Homewood Suites by Hilton Franchise Cost, Revenue & Review 2026
- Investment
- $21.4M – $31.8M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 31 loans
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 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: high - issued more than two years ago
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
- $21.4M – $31.8M
- 61st pct Lodging
- Avg gross sales
- N/A
- Incl. company outletsProjection
- Royalty
- 5.5%
- 39th pct Lodging
- Units
- 508
- 64th 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 $21.4M – $31.8M including a $100K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 reports ADR and Occupancy (not gross revenue) rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHPositive: net +9 franchised outlets in the latest year (12 opened, 1 closed); 109 signed but not yet open (Item 20).
- 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.
- FDD Item 1, page 9 of the 2023 FDD
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- FDD Item 1, page 9 of the 2023 FDD
- 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
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
- Home2 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 2023 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
- 2023
- States available
- 49
Can you afford it, and what does the money buy?
Entry cost runs 199% 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 by sales volume · 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
No Item 19 revenue figure for Homewood 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 Homewood 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: 2023 FDD
Financial Performance
Includes company-owned outlets
An occupancy metric, not unit revenue
- Item 19 type
- ADR and Occupancy (not gross revenue)
- Sample size
- 450
- vs category median 98 · large
- Reporting year
- 2022
- Fiscal year the figures cover
- Source filing
- FDD 2023
- Disclosed in the 2023 filing, covering 2022
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 7.0% — below the Lodging median of 8.5%.
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 medians
How Homewood 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 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 1
- Transferred
- 28
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 109
- 0.21 per open outlet · Item 20 Table 5
- Projected new
- 11
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
99 current owners across 49 states.
- FL 6
- NC 6
- VA 6
- CA 5
- TX 5
- IL 4
- AZ 3
- CO 3
- GA 3
- MA 3
- OH 3
- SC 3
- +37 more states
Counts only, from the list the franchisor prints in Item 20. 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
- 31
- Loan volume
- $117.1M
- Median loan
- $4.8M
- 50th percentile
- Charge-off rate
- Limited · 31 loans
- Limited SBA coverage: 31 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 · 31 loans
- 5-yr charge-off
- Limited · 31 loans
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
- Typical loan rate
- 7.9%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- n=9,970 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Homewood Suites by Hilton from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 7.88%
- Lender concentration
- 50.0%
- Job velocity
- 0.5 per $100K
- NAICS benchmark
- 7.6%
- NAICS 721110
- Jobs supported
- 71
Top SBA lendersTop lender holds 50% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Mission Valley Bank | 2 | $10.0M | N/A |
| 2 | East West Bank | 1 | $1.3M | 0.0% |
| 3 | Global One Bank | 1 | $4.5M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 3 | 0 | 0.0% |
| INIndiana | 1 | 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
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)
Subject: the franchisor is a named party (defendant).
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)
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 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.
ⓘ 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 75 / 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 | No territory protection |
| 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
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?
Item 19 of the Homewood 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 Homewood Suites by Hilton?
Homewood 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, 2023 filing.
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?
SBA 7(a) loan charge-off data is not available for Homewood 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 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 75 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.
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.