Tru by HiltonFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Tru by Hilton franchise requires a total initial investment of $11.7M – $17.2M, including a $75K franchise fee and an ongoing 5.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 40 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $11.7M – $17.2M
- 41st pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 231
- 41st pct Lodging
- SBA default
- 0.0%
- system-wide median varies by category
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
Only 0.0% of 40 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 231 to 177 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $11.7M – $17.2M including a $75K franchise fee, 5.0% ongoing royalty.
- Item 19 discloses "Comparable Hotels" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 37/100. SBA loan charge-off rate of 0.0% across 40 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 30.5% CAGR over 3 years with 231 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
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees develop and operate limited-service, mid-scale hotels under the Tru by Hilton brand, managing daily operations including guest services, housekeeping, maintenance, and revenue management. They pay a $100,000 franchise fee, 5% of gross rooms revenue in royalties over a 22-year term, and are responsible for all property acquisition, construction, staffing, and working capital. Franchisees must maintain brand standards while competing in a territory with no exclusive protection.
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2023
- States available
- 42
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $300K | $500K |
| Equipment, build-out, other | $11.3M | $16.6M |
| Total initial investment | $11.7M | $17.2M |
Source: Tru by Hilton 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $11.7M – $17.2M
- Near category avg vs category
- Liquid capital req'd
- $300K – $500K
- Better than avg vs category
- Franchise fee
- $37K – $75K
- Better than 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 |
| Training fee | $18K |
| Transfer fee | $150K |
| Total fee load | 9.0% of rev |
Financial Performance
This brand's FDD disclosed "Comparable Hotels" 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 Tru by Hilton Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 231
- Opened
- 19
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +9.0%
- Net unit change last year
- 3-yr CAGR
- +30.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 7
- Transfer rate
- 3.0%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 45 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 40
- Loan volume
- $146.0M
- Median loan
- $5.0M
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Tru by Hilton's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 7-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 40 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tru by Hilton presents moderate-to-cautionary risk: substantial capital requirements lack transparent financial benchmarks, unprotected territories enable internal competition, and ongoing litigation signals compliance and operational management concerns.
Litigation (Item 3)
Four litigation matters disclosed: (1) Pending - State of Nebraska v. Hilton Domestic Operating Company Inc. - consumer protection action regarding mandatory guest fees disclosure (trial scheduled 2023); (2) Pending - Destin Platinum LLC v. Hampton Inns Franchise LLC - breach of contract franchisee suit (not yet served); (3) Concluded - Hilton Franchise Holding LLC v. Portland Hotel Ownership et al. - franchisor breach of contract suit against franchisee, settled July 28, 2022; (4) Concluded - San Pedro Inn, LP v. Hilton Franchise Holding LLC - wrongful termination under New Jersey Franchise Practices Act, settled September 25, 2020. One additional class action case (Kathleen Soule) referenced but 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 37 / 100 rating
- 01MEDNo average unit volume or net income disclosed in FDD Item 19, preventing ROI validation on $11.6M-$17.2M investment
- 02HIGHSignificant litigation portfolio including DOJ ADA consent decree, resort fee class actions, and trade secret misappropriation indicating operational and legal vulnerabilities
- 03MINORUnprotected territory creates direct competition risk; franchisees can cannibalize each other's RevPAR in same markets
- 04MED5% royalty on gross rooms revenue (not net) means franchisees pay fees even during low-occupancy periods; no performance thresholds disclosed
- 05MINORModest unit growth (9.0% YoY) across 231 locations suggests market saturation or slower-than-expected brand expansion relative to capital requirements
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 | 22 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Radius |
| 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
Four litigation matters disclosed: (1) Pending - State of Nebraska v. Hilton Domestic Operating Company Inc. - consumer protection action regarding mandatory guest fees disclosure (trial scheduled 2023); (2) Pending - Destin Platinum LLC v. Hampton Inns Franchise LLC - breach of contract franchisee suit (not yet served); (3) Concluded - Hilton Franchise Holding LLC v. Portland Hotel Ownership et al. - franchisor breach of contract suit against franchisee, settled July 28, 2022; (4) Concluded - San Pedro Inn, LP v. Hilton Franchise Holding LLC - wrongful termination under New Jersey Franchise Practices Act, settled September 25, 2020. One additional class action case (Kathleen Soule) referenced but incomplete in provided text.
Items 10, 11
Training & Operations
- Classroom training
- 165 hrs
- On-the-job training
- 9 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Item 20 · call current owners
Franchisee Contacts
90 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tru by Hilton · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Tru by Hilton franchise?
The total investment to open a Tru by Hilton franchise ranges from $11.7M – $17.2M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Tru by Hilton franchise owners earn?
Tru 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 Tru by Hilton's franchise failure rate?
Based on SBA 7(a) loan data, Tru by Hilton has a charge-off rate of 0.0% across 40 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Tru by Hilton franchise locations are there?
As of their most recent FDD filing, Tru by Hilton has 231 total units in the United States, including 231 franchised units and 0 company-owned units. 19 new units were opened in the latest reporting year.
Is Tru by Hilton a good franchise to buy?
FranchiseVerdict rates Tru by Hilton as a A-grade franchise with a risk score of 37 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.