How much does a Hampton Inn franchise cost in 2026?
The 2026 U.S. Franchise Disclosure Document gives two separate new-construction ranges. A prototype 89-room Hampton Inn requires an estimated initial investment of $17,043,739 to $24,732,532. A prototype 113-room/suite Hampton Inn & Suites requires $19,964,850 to $29,121,080. Both ranges exclude real property and several other costs that cannot be stated as a single amount.
These are the official 2026 Item 7 ranges for the two prototype formats. They include a $100,000 Franchise Application Fee and Additional Funds for the first three months after opening, but they do not include land, market studies, insurance, interest, or a separately quantified conversion, re-licensing, or change-of-ownership renovation scope.
Data basis: legal franchisor Hilton Franchise Holding LLC; U.S. Hampton Franchise Disclosure Document issued March 30, 2026; Hampton Inn and Hampton Inn & Suites formats; Items 5, 6, 7, 8, 10, 11, and 17; checked July 17, 2026. The matching document is available through Hilton's official 2026 U.S. Hampton FDD, and Hilton also maintains an official disclosure-document library.
Key cost figures
Why are there two different Hampton investment ranges?
The FDD separates Hampton Inn from Hampton Inn & Suites because the prototypes have different room counts and cost structures. The 113-room/suite format has a higher disclosed range in construction, design, furniture, technology, permits, contingencies, project management, and working capital. Hilton's official description of the current North American Hampton prototypes confirms that both Hampton Inn and Hampton Inn & Suites formats are available, but the FDD—not a prototype marketing page—controls the cost figures below.
The Hampton Inn & Suites range starts $2,921,111 above the Hampton Inn low end and ends $4,388,548 above the Hampton Inn high end.
Source: 2026 U.S. Hampton FDD, Item 7, pp. 33–39. The differences stated above are derived calculations from the two official ranges. Review Item 7 in the official FDD.
Construction and Leasehold Improvements dominates the selected category comparison; furniture, contingencies, and Additional Funds are much smaller but still format-dependent.
Source: 2026 U.S. Hampton FDD, Item 7, pp. 33–38. Bars show official low-to-high ranges on one $22 million scale; no midpoint or “typical” amount has been created. Check the Item 7 category ranges.
What makes up the Hampton initial investment?
Item 7 combines the Franchise Application Fee, site and construction work, design, furniture, operating equipment, signage, required technology, training, professional expenses, permits, contingencies, project management, and three months of Additional Funds. The tables below preserve the two official formats instead of combining the low end of one with the high end of the other.
Site, construction, and design
| Item 7 expenditure | Hampton Inn — 89 rooms | Hampton Inn & Suites — 113 rooms/suites | When paid |
|---|---|---|---|
| Franchise Application Fee | $100,000 | $100,000 | With Application |
| Property Improvement Plan | $0–$10,000 | $0–$10,000 | Before the PIP is prepared |
| Market Study | Varies | Varies | As incurred |
| Environmental Assessment | Varies | Varies | As incurred |
| Real Property | Varies | Varies | As agreed |
| Construction and Leasehold Improvements | $12,478,374–$18,024,318 | $14,672,057–$21,192,971 | As agreed |
| Design and Engineering Fees | $499,135–$720,973 | $586,882–$847,719 | As incurred |
Source: 2026 U.S. Hampton FDD, Item 7, pp. 33–36. The official totals exclude real property because site costs vary by location, size, market price, access, and assessments.
Furniture, operating equipment, signage, and systems
| Item 7 expenditure | Hampton Inn — 89 rooms | Hampton Inn & Suites — 113 rooms/suites | When paid |
|---|---|---|---|
| Furniture, Fixtures and Equipment | $1,254,480–$1,782,681 | $1,517,852–$2,156,947 | As incurred |
| Inventory and Operating Equipment | $175,000–$325,000 | $200,000–$350,000 | As incurred |
| Signage | $48,750–$75,000 | $54,000–$75,000 | As incurred |
| Computer Hardware and Software Systems | $32,685–$86,975 | $35,040–$89,054 | 45 days before opening |
| Guest Internet Access System | $45,467–$65,187 | $57,727–$82,766 | 45 days before opening |
| Connected Room System | $22,345–$26,705 | $27,265–$32,585 | 45 days before opening |
| Delphi Sales and Events System | $990–$16,900 | $990–$16,900 | As incurred |
Source: 2026 U.S. Hampton FDD, Item 7, pp. 34–38; Item 11, pp. 46–59. Item 7 technology figures can be higher than Item 5 amounts because Item 7 also includes certain third-party charges.
Pre-opening, contingencies, and working capital
| Item 7 expenditure | Hampton Inn — 89 rooms | Hampton Inn & Suites — 113 rooms/suites | When paid |
|---|---|---|---|
| Required Pre-Opening Training | $5,000–$17,500 | $5,000–$17,500 | As incurred |
| ADA Consultant Fee | $2,500–$10,000 | $2,500–$10,000 | On request |
| Construction/Renovation Extension Fees | $0–$10,000 | $0–$10,000 | On request |
| Insurance | Varies | Varies | As arranged |
| Organizational Expense | $50,000–$139,296 | $50,000–$139,296 | As agreed |
| Permits, Licenses and Governmental Fees | $187,176–$270,365 | $220,081–$317,895 | As required |
| Miscellaneous Pre-Opening and Project Management Expenses | $388,000–$543,200 | $462,250–$647,150 | As incurred |
| Contingencies | $1,247,837–$1,802,432 | $1,467,206–$2,119,297 | As incurred |
| Additional Funds | $500,000–$700,000 | $500,000–$900,000 | As incurred |
| Other Required Pre-opening Services Fees | $6,000 | $6,000 | Before opening |
Source: 2026 U.S. Hampton FDD, Item 7, pp. 34–39. Additional Funds are already inside the official total; adding them again would double-count working capital.
The headline range does not resolve the cost of land, a market study, insurance, financing interest, or the improvements required for a Conversion, Re-licensing, or Change of Ownership. A conversion may use existing assets, but the FDD says the renovation cost depends on the property's age, condition, code compliance, fire and life-safety requirements, prior use, structure, finishes, and Brand Standards. It does not publish a single conversion total.
- Real Property: excluded from the total because land and site economics vary too widely.
- Insurance and Interest: shown as variable or excluded rather than estimated fixed amounts.
- Market Study and Environmental Assessment: supplier costs are listed as “Varies.”
- Conversion and re-licensing work: must be established through the specific PIP and property condition, not the new-build prototype range.
When is the money paid?
The cost is not paid as one lump sum. The 2026 FDD places the first franchisor payment at the Application stage, then spreads site, design, construction, equipment, training, and technology payments across development and opening. Supplier contracts can create different deposits and draw schedules.
The official total is an investment range, not a statement that the entire amount must be held as unrestricted cash on the Application date. The actual equity, debt, construction-draw, and reserve structure depends on the project and lender. The FDD does not convert Item 7 into a single “cash required” figure.
Source: 2026 U.S. Hampton FDD, Items 5 and 7, pp. 15–20 and 33–39.
Which Hampton fees continue after opening?
The two central continuing charges are a 6% Monthly Royalty Fee and a 4% Monthly Program Fee, both calculated on the FDD definition of Gross Rooms Revenue and generally due by the 15th day of the following month. The program-fee rate may be changed, but Item 6 says it will not exceed the current rate plus one percentage point over the Franchise Agreement term.
| Continuing obligation | Amount or basis | Payment timing | Cost context |
|---|---|---|---|
| Monthly Royalty Fee | 6% of Gross Rooms Revenue | Monthly, by the 15th | Core franchise royalty. |
| Monthly Program Fee | 4% of Gross Rooms Revenue | Monthly, by the 15th | Supports reservation, advertising, marketing, technology, quality-assurance, and administrative programs. |
| OnQ Connectivity | $400–$600 per month | Monthly | Depends on workstations and OnQ equipment. |
| OnQ Hardware and Software Maintenance | $1,114–$2,568 per month | Monthly | Covers specified OnQ hardware and HPMS software support. |
| OnQ Email | $7.92 per user/month; $12.50 mobile delivery | Quarterly | At least three accounts are required. |
| Connected Room Maintenance | $417–$779 per month | Monthly | Required Connected Room system support. |
| Delphi Sales and Events System | $858 per user/year | Annually | License and maintenance charge passed through by Hilton's affiliate. |
| Hilton Honors | 4.6% of total eligible guest folio | 10 days after billing | Required guest reward program; waived for stays where the guest enrolls on-property. |
| Guest Internet Access circuit and service | Circuit: $921–$1,665/month; service: $400–$712 HI or $484–$904 H&S/month | Monthly to providers | Item 11 vendor costs vary by hotel size, meeting rooms, circuit, and location. |
Source: 2026 U.S. Hampton FDD, Item 6, pp. 20–33, and Item 11, pp. 46–59. Percentage fees are shown only on their disclosed bases; no annual dollar estimate is implied.
Which costs arise only after a trigger or under a particular program?
- Room additions and PIPs: the current Room Addition Fee is $400 per added room or suite, and a PIP fee is currently $10,000 when a qualifying renovation, conversion, transfer, or re-licensing project requires one.
- Quality-assurance and renovation non-compliance: Item 6 includes a $5,000 Past Due Design Fee every 90 days, $65 to $145 per approved guest room for Brand Non-Compliance subject to a $50,000 six-month cap, a $2,500 Re-Evaluation Fee, a $3,000 Special Audit Fee, a $10,000 Past Due Renovation Fee every six months, and $20,000 to $50,000 per six-month Service Improvement Program period.
- Training and conferences: the Brand Conference is currently $2,500 per attendee; General Manager, Commercial and Sales Leader Training is up to $1,200 per attendee; Hilton Core Sales Skills Training is up to $600; and other programs may reach $5,000 per program per attendee, plus travel, wages, lodging, food, or trainer expenses where applicable.
- Sales, distribution, and reservation programs: Item 6 lists charges tied to room nights, stays, transactions, commissions, eligible folio, or specified revenue bases. Some programs are optional, some use automatic enrollment with an opt-out, and others become mandatory under stated circumstances, including ResMax and RMCC models.
- Procurement and requested services: Hilton Supply Management procurement charges are currently 4% to 10% of project cost, in addition to product cost, freight, tax, and actual expenses.
- Transfer, re-licensing, and lender documents: a Permitted Transfer Processing Fee is currently $5,500; a Change of Ownership Application Fee is $200,000; Re-licensing is $100,000; a Lender Comfort Letter is $3,500; and an assignment is $1,500.
- Late payment, default, and termination: overdue amounts can bear a 1.5% monthly service charge or the highest lawful rate, whichever is less. Item 6 also provides audit reimbursement, default expenses, unauthorized-opening damages of $5,000 per day, and formula-based termination damages.
The 10% combined headline rate from the Monthly Royalty Fee and Monthly Program Fee is not the full continuing cost burden. Required technology, internet, loyalty, training, distribution, quality-assurance, refresh, and project-specific charges sit outside those two percentages.
The complete fee schedule is in the official 2026 FDD Item 6 table.
Does Hampton disclose a liquid-capital or net-worth requirement?
The 2026 FDD does not publish one fixed minimum Liquid Capital, Net Worth, or Non-Borrowed Funds threshold in Items 5, 6, 7, or 10. That means the official Item 7 range should not be restated as a cash-on-hand requirement. Hilton evaluates an applicant's credit, background, operating experience, prior dealings, project structure, and other relevant factors, and the agreement package includes a Guaranty of Franchise Agreement.
- Estimated Initial Investment
- The Item 7 range for opening the applicable prototype; it includes Additional Funds but excludes specified variable items.
- Franchise Application Fee
- A $100,000 initial fee for New Development or Conversion, not the total capital requirement.
- Liquid Capital
- No single minimum is stated in the reviewed 2026 FDD sections. It should not be inferred from a directory or older web listing.
- Net Worth
- No single minimum is stated in the reviewed 2026 FDD sections, and net worth is not equivalent to deployable cash.
Does Hilton finance a Hampton hotel?
Item 10 says Hilton generally does not offer direct or indirect financing other than a discretionary development incentive program. Hilton may occasionally permit the Franchise Application Fee to be paid in installments before construction starts, without interest or a security interest during that limited period. This is discretionary, not a standard financing commitment.
A development Incentive may be offered for a new hotel or conversion. It is generally disbursed within 30 days after the hotel opens with Hilton's consent, provided the stated conditions are met, including completion of any required PIP and payment of the Franchise Application Fee. The Incentive is not described as a loan, but it becomes a contingent repayment obligation if the franchise terminates early or the hotel transfers without an approved assumption.
A possible development Incentive does not lower every Item 7 category and does not guarantee financing approval. Its amount and availability are not fixed in the FDD, and the repayable balance declines over the Franchise Agreement term rather than disappearing immediately after opening.
Source: 2026 U.S. Hampton FDD, Item 10, pp. 44–46. Hilton's public hotel development information describes the broader development platform but does not replace the project-specific FDD and agreements.
Which later costs can change the ownership budget?
The opening range is only the initial capital picture. Technology refreshes, cycled renovations, transfers, re-licensing, lender approvals, room additions, and end-of-term decisions can create substantial later obligations. Item 17 is particularly important because Hampton franchisees do not receive a contractual right to renew or extend.
- Technology refresh: the OnQ system must generally be refreshed at least every three years, and the Guest Internet Access system at least every four years. A Change of Ownership or Re-licensing can also trigger a refresh.
- Cycled renovation and Brand Standards: Item 8 requires the franchisee to fund required replacement, modernization, rehabilitation, upgrades, and renovation schedules for furniture, finishes, equipment, signage, and technology.
- Re-licensing: the current Application Fee is $100,000, and Hilton may require a PIP, property upgrades, new technology agreements, and materially different contract terms.
- Change of Ownership: the current Application Fee is $200,000, and the buyer may need to pay a PIP fee, complete upgrades, execute the then-current Franchise Agreement, and satisfy current qualification standards.
- Permitted Transfer: qualifying transfers requiring consent currently carry a $5,500 Processing Fee and 60 days' notice.
- Early termination: the Franchise Agreement uses formula-based damages tied to the Hotel's or System's Average Monthly Royalty Fees and the remaining term, subject to the FDD conditions and applicable state law.
A buyer evaluating an existing Hampton hotel should not use the new-build Item 7 total as a substitute for the property's PIP, technology refresh status, cycled-renovation schedule, transfer fees, and remaining Franchise Agreement term.
Source: 2026 U.S. Hampton FDD, Items 6, 8, 11, and 17, including pp. 20–33, 39–43, 46–59, and 69–77.
What should a prospective franchisee verify before committing capital?
The key decision is not merely whether the project fits inside the published range. It is whether the exact format, site, room count, construction scope, technology package, working-capital reserve, financing plan, and long-term upgrade obligations have been priced for the proposed hotel.
What does the verified cost picture mean?
For a new U.S. Hampton hotel, the official 2026 capital range is $17,043,739 to $24,732,532 for the 89-room Hampton Inn prototype and $19,964,850 to $29,121,080 for the 113-room/suite Hampton Inn & Suites prototype. Construction and Leasehold Improvements are the largest disclosed component, Additional Funds cover three months after opening, and the headline total still excludes several project-specific costs. After opening, the 6% Monthly Royalty Fee and 4% Monthly Program Fee are only part of the continuing obligation set.