The Unbound Collection by Hyatt® Franchise Cost, Revenue & Review 2026
- Investment
- $70.4M – $125.2M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
The Unbound Collection by Hyatt is an upper-upscale hotel franchise of distinctive, independent-style properties. Franchisees own and operate the hotels, managing guest services and revenue under Hyatt standards.
FranchiseVerdict summary · 2026
A The Unbound Collection by Hyatt® franchise requires a total initial investment of $70.4M – $125.2M, including a $100K franchise fee and an ongoing 7.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $70.4M – $125.2M
- 70th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 7.0%
- 65th pct Lodging
- Units
- 18
- 27th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · 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 $70.4M – $125.2M including a $100K franchise fee, 7.0% ongoing royalty.
- RETURNSItem 19 for 18 Covered Hotels (11 franchised, 7 owned/managed) reports only hotel operating statistics for 2025, not whole-unit revenue. Metrics disclosed: Average Occupancy Rate (all 67.2%; franchised 66.8%), Average Daily Rate (all $318.54; franchised $273.73), and RevPAR/revenue per available room (all $213.93; franchised $182.90). Also Smith Travel Occupancy/Rate/RevPAR indices, and World of Hyatt loyalty revenue/room-night contribution. RevPAR is a per-available-room metric, not whole-unit annual sales, so no per-unit gross revenue is derivable. FDD explicitly states figures do not reflect costs of sales, operating expenses, or other costs needed to obtain net income or profit; therefore no net income is disclosed.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (1 opened, 1 closed) (Item 20).
- DATAItem 19 reports Occupancy Rate, Average Daily Rate and RevPAR rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hyatt Franchising, L.L.C.
- Parent company
- Hyatt Hotels Corporation
- FDD Item 1, page 9 of the 2026 FDD
- Predecessor
- Hyatt Franchise Corporation
- Prior franchisor entity
- CEO title
- Chief Growth Officer (Interim); President and CEO of Hyatt Hotels Corporation
- Mark Hoplamazian
- Incorporated in
- Delaware
- HQ
- 150 North Riverside Plaza, Chicago, Illinois 60606
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $7.1B
- vs $6.6B prior year
Same owner · FDD Item 1, page 9
9 other brands on this site name Hyatt Hotels Corporation as parent or ultimate parent in their own FDD.
- Caption by HyattB
- Destination by HyattB
- Hyatt CentricA
- Hyatt HouseA
- Hyatt PlaceA
- Hyatt Regency HotelA
- Hyatt StudiosC
- JdV by HyattB
- Unscripted by HyattC
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Mark Hoplamazian
- Headquarters
- IL
- Founded
- 2016
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 999% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown25 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Fee | $100K | $100K | |
| Comfort letter fee(s) | $0 | $3K | |
| Market study | $25K | $50K | |
| Design Review Fee | $80K | $175K | |
| Extension of opening deadline | $0 | $10K | |
| IT Project Management Services expense reimbursement | $11K | $18K | |
| Signage | $10K | $120K | |
| Telecommunications systems and certain Technology System equipment and fees | $328K | $328K | |
| Architecture and design | $1.4M | $3.2M | |
| Construction, improvements, remodeling, decorating costs and other sitework | $56.6M | $100.6M | |
| Furniture, fixtures, other fixed assets and equipment | $8.0M | $13.0M | |
| Operating supplies & equipment | $2.4M | $3.4M | |
| General and administrative buildout costs | $420K | $700K | |
| Revenue management fees | $0 | $26K | |
| Field marketing program fees | $0 | $9K | |
| Pre-opening marketing and sales expenses | $100K | $800K | |
| Liquor license | $30K | $400K | |
| Operator approval fees | $0 | $65K | |
| PIP fee | $0 | $10K | |
| Training expenses (fees and reimbursements payable to us) | $24K | $57K | |
| Total initial investment | $70.4M | $125.2M |
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
- $70.4M – $125.2M
- Bottom third — review vs category
- Liquid capital req'd
- $650K – $1.3M
- Middle of category vs category
- Franchise fee
- $100K – $100K
- Middle of category vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- No traditional advertising fund; World of Hyatt program a…
- Total fee load
- 10.9%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Technology fee | $3 |
| Training fee | $30K |
| Transfer fee | $100K |
| Renewal fee | $10K |
| Inventory (initial) | $2.4M – $3.4M |
| Total fee load | 10.9% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for The Unbound Collection by Hyatt® is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one The Unbound Collection by Hyatt® unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2026 FDD
Financial Performance
Item 19 for 18 Covered Hotels (11 franchised, 7 owned/managed) reports only hotel operating statistics for 2025, not whole-unit revenue. Metrics disclosed: Average Occupancy Rate (all 67.2%; franchised 66.8%), Average Daily Rate (all $318.54; franchised $273.73), and RevPAR/revenue per available room (all $213.93; franchised $182.90). Also Smith Travel Occupancy/Rate/RevPAR indices, and World of Hyatt loyalty revenue/room-night contribution. RevPAR is a per-available-room metric, not whole-unit annual sales, so no per-unit gross revenue is derivable. FDD explicitly states figures do not reflect costs of sales, operating expenses, or other costs needed to obtain net income or profit; therefore no net income is disclosed.
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 10.9% — above the Lodging median of 8.5%.
Disclosure
Item 19 reports Occupancy Rate, Average Daily Rate and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 25.0% CAGR over 3 years across 18 units — operators are staying and new ones are joining.
Multi-unit rate
Only 10% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 medians
How The Unbound Collection by Hyatt® Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 1
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.6%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 56%
- vs corporate-owned
- Multi-unit owners
- 9.5%
- Net growth (3-yr)
- +25.0%
- Net unit change over 3 years
- 3-yr CAGR
- +25.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Termination rate
- 5.6%
- Franchisor-initiated terminations
- Ceased ops
- 5.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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.
Available to sell in · Item 12
- Illinois
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
18 current owners across 12 states.
- IL 3
- CA 2
- LA 2
- NY 2
- PA 2
- CT 1
- FL 1
- MA 1
- MD 1
- OK 1
- SD 1
- TN 1
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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 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
Hyatt-backed hotel franchise with parent-level financials (net worth $3.66B, revenue $7.1B); parent net income -$52M is not brand-specific and not penalized. No litigation, bankruptcy, or going-concern; audited financials and Item 19 disclosed. 18 units with 25% net growth.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 71 / 100 verdict
- 01MINORParent-level financials (Hyatt), $3.66B net worth
- 02MINORParent net income -$52M not brand-specific
- 03MINORNo litigation/bankruptcy/going-concern
- 04MINOR18 units, 25% net growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.9% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| 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 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Within 10 miles of franchisor's principal business address (currently Chicago, Illinois) |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 95 hrs
- On-the-job training
- 95 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Opera PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Opera PMS
Item 20 · call current owners
Franchisee Contacts
19 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Unbound Collection by Hyatt® franchise?
The total investment to open a The Unbound Collection by Hyatt® franchise ranges from $70.4M – $125.2M, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Unbound Collection by Hyatt® franchise owners earn?
Item 19 of the The Unbound Collection by Hyatt® FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns The Unbound Collection by Hyatt®?
The Unbound Collection by Hyatt® is franchised by Hyatt Franchising, L.L.C.. Its parent company is Hyatt Hotels Corporation. Source: FDD Item 1, 2026 filing.
What is Item 19 in the The Unbound Collection by Hyatt® 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 The Unbound Collection by Hyatt® FDD and qualifies whose outlets they describe.
What is The Unbound Collection by Hyatt®'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Unbound Collection by Hyatt® (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 The Unbound Collection by Hyatt® franchise locations are there?
As of their most recent FDD filing, The Unbound Collection by Hyatt® has 18 total units in the United States, including 10 franchised units and 8 company-owned units. 1 new units were opened in the latest reporting year.
Is The Unbound Collection by Hyatt® a good franchise to buy?
FranchiseVerdict rates The Unbound Collection by Hyatt® as a A-grade franchise with a verdict score of 71 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.