Tapestry Collection by Hilton franchise
2023 filing · March 30, 2023
Tapestry Collection by Hilton at a glance
A Hilton collection of independent upscale hotels, each keeping its own character under the Tapestry name. At the end of 2022 there were 78 Tapestry Collection 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
- $3.35M–$118.2M
- Typical 250-room hotel, excluding land
- Franchise fee
- $100,000
- 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
- 78
- Franchised and company-owned
- Franchised
- 78
- Company-owned
- 0
- States
- 30
- Most in California, New York and Florida
From Hilton Franchise Holding LLC’s 2023 filing; revenue and net income from its audited financial statements, page 107; 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
Tapestry Collection by Hilton among all franchises with the same figure.
| Figure | Tapestry Collection by Hilton | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $60,797,382 | 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% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 78 | More than 72% of franchises |
How much a Tapestry Collection by Hilton franchise costs
Opening typical 250-room hotel, excluding land costs an estimated $3,348,325 to $118,246,439. 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 ($0 to $79,500,000) and furniture, fixtures & equipment ($0 to $14,000,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| TO BE MADE Franchise Application Fee | $100,000 | ||
| Property Improvement Plan | $0 | $10,000 | |
| Construction and Leasehold Improvements | $0 | $79,500,000 | |
| Designer & Engineering Fees | $0 | $3,500,000 | |
| Furniture, Fixtures & Equipment | $0 | $14,000,000 | |
| Inventory & Operating Equipment | $1,400,000 | $3,000,000 | |
| Signage | $1,000 | $15,000 | |
| Computer Hardware and Software | $150,695 | $332,655 | |
| Guest Internet Access Program | $116,000 | $186,000 | |
| Delphi Sales and Events System | $990 | $41,000 | |
| Required Pre-Opening Training | $5,000 | $15,000 | |
| ADA Consultant Fee | $6,000 | $15,000 | |
| Construction/Renovation Extension Fee | $0 | $10,000 | |
| Organizational Expense | $75,000 | $268,724 | |
| Permits & Licenses | $0 | $1,200,000 | |
| Miscellaneous Pre-Opening & Project Management Expenses | $570,000 | $1,800,000 | |
| Contingencies | $0 | $7,950,000 | |
| Additional Funds | $900,000 | $1,300,000 | |
| Eforea Spa Initial Fee | $0 | $25,000 | |
| TO BE MADE Additional Funds for Eforea Spa Implementation | $0 | $4,950,000 | |
| Other Required Pre-opening Services Fees | $23,640 | $28,060 | |
| Total | $3,348,325 | $118,246,439 | |
Source: Hilton Franchise Holding LLC, 2023 filing, page 39
Tapestry Collection by Hilton franchise fee
The franchise fee is $100,000, 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 23
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 28
Other fees as filed, from page 33. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Tapestry Collection 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 85
SBA loans to Tapestry Collection by Hilton franchisees
Lenders approved 7 SBA-backed loans for Tapestry Collection by Hilton franchisees from 2019 to 2026, $23M in all: 3 7(a) loans and 4 504 loans. None has been paid off or charged off 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 Tapestry Collection by Hilton compares
Of the 116 hotel franchises on this site, Tapestry Collection by Hilton is the 42nd cheapest to open and the 44th largest by number of locations.
| Figure | Tapestry Collection by Hilton | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $3.35M | $9.44M | $222K |
| Cost to open, high end | $118.2M | $21.3M | $477K |
| Franchise fee | $100K | $54K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 78 | 37 | 21 |
| Change in franchised locations, 0 yrs | +169% | +9.2% | – |
| 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 |
|---|---|---|
| 2020 | 43 (+14) | 0 |
| 2021 | 63 (+20) | 0 |
| 2022 | 78 (+15) | 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 85
Where Tapestry Collection by Hilton locations are
At the end of 2022, Tapestry Collection by Hilton had franchised locations in 31 states and territories. The most are in California, New York and Florida.
- California15
- New York7
- Florida6
- Iowa4
- Texas4
- Arkansas3
| State | Franchised |
|---|---|
| California | 15 |
| New York | 7 |
| Florida | 6 |
| Iowa | 4 |
| Texas | 4 |
| Arkansas | 3 |
| Pennsylvania | 3 |
| Virginia | 3 |
| Alabama | 2 |
| Connecticut | 2 |
All 31 states
Source: Hilton Franchise Holding LLC, 2023 filing, page 86
Who owns Tapestry Collection by Hilton?
Tapestry Collection by Hilton franchises are sold by Hilton Franchise Holding LLC. It is a subsidiary of Hilton Domestic Operating Company.
Tapestry Collection 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
Tapestry Collection 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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