FDD Items 3 & 4 · 2026 filing
Apartment Collection by Hilton litigation history
What Apartment Collection by Hilton disclosed about lawsuits, arbitrations and bankruptcy in the 2026 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 & 4 at a glance
What the filing discloses
- Cases disclosed
- 15
- Item 3, as counted in the filing
- Largest disclosed settlement
- $2.1M
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
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)
Disclosure signals that moved the score
How this shows up in the verdict
- 14 active litigation matters including 4 pending antitrust class actions suggest systemic compliance issues and potential franchisor misconduct
- Going Concern = False indicates Hilton's accounting auditors have substantial doubt about the brand's ability to continue operations
- Recent 2025 collection suits and franchise termination disputes suggest franchisor-franchisee relationship deterioration
- Pending antitrust litigation over software information-sharing implies potential price-fixing or anti-competitive practices affecting franchisee operations
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?