Franchise Deep Dive: Motto by Hilton Franchise Costs, Fees, Profit and Data

These Hilton-owned hotel franchises, located in prime neighborhoods within major cities around the world, provide locally inspired experiences to travelers.

By Victoria CampisiStaff Writer

8:08AM • 06/18/24

LAST UPDATED: June 2024

FRANCHISE WEBSITE: https://www.hilton.com/en/brands/motto-by-hilton/

NUMBER OF LOCATIONS: 8

REPORTED COST TO GET IN: $15,297,495 to $85,249,164

REPORTED ROI (Item 19): N/A

Motto by Hilton is a hotel franchise operated by Hilton Worldwide Holdings Inc. It is designed to cater to modern travelers who seek unique and locally inspired experiences in urban destinations.

How Many Motto by Hilton Locations Are There?

Motto by Hilton was founded in 2018 and currently operates eight locations.

What Is the Motto by Hilton Business Model?

Motto by Hilton is focused on offering travelers a unique and locally inspired hotel experience in desirable urban locations around the world. Some key aspects of their business model include:

Locally Inspired Spaces. Motto by Hilton aims to provide spaces that reflect the character and flavor of the neighborhoods in which they are located. This suggests a focus on creating a sense of authenticity and connection with the local community.
Cleverly Compact Rooms. The introduction of Cleverly Compact Rooms prioritizes an efficient use of space and flexibility in room configurations. This may appeal to travelers who value practicality and functionality in their accommodations.
Motto Commons. These inviting communal areas, which include Wi-Fi access, provide guests with a place to “talk, think, work, laugh and lounge.”
Expansion into Coveted Neighborhoods. The franchise has a strategy of selecting prime locations to attract both leisure and business travelers seeking convenient and desirable accommodations.

How Much Can Motto by Hilton Owners Make?

Hilton does not make any representations about the future financial performance of franchisees or the past financial performance of its outlets, nor does it authorize employees or representatives to make any such representations.

How Much Does It Cost to Open a Motto by Hilton Franchise?

The total investment range is $15,297,495 to $85,249,164, according to the 2022 franchise disclosure document (FDD). The FDD breaks down the fees as follows:

Franchise Application Fee: $75,000
Property Improvement Plan: $0 - $10,000
Construction and Leasehold Improvements: $8,000,000 - $57,500,000
Designer and Engineering Fees: $570,000 - $2,300,000
Furniture, Fixtures and Equipment: $3,000,000 - $12,000,000
Inventory and Operating Equipment: $850,000 - $1,650,000
Signage: $20,000 - $60,000
Computer Software and Hardware Costs: $147,495 - $327,835
Guest Internet Access Program: $116,000 - $186,000
Delphi Sales and Events System: $1,500 - $32,000
Required Pre-Opening Training: $5,000 - $17,500
ADA Consultant Fee: $2,500 - $15,000
Construction/Renovation Extension Fees: $0 - $10,000
Organization Expense: $50,000 - $115,829
Permits and Licenses: $120,000 - $860,000
Miscellaneous Pre-Opening and Project Management Expenses: $1,100,000 - $3,500,000
Contingencies: $800,000 - $5,750,000
Additional Funds: $400,000 - $800,000
Other Required Pre-Opening Services Fees: $20,000
Motto Food and Beverage Program: $20,000

What Is the Franchise Fee for Motto by Hilton?

Franchise fees may include:

Franchise Application - New Development or Conversion - $75,000 with application.
Franchise Application - Change of Ownership - $125,000 with application.
Franchise Application - Re-licensing - $75,000

Who Are the Leaders of Motto by Hilton?

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