How much does a Hyatt Place franchise cost?
A new, full-size 127-room Hyatt Place hotel has a disclosed Estimated Initial Investment of $23,431,820 to $29,885,898. The 2026 Franchise Disclosure Document states that this range excludes real estate costs, rent, the purchase price of the building or land, financing charges, interest, and debt service. It is not a general range for every Hyatt Place conversion, acquisition, room count, or site.
2026 FDD Item 7 estimate for constructing a new 127-room Hyatt Place hotel. The range includes three months of Additional Funds but excludes the cost of acquiring or leasing the real estate and building.
Source: Hyatt Place 2026 Franchise Disclosure Document, issued March 27, 2026, cover and Item 7, pp. 29-33.
- Legal franchisor
- Hyatt Place Franchising, L.L.C., a Delaware limited liability company.
- Parents named in the FDD
- Hyatt Corporation, Select Hotels Group, L.L.C., and Hyatt Hotels Corporation. Hyatt Hotels Corporation publishes its current official annual reports.
- Cost model analyzed
- New, full-size 127-room Hyatt Place hotel. Hyatt's official Hyatt Place specifications describe a broader 125-200-room development profile, but the FDD cost estimate is tied to 127 rooms.
- FDD sections used
- Items 5, 6, 7, 8, 10, 15 and 17, plus the template Franchise Agreement.
- Public document status
- Hyatt provides an official FDD request page; no matching public 2026 Hyatt Place FDD PDF was verified on a Hyatt-controlled domain, so FDD citations in this article are unlinked Item and page references.
- Information checked
- July 22, 2026. The official Hyatt Place development page and North American FDD request page indicate a current development offer.
Capital snapshot
For the 127-room Item 7 model; $500 is added for each guest room above 150.
Included in Item 7 and intended for the first three months of operation.
Applied monthly to Gross Rooms Revenue from the prior month.
Current Mandatory Services charge based on Gross Rooms Revenue.
Applied only to Gross Rooms Revenue generated through defined Digital Channels.
The $75,000 payment is called an Application Fee, not an Initial Franchise Fee. It is only one line in a hotel development budget exceeding $23 million, and it should not be used as shorthand for the capital required to open.
What is included in the $23.43 million to $29.89 million range?
The 2026 Item 7 total combines application and pre-opening fees, architecture, construction, Furniture, Fixtures and Equipment, Operating Supplies and Equipment, technology, training, marketing, licensing, and three months of Additional Funds. The largest disclosed category is Construction, Improvements, Remodeling, Decorating Costs and Other Sitework at $19,325,082 to $22,500,082.
Planning, technology and exterior identity
| Item 7 expenditure | 2026 range | When paid / payee | FDD reference |
|---|---|---|---|
| New development Application Fee | $75,000 | Upon signing the franchise application; Hyatt Place Franchising, L.L.C. | Item 7, p. 29 |
| Comfort Letter Fee(s) | $0-$2,500 | When lender(s) sign a comfort letter; franchisor | Item 7, p. 29 |
| Design Review Fee | $5,000-$45,000 | As incurred; franchisor | Item 7, p. 29 |
| Extension of Opening Deadline | $0-$10,000 | When an extension is requested; franchisor | Item 7, p. 29 |
| IT Project Management Services expense reimbursement | $6,695-$11,330 | Before opening; franchisor | Item 7, p. 29 |
| Signage | $65,000-$100,000 | As incurred; suppliers | Item 7, p. 29 |
| Telecommunications systems and certain Technology System equipment and fees | $91,955 | As incurred; suppliers and Hyatt Corporation | Item 7, p. 29 |
| Architecture and Design | $571,500-$825,500 | As incurred; architects, engineers, designers and other professionals | Item 7, p. 29 |
Construction, hotel assets and opening readiness
| Item 7 expenditure | 2026 range | What it covers / timing | FDD reference |
|---|---|---|---|
| Construction, Improvements, Remodeling, Decorating Costs and Other Sitework | $19,325,082-$22,500,082 | Paid as incurred to the general contractor, suppliers, and Hyatt or an affiliate | Item 7, p. 30 |
| Furniture, Fixtures, Other Fixed Assets and Equipment | $1,651,000-$2,794,000 | FF&E; varies mainly with hotel size and configuration | Item 7, pp. 30, 31-32 |
| Operating Supplies & Equipment | $635,000-$1,016,000 | OS&E, including initial food and beverage inventory, linens, amenities and consumables | Item 7, pp. 30, 32 |
| General and Administrative Buildout Costs | $320,000-$500,000 | Permits, deposits, utility startup, impact and tap fees, licenses, insurance, legal and accounting | Item 7, pp. 30, 32 |
| Pre-Opening Marketing and Sales Expenses | $63,500-$250,000 | Before opening; includes applicable System Services Charges during the pre-opening period | Item 7, pp. 30, 32 |
| Liquor License | $30,000-$400,000 | As incurred; may exceed the high end in quota jurisdictions | Item 7, pp. 30, 32 |
| Operator Approval Fees | $0-$32,500 | Before operator screening if the proposed operator is not already approved | Item 7, p. 30 |
| PIP Fee | $0-$10,000 | For a conversion of an existing structure to a Brand Hotel | Item 7, p. 30 |
| Training Expenses paid to Hyatt | $19,400-$42,013 | Fees and travel reimbursements payable to the franchisor or affiliates | Item 7, p. 30 |
| Training Expenses for attendees | $20,688-$28,644 | Franchisee and personnel travel, lodging and attendance costs | Item 7, p. 30 |
Pre-opening services and initial operating cash
| Item 7 expenditure | 2026 range | Basis | FDD reference |
|---|---|---|---|
| Revenue Management Fees | $0-$25,725 | Pre-opening period plus the first three months of operation, if participating | Item 7, pp. 30, 32 |
| Field Marketing Program Fees | $0-$8,649 | First three months of operation, if participating | Item 7, pp. 30, 32 |
| Additional Optional Training | $0-$200,000 | As incurred for additional pre-opening guidance, services or assistance | Item 7, p. 31 |
| Commercial Services Activation | $0-$17,000 | Optional or required if critical readiness obligations are not completed | Item 7, p. 31 |
| Miscellaneous Pre-Opening Costs | $276,000-$375,000 | Office supplies, pre-opening payroll and miscellaneous prepaid opening expenses | Item 7, pp. 31-32 |
| Additional Funds - three months | $276,000-$525,000 | Initial startup expenses, including payroll but excluding management fees or a similar draw | Item 7, pp. 31-33 |
| Total Estimated Initial Investment | $23,431,820-$29,885,898 | New 127-room hotel; real estate excluded | Item 7, pp. 31-33 |
The bars show the disclosed low-to-high span. Construction and sitework is intentionally excluded from this scale because its $19.33 million-$22.50 million range would compress the other categories.
Source: Hyatt Place 2026 FDD, Item 7, pp. 29-33. Geometry is a direct proportional rendering of official ranges; no midpoint or typical value is inferred.
The official total reconciles exactly to the listed Item 7 categories, but it is still a prototype-based range. Site conditions, building design, local liquor licensing, FF&E configuration, and the approved room count can move a buyer's actual contract and construction budget outside individual line-item ranges.
Does the same investment range apply to a conversion or an existing Hyatt Place hotel?
No. Item 7 gives one total for a newly constructed, full-size 127-room Brand Hotel. A conversion, an adaptation of a non-hotel building, or a purchase of an existing Hyatt Place hotel follows a different cost path because the required Property Improvement Plan and the property's existing condition determine the renovation scope.
One disclosed benchmark
$23,431,820-$29,885,898 for a new 127-room hotel, excluding real estate. The new development Application Fee is $75,000, plus $500 for each room above 150.
FDD Item 5, p. 9; Item 7, pp. 29-33.
PIP-dependent cost contract
There is no separate Item 7 total. A conversion or existing-hotel purchase generally adds a $5,000-$10,000 PIP Preparation Fee, and the buyer must budget the renovations, FF&E replacements and upgrades required by the approved Property Improvement Plan.
Purchasing an existing Brand Hotel carries a $150,000 Change of Ownership Application Fee. Item 7 warns that significant upgrade costs may remain even when many original development costs were previously incurred.
FDD Item 5, pp. 9-10; Item 7, p. 33.
Hyatt's official specifications provide useful context for the physical product, but they do not replace the project-specific FDD, franchise application, PIP, Design and Construction Standards, or contractor budget. The official Hyatt Place specifications page currently describes a 125-200-room profile.
When is the money paid?
Hyatt Place costs are paid in stages rather than as one check. The application and project-review payments begin before the Franchise Agreement and opening, construction and supplier payments occur as incurred, training and technology amounts are invoiced before opening, and Additional Funds are used during the first three operating months.
- Franchise applicationPay the $75,000 New Development Application Fee, or the $150,000 Change of Ownership Application Fee for an existing Brand Hotel. A conversion or acquisition also requires the $5,000-$10,000 PIP Preparation Fee when the application is submitted.
- Approval and designOperator Approval and Onboarding may require $15,000 for two participants, re-entry fees up to $15,000, and $2,500 for each additional participant. The Design Review Fee is $5,000-$45,000; comfort letters are currently $2,500 each.
- Development and procurementArchitecture, construction, sitework, FF&E, OS&E, signage, telecommunications, licenses, deposits and professional costs are generally paid as agreed or as incurred to contractors, suppliers, professionals, government agencies, Hyatt or affiliates.
- Pre-opening systems and trainingTraining fees of $15,750-$34,500 are invoiced before the pre-opening team arrives, with estimated Hyatt personnel travel reimbursement of $3,650-$7,513. IT Project Management Services expenses are invoiced after the service is completed or if the project ends.
- Opening and first three monthsPre-opening marketing, initial payroll, applicable System Services Charges, Revenue Management Services, Field Marketing Program Fees and $276,000-$525,000 of Additional Funds support the opening period and early operations.
Source: Hyatt Place 2026 FDD, Item 5, pp. 9-13, and Item 7, pp. 29-33.
Other Item 5 amounts that can change the pre-opening cash schedule
Additional Funds are already inside the Item 7 total. Adding the $276,000-$525,000 range again would double-count the initial operating reserve. The FDD says it includes payroll but excludes management fees or a similar draw.
Which fees continue after the hotel opens?
The principal continuing charges are the Royalty Fee, World of Hyatt Program Assessment, Commercial Services Fee and Digital Acquisition Fee. Hyatt also charges or passes through reservation, property-management, quality-assurance, training, mandatory-contract and other System Services costs. The percentage fees use different revenue bases and should not be added as though they apply to the same dollar of revenue.
Percentage and transaction-based charges
| Continuing fee | Current amount | Basis and timing | FDD reference |
|---|---|---|---|
| Royalty Fee | 5% | Gross Rooms Revenue; due on the Payment Day for the previous month. Hyatt may agree to reduce the rate for the first one to three years of a new hotel. | Item 6, pp. 14, 22 |
| World of Hyatt Program Assessment | 4% or 2% | 4% of eligible member revenue, or 2% for the enrolling stay when the guest is enrolled on property; monthly | Item 6, pp. 14, 22-23 |
| Commercial Services Fee | 3.5% | Gross Rooms Revenue; Payment Day based on the previous month | Item 6, pp. 19, 26-27 |
| Digital Acquisition Fee | 1.35% | Gross Rooms Revenue generated through defined Hyatt Digital Channels; Payment Day | Item 6, pp. 19, 27 |
| GDS and other reservation services | About $8.50 | Current average per reservation accepted through supplemental reservation systems; Payment Day | Item 6, pp. 19, 27-28 |
Fixed, per-room and cost-allocation charges
| Fee or service | Current amount | Timing / condition | FDD reference |
|---|---|---|---|
| Mandatory Contracts | $1,500-$7,500/month | Allocable share of Hyatt Group costs for required vendor contracts | Item 6, p. 19 |
| Other Corporate Services | $500-$5,000/month | Allocable share of Hyatt Group costs; Payment Day | Item 6, p. 20 |
| PMS Subscription | $3.90/room/month | Vendor pass-through billed monthly | Item 6, p. 15 |
| Training Tools and Materials | $3.64/room/year | Annual charge for Hyatt standards and policy training materials | Item 6, p. 15 |
| On-Site Quality Assurance Inspection | $1,500-$2,000 | Annual inspection; failed-inspection reinspection currently $2,000 | Item 6, p. 15 |
| Field Marketing Program | $1,027-$2,883/month | Non-Mandatory Service by selected tier, unless reclassified for the hotel | Item 6, p. 20 |
| Revenue Management Services Program | $500-$3,675/month | Four current tiers; optional in general but may be required in certain circumstances | Item 6, p. 20 |
Mandatory Contracts and Other Corporate Services are current mandatory cost allocations. Field Marketing and Revenue Management are generally Non-Mandatory Services, although the FDD allows reclassification based on the hotel's circumstances.
Source: Hyatt Place 2026 FDD, Item 6, pp. 19-20. The chart compares disclosed monthly ranges only; it does not include percentage, per-room, per-reservation or as-incurred charges.
Royalty Fee, Commercial Services Fee, Digital Acquisition Fee and World of Hyatt Program Assessment do not share one denominator. A buyer should model each fee against its precise FDD definition rather than treating the percentages as a single combined rate.
Which charges arise only after a specific event?
Item 6 contains a substantial set of event-triggered costs. They are not part of the standard monthly Royalty Fee, but they can become material after noncompliance, a management change, late payment, an expansion, a transfer, termination, an insurance lapse or a supplier-review request.
- Quality Assurance and Compliance Program: Focused Improvement Policy stages currently carry $5,000, $15,000 and $20,000 administrative fees; Brand Compliance Program fees may reach $15,000 annually; Brand Protection Program fees are currently $45,000 per year. Related travel, training and remediation costs are additional.
- Late payment and audit: Overdue amounts carry a $225 late fee plus the lesser of 1.5% per month or the highest lawful rate. The franchisee pays audit costs when an audit finds an understatement of at least 3%, late reporting or willful underpayment.
- New rooms, new manager or extra training: Added rooms require the greater of the current PIP fee or $500 per new room. A new, unapproved management company can trigger $15,000-$30,000 of operator approval and re-entry fees. Supplemental training is currently $1,050 per trainer per day plus expenses.
- Alternative suppliers and renovation consultants: Hyatt currently estimates $20,000 to review an alternative product or supplier and $2,000-$30,000 to review proposed consultants for required renovations.
- Insurance lapse: If Hyatt obtains coverage because the franchisee does not maintain it, the franchisee pays the premiums and costs plus a fee currently equal to $200 per guest room per year.
- Termination and de-identification: Failure to de-identify after termination can trigger $5,000 per day plus costs. Early termination liquidated damages generally use up to 36 months of lost Royalty Fees and Commercial Services Charges, with a 150% multiplier for a defined Consequential Termination.
Source: Hyatt Place 2026 FDD, Item 6, pp. 14-18 and 23-26.
Renewal and transfer costs
The Franchise Agreement term runs 20 years from the first day of the month in which the hotel opens. A qualifying successor franchise is for 10 years and requires the franchisee to meet then-current standards, complete required renovation, remodeling or expansion, sign the then-current agreement and pay the then-current PIP Fee, currently $5,000-$10,000. The future renovation budget is not quantified in the 2026 FDD.
A control transfer has no separately labeled Transfer Fee, but the transferor or transferee must pay the then-current Change of Ownership Application Fee, currently $150,000, satisfy outstanding obligations, complete required training and accept renovation, remodeling or expansion requirements. The new agreement may contain materially different fees. Source: 2026 FDD, Item 6, pp. 16-17, and Item 17, pp. 69-73.
How much liquidity or net worth does Hyatt Place require?
The 2026 FDD does not publish one standardized Liquid Capital or Guarantor Net Worth amount for every Hyatt Place transaction. Instead, Hyatt sets a deal-specific Guarantor Monetary Threshold in Exhibit B-1 before the Franchise Agreement is signed, using the hotel's size, market and Hyatt's assessment of transaction risk.
Source: Hyatt Place 2026 FDD, Item 15, pp. 67-68; Exhibit C, Franchise Agreement, Section 19.1(d), p. 43, and definitions at pp. A-5-A-6.
Do not substitute the $276,000-$525,000 Additional Funds range for Hyatt's liquidity requirement. Additional Funds are an Item 7 operating-cost estimate. The Guarantor Liquidity Minimum is a separate, deal-specific financial covenant that should be obtained from the completed Exhibit B-1.
Does Hyatt finance the project?
There is no fixed franchisee financing program. Hyatt says it typically does not provide financial assistance, although it may occasionally offer assistance for a new Brand Hotel or a conversion on individually negotiated terms. Hyatt has no obligation to finance a project, and neither Hyatt Place Franchising, L.L.C. nor its affiliates guarantee a franchisee's note, lease or other obligation. Item 7 separately excludes finance charges, interest and debt service from the official investment estimate. Source: 2026 FDD, Item 10, pp. 40-41, and Item 7, p. 33.
What does the official investment range not resolve?
The FDD range is a development estimate, not a complete sources-and-uses statement for a particular parcel, financing structure or conversion. The largest unresolved variable is real estate, followed by site-specific construction, PIP scope, financing and the hotel's exact size and configuration.
- Land, building and rent: Item 7 excludes land and building purchase prices, rent and the real-estate security deposit. The FDD notes that a typical property may occupy one to three acres, but local codes and parking requirements can materially change the site.
- Financing: Interest, loan fees, finance charges and debt service are excluded. Financing availability depends on the borrower, collateral and lender policy.
- Conversion PIP: No universal conversion total is disclosed. The condition of the structure and FF&E determines the required renovation and replacement work.
- Liquor licensing: The $30,000-$400,000 range may be exceeded where a full spirits license must be purchased in a quota market.
- Owner compensation and management fees: Additional Funds include hotel payroll but exclude management fees or a similar draw.
- Future system changes: System Standards, Mandatory Services, Non-Mandatory Services and related prices may change during the agreement term, potentially creating additional investment obligations.
Source: Hyatt Place 2026 FDD, Item 7, pp. 32-33; Item 8, pp. 33-38; Item 17, pp. 69-74.
What should a prospective Hyatt Place franchisee verify before signing?
The defensible starting point is the 2026 Item 7 range of $23,431,820 to $29,885,898 for a new 127-room hotel, with real estate and financing excluded. The most important project-specific documents are the completed Franchise Application, Exhibit B-1 financial thresholds, approved site package, Design and Construction Standards, Property Improvement Plan for a conversion or transfer, contractor budget, supplier quotes, and the current System Services schedule.
- Confirm whether the transaction is a new development, conversion, acquisition of an existing Brand Hotel, or transfer. Do not apply the new-build Item 7 total to a PIP-based project.
- Reconcile the final room count to the Application Fee, technology, FF&E, OS&E, PMS, insurance and training assumptions.
- Obtain the actual Guarantor Net Worth Minimum and Guarantor Liquidity Minimum inserted in Exhibit B-1.
- Separate Gross Rooms Revenue fees, eligible-revenue assessments, Digital Channel fees, per-reservation charges, per-room charges and monthly cost allocations in the operating model.
- Request the most recent FDD and any amendments before signing or paying. The FTC explains the 14-day disclosure timing in its Consumer's Guide to Buying a Franchise.
The official total is therefore best read as a 127-room new-build cost envelope, not as the cash requirement for every Hyatt Place transaction. A buyer still needs separate real-estate, financing and PIP budgets, plus a fee model that preserves each Item 6 denominator and payment trigger.