Franchise Deep Dive: Home2 Suites by Hilton's Franchise Costs, Fees, Profit and Data

As one of Hilton Worldwide’s newest hotel brands, Home2 Suites has exploded in growth and is set for continued expansion across the globe.

By Jeff DwyerStaff Writer

7:07AM • 09/18/23

LAST UPDATED: August 24, 2023
FRANCHISE WEBSITE: https://www.hilton.com/en/corporate/development/
NUMBER OF LOCATIONS: 608
REPORTED COST TO GET IN: $14,508,210 to $21,620,632
REPORTED ROI (Item 19): N/A

Home2 Suites by Hilton is a mid-tier, all-suite extended stay hotel concept operated under the hospitality company Hilton. Home2 Suites was first established in 2009 and has since become one of the fastest-growing brands in Hilton’s history. The brand offers stylish accommodations and flexible guest room configurations, as well as complimentary breakfast selections, laundry and fitness centers, Wi-Fi, outdoor spaces, 24-hour business centers, and pet-friendly rooms.

Upon its inception, Home2 Suites became the first new brand introduced by Hilton Worldwide in roughly 20 years. The hotel brand is one of many operated by Hilton, which also includes names such as Hilton Garden Inn, Hampton by Hilton and Embassy Suites by Hilton.

How Many Home2 Suites by Hilton Locations Are There?

As of August 2023, there are a total of 608 Home2 Suites hotels operating throughout the United States, Canada, Mexico and China. Hilton has recently undertaken international expansion efforts and opened its first Home2 Suites in China in 2021. The brand has signed a deal to develop over 1,000 properties throughout the Asia-Pacific over the next 30 years.

What Is Home2 Suites by Hilton’s Business Model?

Home2 Suites by Hilton operates with an extended-stay business model, which revolves around offering spacious suite-style hotel rooms for guests who need a place to stay for a week or more. The hotel’s amenities cater to longer stays and feature kitchenettes, laundry facilities and (as mentioned) pet-friendly policies. Home2 Suites’ model emphasizes providing a home-away-from-home experience, which can attract both business and leisure travelers.

How Much Can Home2 Suites by Hilton Franchise Owners Make?

The potential earnings for Home2 Suites by Hilton owners can vary depending on factors such as location, occupancy rates and operational efficiency. You can learn more about the potential earnings of a Home2 Suites by Hilton 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 Home2 Suites by Hilton?

The initial investment necessary to open a newly constructed Home2 Suites by Hilton hotel is $14,508,210 to $21,620,632. This investment is broken down into the following costs:

Franchise Application Fee: $100,000
Property Improvement Plan: $0 to $10,000
Market Study: Varies
Environmental Assessment: Varies
Real Property: Varies
Construction and Leasehold Improvements: $10,083,000 to $14,550,000
Design and Engineering Fees: $302,490 to $436,500
Furniture, Fixtures and Equipment: $1,932,000 to $2,898,000
Inventory and Operating Equipment: $115,500 to $289,000
Signage: $20,900 to #82,500
Computer Hardware and Software: $43,195 to $130,895
Guest Internet Access Program: $84,600 to $121,000
Delphi Sales and Events System: $990 to $18,600
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 $130,887
Permits, Licenses and Governmental Fees: $151,245 to $218,250
Miscellaneous Pre-Opening and Project Management Expenses: $302,490 to $436,500
Contingencies; $1,008,300 to $1,455,000
Additional Funds: $300,000 to $700,000
Other Required Pre-Opening Services Fees: $6,000

What Is the Franchise Fee for Home2 Suites by Hilton?

The franchise fee required to open a Home2 Suites by Hilton is $100K.

Who’s On Hilton Worldwide’s Leadership Team?

What Helpful Articles Can I Read to Learn More About Home2 Suites by Hilton?

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