Home2 Suites by Hilton Franchise Cost, Revenue & Review 2026
- Investment
- $18.1M – $26.6M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 66 loans
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 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
- $18.1M – $26.6M
- 56th pct Lodging
- Avg gross sales
- N/A
- Incl. company outletsProjection
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 731
- 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 $18.1M – $26.6M including a $100K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports operational metrics rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 81/100 (higher is better).
- GROWTHPositive: net +68 franchised outlets in the latest year (68 opened, 0 closed); 572 signed but not yet open (Item 20).
- LEGAL15 litigation matters disclosed in Item 3, higher than typical. Of these, 8 name the franchisor itself, 7 its parent, affiliates or predecessor. Pending claims are allegations, not findings.
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
- 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
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
- Hilton Garden InnA
- 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
- Virginia
- Founded
- 2007
- FDD year
- 2026
- States available
- 49
Can you afford it, and what does the money buy?
Entry cost runs 151% 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%
- 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
No Item 19 revenue figure for Home2 Suites 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 Home2 Suites 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
Not a revenue figure
- Item 19 type
- operational metrics
- Sample size
- 561
- 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 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 medians
How Home2 Suites by Hilton 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
- 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
- N/A
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 572
- 0.78 per open outlet · Item 20 Table 5
- Projected new
- 82
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
26 current owners across 21 states.
- FL 2
- GA 2
- NY 2
- SC 2
- TX 2
- IL 1
- IN 1
- MA 1
- MI 1
- MN 1
- MO 1
- MS 1
- +9 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 66 loans
- Limited SBA coverage: 66 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 66 loans
- 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%
- n=9,970 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Home2 Suites by Hilton from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 7.56%
- Lender concentration
- 25.0%
- Job velocity
- 0.7 per $100K
- NAICS benchmark
- 7.6%
- NAICS 721110
- Jobs supported
- 106
Top SBA lendersTop lender holds 25% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Summit State Bank | 1 | $5.0M | N/A |
| 2 | Capital Certified Development Corporation | 1 | $350K | N/A |
| 3 | GBank | 1 | $5.0M | N/A |
| 4 | Millennium Bank | 1 | $5.0M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 1 | 0 | -- |
| OHOhio | 1 | 0 | -- |
| TXTexas | 1 | 0 | -- |
| WIWisconsin | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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)
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).
ⓘ 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 81 / 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
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail15 matters · Item 3
Litigation cases
The franchisor
Pending (2)
Bow Hospitality LLC v. Hilton Franchise Holding LLC
pendingBrought by a franchisee · filed 2025-01-24 · Superior Court of Kent County, Rhode Island · 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 & Suites Providence/Warwick Airport for failing to comply with Hampton brand standards.”Page 20 of the 2026 FDD, Item 3
In re: 177 BFP, LLC
pendingBrought against a franchisee · filed 2025-08-14 · US Bankruptcy Court, E.D. Penn. · 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. The Court appointed a trustee on October 7, 2025, and a meeting of the creditors is scheduled for April 8, 2026.”Page 24 of the 2026 FDD, Item 3
Concluded (4)
AAAA Property Partners LLC v. Hilton Franchise Holding LLC
dismissedBrought by a franchisee · filed 2025-01-24 · Orange County, Florida; removed to the United States District Court for the Middle District of Florida · 6:25-cv-00132-CEM-RMN (state filing No. 215324302)
“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
Outcome:“The parties resolved the case on March 5, 2025, by agreeing to terminate the Franchise Agreement as of January 27, 2025, and the plaintiff agreed to dismiss the lawsuit and sell the property within 150 days.”
Hilton Franchise Holding LLC v. Empower Metro Center LLC
settledBrought against a franchisee · filed 2025-02-28 · Cir. Ct. of Fairfax County, Virginia · 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 24 of the 2026 FDD, Item 3
Outcome:“On January 14, 2026, the parties agreed to a settlement that was favorable to us and we agreed to dismiss the case.”
Hilton Franchise Holding LLC v. Portland Hotel Ownership, et al.
settledBrought against a franchisee · filed 2020-09-17 · Fairfax County Circuit Court · 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
Outcome:“On July 28, 2022, the parties settled this case by agreeing to dismiss all claims and exchange general releases.” (page 23)
San Pedro Inn, LP v. Hilton Franchise Holding LLC
settledBrought by a franchisee · filed 2019-08-28 · Superior Court of New Jersey Chancery Division General Equity Part, Union County · UNN-C- 121 19
“On August 28, 2019, plaintiff filed a complaint alleging wrongful termination under the New Jersey Franchise Practices Act. Plaintiff claimed that we imposed unreasonable Quality Assurance standards and that an inspection was hindered by plaintiff’s former employee.”Page 23 of the 2026 FDD, Item 3
Outcome:“The parties settled the case on September 25, 2020. The parties agreed to dismiss all claims, exchange general releases, and terminate the franchise on April 28, 2021, without the payment of any termination damages or litigation costs by either party.”
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
“Hilton Franchise Holding LLC v. ML Plaza Owner LLC (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
“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 and predecessor
Pending (4)
Hanson Dai v. SAS Institute Inc. (consolidated with Steven Shattuck v. SAS Institute Inc.)
pendingThird-party plaintiff · Hilton Worldwide Holdings Inc. (“Hilton Worldwide”) · filed 2024-04-26 · United States District Court for the Northern District of California · 4:24-cv-02537 (originally 4:24-cv-02527; Shattuck 4:24-cv-03424)
“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 hotel defendants, including Hilton Worldwide”Page 20 of the 2026 FDD, Item 3
Outcome:“On July 18, 2025, the Court granted the hotel defendants’ motion to dismiss with leave to amend. Plaintiffs filed an amended complaint on August 25, 2025.” (page 21)
In re Extended Stay Hotel Antitrust Litigation (originally Au v. Integrated Decisions and Systems, Inc.; consolidated with Gonzalez v. Integrated Decisions and Systems, Inc.)
pendingThird-party plaintiff · Hilton Worldwide Holdings Inc. (“Hilton Worldwide”) · filed 2024-07-24 · United States District Court for the Northern District of Illinois; transferred to the Northern District of California · 4:24-civil-09060 (originally 1:24-civil-06324)
“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 Worldwide, asserting alleged violations of Section 1 of the Sherman Act.”Page 20 of the 2026 FDD, Item 3
Outcome:“The hotel defendants filed a motion to dismiss which has been fully briefed and pending before the Court since October 24, 2025. Hilton Worldwide intends to vigorously defend its interests in this matter.”
Jeanette Portillo, et. al. v. CoStar Group, Inc., et. al.
pendingThird-party plaintiff · Hilton Worldwide Holdings Inc.; Hilton Domestic Operating Company Inc. substituted as defendant on April 16, 2024 · filed 2024-02-20 · United States District Court for the Western District of Washington · 2:24-cv-00229
“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. Plaintiffs allege that the defendants violated the Sherman Act by exchanging competitive data through Smith Travel Research (STR)”Page 21 of the 2026 FDD, Item 3
Outcome:“On August 29, 2025, the Court granted the hotel defendants’ motion to dismiss, with leave to amend. Plaintiffs filed an amended complaint on September 29, 2025.”
Ryan Segal v. Amadeus IT Group, S.A., et. al.
pendingThird-party plaintiff · Hilton Worldwide Holdings Inc.; Hilton Domestic Operating Company, Inc. substituted as defendant on March 25, 2024 · filed 2024-03-01 · United States District Court for the Northern District of Illinois · 1:24-civil-01783
“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. Plaintiff alleges that the defendants violated the Sherman Act by agreeing to exchange certain data through Amadeus”Page 21 of the 2026 FDD, Item 3
Outcome:“On March 31, 2025, the Court granted the hotel defendants' motion to dismiss finding that Plaintiff failed to allege viable antitrust claims based on information sharing. On April 28, 2025, Plaintiff filed a third Amended Complaint.”
Concluded (3)
State of Texas v. Hilton Domestic Operating Company Inc.
settledGovernment or regulatory action · Hilton Domestic Operating Company Inc. (“Hilton”) · filed 2023-05-23 · 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 22 of the 2026 FDD, Item 3
Outcome:“In January 2025, the parties settled the case. 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”
State of Nebraska v. Hilton Domestic Operating Company Inc.
settledGovernment or regulatory action · Hilton Domestic Operating Company Inc. (“Hilton”) · filed 2019-07-23 · District Court of Lancaster County, Nebraska · 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 22 of the 2026 FDD, Item 3
Outcome:“In February 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.”
U.S. v. Hilton Hotels Corporation, et al.
judgmentGovernment or regulatory action · Hilton Hotels Corporation (“HHC”) - a former name of Park Hotels & Resorts Inc., a FORMER parent company · filed 1970 · United States District Court, District of Oregon · 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 suppliers paying assessments to the Greater Portland Convention Association”Page 23 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.
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 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 | 15 |
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
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?
Item 19 of the Home2 Suites by Hilton 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 Home2 Suites by Hilton?
Home2 Suites by Hilton 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 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?
SBA 7(a) loan charge-off data is not available for Home2 Suites by Hilton (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 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 81 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.
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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.