Homewood Suites by Hilton franchise
2023 filing · March 30, 2023GrowingShares sales figures
Homewood Suites by Hilton at a glance
A Hilton upscale extended-stay hotel brand with residential-style suites at moderate prices. At the end of 2022 there were 508 Homewood Suites 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
- $21.4M–$31.8M
- New 131-suite hotel, excluding land
- Franchise fee
- $100,000
- For a new or converted hotel, plus $400 for each suite above 150.
- Royalty
- 3.5–5.5%
- 3.5% of gross rooms revenue in the first year, 4.5% in the second and 5.5% after that for a new or converted hotel; 5.5% for a change of ownership
- Brand fund
- Yes
- 3.5% of gross rooms revenue as a monthly program fee covering marketing, reservations and other system services
Where it is
- US locations, 2022
- 508
- Franchised and company-owned
- Franchised
- 508
- Company-owned
- 0
- Change in 3 years
- +28
- Franchised locations, 2020–2022
- States
- 48
- Most in Texas, California and Florida
From Hilton Franchise Holding LLC’s 2023 filing; revenue and net income from its audited financial statements, page 132; 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
Homewood Suites by Hilton among all franchises with the same figure.
| Figure | Homewood Suites by Hilton | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $26,626,384 | 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 | 508 | More than 94% of franchises |
How much a Homewood Suites by Hilton franchise costs
Opening new 131-suite hotel, excluding land costs an estimated $21,418,010 to $31,834,757. 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 ($14,913,000 to $21,735,000) and furniture, fixtures and equipment ($2,760,000 to $4,226,000). 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 | $14,913,000 | $21,735,000 | |
| Design and Engineering Fees | $447,390 | $652,050 | |
| Furniture, Fixtures and Equipment | $2,760,000 | $4,226,000 | |
| Inventory and Operating Equipment | $231,000 | $577,500 | |
| Signage | $19,800 | $82,500 | |
| Computer Hardware and Software | $55,695 | $149,145 | |
| Guest Internet Access Program | $64,250 | $77,500 | |
| Delphi Sales and Events System | $990 | $18,600 | |
| Required Pre-Opening Training | $5,000 | $17,500 | |
| ADA Consultant | $2,500 | $15,000 | |
| Construction/Renovation Extension Fees | $0 | $10,000 | |
| Organizational Expense | $50,000 | $130,887 | |
| Permits, Licenses and Governmental Fees | $223,695 | $326,025 | |
| Miscellaneous Pre-Opening and Project Management Expenses | $447,390 | $652,050 | |
| Contingencies | $1,491,300 | $2,173,500 | |
| Additional Funds | $600,000 | $900,000 | |
| Other Required Pre-Opening Services Fees | $6,000 | ||
| Total | $21,418,010 | $31,834,757 | |
Source: Hilton Franchise Holding LLC, 2023 filing, page 38
Homewood Suites by Hilton franchise fee
The franchise fee is $100,000, For a new or converted hotel, plus $400 for each suite 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 | 3.5% of gross rooms revenue in the first year, 4.5% in the second and 5.5% after that for a new or converted hotel; 5.5% for a change of ownership. |
|---|---|
| Brand or marketing fund | 3.5% 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 Homewood Suites by Hilton 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 Homewood Suites by Hilton franchisees
Lenders approved 30 SBA-backed loans for Homewood Suites by Hilton franchisees from 2013 to 2026, $116.9M in all: 4 7(a) loans and 26 504 loans. All 6 that have ended were paid in full; none was charged off. The other 24 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
Growth and closures
Share of franchised locations, 2022 / 2020–2022. Typical means the median: half of brands are above it, half below.
| Measure | Homewood Suites by Hilton | Typical hotel brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | +1.8% / +5.8% | +2.1% / +9.7% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 1% / 2.3% | 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 Homewood Suites by Hilton compares
Of the 116 hotel franchises on this site, Homewood Suites by Hilton is the 93rd cheapest to open and the 13th largest by number of locations.
| Figure | Homewood Suites by Hilton | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $21.4M | $9.44M | $222K |
| Cost to open, high end | $31.8M | $21.3M | $477K |
| Franchise fee | $100K | $54K | $40K |
| Royalty | 5.5% | 5% | 6% |
| US locations | 508 | 37 | 21 |
| 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 | Opened | Closed |
|---|---|---|---|---|
| 2020 | 486 (+6) | 0 | +9 | −3 |
| 2021 | 499 (+13) | 0 | +16 | −3 |
| 2022 | 508 (+9) | 0 | +12 | −5 |
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 Homewood Suites by Hilton locations are
At the end of 2022, Homewood Suites by Hilton had franchised locations in 49 states and territories. The most are in Texas, California and Florida.
- Texas69
- California42
- Florida38
- Pennsylvania23
- New York21
- Virginia21
| State | Franchised |
|---|---|
| Texas | 69 |
| California | 42 |
| Florida | 38 |
| Pennsylvania | 23 |
| New York | 21 |
| Virginia | 21 |
| Ohio | 19 |
| North Carolina | 17 |
| Georgia | 16 |
| Colorado | 14 |
All 49 states
Source: Hilton Franchise Holding LLC, 2023 filing, page 86
Who owns Homewood Suites by Hilton?
Homewood Suites by Hilton franchises are sold by Hilton Franchise Holding LLC. It is a subsidiary of Hilton Domestic Operating Company.
Homewood Suites 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 18–21. |
|---|---|
| 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 18–21, bankruptcy on page 22
Homewood Suites 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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