Hyatt Centric Franchise Cost, Revenue & Review 2026
- Investment
- $41.4M – $114.7M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Hyatt Centric is an upscale, full-service lifestyle hotel franchise aimed at urban explorers. Franchisees own and operate the hotels, managing guest services, food and beverage, and brand standards.
FranchiseVerdict summary · 2026
A Hyatt Centric franchise requires a total initial investment of $41.4M – $114.7M, including a $100K franchise fee and an ongoing 5.0% royalty[2]. The 2024 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: 2024 filing · Data extracted: · Last cited check: · Staleness risk: high - figures are from a filing two or more years old
Evidence: partial✓ 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 scored3 of 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $41.4M – $114.7M
- 67th pct Lodging
- Avg gross sales
- N/A
- Incl. company outletsProjection
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 31
- 33rd 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 $41.4M – $114.7M including a $100K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 74/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed); 4 signed but not yet open (Item 20).
- DATAItem 19 reports hotel occupancy metrics 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
- Hyatt Franchising, L.L.C.
- Parent company
- Hyatt Hotels Corporation
- FDD Item 1, page 9 of the 2024 FDD
- CEO title
- Chief Growth Officer
- Jim Chu
- Incorporated in
- DE
- HQ
- 150 North Riverside Plaza, Chicago, Illinois 60606
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $6.7B
- vs $5.9B prior year
Same owner · FDD Item 1, page 9
9 other brands on this site name Hyatt Hotels Corporation as parent or ultimate parent in their own FDD.
- Caption by HyattB
- Destination by HyattB
- Hyatt HouseA
- Hyatt PlaceA
- Hyatt Regency HotelA
- Hyatt StudiosC
- JdV by HyattB
- The Unbound Collection by Hyatt®A
- Unscripted by HyattC
Grouped by the owner's name as each filing prints it (this page: the 2024 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
- Jim Chu
- Headquarters
- IL
- Founded
- 1993
- FDD year
- 2024
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 778% above the typical lodging franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $100K | $100K |
| Working capital (3–6 mo) | $650K | $1.0M |
| Equipment, build-out, other | $40.7M | $113.6M |
| Total initial investment | $41.4M | $114.7M |
Source: Hyatt Centric 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $41.4M – $114.7M
- Middle of category vs category
- Liquid capital req'd
- $650K – $1.0M
- Middle of category vs category
- Franchise fee
- $100K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- No separate advertising fund; marketing included in Comme…
- Total fee load
- 11.7%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Technology fee | $6 |
| Training fee | $17K |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $1.6M – $3.3M |
| Total fee load | 11.7% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Hyatt Centric 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 Hyatt Centric 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, ad fund rate, 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: 2024 FDD
Financial Performance
Includes company-owned outlets
An occupancy metric, not unit revenue
- Item 19 type
- RevPAR/ADR/Occupancy metrics only; no per-unit gross sales dollars disclosed
- Sample size
- 31
- vs category median 98 · small
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
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 11.7% — above the Lodging median of 8.5%.
Disclosure
Item 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 5.3% CAGR over 3 years across 31 units — operators are staying and new ones are joining.
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 Hyatt Centric 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 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 11
- Corporate units in the system
- % franchised
- 65%
- vs corporate-owned
- Net growth (3-yr)
- +5.3%
- Net unit change over 3 years
- 3-yr CAGR
- +5.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 4
- 0.13 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 12 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
12
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Hyatt Centric presents high capital risk with an unproven small-scale system and complete absence of financial performance transparency, making true due diligence nearly impossible.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financials are those of the parent, Hyatt Hotels Corporation and subsidiaries (consolidated), for FY ended Dec 31, 2023 (yr2 = 2022), in millions USD. The franchisor Hyatt Franchising, L.L.C. does not have separate audited statements. Total revenues include reimbursement revenues of $3,058M; net management/franchise/license fees $938M; owned and leased hotels $1,339M.
ⓘ 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: No
Score breakdown · what drove the 74 / 100 verdict
- 01MEDMassive capital requirement ($41.4M) with zero disclosed average revenue or net income data prevents ROI assessment
- 02MEDOnly 31 units across entire system suggests limited scale, unproven franchise model, and weak brand penetration
- 03MEDUnclear unit growth trajectory with no disclosed expansion rate raises questions about franchisee demand and system viability
- 04MED20-year term is unusually long for hotel franchises, locking franchisees into relationship with limited exit options
- 05MINOR5% royalty on gross (not net) rooms revenue means royalties paid regardless of profitability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.7% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Chicago, Illinois |
| Jury trial waiver | Yes |
| Governing law | IL |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 246 hrs
- On-the-job training
- 40 hrs
- Training location
- Chicago, Illinois (corporate HQ) or designated Hyatt hotel location, or virtually; also at the Hotel
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- Opera PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Opera PMS
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hyatt Centric franchise?
The total investment to open a Hyatt Centric franchise ranges from $41.4M – $114.7M, 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 Hyatt Centric franchise owners earn?
Item 19 of the Hyatt Centric 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 Hyatt Centric?
Hyatt Centric is franchised by Hyatt Franchising, L.L.C.. Its parent company is Hyatt Hotels Corporation. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Hyatt Centric 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 Hyatt Centric FDD and qualifies whose outlets they describe.
What is Hyatt Centric's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hyatt Centric (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 Hyatt Centric franchise locations are there?
As of their most recent FDD filing, Hyatt Centric has 31 total units in the United States, including 20 franchised units and 11 company-owned units.
Is Hyatt Centric a good franchise to buy?
FranchiseVerdict rates Hyatt Centric as a A-grade franchise with a verdict score of 74 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
Are you the franchisor?
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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.