FranchiseVerdict
Destination by Hyatt logo
FV-00746·MODERATEStandard67

Destination by Hyatt

Lodging - Hotels & MotelsFranchising since 2019Website
Investment
93rd pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
7.0%
88th pct Hotels & Mote…
Units
14
36th pct Hotels & Mote…
SBA default

Bottom line

  • Total investment — including a $100K franchise fee, 7.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 64/100.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Hyatt Franchising, L.L.C.
Parent company
Hyatt Hotels Corporation
Incorporated in
Delaware
HQ
150 North Riverside Plaza, Chicago, Illinois 60606
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$6.6B
vs $7.1B 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 Destination by Hyatt 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 $750K–$1.5M

Unlevered ROIC · per unit

5%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$75K
EBITDA margin
10.0%
Total invested
$1.4M
Payback
220 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 high-end residential or vacation properties under the Destination by Hyatt brand, managing guest experiences and operations while leveraging Hyatt's booking channels and brand infrastructure. Day-to-day activities include property management, guest services coordination, housekeeping oversight, and revenue optimization through Hyatt's distribution network.

CEO
Mark Hoplamazian
Founded
1957
FDD year
2026
States available
5

Item 7 · what it costs

The Vitals

Total investment
All-in to open one unit
Liquid capital
$750K – $1.5M
Cash you must have on hand
Franchise fee
$100K
Royalty
7.0%
Gross Rooms Revenue from Channel Bookings · typical 6–8%
Ad fund
n/d
Total fee load
7.0%
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
14
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
9
Corporate units in the system
% franchised
36%
vs corporate-owned
Multi-unit owners
10.0%
Net growth (yr3)
+25.0%
Net unit change last year
3-yr CAGR
+66.7%
Compounded over last 3 years
2024
5+1
Franchised units
2025
4
Franchised units
2026
3
Franchised units

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

Item 20 · 9 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 · 9 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

64
Risk · 0-100
MODERATE64 / 100

Destination by Hyatt is an undercapitalized, early-stage luxury franchise with opaque unit economics, missing financial disclosures, and unclear investment/revenue structures that present substantial risk for franchisees.

Score breakdown · what drove the 64 / 100 rating

  1. 01MEDInvestment range listed as $0–$0 is nonsensical and suggests incomplete/misleading FDD disclosure
  2. 02MEDNo average unit revenue or net income disclosed (Item 19 absent) — impossible to assess unit economics
  3. 03MINOROnly 14 units system-wide indicates nascent franchise with minimal track record and scale
  4. 04HIGHGoing Concern = False is ambiguous but suggests potential financial stability questions at franchisor level
  5. 05MINOR7% royalty on 'Channel Bookings' only creates revenue uncertainty — unclear what percentage of total bookings qualify
  6. 06MINORLuxury hospitality franchise model requires significant capital typically; $0 investment claim lacks credibility

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Geographic/Radius
Protected territory
Yes
Initial term
20 years
Renewal term
10 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Owner-operator
Optional
Governing law
Illinois

Item 11

Training & Operations

Classroom training
88 hrs
On-the-job training
96 hrs
POS system
Opera
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

15 numbers

Locked
(415) 972-••••
One Sansome Street, Suite
CA
(312) 750-••••
The franchisor is Hyatt Franchising, L.L.C. located at
IL
(317) 232-••••
IN

One-time purchase · CSV download · Validation questions included

FDD download

Destination by Hyatt · FDD (2026) PDF

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