Tapestry Collection by Hilton
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.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Tapestry Collection by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 64 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
68 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Tapestry Collection by Hilton · FDD (2023) PDF