Hilton Garden Inn Franchise Cost, Revenue & Review 2026
- Investment
- $25.5M – $37.4M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (6)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Hilton Garden Inn is an upscale, focused-service hotel franchise offering full-service touches like on-site dining. Franchisees own and operate individual properties, running rooms, food and beverage, and revenue management to Hilton standards.
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 on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
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 scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $25.5M – $37.4M
- 64th pct Lodging
- Avg gross sales
- N/A
- Incl. company outletsProjection
- Royalty
- 5.5%
- 39th pct Lodging
- Units
- 759
- 68th 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 $25.5M – $37.4M including a $100K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 reports operational metrics for 617 Comparable Hotels (2025), not per-hotel gross sales dollars: Average RevPAR $114.75 / Median $105.35 (range $46.72-$326.13); Average Room Rate $160.66 / Median $148.48; Average Occupancy 71.4% / Median 70.7%.
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better).
- GROWTHPositive: net +9 franchised outlets in the latest year (13 opened, 4 closed); 80 signed but not yet open (Item 20).
- LEGAL15 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
Corporate structure & franchisor financials
- Legal entity
- Hilton Franchise Holding LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Predecessor
- Hilton Garden Inns Franchise LLC; Hilton Inns, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- Incorporated in
- DE
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $1.6B
- vs $1.5B prior year
Same owner · FDD Item 1, page 9
17 other brands on this site name Hilton Worldwide Holdings Inc. as parent or ultimate parent in their own FDD.
- Apartment Collection by HiltonC
- Canopy by HiltonB
- Curio Collection by HiltonB
- DoubleTree by HiltonA
- Embassy Suites by HiltonB
- Graduate by HiltonB
- Hampton by HiltonA
- Home2 Suites by HiltonA
- Homewood Suites by HiltonA
- LXRB
- Motto by HiltonB
- Outset Collection by HiltonC
- Project Q by HiltonC
- Tapestry Collection by HiltonB
- Tempo by HiltonC
- Tru by HiltonA
- Undergraduate by HiltonC
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
- Christopher J. Nassetta
- Headquarters
- VA
- FDD year
- 2026
- States available
- 52
Can you afford it, and what does the money buy?
Entry cost runs 253% 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) | $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
- Middle of category vs category
- Liquid capital req'd
- $600K – $1.0M
- Middle of category vs category
- Franchise fee
- $100K
- Middle of category vs category
- Royalty
- 5.5%
- 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 |
| Technology fee | $400 |
| Training fee | $5K |
| Transfer fee | $200K |
| Renewal fee | $100K |
| Inventory (initial) | $400K – $600K |
| Total fee load | 9.5% 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 Hilton Garden Inn 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 Hilton Garden Inn 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
Item 19 reports operational metrics for 617 Comparable Hotels (2025), not per-hotel gross sales dollars: Average RevPAR $114.75 / Median $105.35 (range $46.72-$326.13); Average Room Rate $160.66 / Median $148.48; Average Occupancy 71.4% / Median 70.7%.
Includes company-owned outlets
Not a revenue figure
- Item 19 type
- operational metrics
- Sample size
- 617
- 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 9.5% (near the Lodging median).
Disclosure
Item 19 reports operational metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (+1.6% 3-year CAGR) with 759 units.
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 Hilton Garden Inn 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
- 759
- Opened
- 13
- Last reporting year
- Closed
- 4
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +1.6%
- Net unit change over 3 years
- 3-yr CAGR
- +1.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 1
- Transferred
- 30
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 80
- 0.11 per open outlet · Item 20 Table 5
- Projected new
- 12
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 52 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
52
states with franchisees (per FDD Item 12)
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
- Under 10 loans (6)
- Insufficient SBA coverage: 6 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (6)
- 5-yr charge-off
- Under 10 loans (6)
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
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)
Subject: the franchisor is a named party (defendant).
Pending: Bow Hospitality (breach of contract/termination), In re Extended Stay Hotel Antitrust (Sherman Act, class action), Hanson Dai v SAS Institute (Sherman Act, class action), Ryan Segal v Amadeus (Sherman Act, class action), Jeanette Portillo v CoStar (Sherman Act, class action). Concluded: AAAA Property Partners (resolved March 2025), Texas AG (settled Jan 2025, $2.1M payment), Nebraska AG (settled Feb 2024, $300K), Hilton v Portland Hotel Ownership (settled July 2022), San Pedro Inn v Hilton (settled Sept 2020), US v Hilton Hotels Corp (1971 consent decree, Sherman Act). Collection suits: Hilton v ML Plaza, Hilton v Unique Crowne, Hilton v Empower Metro Center (settled Jan 2026), In re 177 BFP (bankruptcy).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 19 reports operational metrics for 617 Comparable Hotels (2025), not per-hotel gross sales dollars: Average RevPAR $114.75 / Median $105.35 (range $46.72-$326.13); Average Room Rate $160.66 / Median $148.48; Average Occupancy 71.4% / Median 70.7%. Franchisor revenue figures are from audited Item 21 statements (in thousands); franchise royalty fees were the primary revenue component ($1,502,299K of $1,560,067K total in 2025).
ⓘ 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
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 78 / 100 verdict
- 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
- 05MINOR5.5% 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
What are you signing up for?
Ongoing fees run about 9.5% 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 | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 6 |
| Mandatory arbitration | No |
| Arbitration location | Puerto Rico only (Fairfax County, VA; seat New York, NY) |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 15 |
View Item 3 litigation summary
Pending: Bow Hospitality (breach of contract/termination), In re Extended Stay Hotel Antitrust (Sherman Act, class action), Hanson Dai v SAS Institute (Sherman Act, class action), Ryan Segal v Amadeus (Sherman Act, class action), Jeanette Portillo v CoStar (Sherman Act, class action). Concluded: AAAA Property Partners (resolved March 2025), Texas AG (settled Jan 2025, $2.1M payment), Nebraska AG (settled Feb 2024, $300K), Hilton v Portland Hotel Ownership (settled July 2022), San Pedro Inn v Hilton (settled Sept 2020), US v Hilton Hotels Corp (1971 consent decree, Sherman Act). Collection suits: Hilton v ML Plaza, Hilton v Unique Crowne, Hilton v Empower Metro Center (settled Jan 2026), In re 177 BFP (bankruptcy).
Items 10, 11
Training & Operations
- Classroom training
- 49 hrs
- On-the-job training
- 2 hrs
- Training location
- Virtual, online, and on-site
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- OnQ (Hilton Property Management System / PEP)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ (Hilton Property Management System / PEP)
Item 20 · call current owners
Franchisee Contacts
10 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 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?
Item 19 of the Hilton Garden Inn FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Hilton Garden Inn?
Hilton Garden Inn is franchised by Hilton Franchise Holding LLC. Its parent company is Hilton Domestic Operating Company Inc.. The ultimate parent named in the FDD is Hilton Worldwide Holdings Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Hilton Garden Inn 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 Hilton Garden Inn FDD and qualifies whose outlets they describe.
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 759 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 A-grade franchise with a verdict score of 78 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.