Hampton by HiltonFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hampton by Hilton franchise requires a total initial investment of $17.0M – $29.1M, including a $100K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 6.2% charge-off rate across 636 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $17.0M – $29.1M
- 47th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 2,390
- 54th pct Lodging
- SBA default
- 6.2%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
15 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $17.0M – $29.1M including a $100K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "Actual" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict F (Bottom Quintile) with a risk score of 82/100. SBA loan charge-off rate of 6.2% across 636 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 15 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
- Legal entity
- HILTON FRANCHISE HOLDING LLC
- Parent company
- Hilton Worldwide Holdings Inc.
- Predecessor
- in offering franchises for Hampton Brand hotels in the US is Hampton Inns
- 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
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $1.4B
- vs $1.6B prior year
Overview
About
Hampton by Hilton franchisees operate limited-service hotel properties under the Hilton brand, managing guest check-in/check-out, housekeeping, front desk operations, and maintenance while adhering to strict brand standards. Franchisees generate revenue primarily from room bookings (subject to 6% royalty) and ancillary services (breakfast, parking, etc.), while bearing all operational costs including labor, utilities, property maintenance, and corporate marketing fees.
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 50
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $100K | $100K |
| Working capital (3–6 mo) | $500K | $900K |
| Equipment, build-out, other | $16.4M | $28.1M |
| Total initial investment | $17.0M | $29.1M |
Source: Hampton by Hilton 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $17.0M – $29.1M
- Near category avg vs category
- Liquid capital req'd
- $500K – $900K
- Better than avg vs category
- Franchise fee
- $100K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Rooms Revenue · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Training fee | $5K |
| Transfer fee | $200K |
| Total fee load | 10.0% of rev |
Financial Performance
This brand's FDD disclosed "Actual" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Hampton by Hilton Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,390
- Opened
- 37
- Last reporting year
- Closed
- 16
- Turnover rate
- 0.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 4.3%
- Net growth (yr3)
- +0.9%
- Net unit change last year
- 3-yr CAGR
- +1.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 20
- Closed (3yr)
- 14
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 114
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 29
- Franchisor's next-year forecast
- Transfer rate
- 94.7%
- Owners selling to other franchisees
- Ceased ops
- 18.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 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
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 636
- Loan volume
- $1.5B
- Median loan
- $2.3M
- average
- Charge-off rate
- 6.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 98
- Defaults
- 22
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hampton by Hilton presents meaningful caution-level risk due to anemic unit growth, absent financial transparency, substantial capital requirements, active litigation portfolio, and contractual constraints that favor the franchisor over franchisee protection.
Litigation (Item 3)
15 case reference(s): 4 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 82 / 100 rating
- 01MINORStagnant unit growth (0.9% YoY) suggests market saturation or franchisee struggles in mature brand
- 02MEDNo disclosed average revenue or net income (missing Item 19) prevents ROI validation and suggests weak unit economics
- 03MINORHigh capital requirement ($17-29M) combined with 6% royalty on gross rooms revenue creates significant fixed obligations
- 04HIGHMultiple active litigation disclosures including antitrust class actions, deceptive trade practice settlements, and contract disputes indicate systemic legal/operational issues
- 05MINORUnprotected territory enables brand cannibalization and direct competition from other Hampton franchisees within market radius
- 06MINOR22-year franchise term is longer than industry standard (typically 10-15 years), reducing flexibility and increasing long-term risk exposure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 22 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rights | 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 |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 15 |
View Item 3 litigation summary
15 case reference(s): 4 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 103 hrs
- On-the-job training
- 1 hrs
- Training location
- On-site and off-site
- Franchisor financing
- Offered
- Item 10
- POS system
- OnQ (Hilton Property Management System / HPMS / PEP)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ (Hilton Property Management System / HPMS / PEP)
Item 20 · call current owners
Franchisee Contacts
93 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hampton by Hilton · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hampton by Hilton franchise?
The total investment to open a Hampton by Hilton franchise ranges from $17.0M – $29.1M, 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 Hampton by Hilton franchise owners earn?
Hampton 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 Hampton by Hilton's franchise failure rate?
Based on SBA 7(a) loan data, Hampton by Hilton has a charge-off rate of 6.2% across 636 loans, meaning 6.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Hampton by Hilton franchise locations are there?
As of their most recent FDD filing, Hampton by Hilton has 2,390 total units in the United States, including 1,331 franchised units and 0 company-owned units. 37 new units were opened in the latest reporting year.
Is Hampton by Hilton a good franchise to buy?
FranchiseVerdict rates Hampton by Hilton as a F-grade franchise with a risk score of 82 out of 100, 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
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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.