FranchiseVerdict
Hyatt Regency Hotel logo
FV-01258·MODERATEStandard71

Hyatt Regency Hotel

Lodging - Hotels & MotelsFranchising since 1994Website
Investment
93rd pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
6.0%
74th pct Hotels & Mote…
Units
103
69th pct Hotels & Mote…
SBA default

Bottom line

  • Total investment — including a $100K franchise fee, 6.0% 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 Regency Hotel 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 $750K–$1.5M

Unlevered ROIC · per unit

6%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$83K
EBITDA margin
11.0%
Total invested
$1.4M
Payback
200 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

Hyatt Regency franchisees own and operate full-service upscale hotels with rooms, restaurants, bars, meeting spaces, and guest amenities. Day-to-day responsibilities include managing 24/7 hotel operations, staff scheduling, revenue optimization, guest services, F&B operations, housekeeping, and maintaining brand standards across all property touchpoints.

CEO
Peter Sears
Founded
1957
FDD year
2024
States available
22

Item 7 · what it costs

The Vitals

Total investment
All-in to open one unit
Liquid capital
$750K – $1.5M
Cash you must have on hand
Franchise fee
$100K
Royalty
6.0%
Percentage of Gross Revenue · typical 6–8%
Ad fund
n/d
Total fee load
6.0%
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
103
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
63
Corporate units in the system
% franchised
39%
vs corporate-owned
Net growth (yr3)
+2.6%
Net unit change last year
3-yr CAGR
+2.6%
Compounded over last 3 years
2022
40+2
Franchised units
2023
39
Franchised units
2024
39
Franchised units

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

Item 20 · 22 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 · 22 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

Missing financial disclosures, stagnant unit growth, above-market royalties, and unclear capital requirements create significant due diligence gaps for this luxury hotel franchise.

Score breakdown · what drove the 65 / 100 rating

  1. 01MEDInvestment range listed as $0–$0 indicates missing or incomplete FDD disclosure of initial capital requirements
  2. 02MEDNo average unit volume (Item 19) or financial performance data disclosed, preventing ROI analysis
  3. 03MEDMinimal unit growth of 2.6% YoY suggests mature/stagnant system with limited expansion opportunity
  4. 04MINORDual royalty structure (6% rooms + 3% F&B) totaling up to 9% is above-market for upscale hotel brands
  5. 05MINOR103 units is relatively small for an established luxury brand, raising questions about franchise model viability
  6. 06MINOR20-year term is longer than industry standard (10-15 years), locking franchisee into extended commitment

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
Protected territory
Yes
Initial term
20 years
Renewal term
10 years
Online sales rights
Restricted
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
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Illinois

Item 11

Training & Operations

Classroom training
72 hrs
On-the-job training
56 hrs
POS system
Opera PMS and POS
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

45 numbers

Locked
(949) 833-••••
CA
(404) 303-••••
FL
(602) 802-••••
IL

One-time purchase · CSV download · Validation questions included

FDD download

Hyatt Regency Hotel · FDD (2024) PDF

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