Tempo by Hilton Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Tempo by Hilton is a midscale lifestyle hotel franchise offering modern, wellness-minded properties. Franchisees develop and operate the hotels, managing front desk, housekeeping, and revenue under Hilton standards.
FranchiseVerdict summary · 2026
A Tempo 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: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $20.3M
- 61st 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 $20.3M 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 D (Below average), verdict score 38/100 (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)
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- Incorporated in
- Delaware
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $1.2B
- vs $883.3M prior year
Overview
About
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2023
- States available
- 0
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
- $20.3M
- Middle of category vs category
- Liquid capital req'd
- $500K – $900K
- 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 |
| Training fee | $18K |
| Transfer fee | $150K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Tempo 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 Tempo 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.
0%
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 Tempo by Hilton Compares
Is the system healthy?
Source: FDD 2023 · 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
- 2
- Franchisor's next-year forecast
No multi-year history disclosed and no opening/closing activity in the last reporting year.
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 hotel brand (0 units open) backed by a strong franchisor ($662M net worth, $1.23B net income). 8 disclosed litigation cases exist but are routine for a system of Hilton's scale and mostly involve affiliated Hilton brands rather than Tempo. No Item 19, no bankruptcy/going-concern.
Litigation (Item 3)
Five cases disclosed: (1) State of Nebraska v. Hilton Domestic Operating Company Inc. - pending government action alleging violations of Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act regarding mandatory guest fee disclosures, trial scheduled for 2023; (2) Destin Platinum LLC v. Hampton Inns Franchise LLC - pending franchise termination dispute alleging breach of contract, not yet served; (3) Hilton Franchise Holding LLC v. Portland Hotel Ownership - concluded in June 2022 settlement dismissing all claims regarding early franchise termination and promissory note breach; (4) San Pedro Inn, LP v. Hilton Franchise Holding LLC - concluded in September 2020 settlement regarding wrongful termination claim under New Jersey Franchise Practices Act; (5) Kathleen Soule v. Hilton Worldwide, Inc. - class action (description incomplete in provided text).
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 38 / 100 verdict
- 01MINORPre-opening: 0 units open
- 02HIGH8 litigation cases, but routine relative to Hilton's system scale and largely affiliate-related
- 03MINORStrong financials: net worth $662M, net income $1.23B
- 04MINORNo Item 19; no bankruptcy/going-concern
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 | 22 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 |
| Non-compete (years)ℹ | 3 years |
| 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 Domestic Operating Company Inc. - pending government action alleging violations of Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act regarding mandatory guest fee disclosures, trial scheduled for 2023; (2) Destin Platinum LLC v. Hampton Inns Franchise LLC - pending franchise termination dispute alleging breach of contract, not yet served; (3) Hilton Franchise Holding LLC v. Portland Hotel Ownership - concluded in June 2022 settlement dismissing all claims regarding early franchise termination and promissory note breach; (4) San Pedro Inn, LP v. Hilton Franchise Holding LLC - concluded in September 2020 settlement regarding wrongful termination claim under New Jersey Franchise Practices Act; (5) Kathleen Soule v. Hilton Worldwide, Inc. - class action (description incomplete in provided text).
Items 10, 11
Training & Operations
- Classroom training
- 143 hrs
- On-the-job training
- 6 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tempo by Hilton · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
What do Tempo by Hilton franchise owners earn?
Tempo 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 Tempo 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 Tempo by Hilton FDD and qualifies whose outlets they describe.
What is Tempo by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Tempo 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 Tempo by Hilton a good franchise to buy?
FranchiseVerdict rates Tempo by Hilton as a D-grade franchise with a verdict score of 38 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 Tempo by Hilton, you can request corrections or provide updated information.
Other 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.