Bottom line
- Total investment $13.6M – $40.1M including a $75K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
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 Hyatt House unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Franchisees develop and operate upscale, extended-stay hotel properties under the Hyatt House brand, managing daily operations including housekeeping, front desk, maintenance, and guest services. They handle staffing, inventory, compliance, and revenue management while paying royalties on gross rooms revenue to Hyatt. The business model requires substantial real estate investment and assumes strong occupancy rates in competitive hospitality markets.
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 · 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 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 capital intensity combined with no financial disclosure, modest growth, and opacity on franchisee profitability creates significant uncertainty on investment returns and franchisor viability.
Score breakdown · what drove the 54 / 100 rating
- 01MEDMassive capital requirement ($13.6M–$40.1M) with no disclosed average revenue or net income creates opacity on ROI and payback period
- 02MEDNo Item 19 (financial performance representations) disclosed — impossible to validate realistic earnings expectations
- 03MINORSlow unit growth (7.0% YoY) for an extended-stay brand in a competitive market suggests mature/saturating segment or franchisee acquisition challenges
- 04HIGHGoing Concern flag is FALSE but absence of explicit financial health statements raises questions about franchisor stability and support capacity
- 05MINOR5% 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
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hyatt House · FDD (2024) PDF