Canopy by Hilton franchise
2023 filing · March 30, 2023Growing
Canopy by Hilton at a glance
A Hilton lifestyle hotel brand with locally inspired design, food and drink in each neighborhood. At the end of 2022 there were 26 Canopy by Hilton locations in the US, all franchised.
The business
- Industry
- Hotel
- Franchisor
- Hilton Franchise Holding LLC
- The company that sells the franchises
- Franchisor based in
- McLean, Virginia
What you pay
- Cost to open
- $57.3M–$141.9M
- New 200-room hotel, excluding land
- Franchise fee
- $85,000
- For a new or converted hotel, plus $400 for each room above 250.
- Royalty
- 5%
- 5% of gross rooms revenue, paid monthly
- Brand fund
- Yes
- 4% of gross rooms revenue as a monthly program fee covering marketing, reservations and other system services
Where it is
- US locations, 2022
- 26
- Franchised and company-owned
- Franchised
- 26
- Company-owned
- 0
- Change in 3 years
- +18
- Franchised locations, 2020–2022
- States
- 19
- Most in Texas, Arizona and District of Columbia
From Hilton Franchise Holding LLC’s 2023 filing; revenue and net income from its audited financial statements, page 98; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Canopy by Hilton among all franchises with the same figure.
| Figure | Canopy by Hilton | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $99,593,565 | Costs more than 100% of franchises |
| Franchise feePaid once, when you sign | $85,000 | Higher than 97% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 26 | More than 54% of franchises |
How much a Canopy by Hilton franchise costs
Opening new 200-room hotel, excluding land costs an estimated $57,290,140 to $141,896,989. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction and leasehold improvements ($40,500,000 to $101,000,000) and furniture, fixtures and equipment ($6,900,000 to $17,000,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| To be made Franchise Application Fee | $85,000 | ||
| To be made Property Improvement Plan | $0 | $10,000 | |
| Construction and Leasehold Improvements | $40,500,000 | $101,000,000 | |
| Designer and Engineering Fees | $1,600,000 | $4,000,000 | |
| Furniture, Fixtures and Equipment | $6,900,000 | $17,000,000 | |
| Inventory and Operating Equipment | $1,100,000 | $2,300,000 | |
| Signage | $20,000 | $60,000 | |
| Computer Software and Hardware Costs | $159,650 | $349,455 | |
| Guest Internet Access Program | $97,000 | $151,400 | |
| Delphi Sales and Events System | $990 | $41,000 | |
| Required Pre-Opening Training | $5,000 | $20,000 | |
| ADA Consultant Fee | $2,500 | $15,000 | |
| Construction/Renovation Extension Fees | $0 | $10,000 | |
| To be made Organization Expense | $50,000 | $235,134 | |
| Permits and Licenses | $600,000 | $1,500,000 | |
| Miscellaneous Pre-Opening and Project Management Expenses | $1,200,000 | $3,700,000 | |
| Contingencies | $4,050,000 | $10,100,000 | |
| Additional Funds | $900,000 | $1,300,000 | |
| Other Required Pre-opening Services Fees | $20,000 | ||
| Total | $57,290,140 | $141,896,989 | |
Source: Hilton Franchise Holding LLC, 2023 filing, page 37
Canopy by Hilton franchise fee
The franchise fee is $85,000, For a new or converted hotel, plus $400 for each room above 250.. You pay it when you sign the franchise agreement.
Source: Hilton Franchise Holding LLC, 2023 filing, page 22
Royalty and ongoing fees
| Royalty | 5% of gross rooms revenue, paid monthly. |
|---|---|
| Brand or marketing fund | 4% of gross rooms revenue as a monthly program fee covering marketing, reservations and other system services. |
| Permitted Transfer Processing Fee | Currently, $5,500. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Hilton Franchise Holding LLC, 2023 filing, page 27
Other fees as filed, from page 31. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Canopy by Hilton does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Hilton Franchise Holding LLC, 2023 filing, page 81
Growth and closures
Share of franchised locations, 2022 / 2020–2022. Typical means the median: half of brands are above it, half below.
| Measure | Canopy by Hilton | Typical hotel brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | +13% / +225% | +2.1% / +9.7% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 0% / 0% | 3.1% / 14% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical hotel brand is the median of the 47 brands in hotel franchises with three years of counts.
How Canopy by Hilton compares
Of the 116 hotel franchises on this site, Canopy by Hilton is the 108th cheapest to open and the 61st largest by number of locations.
| Figure | Canopy by Hilton | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $57.3M | $9.44M | $222K |
| Cost to open, high end | $141.9M | $21.3M | $477K |
| Franchise fee | $85K | $54K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 26 | 37 | 21 |
| Shares earnings figures | No | 71 of 116 | 2,147 of 3,352 |
Typical is the median across the 116 brands in hotel franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 20 (+12) | 0 | +12 | 0 |
| 2021 | 23 (+3) | 0 | +3 | 0 |
| 2022 | 26 (+3) | 0 | +3 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: hotel franchise costs and franchise failure rates.
Source: Hilton Franchise Holding LLC, 2023 filing, page 81
Where Canopy by Hilton locations are
At the end of 2022, Canopy by Hilton had franchised locations in 20 states and territories. The most are in Texas, Arizona and District of Columbia.
- Texas4
- Arizona2
- District of Columbia2
- Maryland2
- California1
- Florida1
| State | Franchised |
|---|---|
| Texas | 4 |
| Arizona | 2 |
| District of Columbia | 2 |
| Maryland | 2 |
| California | 1 |
| Florida | 1 |
| Georgia | 1 |
| Illinois | 1 |
| Louisiana | 1 |
| Maine | 1 |
All 20 states
| Massachusetts | 1 |
|---|---|
| Michigan | 1 |
| Minnesota | 1 |
| New Jersey | 1 |
| New York | 1 |
| North Carolina | 1 |
| Ohio | 1 |
| Oregon | 1 |
| Pennsylvania | 1 |
| Tennessee | 1 |
Source: Hilton Franchise Holding LLC, 2023 filing, page 82
Who owns Canopy by Hilton?
Canopy by Hilton franchises are sold by Hilton Franchise Holding LLC. It is a subsidiary of Hilton Domestic Operating Company.
Canopy by Hilton is one of the 15 Hilton brands here. Hilton Worldwide Holdings is a public company based in McLean, Virginia. Its shares trade on the New York Stock Exchange as HLT.
From Hilton Franchise Holding LLC’s 2023 filing, page 9; SEC.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 18–22. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Hilton Franchise Holding LLC, 2023 filing, litigation on pages 18–22, bankruptcy on page 22
Canopy by Hilton filings
The figures on this page come from Hilton Franchise Holding LLC’s 2023 filing, issued March 30, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | March 30, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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