The Unbound Collection by Hyatt®Franchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A The Unbound Collection by Hyatt® franchise does not disclose total investment in its current FDD, including a $100K franchise fee and an ongoing 7.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $100K
- 3rd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 7.0%
- 47th pct Lodging
- Units
- 18
- 21st 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
Franchised units fell from 10 to 8 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $100K including a $100K franchise fee, 7.0% ongoing royalty.
- Item 19 discloses "Occupancy Rate, Average Daily Rate and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict C (Average) with a risk score of 65/100.
- Item 19 reports "Occupancy Rate, Average Daily Rate and RevPAR" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hyatt Franchising, L.L.C.
- Parent company
- Hyatt Hotels Corporation
- Incorporated in
- DE
- HQ
- 150 North Riverside Plaza, Chicago, Illinois 60606
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $6.6B
- vs $7.1B prior year
Overview
About
Franchisees own and operate upper-upscale, independent-style hotel properties under the Unbound Collection brand within Hyatt's ecosystem. Day-to-day operations include managing guest experiences, staff, housekeeping, and front-desk functions while adhering to Hyatt standards and leveraging Hyatt's central reservation and loyalty system for bookings.
- CEO
- Mark Hoplamazian
- Headquarters
- IL
- Founded
- 2016
- FDD year
- 2026
- States available
- 6
FDD Item 7 · 2026 filing · 25 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
- $100K
- Better than avg vs category
- Liquid capital req'd
- N/A
- Near category avg vs category
- Franchise fee
- $100K – $100K
- Near category avg vs category
- Royalty
- 7.0%
- Gross Rooms Revenue from Channel Bookings · typical 6–8%
- Ad fund
- -n/d
- 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 |
| Total fee load | 10.9% of rev |
Financial Performance
This brand's FDD disclosed "Occupancy Rate, Average Daily Rate and RevPAR" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How The Unbound Collection by Hyatt® Compares
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 (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +25.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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 · 15 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).
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Small, opaque hotel franchise system with undisclosed financials, vague royalty structure, and unproven unit growth creating meaningful execution and profitability risks.
Litigation (Item 3)
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)
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 65 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed despite $318.54K average revenue claim — inability to verify earnings reliability
- 02MINOROnly 18 units system-wide with unknown growth trajectory — insufficient scale and visibility into expansion viability
- 03MINOR7% royalty on Channel Bookings only (not total revenue) — ambiguity on what constitutes eligible revenue and potential for disputes
- 04MINORInvestment range listed as $0–$0 with $100K franchise fee — unclear total capital requirements hide true cost of entry
- 05MED20-year term is unusually long for hotel franchise with limited franchisee exit flexibility
- 06MINORHyatt's luxury positioning may limit addressable market and franchisee pool compared to mid-scale brands
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 | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Area of Protection (Radius or geographic) |
| 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 |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| 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
28 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Unbound Collection by Hyatt® · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
What do The Unbound Collection by Hyatt® franchise owners earn?
The Unbound Collection by Hyatt® 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 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 C-grade franchise with a risk score of 65 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
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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.