Home2 Suites by HiltonFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $18.1M – $26.6M
- 48th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 731
- 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
Only 0.0% of 66 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 731 to 595 over 3 years. Investigate why operators are leaving.
16 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $18.1M – $26.6M including a $100K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "Historic performance data (Occupancy, ADR, RevPAR) for comparable US hotels" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 28/100. SBA loan charge-off rate of 0.0% across 66 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- Hilton Franchise Holding LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- 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
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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.
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 49
FDD Item 7 · 2026 filing · 24 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
- Near category avg vs category
- Liquid capital req'd
- $400K – $800K
- Better than avg vs category
- Franchise fee
- $100K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Rooms Revenue · 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 |
| Training fee | $5K |
| Transfer fee | $200K |
| Total fee load | 9.5% of rev |
Financial Performance
This brand's FDD disclosed "Historic performance data (Occupancy, ADR, RevPAR) for comparable US hotels" 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 Home2 Suites by Hilton Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 731
- Opened
- 68
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +10.3%
- Net unit change last year
- 3-yr CAGR
- +22.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 18
- 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 · 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 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
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.
Risk analysis
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.
Litigation (Item 3)
Three pending litigations: (1) Bow Hospitality LLC v. Hilton Franchise Holding LLC - breach of contract and covenant of good faith and fair dealing regarding franchise termination; (2) In re Extended Stay Hotel Antitrust Litigation - class action alleging Sherman Act violations related to improper information sharing and revenue management pricing; (3) Hanson Dai v. SAS Institute Inc. - class action (details incomplete in source)
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: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 28 / 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
| Initial term | 22 years |
|---|---|
| Allowed renewalsℹ | 0 |
| 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 | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 16 |
View Item 3 litigation summary
Three pending litigations: (1) Bow Hospitality LLC v. Hilton Franchise Holding LLC - breach of contract and covenant of good faith and fair dealing regarding franchise termination; (2) In re Extended Stay Hotel Antitrust Litigation - class action alleging Sherman Act violations related to improper information sharing and revenue management pricing; (3) Hanson Dai v. SAS Institute Inc. - class action (details incomplete in source)
Items 10, 11
Training & Operations
- Classroom training
- 123 hrs
- On-the-job training
- 4 hrs
- Training location
- Off-site and on-site
- POS system
- PEP (Property Engagement Platform) / OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: PEP (Property Engagement Platform) / OnQ
Item 20 · call current owners
Franchisee Contacts
40 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 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 risk score of 28 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.
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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.