Hilton Franchise

Explore the prestigious world of hospitality with the Hilton Hotels & Resorts franchise. As a globally recognized brand, Hilton offers a luxurious and reliable experience to guests worldwide, making it a promising investment for prospective franchisees.

About Hilton Hotels & Resorts

The Hilton franchise is a part of Hilton Worldwide Holdings, Inc., a well-known leader in the hospitality industry. Established in 1962 and franchising since 1965, Hilton has built a robust portfolio that includes brands such as Canopy, Conrad Hotels and Resorts, Curio Collection, Doubletree, Embassy Suites, and more.

Investment Details

Investing in a Hilton Hotels & Resorts franchise requires a thorough understanding of various costs and fees involved. Below are some estimated initial investments for a new Hilton hotel with 300 rooms:

• Franchise Application Fee: $105,000
• Construction and Leasehold Improvements: $21,000,000 - $110,000,000
• Furniture, Fixtures, and Equipment: $10,000,000 - $20,000,000
• Environmental Assessment: Varies
• Signage: $40,000 - $120,000
• Insurance: Varies
• Additional Funds (working capital for 3 months): $1,300,000 - $1,900,000
• Estimated Total: $38,914,325 - $162,511,189 (does not include real estate costs)

Training and Support

Hilton provides comprehensive training programs to ensure franchisees and their teams are well-prepared. Training includes orientation, certification processes, and multiple workshops. Both virtual and classroom training options are available, offering flexibility to franchisees. In addition, Hilton hosts an annual brand or regional conference, which is mandatory for general managers and directors of sales.

Territory and Franchise Agreement

The Hilton franchise agreement typically spans 23 years for new hotels, with terms varying for conversions and changes of ownership. Franchisees are granted a non-exclusive license to operate under the Hilton brand, and in some cases, may be given specific territorial restrictions for a certain period. However, Hilton does not guarantee exclusive territories.

Obligations and Restrictions

Franchisees must ensure the hotel operates 24/7 and meets Hilton’s standards for services, amenities, and products. Qualified management is essential, either through the franchisee or an approved third-party management company. Financial and operational compliance with Hilton’s guidelines is a must for continued franchisee success.

Financial Assistance

While Hilton primarily offers development incentives rather than direct or indirect financing, franchisees can benefit from financial assistance programs that support hotel development or conversion. Additionally, in rare cases, Hilton might offer other financing options, such as mezzanine loans or guaranties.

Ongoing Fees

Hilton franchisees are responsible for several ongoing fees, including:

• Monthly Royalty Fee: 5% of gross rooms revenue
• Monthly Food and Beverage Fee: 3% of gross food and beverage revenue
• Monthly Spa Royalty Fee: 2% of gross spa revenue
• Monthly Program Fee: 4% of gross rooms revenue

These fees ensure continued support and alignment with Hilton’s standards.

Key Takeaways

• Hilton is a globally recognized and trusted hotel brand.
• Initial investment ranges from $38.9 million to $162.5 million.
• Comprehensive training and support are provided.
• Non-exclusive territories with potential territorial restrictions.
• Multiple ongoing fees to maintain brand standards and support.

If you are interested in becoming a part of the Hilton Hotels & Resorts legacy, download the full Franchise Disclosure Document (FDD) or fill out the free information request form on this page.