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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 15
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- 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)
Item 3 (litigation) · 15 matters disclosed · 6 pending listed
Litigation cases
The franchisor
Pending (2)
Bow Hospitality LLC v. Hilton Franchise Holding LLC
pendingBrought by a franchisee · filed 2025-01-24 · Superior Court of Kent County, Rhode Island · KC-2025-1291
“Case No. KC-2025-1291. On January 24, 2025, the plaintiff filed suit against us alleging breach of contract and breach of the covenant of good faith and fair dealing under the Rhode Island Dealership Act in connection with our termination of plaintiff’s franchise agreement for the Hampton Inn & Suites Providence/Warwick Airport for failing to comply with Hampton brand standards.”Page 21 of the 2026 FDD, Item 3
In re: 177 BFP, LLC
pendingBrought against a franchisee · filed 2025 · US Bankruptcy Court, E.D. Penn. · 25-13225-amc
“… (US Bankruptcy Court, E.D. Penn., Case No. 25-13225-amc). On August 14, 2025, we filed a petition in this Chapter 7 bankruptcy action to collect an unpaid judgment against a former Embassy Suites franchisee for amounts past due, liquidated damages, and attorneys”Page 25 of the 2026 FDD, Item 3
Outcome: “The Court appointed a trustee on October 7, 2025 and a meeting of the creditors is scheduled for April 8, 202”
Concluded (4)
AAAA Property Partners LLC v. Hilton Franchise Holding LLC
dismissedBrought by a franchisee · filed 2025-01-24 · United States District Court for the Middle District of Florida (filed in Orange County, Florida and removed January 28, 2025) · 6:25-cv-00132-CEM-RMN
“… (M.D. Fla. Case No. 6:25-cv-00132- CEM-RMN). On January 24, 2025, the plaintiff filed suit against us in Orange County, Florida (Filing No. 215324302) alleging breach of contract arising in connection with our termination of plaintiff”Page 22 of the 2026 FDD, Item 3
Outcome: “The parties resolved the case on March 5, 2025 by agreeing to terminate the Franchise Agreement as of January 27, 2025, and the plaintiff agreed to dismiss the lawsuit and sell the property within 150 days.”
Hilton Franchise Holding LLC v. Empower Metro Center LLC
settledBrought against a franchisee · filed 2025-02-28 · Cir. Ct. of Fairfax County, Virginia · CL-2025-0003051
“… (Cir. Ct. of Fairfax County, Virginia, Case No. CL-2025-0003051). On February 28, 2025, we filed a complaint against a former Hampton brand franchisee for damages and fees arising from the early termination of the franchise agreement for failure to commence or complete the construction of the hotel.”Page 24 of the 2026 FDD, Item 3
Outcome: “On January 14, 2026, the parties agreed to a settlement that was favorable to us and we agreed to dismiss the cas”
Hilton Franchise Holding LLC v. Portland Hotel Ownership, et al.
settledBrought against a franchisee · filed 2020-09-17 · Fairfax County Circuit Court · 2020-14233
“… (Fairfax County Circuit Court, Case Number, Case Number 2020-14233). On September 17, 2020, we filed suit against Portland Hotel Ownership, LLC, a former franchisee of a Curio brand hotel, for breach of contract arising from the early termination of the franchise agreement.”Page 23 of the 2026 FDD, Item 3
Outcome: “On July 28, 2022, the parties settled this case by agreeing to dismiss all claims and exchange general release”
San Pedro Inn, LP v. Hilton Franchise Holding LLC
settledBrought by a franchisee · filed 2019-08-28 · Superior Court of New Jersey Chancery Division General Equity Part, Union County · UNN-C-121 19
“… (Superior Court of New Jersey Chancery Division General Equity Part, Union County Docket No. UNN-C- 121 19). On July 18, 2019, we sent a notice to terminate plaintiff”Page 23 of the 2026 FDD, Item 3
Outcome: “The parties settled the case on September 25, 2020. The parties agreed to dismiss all claims, exchange general releases, and terminate the franchise on April 28, 2021 without the payment of any termination damages or litigation costs by either party.” (page 24)
Status not stated in the filing (2)
Hilton Franchise Holding LLC v. ML Plaza Owner LLC
Brought against a franchisee · filed 2026-02-27 · Cir. Ct. of Fairfax County, Virginia · CL-2026-0003448
“… (Cir. Ct. of Fairfax County, Virginia), Case No. CL-2026-0003448. On February 27, 2026, we filed a complaint against a former Hilton brand franchisee for amounts past due and liquidated damages arising from the early termination of the franchise agreement for failing to pay monthly fees.”Page 24 of the 2026 FDD, Item 3
Hilton Franchise Holding LLC v. Unique Crowne Hospitality LLC et al.
Brought against a franchisee · filed 2025-08-25 · United States District Court for the Eastern District of Virginia · 1:25-cv-01604-MSN-WEF
“… (E.D. Va.) Case No. 1:25- cv-01604-MSN-WEF. On August 25, 2025, we filed a complaint against a former DoubleTree brand franchisee and its guarantor for damages and fees arising from the early termination of the franchise agreement for failing to comply with DoubleTree brand standards.”Page 24 of the 2026 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Pending (4)
Hanson Dai v. SAS Institute Inc.
pendingHilton Worldwide Holdings Inc. · filed 2024-04-26 · United States District Court for the Northern District of California · 4:24-cv-02537
“… (N.D. Cal.), Civil Case No. 4:24-cv-02537 (Class Action). On April 26, 2024, a putative class action complaint captioned Dai v. SAS Institute Inc., Civil Case No. 4:24-cv-02527, was filed in the United States District Court for the Northern District of California against Integrated Decisions and Systems, Inc.”Page 21 of the 2026 FDD, Item 3
In re Extended Stay Hotel Antitrust Litigation
pendingHilton Worldwide Holdings Inc. · filed 2024-07-24 · United States District Court for the Northern District of California (filed in the Northern District of Illinois and transferred December 13, 2024) · 4:24-civil-09060
“… (N.D. Cal.), Civil Case No. 4:24-civil-09060 (Class Action). On July 24, 2024, a putative class action complaint captioned Au v. Integrated Decisions and Systems, Inc., Civil Case No. 1:24-civil-06324, was filed in the United States District Court for the Northern District of Illinois”Page 21 of the 2026 FDD, Item 3
Jeanette Portillo, et. al. v. CoStar Group, Inc., et. al.
pendingHilton Worldwide Holdings Inc., replaced as a defendant on April 16, 2024 by Hilton Domestic Operating Company Inc. (the franchisor's immediate parent) · filed 2024-02-20 · United States District Court for the Western District of Washington · 2:24-cv-00229
“… (W.D. Wash.), Civil No. 2:24-cv-00229 (Class Action). On February 20, 2024, plaintiffs filed a class action lawsuit against the CoStar Group, Inc. and its subsidiary STR, Inc., together with several hotel companies including Hilton Worldwide.”Page 22 of the 2026 FDD, Item 3
Ryan Segal v. Amadeus IT Group, S.A., et. al.
pendingHilton Worldwide Holdings Inc., replaced as a defendant on March 25, 2024 by Hilton Domestic Operating Company, Inc. (the franchisor's immediate parent) · filed 2024-03-01 · United States District Court for the Northern District of Illinois · 1:24-civil-01783
“… (N.D. Ill.), Civil No. 1:24-civil-01783 (Class Action). On March 1, 2024, plaintiff filed a class action lawsuit against Amadeus IT Group, S.A., Amadeus Hospitality Americas, Inc., and several hotel companies including Hilton Worldwide.”Page 22 of the 2026 FDD, Item 3
Concluded (3)
State of Texas v. Hilton Domestic Operating Company Inc.
settledGovernment or regulatory action · Hilton Domestic Operating Company Inc. (the franchisor's immediate parent) · filed 2023-05-23 · District Court of Collin County, Texas · 296-02595-2023
“… (District Court of Collin County, Texas, CAUSE NO. 296-02595-2023). On May 23, 2023, the plaintiff filed suit against Hilton alleging the violations of the Texas Deceptive Trade Practices Act in relation to how mandatory guest fees are disclosed to consumers.”Page 22 of the 2026 FDD, Item 3
Outcome: “In January 2025, the parties settled the case. Without admitting any fault, Hilton agreed to pay Texas $2.1 million and to disclose, display, and sort guest rooms by their total cost on its hotel reservation websites” (page 23)
State of Nebraska v. Hilton Domestic Operating Company Inc.
settledGovernment or regulatory action · Hilton Domestic Operating Company Inc. (the franchisor's immediate parent) · filed 2019-07-23 · District Court of Lancaster County, Nebraska · D02CI190002366
“… (District Court of Lancaster County, Nebraska, Case No. D02CI190002366). On July 23, 2019, the plaintiff filed suit against Hilton alleging the violations of the Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act in relation to how mandatory guest fees are disclosed to consumers.”Page 23 of the 2026 FDD, Item 3
Outcome: “In February 2024, without admitting any fault, Hilton entered into a settlement agreement with Plaintiff and agreed to pay $300,000 and clearly disclose all mandatory fees and the total price for a booking.”
U.S. v. Hilton Hotels Corporation, et al.
judgmentGovernment or regulatory action · Hilton Hotels Corporation (HHC) - the former name of Park Hotels & Resorts, Inc., the franchisor's PREVIOUS parent company · filed 1970 · United States District Court, District of Oregon · 70-310
“… (United States District Court, District of Oregon, Case No. 70-310). On or about May 12, 1970, the United States filed a civil complaint against HHC (among other defendants), alleging the violation of Section 1 of the Sherman Act consisting of engaging in a combination and conspiracy in restraint of trade”Page 24 of the 2026 FDD, Item 3
Outcome: “On or about November 29, 1971, pursuant to a stipulation filed October 26, 1971, the court entered a final judgment against HHC enjoining and restraining it from engaging in any agreement, understanding, combination, conspiracy or concert of action to give or promise to give preferential treatment in purchasing hotel supplies to any hotel suppliers”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
Disclosure signals that moved the score
How this shows up in the verdict
- 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?