Tapestry Collection by Hilton Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Tapestry Collection by Hilton is a soft-brand franchise for upscale, individually distinctive hotels. Franchisees own and operate a unique property while tapping Hilton's reservation, loyalty, and marketing systems.
FranchiseVerdict summary · 2026
A Tapestry Collection 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 2023 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 2023 FDD issuance
Overview
- Investment
- $3.3M
- 31st pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 78
- 42nd 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 $3.3M including a $100K franchise fee, 5.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict B (Above average), verdict score 54/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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
- Park Hotels & Resorts, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President (of 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
- $883.3M
- vs $1.2B prior year
Overview
About
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2023
- States available
- 32
Can you afford it, and what does the money buy?
Source: FDD 2023 · Items 5–7
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $3.3M
- Top 40% of category vs category
- Liquid capital req'd
- $900K – $1.3M
- Middle of category vs category
- Franchise fee
- $100K
- Middle 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 |
| Transfer fee | $150K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Tapestry Collection 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 Tapestry Collection 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: 2023 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 Tapestry Collection by Hilton Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 78
- Opened
- 14
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 15
- Transfers (3yr)
- 5
- Transfer rate
- 6.4%
- Owners selling to other franchisees
- Ceased ops
- 1.3%
- Units that stopped operating
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 38 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $12.5M
- Median loan
- $2.8M
- 50th percentile
- Charge-off rate
- N/A
- limited sample (5 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- 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
Hilton-backed hotel brand with very strong financials (net worth $662M, revenue $1.23B, net income $1.23B) and 78 franchised units. 8 litigation matters including a Nebraska consumer-protection suit, but this is routine relative to Hilton's system scale. Only concern is no Item 19 disclosure.
Litigation (Item 3)
Five cases disclosed: (1) State of Nebraska v. Hilton - pending government action alleging improper disclosure of mandatory guest fees, trial scheduled 2023; (2) Destin Platinum LLC v. Hampton Inns Franchise LLC - pending franchisee breach of contract suit regarding franchise termination for false records, not yet served; (3) Hilton Franchise Holding LLC v. Portland Hotel Ownership - concluded, settled July 2022, involved franchise termination and counterclaims for fraudulent inducement; (4) San Pedro Inn, LP v. Hilton Franchise Holding LLC - concluded, settled September 2020, wrongful termination claim under New Jersey Franchise Practices Act; (5) Kathleen Soule v. Hilton Worldwide, Inc. - class action, incomplete information provided
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: No
Score breakdown · what drove the 54 / 100 verdict
- 01MINORNo Item 19 disclosure
- 02HIGH8 litigation matters but routine for a large Hilton system
- 03MINORVery strong financials: net worth $662M, revenue $1.23B
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 2023 · 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 | Restricted |
| 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 | 8 |
View Item 3 litigation summary
Five cases disclosed: (1) State of Nebraska v. Hilton - pending government action alleging improper disclosure of mandatory guest fees, trial scheduled 2023; (2) Destin Platinum LLC v. Hampton Inns Franchise LLC - pending franchisee breach of contract suit regarding franchise termination for false records, not yet served; (3) Hilton Franchise Holding LLC v. Portland Hotel Ownership - concluded, settled July 2022, involved franchise termination and counterclaims for fraudulent inducement; (4) San Pedro Inn, LP v. Hilton Franchise Holding LLC - concluded, settled September 2020, wrongful termination claim under New Jersey Franchise Practices Act; (5) Kathleen Soule v. Hilton Worldwide, Inc. - class action, incomplete information provided
Items 10, 11
Training & Operations
- Classroom training
- 167 hrs
- On-the-job training
- 1 hrs
- Training location
- Franchisor location and on-site
- Ongoing training
- Required
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Item 20 · call current owners
Franchisee Contacts
55 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tapestry Collection by Hilton · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
What do Tapestry Collection by Hilton franchise owners earn?
Tapestry Collection 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 Tapestry 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 Tapestry Collection by Hilton FDD and qualifies whose outlets they describe.
What is Tapestry Collection by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Tapestry 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 Tapestry Collection by Hilton franchise locations are there?
As of their most recent FDD filing, Tapestry Collection by Hilton has 78 total units in the United States, including 78 franchised units and 0 company-owned units. 14 new units were opened in the latest reporting year.
Is Tapestry Collection by Hilton a good franchise to buy?
FranchiseVerdict rates Tapestry Collection by Hilton as a B-grade franchise with a verdict score of 54 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?
If you represent Tapestry Collection by Hilton, you can request corrections or provide updated information.
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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.