FranchiseVerdict
Hyatt Place logo
FV-01257·STRONGStandard76

Hyatt Place

Lodging - Hotels & MotelsFranchising since 2005Website
Investment
$13.6M – $40.1M
76th pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
5.0%
7th pct Hotels & Mote…
Units
341
84th pct Hotels & Mote…
SBA default
0.0%
vs <3% typical

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 9 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Hyatt Place 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 Place 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
$
FDD Item 7: $13.6M–$40.1M
Working capital
$
FDD reports $400K–$525K

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
$27.3M
Payback
3647 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 select-service hotel properties (typically 120–180 rooms) under the Hyatt Place brand, managing daily operations including housekeeping, front desk, food/beverage, and maintenance. Revenue derives from nightly room rates and ancillary services (parking, F&B), with corporate marketing support but franchisee responsibility for local marketing, staffing, and brand compliance.

CEO
Jim Chu
Founded
1957
FDD year
2024
States available
45

Item 7 · what it costs

The Vitals

Total investment
$13.6M – $40.1M
All-in to open one unit
Liquid capital
$400K – $525K
Cash you must have on hand
Franchise fee
$75K
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
341
Opened
11
Last reporting year
Closed
3
Turnover rate
0.9%
Company-owned
24
Corporate units in the system
% franchised
93%
vs corporate-owned
Net growth (yr3)
+2.6%
Net unit change last year
3-yr CAGR
+8.6%
Compounded over last 3 years
2022
317+8
Franchised units
2023
309
Franchised units
2024
292
Franchised units

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

Item 20 · 11 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 · 11 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.

Total loans
9
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

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

Risk & Legal

54
Risk · 0-100
STRONG54 / 100

Hyatt Place presents moderate-to-cautious risk due to opaque financial performance (no Item 19), minimal growth trajectory, and wide investment variance with no disclosed unit economics.

Score breakdown · what drove the 54 / 100 rating

  1. 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or benchmark actual unit economics
  2. 02MINORExtremely wide investment range ($13.6M–$40.1M) suggests high variability in actual costs with no clarity on what drives 195% range
  3. 03MINORAnemic unit growth of 2.6% YoY in midscale hotel segment indicates stalled expansion and potential franchisee recruitment challenges
  4. 04MINOR5% royalty on gross rooms revenue (not net) is aggressive and reduces profitability during economic downturns
  5. 05MINOR20-year term locks franchisee into long commitment with no visibility into brand performance or franchisor support quality

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Area of Protection (AOP)
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
76 hrs
On-the-job training
76 hrs
POS system
Simphony
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

100 numbers

Locked
(303) 464-••••
CO
(510) 771-••••
CA
(202) 803-••••
DE

One-time purchase · CSV download · Validation questions included

FDD download

Hyatt Place · FDD (2024) PDF

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