Outset Collection by Hilton Franchise Cost, Revenue & Review 2026
- Investment
- $2.2M – $52.0M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Outset Collection by Hilton is an upscale boutique hotel franchise of independent, individually branded properties. Franchisees own and operate the hotels, managing guest services and revenue under Hilton standards.
FranchiseVerdict summary · 2026
A Outset Collection by Hilton franchise requires a total initial investment of $2.2M – $52.0M, including a $50K – $100K franchise fee and an ongoing 5.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2025. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
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 scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $2.2M – $52.0M
- 28th pct Lodging
- Avg gross sales
- N/A
- 2 outlets
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 2
- 11th 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 $2.2M – $52.0M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- GROWTHNegative, pipeline stalled: 6 agreements signed but not yet open against 2 open outlets (Item 20).
- 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.
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- CEO experience
- 2013 yrs
- Years in role or industry
- 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
Same owner · FDD Item 1, page 9
17 other brands on this site name Hilton Worldwide Holdings Inc. as parent or ultimate parent in their own FDD.
- Apartment Collection by HiltonC
- Canopy by HiltonB
- Curio Collection by HiltonB
- DoubleTree by HiltonA
- Embassy Suites by HiltonB
- Graduate by HiltonB
- Hampton by HiltonA
- Hilton Garden InnA
- Home2 Suites by HiltonA
- Homewood Suites by HiltonA
- LXRB
- Motto by HiltonB
- Project Q by HiltonC
- Tapestry Collection by HiltonB
- Tempo by HiltonC
- Tru by HiltonA
- Undergraduate by HiltonC
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
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 204% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown27 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Application Fee | $50K | $50K | |
| Property Improvement Plan | $0 | $10K | |
| Market Study | — | — | |
| Environmental Assessment | — | — | |
| Real Property | — | — | |
| Construction and Leasehold Improvements | $0 | $30.4M | |
| Designer & Engineering Fees | $0 | $1.3M | |
| Furniture, Fixtures & Equipment | $0 | $5.5M | |
| Inventory & Operating Equipment | $720K | $1.8M | |
| Signage | $2K | $77K | |
| Computer Hardware and Software Systems | $46K | $114K | |
| Guest Internet Access System | $51K | $73K | |
| Connected Room System | $25K | $29K | |
| Delphi Sales and Events System | $990 | $41K | |
| Digital Payment System | $750 | $2K | |
| Required Pre-Opening Training | $5K | $15K | |
| ADA Consultant Fee | $6K | $15K | |
| Construction/Renovation Extension Fee | $0 | $10K | |
| Insurance | — | — | |
| Organizational Expense | $75K | $285K | |
| Total initial investment | $2.2M | $52.0M |
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
- $2.2M – $52.0M
- Top 40% of category vs category
- Liquid capital req'd
- $800K – $1.2M
- Middle of category vs category
- Franchise fee
- $50K – $100K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Training fee | $15K |
| Transfer fee | $100K |
| Inventory (initial) | $720K – $1.8M |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Outset Collection by Hilton makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. 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 Outset Collection by Hilton 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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 9.0% (near the Lodging median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 Outset Collection by Hilton 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
- 2
- Opened
- 2
- 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
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 6
- 3.00 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 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.
2
states with franchisees (per FDD Item 12)
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
Outset Collection represents extreme franchise risk: a 2-unit system with active litigation, zero financial disclosure, unprotected territory, and evidence of franchisee financial failure.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
5 pending actions (including antitrust class actions re hotel pricing algorithms via IDeaS/Amadeus/STR and a franchise termination dispute); 6 concluded actions (2 state AG consumer protection settlements re resort fees, 2 franchise breach/collection suits, 1 antitrust consent decree from 1970, 1 franchisee counterclaim settled); 4 collection suits filed by franchisor against former franchisees in 2025-2026
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)
Per audited consolidated financial statements of Hilton Franchise Holding LLC (Exhibit C), amounts in thousands. Total revenues FY2025 $1,560,067K (royalty fees $1,502,299K, sales/change-of-ownership fees $52,254K, termination fees & other $5,514K); FY2024 $1,502,069K. Auditor signed Tysons Corner, VA, March 18, 2026; firm name not legible in text.
ⓘ 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 43 / 100 verdict
- 01MEDExtremely limited unit count (2 units) suggests failed or stalled brand expansion with no disclosed growth trajectory
- 02HIGHMultiple active litigations including breach of contract, antitrust claims, and consumer protection settlements indicate systemic operational and legal issues
- 03MINORZero financial transparency — no Item 19 average revenue/net income disclosure prevents ROI validation on $2.2M investment
- 04MINORUnprotected territory creates direct competition risk and cannibalizes per-unit revenue in thin 5% royalty model
- 05MINOR23-year term lock-in with only 2 operating units suggests insufficient proven unit economics and franchisor viability
- 06MINORCollection suits against former franchisees indicate poor franchisee financial performance and franchisor-franchisee relationship breakdown
- 07HIGHPending antitrust and revenue management software litigation suggests franchisor practices may harm franchisee profitability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% 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 | 23 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | 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 |
| Mandatory arbitration | No |
| Arbitration location | Fairfax County, Virginia (or New York, New York) |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 15 |
View Item 3 litigation summary
5 pending actions (including antitrust class actions re hotel pricing algorithms via IDeaS/Amadeus/STR and a franchise termination dispute); 6 concluded actions (2 state AG consumer protection settlements re resort fees, 2 franchise breach/collection suits, 1 antitrust consent decree from 1970, 1 franchisee counterclaim settled); 4 collection suits filed by franchisor against former franchisees in 2025-2026
Items 10, 11
Training & Operations
- Classroom training
- 108 hrs
- On-the-job training
- 1 hrs
- Training location
- Virtual, Online, On-site (varies by program)
- Ongoing training
- Required
- Site selection
- Franchisee (with franchisor approval)
- Franchisor financing
- Offered
- Item 10
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Item 20 · call current owners
Franchisee Contacts
1 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 Outset Collection by Hilton franchise?
The total investment to open a Outset Collection by Hilton franchise ranges from $2.2M – $52.0M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Outset Collection by Hilton franchise owners earn?
Outset Collection by Hilton makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Outset Collection by Hilton?
Outset Collection by Hilton is franchised by Hilton Franchise Holding LLC. Its parent company is Hilton Domestic Operating Company Inc.. The ultimate parent named in the FDD is Hilton Worldwide Holdings Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Outset Collection 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 Outset Collection by Hilton FDD and qualifies whose outlets they describe.
What is Outset Collection by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Outset Collection 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 Outset Collection by Hilton franchise locations are there?
As of their most recent FDD filing, Outset Collection by Hilton has 2 total units in the United States, including 2 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Outset Collection by Hilton a good franchise to buy?
FranchiseVerdict rates Outset Collection by Hilton as a C-grade franchise with a verdict score of 43 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.