Hampton by Hilton Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Hampton by Hilton is a limited-service hotel franchise offering consistent mid-tier rooms with free breakfast under the Hilton brand. Franchisees own and operate individual properties, running front desk, housekeeping, and maintenance to brand standards.
FranchiseVerdict summary · 2026
A Hampton by Hilton franchise requires a total initial investment of $17.0M – $24.7M, including a $100K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 3.3% charge-off rate across 195 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $17.0M – $24.7M
- 55th pct Lodging
- Avg gross sales
- N/A
- Incl. company outletsProjection
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 2,390
- 74th pct Lodging
- SBA charge-off
- 3.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · 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 $17.0M – $24.7M including a $100K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 83/100 (higher is better). SBA loan charge-off rate of 3.3% across 195 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATAItem 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hilton Franchise Holding LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- Predecessor
- Hampton Inns Franchise LLC
- 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 (cbh.com, Tysons Corner, Virginia)
- Audited financials
- Franchisor revenue
- $1.6B
- vs $1.5B prior year
Overview
About
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 99% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $100K | $100K |
| Working capital (3–6 mo) | $500K | $700K |
| Equipment, build-out, other | $16.4M | $23.9M |
| Total initial investment | $17.0M | $24.7M |
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 – $24.7M
- Middle of category vs category
- Liquid capital req'd
- $500K – $700K
- Middle of category vs category
- Franchise fee
- $100K
- Middle of category vs category
- Royalty
- 6.0%
- 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 | $18K |
| Transfer fee | $200K |
| Inventory (initial) | $175K – $325K |
| Total fee load | 10.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Hampton by Hilton is on file. 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 Hampton by Hilton 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
Includes company-owned outlets
An occupancy metric, not unit revenue
- Item 19 type
- RevPAR and room rate metrics only; no gross sales in dollar amounts
- Sample size
- 1,893 outlets
- vs category median 98 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 175 Lodging brands
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 10.0% (near the Lodging average).
Disclosure
Item 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (+2.4% 3-year CAGR) with 2,390 units.
Multi-unit rate
Only 4% 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 averages
How Hampton by Hilton Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,390
- Opened
- 37
- Last reporting year
- Closed
- 2
- Terminated
- 14
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 4.3%
- Net growth (3-yr)
- +2.4%
- Net unit change over 3 years
- 3-yr CAGR
- +2.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 101
- Closed (3yr)
- 0
- Terminated (3yr)
- 36
- Non-renewed (3yr)
- 8
- Transfers (3yr)
- 201
- 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
- 195
- Loan volume
- $544.6M
- Median loan
- $2.8M
- average
- Charge-off rate
- 3.3%
- 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)
- 96.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 98
- Defaults
- 4
- Typical loan rate
- 6.0%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 5%
- top lender's share
Vintage analysis
Hampton by Hilton charge-off rate by loan vintage
Top lenders financing Hampton by Hilton franchisees
Showing 3 of 98 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hampton by Hilton's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 20 states
- Startup risk premium and job creation velocity
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 3.3% — 79% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
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).
Largest disclosed settlement: $2,100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP (cbh.com, Tysons Corner, Virginia)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total revenues of franchisor Hilton Franchise Holding LLC for FY2025: franchise royalty fees $1,502,299K, franchise sales and change of ownership fees $52,254K, franchise termination fees and other $5,514K. Figures reported in thousands; audited by Cherry Bekaert LLP (cbh.com), Tysons Corner, VA, dated March 18, 2026.
ⓘ 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: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 83 / 100 verdict
- 01MINORStagnant unit growth (0.9% YoY) suggests market saturation or franchisee struggles in mature brand
- 02MINORHigh capital requirement ($17-29M) combined with 6% royalty on gross rooms revenue creates significant fixed obligations
- 03HIGHMultiple active litigation disclosures including antitrust class actions, deceptive trade practice settlements, and contract disputes indicate systemic legal/operational issues
- 04MINORUnprotected territory enables brand cannibalization and direct competition from other Hampton franchisees within market radius
- 05MINOR22-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
What are you signing up for?
Ongoing fees run about 10.0% 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 | 22 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | 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 |
| Arbitration location | Virginia (Puerto Rico only) |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 5 |
View Item 3 litigation summary
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).
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 1 hrs
- Training location
- Virtual and Online
- Ongoing training
- Required
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
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 – $24.7M, 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?
No average owner earnings figure for Hampton by Hilton is on file. Item 19 — where a franchisor may disclose what its outlets earn — is voluntary under the FTC Franchise Rule, and we have not established what this brand's FDD says. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the Hampton by Hilton 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 Hampton by Hilton FDD and qualifies whose outlets they describe.
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 3.3% across 195 loans, meaning 3.3% 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 2,390 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 A-grade franchise with a verdict score of 83 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
Are you the franchisor?
If you represent Hampton by Hilton, you can request corrections or provide updated information.
Other Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.