Tru by Hilton Franchise Cost, Revenue & Review 2026
- Investment
- $11.7M – $17.2M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 40 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Tru by Hilton is a limited-service, midscale hotel franchise with a modern, budget-friendly design. Franchisees develop and operate individual properties, running rooms and guest services on Hilton's systems.
FranchiseVerdict summary · 2026
A Tru by Hilton franchise requires a total initial investment of $11.7M – $17.2M, including a $100K franchise fee and an ongoing 5.0% royalty[2]. The 2023 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: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
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 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $11.7M – $17.2M
- 46th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 231
- 55th 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 $11.7M – $17.2M including a $100K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports occupancy, ADR, RevPAR and market index rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHPositive: net +19 franchised outlets in the latest year (19 opened, 0 closed) (Item 20).
- GROWTHSystem growing at 100.9% CAGR over 3 years with 231 total units. Strong expansion trajectory.
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.
- FDD Item 1, page 9 of the 2023 FDD
- Ultimate parent
- Hilton Worldwide Holdings Inc. (NYSE: HLT)
- FDD Item 1, page 9 of the 2023 FDD
- Predecessor
- Park Hotels & Resorts, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President (Hilton Worldwide)
- 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
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 9
17 other brands on this site name Hilton Worldwide Holdings Inc. (NYSE: HLT) as parent or ultimate parent in their own FDD.
- Apartment Collection by HiltonC
- Canopy by HiltonB
- Curio Collection by HiltonB
- DoubleTree by HiltonA
- Embassy Suites by HiltonB
- Graduate by HiltonB
- Hampton by HiltonA
- Hilton Garden InnA
- Home2 Suites by HiltonA
- Homewood Suites by HiltonA
- LXRB
- Motto by HiltonB
- Outset Collection by HiltonC
- Project Q by HiltonC
- Tapestry Collection by HiltonB
- Tempo by HiltonC
- Undergraduate by HiltonC
Grouped by the owner's name as each filing prints it (this page: the 2023 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
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2023
- States available
- 42
Can you afford it, and what does the money buy?
Entry cost runs 62% above the typical lodging franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $100K | $100K |
| 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
- Middle of category vs category
- Liquid capital req'd
- $300K – $500K
- Top 40% of category vs category
- Franchise fee
- $100K – $100K
- Middle of category vs category
- Royalty
- 5.0%
- 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 |
| Technology fee | $1K |
| Training fee | $18K |
| Transfer fee | $150K |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2023 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Tru by Hilton 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 Tru by Hilton 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, 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: 2023 FDD
Financial Performance
Item 19 reports occupancy, ADR, RevPAR and market index rather than annual gross sales, so unit revenue is not directly comparable. We omit it from rankings.
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 median).
Disclosure
Item 19 reports occupancy, ADR, RevPAR and market index rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 100.9% CAGR over 3 years across 231 units — operators are staying and new ones are joining.
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 Tru by Hilton 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 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 231
- Opened
- 19
- Last reporting year
- Closed
- 0
- Turnover rate
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +100.9%
- Net unit change over 3 years
- 3-yr CAGR
- +100.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- 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 · 42 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.
Where the owners are · Item 20 owner list
76 current owners across 42 states.
- FL 5
- SC 5
- TN 5
- TX 5
- MI 4
- NC 4
- OH 3
- UT 3
- VA 3
- AL 2
- IN 2
- KY 2
- +30 more states
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.
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
- Limited · 40 loans
- Limited SBA coverage: 40 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 40 loans
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
- Typical loan rate
- 6.4%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- n=9,970 loans
- Jobs supported
- 180
- 0.6 per loan
- Lender concentration
- 29%
- top lender's share
Borrower mix: 67% went to startups / new businesses, 33% to established operators
Franchise vs independent — in hotels (except casino hotels) and motels, franchised businesses charge off at 6.3% vs 9.2% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing Tru by Hilton franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Tru by Hilton from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 6.36%
- Lender concentration
- 28.6%
- Job velocity
- 0.6 per $100K
- NAICS benchmark
- 7.6%
- NAICS 721110
- Jobs supported
- 180
Top SBA lendersTop lender holds 29% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | GBank | 2 | $10.0M | N/A |
| 2 | First Commonwealth Bank | 1 | $5.0M | 0.0% |
| 3 | Synovus Bank | 1 | $5.0M | 0.0% |
| 4 | Community Trust Bank, Inc. | 1 | $279K | 0.0% |
| 5 | Millennium Bank | 1 | $5.0M | N/A |
| 6 | Summit State Bank | 1 | $5.0M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 2 | 0 | -- |
| CACalifornia | 1 | 0 | 0.0% |
| MSMississippi | 1 | 0 | -- |
| PAPennsylvania | 1 | 0 | 0.0% |
| SCSouth Carolina | 1 | 0 | 0.0% |
| TNTennessee | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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
Hilton-backed hotel brand with 231 units, massive financials (net worth $662M, revenue $1.23B, net income $1.23B), audited, Item 19 disclosed. The 6 litigation matters (2 pending, mostly Hilton-wide or single-property breach suits) are routine and immaterial relative to Hilton's scale.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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)
ⓘ 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 75 / 100 verdict
- 01HIGH6 litigation matters but routine and immaterial for a Hilton-scale franchisor
- 02MINORVery strong financials: net worth $662M, net income $1.23B
- 03MINORClean: no bankruptcy, no going-concern, audited, Item 19 present
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 |
|---|---|
| Renewal term | 0 years |
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Radius |
| 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 |
| Termination groundsℹ | 16 |
| Mandatory arbitration | No |
| Arbitration location | Puerto Rico franchisees only; venue Fairfax County, VA, seat New York, NY |
| 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
- Franchisor financing
- Not offered
- Item 10
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Item 20 · call current owners
Franchisee Contacts
77 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 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 $100K. 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?
Item 19 of the Tru by Hilton 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 Tru by Hilton?
Tru by Hilton is franchised by Hilton Franchise Holding LLC. Its parent company is Hilton Domestic Operating Company Inc.. The ultimate parent named in the FDD is Hilton Worldwide Holdings Inc. (NYSE: HLT). Source: FDD Item 1, 2023 filing.
What is Item 19 in the Tru 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 Tru by Hilton FDD and qualifies whose outlets they describe.
What is Tru by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Tru 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.
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 verdict score of 75 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.