Project Q by Hilton Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Project Q by Hilton is a select-service Hilton hotel franchise brand. Franchisees own and operate the properties, managing front desk, housekeeping, and revenue under Hilton standards.
FranchiseVerdict summary · 2026
A Project Q by Hilton franchise does not disclose total investment in its current FDD, including a $50K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $2.4M
- 29th pct Lodging
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 0
- 0th 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 $2.4M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- LEGAL11 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. (NYSE: HLT)
- Predecessor
- None
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President, Hilton Worldwide
- Christopher J. Nassetta
- Incorporated in
- Delaware
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.4B 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
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Source: FDD 2025 · 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 | $48K | $116K | |
| Guest Internet Access System | $51K | $73K | |
| Connected Room System | $25K | $29K | |
| Delphi Sales and Events System | $900 | $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 | $2.4M | $52.2M |
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
- $2.4M
- Top 40% of category vs category
- Liquid capital req'd
- $1.0M – $1.4M
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 5.0%
- Gross Rooms Revenue · 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 |
| Technology fee | $7K |
| Training fee | $15K |
| Transfer fee | $100K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Project Q 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 Project Q 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.
2%
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: 2025 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Project Q by Hilton Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 9
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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
Pre-opening Hilton brand (began franchising 2025, 0 units) with strong audited parent financials ($577M net worth, $1.49B net income). 9 disclosed cases including 3 antitrust class actions re revenue-management software data sharing, but these are system-wide Hilton matters normal for a global operator. Limited operating history is the key flag.
Litigation (Item 3)
Hilton is involved in 6 litigations: (1) AAAA Property Partners LLC v. Hilton Franchise Holding LLC - franchise termination dispute in M.D. Fla.; (2) In re Extended Stay Hotel Antitrust Litigation (N.D. Cal.) - Sherman Act class action alleging improper rate-setting through IDeaS; (3) Hanson Dai v. SAS Institute Inc. (N.D. Cal.) - Sherman Act class action alleging improper rate-setting through IDeaS; (4) Ryan Segal v. Amadeus IT Group (N.D. Ill.) - Sherman Act class action alleging improper rate-setting through Amadeus; motion to dismiss granted on March 31, 2025, third amended complaint filed April 28, 2025; (5) Jeanette Portillo v. CoStar Group (W.D. Wash.) - Sherman Act class action alleging improper rate-setting through STR data exchange. Primary themes: one franchise termination dispute and four antitrust class actions involving alleged improper data sharing and rate-setting.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 39 / 100 verdict
- 01MED0 units, began franchising 2025 (limited history, likely pre-opening)
- 02HIGH9 litigation cases incl. 3 antitrust class actions, routine for a global hotel franchisor
- 03MEDitem19_disclosed=false
- 04MINORStrong audited financials: net worth $577M, net income $1.49B
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 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 23 years |
|---|---|
| Allowed renewalsℹ | 0 |
| 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 | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 11 |
View Item 3 litigation summary
Hilton is involved in 6 litigations: (1) AAAA Property Partners LLC v. Hilton Franchise Holding LLC - franchise termination dispute in M.D. Fla.; (2) In re Extended Stay Hotel Antitrust Litigation (N.D. Cal.) - Sherman Act class action alleging improper rate-setting through IDeaS; (3) Hanson Dai v. SAS Institute Inc. (N.D. Cal.) - Sherman Act class action alleging improper rate-setting through IDeaS; (4) Ryan Segal v. Amadeus IT Group (N.D. Ill.) - Sherman Act class action alleging improper rate-setting through Amadeus; motion to dismiss granted on March 31, 2025, third amended complaint filed April 28, 2025; (5) Jeanette Portillo v. CoStar Group (W.D. Wash.) - Sherman Act class action alleging improper rate-setting through STR data exchange. Primary themes: one franchise termination dispute and four antitrust class actions involving alleged improper data sharing and rate-setting.
Items 10, 11
Training & Operations
- Classroom training
- 92 hrs
- On-the-job training
- 1 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Frequently asked questions
Frequently Asked Questions
What do Project Q by Hilton franchise owners earn?
Project Q 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 Project Q 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 Project Q by Hilton FDD and qualifies whose outlets they describe.
What is Project Q by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Project Q 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.
Is Project Q by Hilton a good franchise to buy?
FranchiseVerdict rates Project Q by Hilton as a C-grade franchise with a verdict score of 39 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.