Tempo by Hilton franchise
2023 filing · March 30, 2023
Tempo by Hilton at a glance
A Hilton lifestyle hotel brand for travelers who want design-led rooms, wellness features and a lively bar.
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
- $20.3M–$96.4M
- Typical 143-room hotel, excluding land
- Franchise fee
- $100,000
- For a new or converted hotel, plus $400 for each additional room.
- 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
- 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; revenue and net income from its audited financial statements, page 93; 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
Tempo by Hilton among all franchises with the same figure.
| Figure | Tempo by Hilton | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $58,369,744 | 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 | 0 | Fewer than 97% of franchises |
How much a Tempo by Hilton franchise costs
Opening typical 143-room hotel, excluding land costs an estimated $20,333,435 to $96,406,052. 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 ($14,000,000 to $76,000,000) and contingencies ($1,400,000 to $7,600,000). 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 | $14,000,000 | $76,000,000 | |
| Designer and Engineering Fees | $570,000 | $3,000,000 | |
| Furniture, Fixtures, Equipment | $2,800,000 | $5,000,000 | |
| TO BE MADE Inventory and Operating Equipment | $275,000 | $800,000 | |
| Signage | $20,000 | $60,000 | |
| Computer Hardware and Software | $102,795 | $221,865 | |
| Guest Internet Access Program | $112,150 | $179,800 | |
| Delphi Sales and Events System | $990 | $41,000 | |
| Required Pre-Opening Training | $5,000 | $17,500 | |
| ADA Consultant Fee | $2,500 | $15,000 | |
| Construction/Renovation Extension Fees | $0 | $10,000 | |
| Organizational Expense | $50,000 | $130,887 | |
| Permits and Licenses | $200,000 | $1,100,000 | |
| Miscellaneous Pre-Opening and Project Management Expenses | $175,000 | $1,200,000 | |
| Contingencies | $1,400,000 | $7,600,000 | |
| Additional Funds | $500,000 | $900,000 | |
| Other Required Pre-Opening Services Fees | $20,000 | ||
| Total | $20,333,435 | $96,406,052 | |
Source: Hilton Franchise Holding LLC, 2023 filing, page 37
Tempo by Hilton franchise fee
The franchise fee is $100,000, For a new or converted hotel, plus $400 for each additional room.. You pay it when you sign the franchise agreement.
Source: Hilton Franchise Holding LLC, 2023 filing, page 21
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. |
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
Sales and earnings
No figures Tempo 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 79
How Tempo by Hilton compares
Of the 116 hotel franchises on this site, Tempo by Hilton is the 91st cheapest to open and the 108th largest by number of locations.
| Figure | Tempo by Hilton | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $20.3M | $9.44M | $222K |
| Cost to open, high end | $96.4M | $21.3M | $477K |
| Franchise fee | $100K | $54K | $40K |
| Royalty | 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 79
Who owns Tempo by Hilton?
Tempo by Hilton franchises are sold by Hilton Franchise Holding LLC. It is a subsidiary of Hilton Domestic Operating Company.
Tempo 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 17–21. |
|---|---|
| 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 17–21, bankruptcy on page 21
Tempo 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.
Other hotel franchises
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Other brands from Hilton: Canopy by Hilton, Curio Collection by Hilton, DoubleTree by Hilton, Embassy Suites by Hilton, Hampton Inn, Hilton Garden Inn, Hilton Hotels & Resorts, Home2 Suites by Hilton and 6 more. See all 15 in the finder