How much does a Hilton Garden Inn franchise cost?
The 2026 U.S. Franchise Disclosure Document estimates $25,499,320 to $37,352,033 to begin operating a typical 134-room Hilton Garden Inn hotel. That Item 7 range applies to the disclosed prototype and excludes real property. It also leaves market studies, insurance, interest and certain conversion, re-licensing or change-of-ownership improvement costs unresolved.
Estimated Initial Investment for the 2026 FDD's 134-room Hilton Garden Inn prototype. The figure includes three months of Additional Funds, including payroll, but does not include real estate. Source: 2026 U.S. Hilton Garden Inn FDD, Item 7, pages 35–39.
Capital snapshot
The Item 7 total is not the amount paid to Hilton at signing. Most capital is paid to architects, contractors, equipment vendors, technology suppliers, government agencies, insurers and other third parties as the project advances. The FDD cover states that up to $339,322 of the total is payable to Hilton Franchise Holding LLC or its affiliates.
What is included in the disclosed investment range?
The largest included obligation is Construction and Leasehold Improvements, at $18,354,015 to $26,654,355 for the 134-room prototype. Furniture, Fixtures and Equipment, Contingencies, Design and Engineering Fees, Additional Funds, and Miscellaneous Pre-Opening and Project Management Expenses are the next major disclosed ranges.
Each teal bar reaches the disclosed high estimate; the dark marker shows the disclosed low estimate. Scale maximum: $26,654,355.
Source: 2026 U.S. Hilton Garden Inn FDD, Item 7, pages 35–39. Values are official ranges; the chart performs no averaging.
| Item 7 category | Disclosed amount | When paid | Payment recipient |
|---|---|---|---|
| Real Property | Varies; excluded | As agreed | Supplier or property counterparty |
| Construction and Leasehold Improvements | $18,354,015–$26,654,355 | As agreed | Suppliers |
| Design and Engineering Fees | $738,121–$1,066,174 | As incurred | Suppliers |
| Furniture, Fixtures and Equipment | $2,366,737–$3,484,640 | As incurred | Suppliers |
| Inventory and Operating Equipment | $400,000–$600,000 | As incurred | Suppliers |
| Signage | $49,750–$75,000 | As incurred | Licensed supplier |
| Contingencies | $1,845,302–$2,665,436 | As incurred | Suppliers |
| Item 7 category | Disclosed amount | Timing or basis | FDD reference |
|---|---|---|---|
| Computer Hardware and Software Systems | $35,111–$123,417 | Generally 45 days before opening | Item 7, pp. 36–38 |
| Guest Internet Access System | $64,349–$94,041 | Generally 45 days before opening | Item 7, pp. 36–38 |
| Connected Room System | $31,570–$37,730 | Generally 45 days before opening | Item 7, pp. 36–38 |
| Delphi Sales and Events System | $990–$33,000 | As incurred | Item 7, pp. 36–38 |
| Required Pre-Opening Training | $5,000–$20,000 | As incurred; travel and living costs remain the franchisee's responsibility | Item 7, pp. 36–39 |
| ADA Consultant Fee | $2,500–$10,000 | On request for specified transaction types | Item 7, pp. 36–39 |
| Other Required Pre-Opening Services Fees | $6,000 | Before opening | Item 7, p. 37 |
Other included pre-opening categories
- Organizational Expense
- $50,000 to $143,115 for accounting and legal work, depending on the work performed and regional rates.
- Permits and Licenses
- $318,315 to $399,815; the required permits vary by state and local jurisdiction.
- Miscellaneous Pre-Opening and Project Management Expenses
- $531,560 to $744,310, potentially covering sales, administrative costs, project management, technical services, deposits, advertising, security and opening activities.
- Additional Funds
- $600,000 to $1,000,000 for the first three months after opening, including payroll. This amount is already inside the official total and should not be added again.
- Optional Restaurant Brand Development Services Fee
- $0 to $75,000 in Item 7. Item 5 states that the $75,000 fee is due half when the Restaurant Brand Amendment is signed and half when the restaurant opens.
- Variable categories
- Market Study, Environmental Assessment and Insurance are disclosed as “varies” and are not quantified in the total. Construction or Renovation Extension Fees range from $0 to $10,000 when an approved extension is requested.
The FDD's project assumptions should be read alongside Hilton's official Architecture, Design, Construction and Technical Services information. Hilton also maintains an authenticated Design Information portal for approved project participants; access to that portal does not replace the project-specific estimates and contracts needed for a site.
When is the Hilton Garden Inn investment paid?
The capital is paid in stages, not as one lump sum. The Franchise Application Fee comes first; design, permitting, construction and procurement payments follow project contracts; core technology payments are generally due before opening; and Additional Funds support the first three operating months.
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Application submission
For New Development or Conversion, the current Franchise Application Fee is $100,000, plus $400 for each approved guest room or suite over 150. It is due with the Application. For the 134-room Item 7 prototype, the disclosed fee is $100,000.
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Existing-hotel assessment, when applicable
A $10,000 Property Improvement Plan Fee is payable before the PIP inspection for a Conversion, Change of Ownership or Re-licensing project. Hilton may waive or credit the fee in some circumstances but has no obligation to do so.
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Design, permits, construction and procurement
Architects, engineers, contractors, government agencies and suppliers are paid under project-specific contracts as costs are incurred. If Hilton Supply Management provides procurement services at the franchisee's request, the fee is currently 4% to 10% of project cost, in addition to products, freight, taxes and actual costs.
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Technology and pre-opening readiness
Computer Hardware and Software Systems, Guest Internet Access and Connected Room System amounts are generally due 45 days before opening. The $6,000 Opening Process Services Fee is due before opening, while training charges and attendee travel expenses are paid as incurred.
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Opening and initial operating period
The Item 7 Additional Funds range of $600,000 to $1,000,000 covers three months after opening and includes payroll. It is part of the $25,499,320 to $37,352,033 total, not a separate add-on.
Application approval does not lock every later cost. Supplier quotes, project scope, room count, local code requirements, labor and material pricing can change the amounts paid after the Franchise Application Fee. The current Hilton hotel development information describes the broader development organization, while the signed agreements and approved project documents control the buyer's actual cash schedule.
Which Hilton Garden Inn fees continue after opening?
The two principal percentage charges are a 5.5% Monthly Royalty Fee and a 4% Monthly Program Fee, each calculated on Gross Rooms Revenue and payable by the 15th day of the following month. Technology support, loyalty, distribution, training and transaction-based charges are separate.
The scale runs from 0% to 6%. The black marker on the Monthly Program Fee shows its disclosed 5% contractual ceiling over the term, not the current rate.
Source: 2026 U.S. Hilton Garden Inn FDD, Item 6, pages 21–35. Percentages use the FDD-defined Gross Rooms Revenue basis.
- Gross Rooms Revenue
- Includes revenue from the sale or rental of guest rooms, points or reward redemptions, amounts attributable to included breakfast, Mandatory Guest Fees, guaranteed no-show revenue and credit transactions, subject to the detailed FDD definition. Taxes collected directly from guests are excluded.
- Monthly Program Fee
- Funds reservation-service support, websites and directories, advertising and promotion, certain quality-assurance and technology programs, and related administration. Optional programs and ordinary hotel operating costs are not covered.
- Electronic payment costs
- Hilton may require wire transfer or another electronic funds transfer method, and the franchisee bears those transfer costs.
| Fee | Amount or basis | Billing timing | Cost interpretation |
|---|---|---|---|
| Monthly Royalty Fee | 5.5% of Gross Rooms Revenue | Monthly, due by the 15th of the following month | Core franchise royalty |
| Monthly Program Fee | 4% of Gross Rooms Revenue | Monthly, due by the 15th of the following month | Current rate; may rise by no more than one percentage point over the term |
| OnQ Connectivity Fees | $400–$600 per month | Monthly | Varies with workstations and OnQ equipment |
| Hardware and Software Maintenance Support Fees | $1,148–$2,922 per month | Monthly | Covers Hilton-provided OnQ maintenance, not all vendor systems |
| Connected Room Maintenance Fees | $574–$873 per month | Monthly | Ongoing Connected Room support |
| OnQ Email Fees | $7.92 per user/month + $12.50 mobile delivery | Quarterly; minimum three accounts | Per-user cost, separate from the monthly system ranges |
| Delphi Sales and Events System | $858 per user/year | Annually | License and maintenance passed through to the vendor, less a cost-recovery markup |
| Hilton Honors Program | 3.3% of total eligible guest folio | Ten days after billing | Waived for stays in which the guest enrolls on-property |
Which charges depend on a booking, program or transaction?
- Hilton Advance Fee: currently 1.35% of eligible Digital Direct Revenue, capped at $30 per stay.
- Travel Clubs: currently $0.30 per available room and/or a 10% commission for specified AAA and CAA bookings.
- Group Preferred Partnership Program: up to $1.80 per consumed room night, or up to 3% of Net Rooms Revenue for Select Entertainment Agencies, plus applicable commission; participation is optional.
- Online Group Event Booking Charges: up to 2% on Brand.com, 5% on Groups360.com and 7% on request-for-proposal bookings when inventory is loaded and the group actualizes.
- Centralized Payment Programs: per-stay, per-transaction and commission charges apply to specified third-party reservations, FastPay, travel-planner payments and travel-advisor incentive programs.
- Add-On Program Fee: up to 5% of the sale price, excluding taxes, for eligible add-on products or services sold through the program; currently required add-ons are excluded.
- Optional commercial services: Consortia, travel-management-company programs, government travel programs, ResMax and Revenue Management Consolidated Center service models carry separate disclosed charges when selected or required by circumstance.
Item 6 states that, except for the Monthly Royalty Fee and liquidated damages, the listed fees are subject to change. Hilton's public Hilton Garden Inn brand information identifies the hotel brand, but it does not replace the fee definitions, due dates or program conditions in the current U.S. FDD.
Does a conversion have the same cost as a new Hilton Garden Inn?
No exact conversion total is disclosed. Item 7 presents one 134-room prototype range and says it reflects typical New Development and Conversion hotels, but Hilton Franchise Holding LLC also states that a particular Conversion cannot be estimated because the existing hotel's age, structure, code compliance, condition, finishes and Furniture, Fixtures and Equipment can materially change the required work.
New Development
$25.50M–$37.35MThe disclosed 134-room Item 7 range is most directly usable as a prototype development framework. Real property remains excluded, and regional construction conditions remain variable.
Conversion
No separate totalThe Application Fee is $100,000 and the PIP Fee is generally $10,000, but renovation work depends on the existing asset and is not separately resolved by the official total.
Change of Ownership
$200,000The Application Fee is due with the Application. A PIP and property upgrades may also be required, and the Item 7 total does not separately identify those improvement costs.
A buyer should not apply the low end of the New Development range to an existing hotel without a project-specific PIP, property-condition review, accessibility review and contractor pricing. Re-licensing has a $100,000 Application Fee, but it also may require a new PIP and a refreshed OnQ system.
Does Hilton publish a liquid-capital or net-worth requirement?
The reviewed 2026 U.S. FDD does not state a numerical Liquid Capital, Net Worth or Non-Borrowed Funds threshold for Hilton Garden Inn. That absence does not mean the project can be funded with the application fee alone; the applicant must still demonstrate the capacity to finance the hotel and satisfy Hilton's underwriting and approval requirements.
What financing does the FDD disclose?
Item 10 says Hilton generally does not provide direct or indirect financing, with two limited exceptions. It may occasionally permit the Franchise Application Fee to be paid in installments before construction starts, without interest or security during that installment period. It also may offer a discretionary development or conversion Incentive.
- Application-fee installment: occasional and discretionary; any unpaid balance accelerates after a default.
- Development Incentive: a financial contribution documented by a development incentive note, not a guaranteed loan or grant available to every applicant.
- Disbursement timing: generally within 30 days after an authorized opening, provided required PIP work is complete and the Franchise Application Fee is paid.
- Contingent repayment: the repayable amount can become due after an early termination or transfer; the amount declines by an equal annual fraction over the franchise term.
- Late repayment: an overdue Incentive repayment is subject to 1.5% per month or the highest lawful rate, whichever applies under the agreement.
Ask Hilton to state the applicant-specific equity, liquidity, guaranty and lender conditions in writing. Total Initial Investment, Liquid Capital and Net Worth are different measures, and the 2026 FDD's Item 7 total should not be presented as a published liquidity threshold.
Which costs can arise after opening or during a transfer?
Post-opening obligations extend beyond the Royalty Fee and Monthly Program Fee. Room additions, transfers, technology refreshes, quality-assurance failures, overdue renovations, lender requests and late payments can each create separate charges.
| Trigger | Current fee | When due | FDD basis |
|---|---|---|---|
| Room Addition | $400 per added room or suite | With application for approval | Item 6, p. 22 |
| Permitted Transfer | $5,500 | With consent request | Item 6, p. 28 |
| Change of Ownership | $200,000 | With Application | Item 6, p. 28 |
| Re-licensing | $100,000 | With Application | Item 6, p. 28 |
| Lender Comfort Letter / Assignment | $3,500 / $1,500 | Before document issuance | Item 6, p. 28 |
| Past Due Design | $5,000 every 90 days | Within 10 days of billing | Item 6, pp. 23–24 |
| Past Due Renovation | $10,000 every 6 months | Within 10 days of billing | Item 6, p. 24 |
| Service Improvement Program | $20,000–$50,000 per 6-month period | Within 10 days of billing | Item 6, p. 24 |
| Unauthorized Opening | $5,000 per day | On demand | Item 6, p. 29 |
| Overdue Payment | 1.5% per month or lawful maximum | On demand | Item 6, p. 29 |
- OnQ refresh: the system must be refreshed at least every three years, or on a longer cycle Hilton specifies; a refresh may also be required for Change of Ownership or Re-licensing.
- Cycled renovation and Standards changes: Item 8 permits required replacement, modernization and upgrades of finishes, equipment, signage, technology, supplies and other hotel assets, with the franchisee bearing the cost.
- Brand Non-Compliance: currently $65 to $145 per approved guest room for consecutive Unacceptable quality grades, subject to a $50,000 cap in each six-month period.
- Quality Assurance Re-Evaluation: currently $2,500; a Brand Non-Compliance Special Audit is currently $3,000.
- Audit shortfall: the franchisee pays the deficiency plus interest, and may owe inspection and audit costs for a willful underpayment or one of at least 5%.
- Training and conferences: a Brand Conference is currently $2,750 per attendee and is usually biennial; additional leadership, sales and other training charges can apply.
Exterior signage must be purchased from a Hilton-licensed vendor, and logo-bearing operating supplies and inventory must come from approved and licensed suppliers. Hilton's Suppliers' Connection portal is an official supplier resource, but approved vendor lists, pricing and specifications must be confirmed for the specific project.
Is there a renewal fee?
The 2026 Franchise Agreement is non-renewable. Item 17 states that the franchisee has no right to renew or extend. If Hilton agrees, in its sole discretion, to re-license the property, the owner may need to sign materially different agreements, pay the $100,000 Re-licensing Application Fee, complete a new PIP and satisfy then-current Standards.
What does the official cost range not resolve?
The official range does not deliver an all-in site budget. The buyer must separately quantify the property, financing structure, local conditions and any conversion-specific work before relying on the Item 7 total.
- Real estate: land acquisition, an existing building or lease economics are excluded because location, site size, accessibility, market pricing and assessments vary.
- Market Study and Environmental Assessment: each is disclosed as variable; lenders may require an environmental assessment.
- Insurance and interest: premiums vary by location, hotel size and coverage, while interest depends on the buyer's financing terms.
- Conversion, Re-licensing and Change of Ownership improvements: Item 7 does not separately identify the work required for a particular existing property.
- Local construction effects: regional labor and material prices, earthquake rules, impact fees, accessibility, fire and life-safety systems, and code compliance can change the project budget.
- Optional or event-triggered programs: Restaurant Brands, procurement services, commercial programs, management services, lender requests and compliance remedies can create costs that do not apply to every hotel.
Cost checks to complete before signing
- Reconcile the approved room count with the Franchise Application Fee formula and every technology quotation.
- Obtain the site-specific PIP, architectural scope, accessibility assessment, contractor pricing and contingency methodology.
- Confirm which systems and suppliers are mandatory, which vendors are approved, and whether procurement fees or affiliate markups apply.
- Separate the three-month Additional Funds allowance from lender reserves, debt-service reserves and any cash required before opening.
- Model Royalty Fee, Monthly Program Fee, technology, Hilton Honors and transaction charges using the precise FDD definitions, without converting them into unsupported annual dollar estimates.
- Review the Franchise Agreement's non-renewable term, transfer provisions, renovation cycle, technology refresh and potential Incentive repayment with legal and financial advisers.
The Federal Trade Commission's Franchise Rule Compliance Guide explains the disclosure framework. It does not validate Hilton's figures or replace the current FDD, state addenda, Franchise Agreement, PIP, lender documents or supplier contracts.
What is the practical capital takeaway?
For a typical 134-room Hilton Garden Inn, the verified 2026 Item 7 range is $25,499,320 to $37,352,033 before real estate. Construction and Leasehold Improvements drive most of the disclosed range, while Additional Funds contribute another $600,000 to $1,000,000 for the first three months, including payroll. The $100,000 Franchise Application Fee is only one opening payment, and it should not be confused with the total project capital.
After opening, the central percentage obligations are 5.5% of Gross Rooms Revenue for the Monthly Royalty Fee and 4% for the Monthly Program Fee, supplemented by technology, loyalty, distribution, training and conditional charges. The largest unresolved question is the property-specific cost: land or lease economics for New Development, or the PIP and renovation scope for a Conversion, Change of Ownership or Re-licensing.