Homewood Suites by Hilton Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Homewood Suites by Hilton is an upscale, all-suite extended-stay hotel franchise for longer trips and relocations. Franchisees own and operate individual properties, running suites, breakfast service, and revenue management on Hilton's systems.
FranchiseVerdict summary · 2026
A Homewood Suites by Hilton franchise requires a total initial investment of $21.4M – $31.8M, including a $100K franchise fee and an ongoing 5.5% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 31 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $21.4M – $31.8M
- 62nd pct Lodging
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 5.5%
- 38th pct Lodging
- Units
- 508
- 64th 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 $21.4M – $31.8M including a $100K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 21 audited statements are of the franchisor, Hilton Franchise Holding LLC (Delaware LLC), in thousands; all figures converted to whole USD by x1000. Balance sheet reconciles: total assets 1,163,908 = total liabilities 501,845 + member's equity 662,063 (in thousands), as of Dec 31, 2022. Total revenues FY2022 $1,229,465K (royalty fees $1,184,827K + sales/change-of-ownership fees $39,881K + termination fees & other $4,757K). Auditor Cherry Bekaert LLP (cbh.com), Tysons Corner VA, March 16, 2023.
- RISKVerdict A (Strongest tier), verdict score 85/100 (higher is better). SBA loan charge-off rate of 0.0% across 31 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATAItem 19 reports ADR and Occupancy (not gross revenue) rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
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
- Homewood Suites 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
- $1.2B
- vs $883.3M prior year
Overview
About
- CEO
- Christopher J. Nassetta
- Headquarters
- Virginia
- Founded
- 2007
- FDD year
- 2023
- States available
- 49
Can you afford it, and what does the money buy?
Entry cost runs 171% above the typical lodging franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown23 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 | $14.9M | $21.7M | |
| Design and Engineering Fees | $447K | $652K | |
| Furniture, Fixtures and Equipment | $2.8M | $4.2M | |
| Inventory and Operating Equipment | $231K | $578K | |
| Signage | $20K | $83K | |
| Computer Hardware and Software | $56K | $149K | |
| Guest Internet Access Program | $64K | $78K | |
| Delphi Sales and Events System | $990 | $19K | |
| Required Pre-Opening Training | $5K | $18K | |
| ADA Consultant | $3K | $15K | |
| Construction/Renovation Extension Fees | $0 | $10K | |
| Insurance | — | — | |
| Organizational Expense | $50K | $131K | |
| Permits, Licenses and Governmental Fees | $224K | $326K | |
| Miscellaneous Pre-Opening and Project Management Expenses | $447K | $652K | |
| Total initial investment | $21.4M | $31.9M |
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
- $21.4M – $31.8M
- Middle of category vs category
- Liquid capital req'd
- $600K – $900K
- Middle of category vs category
- Franchise fee
- $100K
- Middle of category vs category
- Royalty
- 5.5%
- tiered · typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $149K |
| Training fee | $5K |
| Transfer fee | $6K |
| Renewal fee | $100K |
| Inventory (initial) | $231K – $578K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2023 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Homewood 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 Homewood 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: 2023 FDD
Financial Performance
Item 21 audited statements are of the franchisor, Hilton Franchise Holding LLC (Delaware LLC), in thousands; all figures converted to whole USD by x1000. Balance sheet reconciles: total assets 1,163,908 = total liabilities 501,845 + member's equity 662,063 (in thousands), as of Dec 31, 2022. Total revenues FY2022 $1,229,465K (royalty fees $1,184,827K + sales/change-of-ownership fees $39,881K + termination fees & other $4,757K). Auditor Cherry Bekaert LLP (cbh.com), Tysons Corner VA, March 16, 2023.
Includes company-owned outlets
- Item 19 type
- ADR and Occupancy (not gross revenue)
- Sample size
- 450
- vs category median 99 · large
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2023
- 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 7.0% — below the Lodging average of 10.4%.
Disclosure
Item 19 reports ADR and Occupancy (not gross revenue) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (+4.5% 3-year CAGR) with 508 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 averages
How Homewood Suites by Hilton Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 508
- Opened
- 12
- Last reporting year
- Closed
- 1
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +4.5%
- Net unit change over 3 years
- 3-yr CAGR
- +4.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 37
- Closed (3yr)
- 1
- Terminated (3yr)
- 9
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 91
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 5.5%
- Owners selling to other franchisees
- Continuity rate
- 99.4%
- Units that stayed open
- Termination rate
- 0.8%
- Franchisor-initiated terminations
- Ceased ops
- 0.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 49 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
- 31
- Loan volume
- $117.1M
- Median loan
- $4.8M
- 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
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
- Typical loan rate
- 7.9%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- brand beats franchise avg ↓
- Jobs supported
- 71
- 0.5 per loan
- Lender concentration
- 50%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% 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 Homewood Suites by Hilton franchisees
Showing 3 of 4 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 Homewood 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
- 3 lenders with concentration factor
- Per-state charge-off rates across 2 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 31 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-barrier extended-stay hotel franchise with extreme capital requirements, undisclosed unit economics, slow growth, active litigation, and escalating royalties—suitable only for institutional operators with litigation tolerance and capital reserves.
Litigation (Item 3)
2 pending: State of Nebraska (consumer protection re mandatory fees); Destin Platinum v. Hampton Inns Franchise LLC (breach of contract/termination). 6 concluded: Hilton v. Portland Hotel Ownership (settled 2022); San Pedro Inn v. Hilton (settled 2020); Kathleen Soule v. Hilton Worldwide class action (settled 2015, $178K); U.S. v. Hilton Worldwide ADA Consent Decree (expired 2015); Starwood v. Hilton (settled 2010, $75M payment); U.S. v. Hilton Hotels Corp Sherman Act (final judgment 1971)
Largest disclosed settlement: $75,000,000
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: Yes
Score breakdown · what drove the 85 / 100 verdict
- 01MEDMassive capital requirement ($21.4M–$31.8M) with no disclosed average revenue or net income prevents ROI validation
- 02MINORAnemic unit growth (1.8% YoY across 508 units) suggests market saturation or franchisee underperformance
- 03HIGHMultiple active litigation vectors (consumer protection, ADA compliance consent decrees, breach of contract suits) indicate systemic operational/legal vulnerabilities
- 04MINORUnprotected territory enables corporate cannibalization and direct competition from other franchisees
- 05MED22-year term locks capital into a mature, slow-growth segment with limited exit liquidity
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · 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 rightsℹ | Granted |
| 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 |
| Arbitration location | Fairfax County, Virginia (Puerto Rico only) |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 8 |
View Item 3 litigation summary
2 pending: State of Nebraska (consumer protection re mandatory fees); Destin Platinum v. Hampton Inns Franchise LLC (breach of contract/termination). 6 concluded: Hilton v. Portland Hotel Ownership (settled 2022); San Pedro Inn v. Hilton (settled 2020); Kathleen Soule v. Hilton Worldwide class action (settled 2015, $178K); U.S. v. Hilton Worldwide ADA Consent Decree (expired 2015); Starwood v. Hilton (settled 2010, $75M payment); U.S. v. Hilton Hotels Corp Sherman Act (final judgment 1971)
Items 10, 11
Training & Operations
- Classroom training
- 135 hrs
- On-the-job training
- 2 hrs
- Training location
- Virtual, Online (self-paced), Dallas TX (Revenue Mgmt@Work), On-site
- Ongoing training
- Required
- Time to open
- 30 mo
- From signing to launch
- Site selection
- Franchisee (we are not obligated to assist with locating, purchasing, or leasing a site)
- POS system
- OnQ (Hilton Systems Solutions)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ (Hilton Systems Solutions)
Item 20 · call current owners
Franchisee Contacts
99 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Homewood Suites by Hilton · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Homewood Suites by Hilton franchise?
The total investment to open a Homewood Suites by Hilton franchise ranges from $21.4M – $31.8M, 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 Homewood Suites by Hilton franchise owners earn?
Homewood 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 Homewood 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 Homewood Suites by Hilton FDD and qualifies whose outlets they describe.
What is Homewood Suites by Hilton's franchise failure rate?
Based on SBA 7(a) loan data, Homewood Suites by Hilton has a charge-off rate of 0.0% across 31 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 Homewood Suites by Hilton franchise locations are there?
As of their most recent FDD filing, Homewood Suites by Hilton has 508 total units in the United States, including 508 franchised units and 0 company-owned units. 12 new units were opened in the latest reporting year.
Is Homewood Suites by Hilton a good franchise to buy?
FranchiseVerdict rates Homewood Suites by Hilton as a A-grade franchise with a verdict score of 85 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.