Hyatt House Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Hyatt House is an upscale, all-suite extended-stay hotel franchise with kitchen suites and free breakfast. Franchisees own and operate individual properties, running suites and guest services on Hyatt's systems.
FranchiseVerdict summary · 2026
A Hyatt House franchise requires a total initial investment of $26.9M – $33.4M, including a $75K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $26.9M – $33.4M
- 65th pct Lodging
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 121
- 49th pct Lodging
- SBA charge-off
- N/A
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 $26.9M – $33.4M including a $75K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 discloses per-hotel Occupancy Rate, Average Daily Rate (ADR), and RevPAR (revenue per available room) for 2025, plus Smith Travel competitive-set indices and World of Hyatt loyalty program revenue contribution. All Covered Hotels (120): average Occupancy 74.7%, average ADR $166.96, average RevPAR $124.77 (range $43.57-$264.40). No whole-unit gross sales or franchisee net income figures are disclosed.
- RISKVerdict A (Strongest tier), verdict score 74/100 (higher is better).
- DATAItem 19 reports RevPAR/Occupancy/ADR metrics (no whole-unit gross sales or net income disclosed) 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 House Franchising, L.L.C.
- Parent company
- Hyatt House Holding Company, L.L.C.
- Ultimate parent
- Hyatt Hotels Corporation
- Predecessor
- Summerfield Hotel Company, L.L.C.
- Prior franchisor entity
- CEO title
- Chief Growth Officer (Interim); President and CEO of Hyatt Hotels Corporation
- Mark Hoplamazian
- Incorporated in
- Kansas
- HQ
- 150 North Riverside Plaza, Chicago, Illinois 60606
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $6.7B
- vs $5.9B prior year
Overview
About
- CEO
- Mark Hoplamazian
- Headquarters
- Illinois
- Founded
- 2006
- FDD year
- 2026
- States available
- 30
Can you afford it, and what does the money buy?
Entry cost runs 207% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $276K | $525K |
| Equipment, build-out, other | $26.6M | $32.8M |
| Total initial investment | $26.9M | $33.4M |
Source: Hyatt House 2026 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
- $26.9M – $33.4M
- Middle of category vs category
- Liquid capital req'd
- $276K – $525K
- Top 40% of category vs category
- Franchise fee
- $75K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 11.7%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $6 |
| Training fee | $14K |
| Transfer fee | $0 |
| Renewal fee | $10K |
| Inventory (initial) | $640K – $1.0M |
| Total fee load | 11.7% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Hyatt House 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 Hyatt House 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: 2026 FDD
Financial Performance
Item 19 discloses per-hotel Occupancy Rate, Average Daily Rate (ADR), and RevPAR (revenue per available room) for 2025, plus Smith Travel competitive-set indices and World of Hyatt loyalty program revenue contribution. All Covered Hotels (120): average Occupancy 74.7%, average ADR $166.96, average RevPAR $124.77 (range $43.57-$264.40). No whole-unit gross sales or franchisee net income figures are disclosed.
Includes company-owned outlets
- Item 19 type
- RevPAR/Occupancy/ADR metrics (no whole-unit gross sales or net income disclosed)
- Sample size
- 120 outlets
- vs category median 99
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- 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 11.7% (near the Lodging average).
Disclosure
Item 19 reports RevPAR/Occupancy/ADR metrics (no whole-unit gross sales or net income disclosed) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (+4.7% 3-year CAGR) with 121 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 Hyatt House Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 121
- Opened
- 10
- Last reporting year
- Closed
- 0
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (3-yr)
- +4.7%
- Net unit change over 3 years
- 3-yr CAGR
- +4.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 11
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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 loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $14.9M
- Median loan
- $5.0M
- 50th percentile
- Charge-off rate
- N/A
- limited sample (3 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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 capital intensity combined with no financial disclosure, modest growth, and opacity on franchisee profitability creates significant uncertainty on investment returns and franchisor viability.
Litigation (Item 3)
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)
ⓘ 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
- 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 ($13.6M–$40.1M) with no disclosed average revenue or net income creates opacity on ROI and payback period
- 02MINORSlow unit growth (7.0% YoY) for an extended-stay brand in a competitive market suggests mature/saturating segment or franchisee acquisition challenges
- 03HIGHGoing Concern flag is FALSE but absence of explicit financial health statements raises questions about franchisor stability and support capacity
- 04MINOR5% royalty on gross rooms revenue (not net) means royalties are owed regardless of profitability — high fixed cost burden
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 2026 · 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 |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Within 10 miles of franchisor's principal business address (currently Chicago, Illinois), administered by the American Arbitration Association under the Federal Arbitration Act |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 124 hrs
- On-the-job training
- 40 hrs
- Training location
- Chicago, Illinois; Hyatt hotel locations; virtual
- Ongoing training
- Required
- Site selection
- franchisee, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Opera PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Opera PMS
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hyatt House · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hyatt House franchise?
The total investment to open a Hyatt House franchise ranges from $26.9M – $33.4M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hyatt House franchise owners earn?
Hyatt House 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 Hyatt House 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 House FDD and qualifies whose outlets they describe.
What is Hyatt House's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hyatt House (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 House franchise locations are there?
As of their most recent FDD filing, Hyatt House has 121 total units in the United States, including 112 franchised units and 9 company-owned units. 10 new units were opened in the latest reporting year.
Is Hyatt House a good franchise to buy?
FranchiseVerdict rates Hyatt House as a A-grade franchise with a verdict score of 74 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
Are you the franchisor?
If you represent Hyatt House, you can request corrections or provide updated information.
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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.