Hyatt Place Franchise Cost, Revenue & Review 2026
- Investment
- $23.4M – $29.9M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (4)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Hyatt Place is an upscale, select-service hotel franchise for business and leisure travelers, with free hot breakfast and flexible spaces. Franchisees own and operate individual properties, running rooms and guest services on Hyatt's systems.
FranchiseVerdict summary · 2026
A Hyatt Place franchise requires a total initial investment of $23.4M – $29.9M, including a $75K franchise fee and an ongoing 5.0% royalty[2]. The 2026 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: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ 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 scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $23.4M – $29.9M
- 62nd pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 347
- 59th 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 $23.4M – $29.9M including a $75K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 discloses Occupancy Rate, Average Daily Rate, and RevPAR (revenue per available room) for 346 Covered Hotels in 2025 (all Covered Hotels: avg Occupancy 71.0%, avg ADR $157.23, avg RevPAR $111.67; Franchised Covered Hotels (n=321): avg Occupancy 71.2%, avg ADR $157.87, avg RevPAR $112.46). Also discloses Smith Travel competitive-set indices and World of Hyatt loyalty program revenue contribution (avg 56.6% of revenue from WOH members for all Covered Hotels). No whole-unit gross sales or net income figures are disclosed; figures exclude costs of sales/operating expenses.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHPositive: net +4 franchised outlets in the latest year (7 opened, 3 closed) (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 Place Franchising, L.L.C.
- Parent company
- Hyatt Corporation; Select Hotels Group, L.L.C.; Hyatt Hotels Corporation
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Hyatt Hotels Corporation
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- Chief Growth Officer (Interim); President and CEO of Hyatt Hotels Corporation
- Mark Hoplamazian
- Incorporated in
- Delaware
- HQ
- 150 North Riverside Plaza, Chicago, Illinois 60606
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $7.1B
- vs $6.6B 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 CentricA
- Hyatt HouseA
- 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 2026 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
- Mark Hoplamazian
- Headquarters
- Illinois
- Founded
- 2005
- FDD year
- 2026
- States available
- 45
Can you afford it, and what does the money buy?
Entry cost runs 200% 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 | $23.1M | $29.3M |
| Total initial investment | $23.4M | $29.9M |
Source: Hyatt Place 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
- $23.4M – $29.9M
- 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%
- 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% |
| Technology fee | $92K |
| Training fee | $19K |
| Transfer fee | $0 |
| Renewal fee | $10K |
| Inventory (initial) | $635K – $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
No Item 19 revenue figure for Hyatt Place 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 Place 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, 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: 2026 FDD
Financial Performance
Item 19 discloses Occupancy Rate, Average Daily Rate, and RevPAR (revenue per available room) for 346 Covered Hotels in 2025 (all Covered Hotels: avg Occupancy 71.0%, avg ADR $157.23, avg RevPAR $111.67; Franchised Covered Hotels (n=321): avg Occupancy 71.2%, avg ADR $157.87, avg RevPAR $112.46). Also discloses Smith Travel competitive-set indices and World of Hyatt loyalty program revenue contribution (avg 56.6% of revenue from WOH members for all Covered Hotels). No whole-unit gross sales or net income figures are disclosed; figures exclude costs of sales/operating expenses.
An occupancy metric, not unit revenue
- Item 19 type
- Occupancy Rate / Average Daily Rate / RevPAR / Smith Travel Indices / World of Hyatt loyalty revenue contribution (no whole-unit gross revenue or net income disclosed)
- Sample size
- 339
- vs category median 98 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
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 roughly stable (+1.6% 3-year CAGR) with 347 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 medians
How Hyatt Place 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 347
- Opened
- 7
- Last reporting year
- Closed
- 3
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.9%
- Company-owned
- 25
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (3-yr)
- +1.6%
- Net unit change over 3 years
- 3-yr CAGR
- +1.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Transferred
- 20
- Reacquired
- 1
- Franchisor bought back
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).
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.
Where the owners are · Item 20 owner list
100 current owners across 11 states.
- FL 32
- CA 25
- AZ 10
- CO 10
- DE 7
- GA 5
- AL 3
- CT 3
- AK 2
- AR 2
- IL 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $16.8M
- Median loan
- $5.0M
- 50th percentile
- Charge-off rate
- Under 10 loans (4)
- Insufficient SBA coverage: 4 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (4)
- 5-yr charge-off
- Under 10 loans (4)
- Loans approved 2021+
- Active lenders
- 4
- 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
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)
ⓘ 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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 75 / 100 verdict
- 01MINORAnemic unit growth of 2.6% YoY in midscale hotel segment indicates stalled expansion and potential franchisee recruitment challenges
- 02MINOR5% royalty on gross rooms revenue (not net) is aggressive and reduces profitability during economic downturns
- 03MINOR20-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
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 | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 3 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 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Within 10 miles of franchisor's principal business address (currently Chicago, Illinois) |
| Jury trial waiver | No |
| 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
- 47 hrs
- On-the-job training
- 40 hrs
- Training location
- Chicago, Illinois; Hotel property; virtual/eLearning
- Ongoing training
- Required
- Site selection
- Franchisor approval required
- Franchisor financing
- Not offered
- Item 10
- POS system
- Hyatt PMS (designated vendor)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Hyatt PMS (designated vendor)
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hyatt Place franchise?
The total investment to open a Hyatt Place franchise ranges from $23.4M – $29.9M, 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 Place franchise owners earn?
Item 19 of the Hyatt Place 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 Place?
Hyatt Place is franchised by Hyatt Place Franchising, L.L.C.. Its parent company is Hyatt Corporation; Select Hotels Group, L.L.C.; Hyatt Hotels Corporation. The ultimate parent named in the FDD is Hyatt Hotels Corporation. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Hyatt Place 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 Place FDD and qualifies whose outlets they describe.
What is Hyatt Place's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hyatt Place (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 Place franchise locations are there?
As of their most recent FDD filing, Hyatt Place has 347 total units in the United States, including 322 franchised units and 25 company-owned units. 7 new units were opened in the latest reporting year.
Is Hyatt Place a good franchise to buy?
FranchiseVerdict rates Hyatt Place as a A-grade franchise with a verdict score of 75 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
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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.