Apartment Collection by Hilton Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Apartment Collection by Hilton is an extended-stay hotel franchise offering apartment-style suites for longer stays. Franchisees own and operate the properties, managing front desk, housekeeping, and revenue.
FranchiseVerdict summary · 2026
A Apartment Collection by Hilton franchise does not disclose total investment in its current FDD, including a $100K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.4M
- 24th pct Lodging
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 0
- 0th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.4M including a $100K franchise fee, 5.0% ongoing royalty.
- RETURNSAudited consolidated financial statements of Hilton Franchise Holding LLC (in thousands). FY2025 total revenues $1,560,067K comprised of franchise royalty fees $1,502,299K, franchise sales and change of ownership fees $52,254K, and franchise termination fees and other $5,514K. Auditor signed Tysons Corner, Virginia (cbh.com / CBIZ CPAs).
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- LEGAL15 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
Corporate structure & franchisor financials
- Legal entity
- Hilton Franchise Holding LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- Predecessor
- None
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- CEO experience
- 2007 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- CBIZ CPAs P.C.
- Audited financials
- Franchisor revenue
- $1.6B
- vs $1.5B prior year
Overview
About
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 0
Can you afford it, and what does the money buy?
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown26 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Application Fee | $100K | $100K | |
| Property Improvement Plan | $0 | $10K | |
| Market Study | — | — | |
| Environmental Assessment | — | — | |
| Real Property | — | — | |
| Construction and Leasehold Improvements | $0 | $46.0M | |
| Designer & Engineering Fees | $0 | $1.8M | |
| Furniture, Fixtures & Equipment | $0 | $7.5M | |
| Inventory & Operating Equipment | $250K | $1.2M | |
| Signage | $2K | $80K | |
| Computer Hardware and Software Systems | $48K | $116K | |
| Guest Internet Access System | $51K | $73K | |
| Connected Room System | $25K | $29K | |
| Delphi Sales and Events System | $990 | $41K | |
| Digital Payment System | $750 | $2K | |
| Required Pre-Opening Training | $5K | $15K | |
| ADA Consultant Fee | $0 | $15K | |
| Construction/Renovation Extension Fee | $0 | $10K | |
| Insurance | — | — | |
| Organizational Expense | $75K | $300K | |
| Total initial investment | $1.4M | $64.9M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.4M
- Top 40% of category vs category
- Liquid capital req'd
- $400K – $800K
- Middle of category vs category
- Franchise fee
- $100K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $400 |
| Training fee | $5K |
| Transfer fee | $150K |
| Inventory (initial) | $250K – $1.2M |
| Total fee load | 7.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Apartment Collection by Hilton did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Apartment Collection by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
5%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Audited consolidated financial statements of Hilton Franchise Holding LLC (in thousands). FY2025 total revenues $1,560,067K comprised of franchise royalty fees $1,502,299K, franchise sales and change of ownership fees $52,254K, and franchise termination fees and other $5,514K. Auditor signed Tysons Corner, Virginia (cbh.com / CBIZ CPAs).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.5% — below the Lodging average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Apartment Collection by Hilton Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 17
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
A brand with zero operating units, pending antitrust litigation, going concern doubts, and no performance data represents extreme investment risk with minimal viability validation.
Litigation (Item 3)
Pending: Bow Hospitality (breach of contract); In re Extended Stay Hotel Antitrust (Sherman Act class action); Hanson Dai v. SAS Institute (Sherman Act class action); Ryan Segal v. Amadeus IT (Sherman Act class action); Jeanette Portillo v. CoStar (Sherman Act class action). Concluded: AAAA Property Partners (breach of contract, settled); State of Texas (DTPA, settled $2.1M); State of Nebraska (consumer protection, settled $300K); Hilton v. Portland Hotel (breach of contract, settled); San Pedro Inn (wrongful termination, settled); U.S. v. Hilton Hotels (Sherman Act consent decree 1971); Hilton v. ML Plaza (collection); Hilton v. Unique Crowne (collection); Hilton v. Empower Metro Center (collection, settled); In re 177 BFP (bankruptcy collection)
Largest disclosed settlement: $2,100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CBIZ CPAs P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 39 / 100 verdict
- 01MINORZero existing franchise units with unknown growth trajectory indicates a nascent or failed concept with no proven franchisee success
- 02HIGH14 active litigation matters including 4 pending antitrust class actions suggest systemic compliance issues and potential franchisor misconduct
- 03HIGHGoing Concern = False indicates Hilton's accounting auditors have substantial doubt about the brand's ability to continue operations
- 04MINORNo average revenue or net income disclosure (Item 19) prevents validation of investment viability and ROI claims
- 05MINORUnprotected territory combined with 5% royalty on rooms revenue creates direct competition risk and revenue vulnerability
- 06MINORRecent 2025 collection suits and franchise termination disputes suggest franchisor-franchisee relationship deterioration
- 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
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 23 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Fairfax County, Virginia (Puerto Rico only) |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 15 |
View Item 3 litigation summary
Pending: Bow Hospitality (breach of contract); In re Extended Stay Hotel Antitrust (Sherman Act class action); Hanson Dai v. SAS Institute (Sherman Act class action); Ryan Segal v. Amadeus IT (Sherman Act class action); Jeanette Portillo v. CoStar (Sherman Act class action). Concluded: AAAA Property Partners (breach of contract, settled); State of Texas (DTPA, settled $2.1M); State of Nebraska (consumer protection, settled $300K); Hilton v. Portland Hotel (breach of contract, settled); San Pedro Inn (wrongful termination, settled); U.S. v. Hilton Hotels (Sherman Act consent decree 1971); Hilton v. ML Plaza (collection); Hilton v. Unique Crowne (collection); Hilton v. Empower Metro Center (collection, settled); In re 177 BFP (bankruptcy collection)
Items 10, 11
Training & Operations
- Classroom training
- 57 hrs
- On-the-job training
- 1 hrs
- Training location
- Virtual, Online, On-site, Various hotel locations
- Ongoing training
- Required
- Site selection
- Franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Frequently asked questions
Frequently Asked Questions
What do Apartment Collection by Hilton franchise owners earn?
Apartment Collection by Hilton does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Apartment Collection by Hilton FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Apartment Collection by Hilton FDD and qualifies whose outlets they describe.
What is Apartment Collection by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Apartment Collection by Hilton (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
Is Apartment Collection by Hilton a good franchise to buy?
FranchiseVerdict rates Apartment Collection by Hilton as a C-grade franchise with a verdict score of 39 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.