Destination by Hyatt Franchise Cost, Revenue & Review 2026
- Investment
- $93.5M – $153.4M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Destination by Hyatt is an upscale, independent-style hotel and resort franchise of distinctive properties within Hyatt. Franchisees own and operate the hotels, managing guest experiences and revenue under Hyatt standards.
FranchiseVerdict summary · 2026
A Destination by Hyatt franchise requires a total initial investment of $93.5M – $153.4M, including a $100K franchise fee and an ongoing 7.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $93.5M – $153.4M
- 71st pct Lodging
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 65th pct Lodging
- Units
- 14
- 24th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · 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 $93.5M – $153.4M including a $100K franchise fee, 7.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 59/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed); 3 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hyatt Franchising, L.L.C.
- Parent company
- Hyatt Hotels Corporation
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- Chief Growth Officer (Interim)
- Mark Hoplamazian
- Incorporated in
- DE
- HQ
- 150 North Riverside Plaza, Chicago, Illinois 60606
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $7.1B
- vs $6.6B prior year
Same owner · FDD Item 1, page 9
9 other brands on this site name Hyatt Hotels Corporation as parent or ultimate parent in their own FDD.
- Caption by HyattB
- Hyatt CentricA
- Hyatt HouseA
- Hyatt PlaceA
- Hyatt Regency HotelA
- Hyatt StudiosC
- JdV by HyattB
- The Unbound Collection by Hyatt®A
- Unscripted by HyattC
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Mark Hoplamazian
- Headquarters
- IL
- Founded
- 1957
- FDD year
- 2026
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 1288% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown25 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Fee | $100K | $100K | |
| Comfort letter fee(s) | $0 | $3K | |
| Market study | $25K | $50K | |
| Design Review Fee | $80K | $175K | |
| Extension of opening deadline | $0 | $10K | |
| IT Project Management Services expense reimbursement | $11K | $18K | |
| Signage | $10K | $150K | |
| Telecommunications systems and certain Technology System equipment and fees | $328K | $363K | |
| Architecture and design | $1.9M | $4.8M | |
| Construction, improvements, remodeling, decorating costs and other sitework | $75.8M | $123.8M | |
| Furniture, fixtures, other fixed assets and equipment | $10.5M | $15.0M | |
| Operating supplies & equipment | $3.0M | $4.5M | |
| General and administrative buildout costs | $420K | $700K | |
| Revenue management fees | $0 | $26K | |
| Field marketing program fees | $0 | $9K | |
| Pre-opening marketing and sales expenses | $150K | $750K | |
| Liquor license | $30K | $400K | |
| Operator approval fees | $0 | $65K | |
| PIP fee | $0 | $10K | |
| Training expenses (fees and reimbursements payable to us) | $24K | $57K | |
| Total initial investment | $93.5M | $153.4M |
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
- $93.5M – $153.4M
- Bottom third — review vs category
- Liquid capital req'd
- $750K – $1.5M
- Middle of category vs category
- Franchise fee
- $100K
- Middle of category vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Training fee | $24K |
| Transfer fee | $0 |
| Renewal fee | $10K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Destination by Hyatt makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Destination by Hyatt unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 7.0% — below the Lodging median of 8.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 66.7% CAGR over 3 years across 14 units — operators are staying and new ones are joining.
Multi-unit rate
Only 10% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 medians
How Destination by Hyatt Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 14
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 36%
- vs corporate-owned
- Multi-unit owners
- 10.0%
- Net growth (3-yr)
- +66.7%
- Net unit change over 3 years
- 3-yr CAGR
- +66.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 3
- 0.21 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
- Ceased ops
- 7.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Illinois
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
6 current owners across 5 states.
- IL 2
- CA 1
- FL 1
- MO 1
- SD 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
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.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financial statements in Item 21/Exhibit A are the audited consolidated financials of the parent company, Hyatt Hotels Corporation (not the franchisor entity Hyatt Franchising, L.L.C.), as of/for fiscal years ended Dec 31, 2025 and 2024. All amounts reported in millions of USD. Hyatt Hotels Corporation absolutely and unconditionally guarantees the franchisor's obligations. Total revenues 2025 = $7,101M; 2024 = $6,648M. Net loss 2025 = $(49)M consolidated (net loss attributable to Hyatt Hotels Corporation = $(52)M). Total stockholders' equity = $3,334M (total equity incl. noncontrolling interests = $3,659M).
ⓘ 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
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 59 / 100 verdict
- 01MEDInvestment range listed as $0–$0 is nonsensical and suggests incomplete/misleading FDD disclosure
- 02MEDNo average unit revenue or net income disclosed (Item 19 absent) — impossible to assess unit economics
- 03MINOROnly 14 units system-wide indicates nascent franchise with minimal track record and scale
- 04MINOR7% royalty on 'Channel Bookings' only creates revenue uncertainty — unclear what percentage of total bookings qualify
- 05MINORLuxury hospitality franchise model requires significant capital typically; $0 investment claim lacks credibility
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% 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 | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | Chicago, Illinois (within 10 miles of principal business address) |
| Jury trial waiver | No |
| Governing law | IL |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 261 hrs
- On-the-job training
- 96 hrs
- Training location
- Chicago, Illinois (corporate headquarters), designated Hyatt hotel locations, your Hotel, and virtual/online
- Ongoing training
- Required
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Opera
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Opera
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Destination by Hyatt franchise?
The total investment to open a Destination by Hyatt franchise ranges from $93.5M – $153.4M, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Destination by Hyatt franchise owners earn?
Destination by Hyatt makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Destination by Hyatt?
Destination by Hyatt is franchised by Hyatt Franchising, L.L.C.. Its parent company is Hyatt Hotels Corporation. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Destination by Hyatt 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 Destination by Hyatt FDD and qualifies whose outlets they describe.
What is Destination by Hyatt's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Destination by Hyatt (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.
How many Destination by Hyatt franchise locations are there?
As of their most recent FDD filing, Destination by Hyatt has 14 total units in the United States, including 5 franchised units and 9 company-owned units. 1 new units were opened in the latest reporting year.
Is Destination by Hyatt a good franchise to buy?
FranchiseVerdict rates Destination by Hyatt as a B-grade franchise with a verdict score of 59 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.