Franchise Deep Dive: Hilton Garden Inn's Franchise Costs, Fees, Profit and Data

Under the ownership of the global Hilton Hotel brand, Hilton Garden Inn has become a go-to hotel franchise for travelers seeking comfortable, mid-priced accommodations.

By Jeff DwyerStaff Writer

Updated 10:10AM • 08/24/23

LAST UPDATED: August 18, 2023
FRANCHISE WEBSITE: https://www.hilton.com/en/corporate/development/
NUMBER OF LOCATIONS: 980+
REPORTED COST TO GET IN: $21,206,245 to $31,066,970
REPORTED ROI (Item 19): N/A

Hilton Garden Inn is a global hotel brand that operates under the larger hospitality company Hilton. The franchise provides business and leisure travelers with upscale, affordable accommodations and modern amenities. Hilton Garden Inn says its goal is to make each guest’s stay “better and brighter.”

Hilton Garden Inn is one of the many hotel brands operated by Hilton, which also includes names such as Waldorf Astoria Hotels & Resorts, Homewood Suites by Hilton and DoubleTree by Hilton.

How Many Hilton Garden Inn Locations Are There?

As of August 2023, there are more than 980 hotels spanning 58 countries and territories around the world.

What Is Hilton Garden Inn’s Business Model?

Hilton Garden Inn operates as a midscale hotel brand that offers comfortable and mid-priced accommodations to both business and leisure travelers. Hilton Garden Inn operates its properties near key destinations such as business districts and airports, providing a convenient place for busy travelers to stay the night. In addition to its conveniently situated locations, the brand also emphasizes its technology integration and offers amenities like free Wi-Fi and digital check-in to enhance guest convenience.

Hilton Garden Inn also offers a loyalty program, dubbed Hilton Honors, which rewards members with exclusive perks when they stay at Hilton-owned properties. These grant benefits such as free nights, the ability to choose your own room, no resort fees and experiences.

For prospective franchisees, Hilton says there are a number of benefits, including:

Open communication with regular events and conferences
Global and local expertise in tune with owners’ goals
Ongoing support and innovation
The ability to join a growing, award-winning network of hotels

How Much Can Hilton Garden Inn Franchise Owners Make?

The potential earnings for Hilton Garden Inn owners can vary depending on factors such as location, occupancy rates and operational efficiency. You can learn more about the potential earnings of a Hilton Garden Inn franchise by checking the Item 19 in the Franchise Disclosure Document (FDD), which you can find here.

How Much Does It Cost To Open a Hilton Garden Inn?

The initial investment to open a typical 132-room Hilton Garden Inn hotel franchise ranges between $21,206,245 to $31,066,970. This investment is broken down into the following costs:

Franchise Application Fee: $75,000
Property Improvement Plan: $0 to $10,000
Market Study: Varies
Environmental Assessment: Varies
Real Property: Varies
Construction and Leasehold improvements: $14,375,000 to $21,275,000
Design and Engineering Fees: $431,250 to $638,250
Furniture, Fixtures, Equipment: $2,587,500 to $4,312,500
Inventory and Operating Equipment: $220,000 to $550,000
Signage: $20,000 to $75,000
Computer Hardware and Software: $55,695 to $149,145
Guest Internet Access Program: $64,300 to $100,000
Delphi Sales and Events System: $1,500 to $33,000
Required Pre-Opening Training: $5,000 to $17,500
ADA Consultant Fee: $2,500 to $10,000
Construction/Renovation Extension Fees: $0 to $10,000
Insurance: Varies
Organizational Expense: $50,000 to $127,075
Permits and Licenses: $215,625 to $319,125
Miscellaneous Pre-Opening and Project Management Expenses: $359,375 to $531,875
Contingencies: $1,437,500 to $2,127,500
Additional Funds: $300,000 to $700,000
Other Required Pre-Opening Services Fees: $6,000

Franchise owners must also pay an ongoing 5.5% royalty fee of gross rooms revenue and a 4% monthly program fee.

What Is the Franchise Fee for Hilton Garden Inn?

Hilton Garden Inn has a franchise application fee of $75,000.

Who’s On Hilton’s Leadership Team?

What Helpful Articles Can I Read to Learn More About Hilton Garden Inn?

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