FranchiseVerdict
Hyatt Centric logo
FV-01255·MODERATEStandard71

Hyatt Centric

Lodging - Hotels & MotelsFranchising since 2015Website
Investment
$41.4M
93rd pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
5.0%
7th pct Hotels & Mote…
Units
31
47th pct Hotels & Mote…
SBA default

Bottom line

  • Total investment $41.4M including a $100K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Hyatt Franchising, L.L.C.
Parent company
Hyatt Hotels Corporation
Incorporated in
Delaware
HQ
150 North Riverside Plaza, Chicago, Illinois 60606
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$5.9B
vs $6.7B prior year

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 Hyatt Centric unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: hospitality
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
Working capital
$
FDD reports $650K–$1.0M

Unlevered ROIC · per unit

0%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$90K
EBITDA margin
12.0%
Total invested
$42.2M
Payback
5630 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees develop and operate upscale, boutique-style hotels under the Hyatt Centric brand, typically 150-200 rooms in urban markets. Day-to-day operations include guest services, housekeeping, food & beverage management, staff oversight, and local marketing while adhering to strict Hyatt brand standards and generating revenue primarily from room bookings (subject to 5% royalty).

CEO
Jim Chu
Founded
2015
FDD year
2024
States available
12

Item 7 · what it costs

The Vitals

Total investment
$41.4M
All-in to open one unit
Liquid capital
$650K – $1.0M
Cash you must have on hand
Franchise fee
$100K
Royalty
5.0%
Gross Rooms Revenue · typical 6–8%
Ad fund
n/d
Total fee load
11.7%
vs 9–13% typical

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

Total units
31
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
11
Corporate units in the system
% franchised
65%
vs corporate-owned
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
+5.3%
Compounded over last 3 years
2022
20+1
Franchised units
2023
20
Franchised units
2024
19
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 15 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 15 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

65
Risk · 0-100
MODERATE65 / 100

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.

Score breakdown · what drove the 65 / 100 rating

  1. 01MEDMassive capital requirement ($41.4M) with zero disclosed average revenue or net income data prevents ROI assessment
  2. 02MEDOnly 31 units across entire system suggests limited scale, unproven franchise model, and weak brand penetration
  3. 03MINORNo Item 19 financial performance disclosure (Avg Revenue/Net Income) is a major transparency red flag
  4. 04MEDUnclear unit growth trajectory with no disclosed expansion rate raises questions about franchisee demand and system viability
  5. 05MED20-year term is unusually long for hotel franchises, locking franchisees into relationship with limited exit options
  6. 06MINOR5% royalty on gross (not net) rooms revenue means royalties paid regardless of profitability

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Geographic
Protected territory
Yes
Initial term
20 years
Renewal term
10 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Owner-operator
Optional
Governing law
Illinois

Item 11

Training & Operations

Classroom training
72 hrs
On-the-job training
56 hrs
POS system
Opera
Operating tech stack

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

22 numbers

Locked
(317) 232-••••
IN
(808) 586-••••
HI
(619) 525-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Hyatt Centric · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above