

  1. 01MINORZero existing franchise units with unknown growth trajectory indicates a nascent or failed concept with no proven franchisee success
  2. 02HIGH14 active litigation matters including 4 pending antitrust class actions suggest systemic compliance issues and potential franchisor misconduct
  3. 03HIGHGoing Concern = False indicates Hilton's accounting auditors have substantial doubt about the brand's ability to continue operations
  4. 04MINORNo average revenue or net income disclosure (Item 19) prevents validation of investment viability and ROI claims
  5. 05MINORUnprotected territory combined with 5% royalty on rooms revenue creates direct competition risk and revenue vulnerability
  6. 06MINORRecent 2025 collection suits and franchise termination disputes suggest franchisor-franchisee relationship deterioration
  7. 07HIGHPending antitrust litigation over software information-sharing implies potential price-fixing or anti-competitive practices affecting franchisee operations

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Protected territory
No
Initial term
23 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
14
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
3 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
New York

Item 11

Training & Operations

Classroom training
135 hrs
On-the-job training
1 hrs
POS system
OnQ
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

13 numbers

Locked
(410) 576-••••
MD
(605) 773-••••
SD
(401) 462-••••
RI

One-time purchase · CSV download · Validation questions included

FDD download

Apartment Collection by Hilton · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above