Home2 Suites by Hilton Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Home2 Suites by Hilton is an all-suite, extended-stay hotel franchise with in-room kitchenettes. Franchisees own and operate individual properties, running suites, housekeeping, and revenue management on Hilton's systems.
FranchiseVerdict summary · 2026
A Home2 Suites by Hilton franchise requires a total initial investment of $18.1M – $26.6M, 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 0.0% charge-off rate across 66 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
- $18.1M – $26.6M
- 56th pct Lodging
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 6.0%
- 52nd pct Lodging
- Units
- 731
- 66th pct Lodging
- SBA charge-off
- 0.0%
- % 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 $18.1M – $26.6M including a $100K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 21 audited financial statements of Hilton Franchise Holding LLC (franchisor), in thousands. FY2025 total revenues $1,560,067K comprised franchise royalty fees $1,502,299K, franchise sales/change-of-ownership fees $52,254K, and franchise termination fees and other $5,514K. Statements are for the franchisor entity (not consolidated with parent Hilton). Auditor location Tysons Corner, VA; report references cbh.com (Cherry Bekaert).
- RISKVerdict A (Strongest tier), verdict score 91/100 (higher is better). SBA loan charge-off rate of 0.0% across 66 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- LEGAL14 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.
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- Predecessor
- HLT ESP Franchise LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- Incorporated in
- Delaware
- 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
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Christopher J. Nassetta
- Headquarters
- Virginia
- Founded
- 2007
- FDD year
- 2026
- States available
- 49
Can you afford it, and what does the money buy?
Entry cost runs 127% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown24 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Application Fee | $100K | $100K | |
| Property Improvement Plan | $0 | $10K | |
| Market Study | — | — | |
| Environmental Assessment | — | — | |
| Real Property | — | — | |
| Construction and Leasehold Improvements | $12.8M | $18.6M | |
| Design and Engineering Fees | $512K | $742K | |
| Furniture, Fixtures and Equipment | $1.9M | $2.8M | |
| Inventory and Operating Equipment | $280K | $405K | |
| Signage | $46K | $67K | |
| Computer Hardware and Software Systems | $33K | $107K | |
| Guest Internet Access System | $55K | $78K | |
| Connected Room System | $26K | $31K | |
| Delphi Sales and Events System | $990 | $17K | |
| Required Pre-Opening Training | $5K | $18K | |
| ADA Consultant Fee | $3K | $10K | |
| Construction/Renovation Extension Fees | $0 | $10K | |
| Insurance | — | — | |
| Organizational Expense | $50K | $143K | |
| Permits, Licenses and Governmental Fees | $192K | $278K | |
| Total initial investment | $18.1M | $26.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $18.1M – $26.6M
- Middle of category vs category
- Liquid capital req'd
- $400K – $800K
- Middle of category vs category
- Franchise fee
- $100K – $100K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 9.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $3K |
| Training fee | $18K |
| Transfer fee | $200K |
| Inventory (initial) | $280K – $405K |
| 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
Home2 Suites by Hilton did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Home2 Suites by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
0%
Below the 30–60% attractive-franchise band
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 21 audited financial statements of Hilton Franchise Holding LLC (franchisor), in thousands. FY2025 total revenues $1,560,067K comprised franchise royalty fees $1,502,299K, franchise sales/change-of-ownership fees $52,254K, and franchise termination fees and other $5,514K. Statements are for the franchisor entity (not consolidated with parent Hilton). Auditor location Tysons Corner, VA; report references cbh.com (Cherry Bekaert).
Includes company-owned outlets
- Item 19 type
- operational metrics
- Sample size
- 561
- vs category median 99 · large
- Reporting year
- 2026
- Fiscal year the figures cover
- Source filing
- FDD 2026
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 174 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 average).
Disclosure
Item 19 reports operational metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 22.9% CAGR over 3 years across 731 units — operators are staying and new ones are joining.
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 Home2 Suites by Hilton Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 731
- Opened
- 68
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +22.9%
- Net unit change over 3 years
- 3-yr CAGR
- +22.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 48
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 2.5%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 66
- Loan volume
- $257.9M
- Median loan
- $5.0M
- 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
- 7
- Defaults
- 0
- Typical loan rate
- 7.6%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- brand beats franchise avg ↓
- Jobs supported
- 106
- 0.7 per loan
- Lender concentration
- 25%
- top lender's share
Borrower mix: 75% went to startups / new businesses, 25% to established operators
Franchise vs independent — in hotels (except casino hotels) and motels, franchised businesses charge off at 6.3% vs 9.2% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing Home2 Suites by Hilton franchisees
Showing 3 of 7 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 Home2 Suites by Hilton'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 4 states
- Startup risk premium and job creation velocity
- 3-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 66 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% 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
High capital entry, active litigation involving alleged price-fixing and consumer protection violations, unprotected territory with system expansion, and lack of financial performance disclosure create substantial risk for $20M+ investment.
Litigation (Item 3)
Pending: Bow Hospitality v. HFH LLC (RI, breach of contract); In re Extended Stay Hotel Antitrust Litigation (N.D. Cal., Sherman Act class action); Hanson Dai v. SAS Institute (N.D. Cal., Sherman Act class action); Ryan Segal v. Amadeus IT Group (N.D. Ill., Sherman Act class action); Jeanette Portillo v. CoStar Group (W.D. Wash., Sherman Act class action). Concluded: AAAA Property Partners v. HFH (settled 2025); State of Texas v. Hilton (settled Jan 2025, $2.1M); State of Nebraska v. Hilton (settled Feb 2024, $300K); HFH v. Portland Hotel Ownership (settled 2022); San Pedro Inn v. HFH (settled 2020); U.S. v. Hilton Hotels Corp. (1971 consent decree). Collection suits (2025): ML Plaza, Unique Crowne Hospitality, Empower Metro Center, In re 177 BFP.
Largest disclosed settlement: $2,100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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: No
Score breakdown · what drove the 91 / 100 verdict
- 01MEDExtremely high capital requirement ($18M-$26.5M) with no disclosed average unit volumes or net income to validate ROI
- 02HIGHActive antitrust litigation alleging price-fixing through revenue management software affecting entire system credibility and potential liability
- 03HIGHState-level consumer protection litigation (TX, Nebraska) regarding mandatory fee disclosure suggests systemic compliance issues
- 04MINORNo protected territory combined with 10.3% YoY growth saturating markets without franchisee exclusivity
- 05MINOR6% royalty on gross rooms revenue (not net) creates ongoing pressure during economic downturns
- 06MEDItem 19 financial performance representations not disclosed, making it impossible to validate investment thesis
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 | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | 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 | 17 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | Virginia (Fairfax County) or New York; Puerto Rico only for arbitration |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 14 |
View Item 3 litigation summary
Pending: Bow Hospitality v. HFH LLC (RI, breach of contract); In re Extended Stay Hotel Antitrust Litigation (N.D. Cal., Sherman Act class action); Hanson Dai v. SAS Institute (N.D. Cal., Sherman Act class action); Ryan Segal v. Amadeus IT Group (N.D. Ill., Sherman Act class action); Jeanette Portillo v. CoStar Group (W.D. Wash., Sherman Act class action). Concluded: AAAA Property Partners v. HFH (settled 2025); State of Texas v. Hilton (settled Jan 2025, $2.1M); State of Nebraska v. Hilton (settled Feb 2024, $300K); HFH v. Portland Hotel Ownership (settled 2022); San Pedro Inn v. HFH (settled 2020); U.S. v. Hilton Hotels Corp. (1971 consent decree). Collection suits (2025): ML Plaza, Unique Crowne Hospitality, Empower Metro Center, In re 177 BFP.
Items 10, 11
Training & Operations
- Classroom training
- 120 hrs
- On-the-job training
- 4 hrs
- Training location
- Virtual / Online / On-site / Dallas TX (Revenue Management)
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- POS system
- OnQ (HPMS / Property Engagement Platform)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ (HPMS / Property Engagement Platform)
Item 20 · call current owners
Franchisee Contacts
27 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Home2 Suites by Hilton · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Home2 Suites by Hilton franchise?
The total investment to open a Home2 Suites by Hilton franchise ranges from $18.1M – $26.6M, 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 Home2 Suites by Hilton franchise owners earn?
Home2 Suites 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 Item 19 in the Home2 Suites 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 Home2 Suites by Hilton FDD and qualifies whose outlets they describe.
What is Home2 Suites by Hilton's franchise failure rate?
Based on SBA 7(a) loan data, Home2 Suites by Hilton has a charge-off rate of 0.0% across 66 loans, meaning 0.0% 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 Home2 Suites by Hilton franchise locations are there?
As of their most recent FDD filing, Home2 Suites by Hilton has 731 total units in the United States, including 731 franchised units and 0 company-owned units. 68 new units were opened in the latest reporting year.
Is Home2 Suites by Hilton a good franchise to buy?
FranchiseVerdict rates Home2 Suites by Hilton as a A-grade franchise with a verdict score of 91 out of 100 (higher is better), 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.