Motto by Hilton Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Motto by Hilton is a micro-hotel franchise offering affordable, design-forward rooms in urban locations. Franchisees own and operate the hotels, managing front desk, housekeeping, and revenue under Hilton standards.
FranchiseVerdict summary · 2026
A Motto by Hilton franchise does not disclose total investment in its current FDD, including a $100K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $19.4M
- 59th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 6
- 19th 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 $19.4M including a $100K franchise fee, 5.0% ongoing royalty.
- RETURNSTotal revenues of the franchisor entity (Hilton Franchise Holding LLC) comprise franchise royalty fees ($1,502,299K in 2025), franchise sales and change of ownership fees ($52,254K), and franchise termination fees and other ($5,514K). Figures are consolidated and stated in thousands; these reflect the entire Hilton franchise system, not the Motto by Hilton brand specifically.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- LEGAL15 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hilton Franchise Holding LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- Incorporated in
- DE
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- Cherry Bekaert LLP (cbh.com)
- Audited financials
- Franchisor revenue
- $1.6B
- vs $1.5B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 5
Can you afford it, and what does the money buy?
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown25 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Application Fee | $100K | $100K | |
| Property Improvement Plan | $0 | $10K | |
| Market Study | — | — | |
| Environmental Assessment | — | — | |
| Real Property | — | — | |
| Construction and Leasehold Improvements | $9.1M | $67.9M | |
| Designer and Engineering Fees | $364K | $2.7M | |
| Furniture, Fixtures and Equipment | $6.2M | $9.2M | |
| Inventory and Operating Equipment | $1.2M | $2.0M | |
| Signage | $37K | $80K | |
| Computer Software and Hardware Systems | $104K | $225K | |
| Guest Internet Access System | $84K | $123K | |
| Connected Room System | $40K | $48K | |
| Delphi Sales and Events System | $990 | $33K | |
| Required Pre-Opening Training | $5K | $18K | |
| ADA Consultant Fee | $3K | $15K | |
| Construction/Renovation Extension Fees | $0 | $10K | |
| Insurance | — | — | |
| Organization Expense | $50K | $130K | |
| Permits and Licenses | $137K | $1.0M | |
| Total initial investment | $19.4M | $93.8M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $19.4M
- Middle of category vs category
- Liquid capital req'd
- $800K – $1.2M
- Middle of category vs category
- Franchise fee
- $100K – $100K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Training fee | $18K |
| Transfer fee | $150K |
| Inventory (initial) | $1.2M – $2.0M |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Motto by Hilton 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 Motto by Hilton 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
Total revenues of the franchisor entity (Hilton Franchise Holding LLC) comprise franchise royalty fees ($1,502,299K in 2025), franchise sales and change of ownership fees ($52,254K), and franchise termination fees and other ($5,514K). Figures are consolidated and stated in thousands; these reflect the entire Hilton franchise system, not the Motto by Hilton brand specifically.
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 8.0% — below the Lodging average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +50.0% over 3 years (1 opened, 0 closed).
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 Motto by Hilton Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +50.0%
- Net unit change over 3 years
- 3-yr CAGR
- +50.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 33.3%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 5 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
5
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Motto by Hilton is an extremely early-stage, litigation-plagued brand with only 6 units, zero financial transparency, and unresolved legal/regulatory disputes that create substantial operational and financial risk for new franchisees.
Litigation (Item 3)
Multiple cases including franchisee breach of contract suits against Hilton (Bow Hospitality), antitrust class actions (In re Extended Stay, Dai/SAS, Amadeus, Portillo/CoStar), concluded franchisee disputes (AAAA Property, Texas AG resort fees, Nebraska AG resort fees, Portland Hotel, San Pedro Inn), historic antitrust consent decree (U.S. v. HHC 1970), and collection suits against former franchisees (ML Plaza, Unique Crowne, Empower Metro, In re 177 BFP).
Largest disclosed settlement: $2,100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP (cbh.com)
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: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINOROnly 6 units systemwide with minimal growth trajectory (20% YoY = 1.2 new units) indicates nascent, unproven brand with no economies of scale
- 02MINORMultiple class action antitrust lawsuits plus state attorney general investigations into mandatory fees create regulatory/legal liability exposure and reputational risk
- 03MEDNo disclosed average revenue or net income (missing Item 19) prevents prospective franchisees from validating unit economics or ROI projections
- 04MINORContract disputes with former franchisees regarding termination and brand standards suggest operational/enforcement issues and franchise relationship friction
- 05MINORUnprotected territory combined with ultra-long 22-year term locks franchisee into potentially uncompetitive position without geographic exclusivity
- 06HIGHGoing Concern designation absent (False) but combined with 6-unit system and litigation suggests financial instability or parent company concerns
- 07MINOR5% royalty on Gross Rooms Revenue (not Net) means fees apply regardless of profitability, increasing downside risk in market downturns
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | 22 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 17 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | Fairfax County, Virginia (Puerto Rico franchisees only; standard agreement uses litigation) |
| Jury trial waiver | Yes |
| Governing law | NY |
| Litigation count | 15 |
View Item 3 litigation summary
Multiple cases including franchisee breach of contract suits against Hilton (Bow Hospitality), antitrust class actions (In re Extended Stay, Dai/SAS, Amadeus, Portillo/CoStar), concluded franchisee disputes (AAAA Property, Texas AG resort fees, Nebraska AG resort fees, Portland Hotel, San Pedro Inn), historic antitrust consent decree (U.S. v. HHC 1970), and collection suits against former franchisees (ML Plaza, Unique Crowne, Empower Metro, In re 177 BFP).
Items 10, 11
Training & Operations
- Classroom training
- 103 hrs
- On-the-job training
- 1 hrs
- Training location
- Virtual, Online, On-site
- Ongoing training
- Required
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Motto by Hilton · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
What do Motto by Hilton franchise owners earn?
Motto by Hilton 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 Motto by Hilton 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 Motto by Hilton FDD and qualifies whose outlets they describe.
What is Motto by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Motto by Hilton (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 Motto by Hilton franchise locations are there?
As of their most recent FDD filing, Motto by Hilton has 6 total units in the United States, including 6 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Motto by Hilton a good franchise to buy?
FranchiseVerdict rates Motto by Hilton as a B-grade franchise with a verdict score of 56 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?
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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.