Spark by Hilton franchise
2023 filing · March 30, 2023
Spark by Hilton at a glance
A hotel operating under the Spark by Hilton brand.
The business
- Industry
- Hotel
- Franchisor
- Hilton Franchise Holding LLC
- The company that sells the franchises
What you pay
- Cost to open
- $2.9M–$5.34M
- A new 100-room hotel, excluding real property
- Franchise fee
- $75,000
- Franchise application fee
- Royalty
- 5.5% of rooms revenue
- 5.5% of gross rooms revenue a month, plus a 3.5% monthly program fee
- Brand fund
- Yes
- 3.5% of gross rooms revenue as a monthly program fee covering marketing, reservations and other system services
- Agreement length
- 20 years
Where it is
- US locations, 2022
- 0
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 0
- Change in 3 years
- 0
- Franchised locations, 2020–2022
From Hilton Franchise Holding LLC’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Spark by Hilton among all franchises with the same figure.
| Figure | Spark by Hilton | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $4,121,140 | Costs more than 96% of franchises |
| Franchise feePaid once, when you sign | $75,000 | Higher than 95% 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 | 0 | Fewer than 97% of franchises |
How much a Spark by Hilton franchise costs
Opening a new 100-room hotel, excluding real property costs an estimated $2,902,390 to $5,339,890. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction/renovation and leasehold improvements ($1,100,000 to $2,700,000) and furniture, fixtures and equipment ($800,000 to $960,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| To Be Made Franchise Application Fee | $75,000 | ||
| Property Improvement Plan | $10,000 | ||
| Construction/Renovation and Leasehold Improvements | $1,100,000 | $2,700,000 | |
| To Be Made Designer and Engineering Fees | $22,000 | $54,000 | |
| Furniture, Fixtures and Equipment | $800,000 | $960,000 | |
| Inventory and Operating Equipment | $200,000 | $240,000 | |
| Signage | $20,000 | $30,000 | |
| Computer Hardware and Software Systems | $28,690 | $94,990 | |
| Guest Internet Access System | $57,700 | $71,400 | |
| Connected Room System | $20,500 | $24,500 | |
| Required Pre-Opening Training | $5,000 | $15,000 | |
| ADA Consultant Fee | $2,500 | $10,000 | |
| Renovation Extension Fees | $0 | $10,000 | |
| Organizational Expenses | $20,000 | $60,000 | |
| Permits and Licenses | $0 | $54,000 | |
| Miscellaneous Pre-Opening and Project Management Expenses | $150,000 | $230,000 | |
| Contingencies | $110,000 | $270,000 | |
| Additional Funds | $275,000 | $425,000 | |
| Other Required Pre-opening Services Fees | $6,000 | ||
| Total | $2,902,390 | $5,339,890 | |
Source: Hilton Franchise Holding LLC, 2023 filing, page 37
Spark by Hilton franchise fee
The franchise fee is $75,000, franchise application fee. 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 a month, plus a 3.5% monthly program fee. |
|---|---|
| Brand or marketing fund | 3.5% of gross rooms revenue as a monthly program fee covering marketing, reservations and other system services. |
| OnQ Hardware and Software Maintenance Fees | Currently, between $1,580 and $5,000 per month. |
| 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 pages 27–31. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Spark 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 82
SBA loans to Spark by Hilton franchisees
Lenders approved 28 SBA-backed loans for Spark by Hilton franchisees from 2023 to 2026, $90.4M in all: 21 7(a) loans and 7 504 loans. One has been paid in full; none was charged off. The other 27 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 Spark by Hilton compares
Of the 116 hotel franchises on this site, Spark by Hilton is the 41st cheapest to open and the smallest by number of locations.
| Figure | Spark by Hilton | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $2.9M | $9.44M | $222K |
| Cost to open, high end | $5.34M | $21.3M | $477K |
| Franchise fee | $75K | $54K | $40K |
| Royalty | 5.5% | 5% | 6% |
| US locations | 0 | 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 | 0 (0) | 0 | 0 | 0 |
| 2021 | 0 (0) | 0 | 0 | 0 |
| 2022 | 0 (0) | 0 | 0 | 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 82
Who owns Spark by Hilton?
Spark by Hilton franchises are sold by Hilton Franchise Holding LLC.
From Hilton Franchise Holding LLC’s 2023 filing.
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
Spark 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.
