Tapestry Collection by HiltonFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $3.3M
- 32nd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 78
- 32nd pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system grew 24% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $3.3M including a $100K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 58/100.
- System growing at 81.4% CAGR over 3 years with 78 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- 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
- Audited financials
- Franchisor revenue
- $883.3M
- vs $1.2B prior year
Overview
About
Franchisees develop, own, and operate upscale independent-style hotels under the Tapestry Collection brand (part of Marriott's soft-brands portfolio). Day-to-day operations include hotel management, guest services, revenue optimization, brand compliance, and payment of 5% of gross room revenue as royalties to Hilton/Marriott while maintaining property-specific autonomy.
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2023
- States available
- 32
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $3.3M
- Better than avg vs category
- Liquid capital req'd
- $900K – $1.3M
- Near category avg vs category
- Franchise fee
- $100K – $150K
- Near category avg 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 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Tapestry Collection by Hilton Compares
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
- Net growth (yr3)
- +23.8%
- Net unit change last year
- 3-yr CAGR
- +81.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
- Transfer rate
- 6.4%
- Owners selling to other franchisees
- Ceased ops
- 1.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 43 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.
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 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
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
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Tapestry Collection by Hilton's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tapestry Collection presents caution-level risk due to pending litigation, absent financial disclosures, unprotected territory, and a history of franchisor compliance issues that impair ability to assess true investment returns.
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 58 / 100 rating
- 01HIGHActive litigation regarding mandatory guest fees and breach of contract claims signal operational/disclosure compliance issues
- 02MINORNo revenue or net income disclosure (Item 19) prevents ROI validation for a $3.3M+ investment
- 03MINORPrior DOJ consent decree on ADA compliance and settled breach of contract claims with former franchisees indicate franchisor relationship problems
- 04MINORUnprotected territory creates direct competition risk within same brand system
- 05MED23-year term is exceptionally long with limited exit flexibility in hospitality sector
- 06MINORRapid 23.8% YoY growth may indicate over-expansion that strains support systems or saturates markets
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 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
68 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 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 43 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 risk score of 58 out of 100, 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.
Claim this brandOther Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.