Homewood Suites by Hilton
Bottom line
- Total investment $21.4M – $31.8M including a $100K franchise fee, 3.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 9 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Homewood Suites by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Homewood Suites franchisees operate upscale extended-stay hotels targeting business travelers and relocation customers, managing daily operations including housekeeping, front-desk, food service, maintenance, and revenue management. Franchisees must maintain Hilton brand standards, loyalty program integration, and comply with corporate policies while generating revenue from room rentals, extended-stay packages, and ancillary services (parking, laundry, internet).
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 · 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 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-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.
Score breakdown · what drove the 64 / 100 rating
- 01MEDMassive capital requirement ($21.4M–$31.8M) with no disclosed average revenue or net income prevents ROI validation
- 02MEDRoyalty escalation (3.5%→5.5%) combined with undisclosed financials creates earnings opacity and unpredictable cash flow
- 03MINORAnemic unit growth (1.8% YoY across 508 units) suggests market saturation or franchisee underperformance
- 04HIGHMultiple active litigation vectors (consumer protection, ADA compliance consent decrees, breach of contract suits) indicate systemic operational/legal vulnerabilities
- 05MINORUnprotected territory enables corporate cannibalization and direct competition from other franchisees
- 06MED22-year term locks capital into a mature, slow-growth segment with limited exit liquidity
- 07MINORNo Item 19 financial disclosure prevents independent verification of unit-level economics
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Homewood Suites by Hilton · FDD (2023) PDF