How Much Does a Hampton Inn Franchise Cost?

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2026 ITEM 7 INVESTMENT

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.

$17.04M–$24.73M 89-room Hampton Inn $19.96M–$29.12M 113-room/suite Hampton Inn & Suites

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

$100,000 Application fee New Development or Conversion; plus $400 for each room or suite over 150.
$500K–$900K Additional Funds Format-dependent Item 7 allowance covering three months after opening, including payroll.
6% Monthly Royalty Fee Calculated on Gross Rooms Revenue and payable monthly.
4% Monthly Program Fee Calculated on Gross Rooms Revenue; the rate may increase by up to one percentage point over the term.
45 days Technology milestone Several required systems are due approximately 45 days before opening.
FORMAT COMPARISON

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.

24 More approved rooms/suites in the prototype comparison: 113 versus 89.
$2.19M–$3.17M Derived difference in the Construction and Leasehold Improvements range.
$500K–$900K Additional Funds for Hampton Inn & Suites, versus $500,000–$700,000 for Hampton Inn.
WHAT ITEM 7 INCLUDES

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.

EXCLUDED FROM ITEM 7

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.
PAYMENT TIMING

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.

Submit the Application. The $100,000 Franchise Application Fee for New Development or Conversion is due with the Application, plus $400 for each approved room or suite over 150. After approval, it is generally non-refundable. If the Application is withdrawn before approval or denied, the FDD provides for a refund less a $7,500 processing fee, subject to the stated conditions.
Fund the PIP and early site diligence. A $10,000 PIP fee applies to a Conversion, Change of Ownership, or Re-licensing before the inspection is scheduled. Market studies and environmental assessments are paid to suppliers as incurred or agreed.
Pay construction, design, FF&E, inventory, permits, and project costs. These expenditures are generally paid to contractors, professionals, government agencies, and suppliers under project-specific agreements and draw schedules.
Complete the technology milestone. Item 7 states that the Computer Hardware and Software Systems, Guest Internet Access System, and Connected Room System are due approximately 45 days before opening. Item 11 also requires the HITS Agreement roughly 90 to 120 days before opening.
Cover opening and the initial operating period. The $6,000 Opening Process Services Fee is due before opening. Additional Funds then cover an estimated three months after opening, including payroll, but the FDD warns that actual operating needs can be higher.
PAYMENT TIMING

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.

ONGOING FEES

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.
COST IMPLICATION

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.

CAPITAL AND FINANCING

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.

FDD CAVEAT

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.

LONG-TERM OBLIGATIONS

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.

22 yearsGeneral New Construction term, measured from the Effective Date to the stated month-end.
10–20 yearsGeneral Conversion term, measured from the Opening Date.
No renewal rightAny re-licensing is discretionary and may require a new agreement, a PIP, upgrades, and then-current fees.
  • 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.
BUYER VERIFICATION

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.

FINAL VERIFICATION

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.

Confirm the format and approved room count. Use either the Hampton Inn or Hampton Inn & Suites table; do not blend their bounds.
Price excluded items separately. Obtain project-specific figures for real property, market studies, environmental work, insurance, interest, and any site-specific code or impact costs.
For a conversion or acquisition, obtain the current PIP. Verify the renovation, accessibility, fire and life-safety, technology, signage, and Brand Standards scope.
Reconcile supplier quotes to Item 7 timing. Confirm deposits, construction draws, 45-day technology invoices, training travel, and the reserve needed through the first three months.
Separate debt capacity from franchisor qualification. The FDD does not publish one fixed liquidity or net-worth threshold, and a lender's underwriting is a separate decision.
Model continuing and event-triggered fees. Include royalty, program, technology, internet, Hilton Honors, required distribution programs, quality-assurance exposure, refresh cycles, transfers, and re-licensing.
Review the exact state addenda and final agreements. The FTC franchise buying guide explains how to use the FDD, and the FTC Franchise Rule provides the federal disclosure framework.

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.