FDD Items 3 & 4 · 2026 filing

Hampton by Hilton litigation history

What Hampton 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

5 pending actions including franchisee breach of contract suit (Bow Hospitality), 3 antitrust class actions related to hotel room rate pricing algorithms (Extended Stay Hotel Antitrust/IDeaS, Hanson Dai/SAS, Ryan Segal/Amadeus), and 1 Sherman Act class action involving STR data sharing (Portillo/CoStar). Multiple concluded actions also disclosed including state AG settlements re: mandatory guest fee disclosures (Texas $2.1M, Nebraska $300K).

Item 3 (litigation) · 15 matters disclosed · 6 pending listed

Litigation cases

The franchisor

Pending (2)

Bow Hospitality LLC v. Hilton Franchise Holding LLC
pending
Brought by a franchisee · filed 2025-01-24 · Superior Court of Kent County, Rhode Island · KC-2025-1291
“… (Superior Court of Kent County, Rhode Island), 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 &”Page 19 of the 2026 FDD, Item 3
In re: 177 BFP, LLC
pending
Brought against a franchisee · filed 2025-08-14 · 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’ fees.”Page 23 of the 2026 FDD, Item 3

Concluded (4)

AAAA Property Partners LLC v. Hilton Franchise Holding LLC
dismissed
Brought by a franchisee · filed 2025-01-24 · M.D. Fla. (filed in Orange County, Florida; 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’s franchise for the Hilton Garden Inn Orlando I-4 Millenia Boulevard Mall.”Page 21 of the 2026 FDD, Item 3
Hilton Franchise Holding LLC v. Empower Metro Center LLC
settled
Brought 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 23 of the 2026 FDD, Item 3
Hilton Franchise Holding LLC v. Portland Hotel Ownership, et al.
settled
Brought 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 22 of the 2026 FDD, Item 3
San Pedro Inn, LP v. Hilton Franchise Holding LLC
settled
Brought 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’s franchise for a Hampton hotel for failure to cure a material breach of the franchise agreement.”Page 22 of the 2026 FDD, Item 3

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 23 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 · E.D. Va. · 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 23 of the 2026 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Pending (4)

Hanson Dai v. SAS Institute Inc.
pending
Hilton Worldwide Holdings Inc. ('Hilton Worldwide', parent of our parent) · 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. and SAS Institute, Inc. (together, “IDeaS”) and several”Page 20 of the 2026 FDD, Item 3
In re Extended Stay Hotel Antitrust Litigation
pending
Hilton Worldwide Holdings Inc. ('Hilton Worldwide', parent of our parent) · filed 2024-07-24 · N.D. Cal. (originally filed in the United States District Court for the Northern District of Illinois) · 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 against IDeaS, and several hotel defendants, including Hilton”Page 19 of the 2026 FDD, Item 3
Jeanette Portillo, et. al. v. CoStar Group, Inc., et. al.
pending
Hilton Worldwide Holdings Inc. ('Hilton Worldwide', parent of our parent); Hilton Domestic Operating Company Inc. substituted as defendant April 16, 2024 · filed 2024-02-20 · W.D. Wash. · 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 20 of the 2026 FDD, Item 3
Ryan Segal v. Amadeus IT Group, S.A., et. al.
pending
Hilton Worldwide Holdings Inc. ('Hilton Worldwide', parent of our parent); Hilton Domestic Operating Company, Inc. substituted as defendant March 25, 2024 · filed 2024-03-01 · N.D. Ill. · 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 20 of the 2026 FDD, Item 3

Concluded (3)

State of Texas v. Hilton Domestic Operating Company Inc.
settled
Government or regulatory action · Hilton Domestic Operating Company Inc. ('Hilton', our parent company) · 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 21 of the 2026 FDD, Item 3
Outcome: “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, require third party platforms to do the same, inform customers of all material facts about bookings, refrain from making misrepresentations or misleading customers, and comply with Texas law.”
State of Nebraska v. Hilton Domestic Operating Company Inc.
settled
Government or regulatory action · Hilton Domestic Operating Company Inc. ('Hilton', our parent company) · 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 21 of the 2026 FDD, Item 3
Outcome: “In February 14 2026 US HAMPTON 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.” (page 22)
U.S. v. Hilton Hotels Corporation, et al.
judgment
Government or regulatory action · Hilton Hotels Corporation (HHC); Item 1 says references to 'Hilton' (our parent) include HHC · filed 1970-05-12 · 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 by giving preferential treatment to hotel”Page 22 of the 2026 FDD, Item 3

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

Multiple active litigation disclosures including antitrust class actions, deceptive trade practice settlements, and contract disputes indicate systemic legal/operational issues

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?

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