Hilton Garden Inn franchise
2023 filing · March 30, 2023Shares sales figures
Hilton Garden Inn at a glance
A Hilton upscale select-service hotel brand with a restaurant, meeting space and modern rooms for business and leisure travelers. At the end of 2022 there were 743 Hilton Garden Inn 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
- $21.4M–$32.8M
- New 132-room hotel, excluding land
- Franchise fee
- $100,000
- For a new or converted hotel, plus $400 for each room above 150.
- Royalty
- 5.5%
- 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
- 743
- Franchised and company-owned
- Franchised
- 743
- Company-owned
- 0
- States
- 50
- Most in Texas, California and Florida
From Hilton Franchise Holding LLC’s 2023 filing; revenue and net income from its audited financial statements, page 127; 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
Hilton Garden Inn among all franchises with the same figure.
| Figure | Hilton Garden Inn | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $27,097,103 | Costs more than 99% of franchises |
| Franchise feePaid once, when you sign | $100,000 | Higher than 98% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5.5% | Lower than 66% of brands with a set rate |
| US locationsFranchised and company-owned | 743 | More than 96% of franchises |
How much a Hilton Garden Inn franchise costs
Opening new 132-room hotel, excluding land costs an estimated $21,376,517 to $32,817,689. 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 ($15,093,750 to $22,388,750) and furniture, fixtures, equipment ($2,716,875 to $4,528,125). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Franchise Application Fee | $100,000 | ||
| Property Improvement Plan | $0 | $10,000 | |
| Construction and Leasehold Improvements | $15,093,750 | $22,388,750 | |
| Design and Engineering Fees | $452,813 | $670,163 | |
| Furniture, Fixtures, Equipment | $2,716,875 | $4,528,125 | |
| Inventory and Operating Equipment | $220,000 | $550,000 | |
| Signage | $20,000 | $75,000 | |
| Computer Hardware and Software | $55,695 | $149,145 | |
| Guest Internet Access Program | $64,300 | $100,000 | |
| Delphi Sales and Events System | $990 | $33,000 | |
| Required Pre-Opening Training | $5,000 | $17,500 | |
| ADA Consultant Fee | $2,500 | $10,000 | |
| Construction/Renovation Extension Fees | $0 | $10,000 | |
| Organizational Expense | $50,000 | $130,887 | |
| Permits and Licenses | $226,406 | $335,081 | |
| Miscellaneous Pre-Opening and Project Management Expenses | $452,813 | $670,163 | |
| Contingencies | $1,509,375 | $2,233,875 | |
| Additional Funds | $400,000 | $800,000 | |
| Other Required Pre-Opening Services Fees | $6,000 | ||
| Total | $21,376,517 | $32,817,689 | |
Source: Hilton Franchise Holding LLC, 2023 filing, page 38
Hilton Garden Inn franchise fee
The franchise fee is $100,000, For a new or converted hotel, plus $400 for each room above 150.. You pay it when you sign the franchise agreement.
Source: Hilton Franchise Holding LLC, 2023 filing, page 22
Royalty and ongoing fees
| Royalty | 5.5% 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 26
Other fees as filed, from page 31. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Hilton Garden Inn publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Hilton Franchise Holding LLC, 2023 filing, page 79
SBA loans to Hilton Garden Inn franchisees
Lenders approved 26 SBA-backed loans for Hilton Garden Inn franchisees from 2012 to 2026, $109.5M in all: 5 7(a) loans and 21 504 loans. Of the 9 that have ended, 8 were paid in full and 1 was charged off. The other 17 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How Hilton Garden Inn compares
Of the 116 hotel franchises on this site, Hilton Garden Inn is the 92nd cheapest to open and the 6th largest by number of locations.
| Figure | Hilton Garden Inn | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $21.4M | $9.44M | $222K |
| Cost to open, high end | $32.8M | $21.3M | $477K |
| Franchise fee | $100K | $54K | $40K |
| Royalty | 5.5% | 5% | 6% |
| US locations | 743 | 37 | 21 |
| Change in franchised locations, 0 yrs | +8.3% | +9.2% | – |
| Shares earnings figures | Yes | 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 |
|---|---|---|
| 2020 | 710 (+24) | 0 |
| 2021 | 732 (+22) | 0 |
| 2022 | 743 (+11) | 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 83
Where Hilton Garden Inn locations are
At the end of 2022, Hilton Garden Inn had franchised locations in 51 states and territories. The most are in Texas, California and Florida.
- Texas72
- California58
- Florida55
- New York40
- Georgia31
- North Carolina30
| State | Franchised |
|---|---|
| Texas | 72 |
| California | 58 |
| Florida | 55 |
| New York | 40 |
| Georgia | 31 |
| North Carolina | 30 |
| Virginia | 29 |
| Ohio | 24 |
| Pennsylvania | 24 |
| Illinois | 23 |
All 51 states
Source: Hilton Franchise Holding LLC, 2023 filing, page 86
Who owns Hilton Garden Inn?
Hilton Garden Inn franchises are sold by Hilton Franchise Holding LLC. It is a subsidiary of Hilton Domestic Operating Company.
Hilton Garden Inn 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
Hilton Garden Inn 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.
Other hotel franchises
All hotel franchises
Other brands from Hilton: Canopy by Hilton, Curio Collection by Hilton, DoubleTree by Hilton, Embassy Suites by Hilton, Hampton Inn, Hilton Hotels & Resorts, Home2 Suites by Hilton, Homewood Suites by Hilton and 6 more. See all 15 in the finder