Hilton Garden InnFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hilton Garden Inn franchise requires a total initial investment of $25.5M – $37.4M, including a $100K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $25.5M – $37.4M
- 52nd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 759
- 50th pct Lodging
- SBA default
- 0.0%
- 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
Franchising since 1990. Systems this mature have refined operations and brand recognition.
15 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $25.5M – $37.4M including a $100K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "RevPAR, Occupancy, and Room Rate" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict F (Bottom Quintile) with a risk score of 82/100.
- 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 Domestic Operating Company Inc.
- Predecessor
- in offering franchises for Hilton Garden Inn Brand hotels in the US is
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $1.4B
- vs $1.5B prior year
Overview
About
Franchisees operate upscale, extended-stay hotel properties (typically 120-150 rooms) under Hilton's brand standards, managing daily guest services, housekeeping, food & beverage operations, and revenue optimization. They handle all P&L responsibility while paying 5.5% royalties on gross room revenue to Hilton, plus marketing fees and technology assessments for the proprietary revenue management system currently subject to antitrust scrutiny.
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 1946
- FDD year
- 2026
- States available
- 52
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $100K | $100K |
| Working capital (3–6 mo) | $600K | $1.0M |
| Equipment, build-out, other | $24.8M | $36.3M |
| Total initial investment | $25.5M | $37.4M |
Source: Hilton Garden Inn 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
- $25.5M – $37.4M
- Near category avg vs category
- Liquid capital req'd
- $600K – $1.0M
- Near category avg vs category
- Franchise fee
- $100K – $100K
- Near category avg vs category
- Royalty
- 5.5%
- percentage_of_gross · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Transfer fee | $200K |
| Renewal fee | $100K |
| Total fee load | 9.5% of rev |
Financial Performance
This brand's FDD disclosed "RevPAR, Occupancy, and Room Rate" 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 Hilton Garden Inn Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 759
- Opened
- 13
- Last reporting year
- Closed
- 4
- Turnover rate
- 0.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.2%
- Net unit change last year
- 3-yr CAGR
- +1.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 9
- Closed (3yr)
- 92
- Terminated (3yr)
- 21
- Non-renewed (3yr)
- 2,025
- Transfers (3yr)
- 30
- Reacquired (3yr)
- 30
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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 loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $17.4M
- Median loan
- $2.9M
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hilton Garden Inn's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 3-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hilton Garden Inn presents cautionary risk: massive capital outlay with no disclosed unit economics, minimal growth in mature system, active litigation on core operational practices, and complete absence of financial transparency required for informed investment decision.
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: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 82 / 100 rating
- 01MEDMassive capital requirement ($25.5M-$37.4M) with no disclosed average revenue or net income to validate ROI projectability
- 02MINORStagnant unit growth (1.2% YoY) suggests market saturation or franchisee dissatisfaction in mature 759-unit system
- 03HIGHMultiple active litigation matters including antitrust allegations over revenue management software and consumer protection lawsuits regarding mandatory fee disclosure transparency
- 04MINORNo territorial protection combined with unprotected revenue management practices creates competitive vulnerability within own system
- 05MEDItem 19 financial performance representations not disclosed, preventing independent validation of claimed profitability across unit portfolio
- 06MINOR5.5% royalty on gross rooms revenue (not net) creates fixed burden during occupancy downturns without proportional cost relief
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 |
| Territory type | Restricted Area |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Termination groundsℹ | 6 |
| 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
- 2 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Item 20 · call current owners
Franchisee Contacts
26 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hilton Garden Inn · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hilton Garden Inn franchise?
The total investment to open a Hilton Garden Inn franchise ranges from $25.5M – $37.4M, 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 Hilton Garden Inn franchise owners earn?
Hilton Garden Inn 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 Hilton Garden Inn's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hilton Garden Inn (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 Hilton Garden Inn franchise locations are there?
As of their most recent FDD filing, Hilton Garden Inn has 759 total units in the United States, including 747 franchised units and 0 company-owned units. 13 new units were opened in the latest reporting year.
Is Hilton Garden Inn a good franchise to buy?
FranchiseVerdict rates Hilton Garden Inn 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.