Home2 Suites by Hilton
Bottom line
- Total investment $18.1M – $26.6M including a $100K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- 16 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Home2 Suites by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Home2 Suites franchisees operate extended-stay hotels (kitchenette suites, 1-2 bedroom units) under Hilton's brand standards. Day-to-day operations include managing 100-200+ suite units, housekeeping/maintenance, front desk, reservation coordination, guest services, and revenue management—with mandatory use of Hilton's revenue optimization software systems (IDeaS/Amadeus/CoStar-STR) for room rate pricing.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 61 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
40 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Home2 Suites by Hilton · FDD (2026) PDF