A reasonable analytical range for a mature, 127-room U.S. Hyatt Place is approximately $1.37 million to $2.24 million in estimated pre-tax owner earnings before debt service, with a base scenario of about $1.71 million. The 2026 FDD reports room-revenue performance, not owner profit, so these figures are estimates rather than franchisor-reported earnings.
This range is an independent analytical scenario, not an Item 19 financial performance representation by Hyatt Place Franchising, L.L.C. It combines identified facts from the 2026 Hyatt Place FDD with a separately identified U.S. lodging-company operating benchmark and explicit sensitivity assumptions. Actual results can differ materially because of location, room count, occupancy, rate, labor, insurance, property tax, franchise charges, management structure, capital spending, financing and execution.
- Legal franchisor
- Hyatt Place Franchising, L.L.C.; parent company Hyatt Hotels Corporation
- Disclosure document
- Hyatt Place 2026 Franchise Disclosure Document, issued March 27, 2026
- Item 19 status
- Official RevPAR, occupancy, Average Daily Rate and channel metrics; no net income or owner compensation
- Applicable population
- 321 Franchised Covered Hotels operating throughout 2025 in the United States and Canada
- Estimate benchmark
- Summit Hotel Properties, Inc. 2025 U.S. lodging portfolio Hotel EBITDA and expense data
- Public FDD access
- No matching official public PDF was verified; FDD facts are cited by year, Item and page. Hyatt provides a North America FDD request page.
Mode C — FDD-anchored scenario estimate. Item 19 supplies a same-brand revenue anchor, while the owner-earnings conversion uses an official U.S. Securities and Exchange Commission filing from a lodging portfolio that includes numerous Hyatt Place properties. The benchmark is useful, but it is not a Hyatt Place franchised-unit profit disclosure.
The FDD does not publish outlet profit and pools U.S. and Canadian performance, so external operating economics materially affect the estimate.
2025 Franchised Covered Hotels in Item 19.
$112.46 × 127 rooms × 365 days.
After unit expenses and a mature-hotel capital reserve.
Hotels open for all of 2025 in the North American cohort.
Monthly deposit based on Gross Rooms Revenue after year two.
Royalty Fee plus Commercial Services Fee; other fees use different bases.
What does the Hyatt Place FDD actually report?
The official 2026 FDD reports revenue productivity, not owner earnings. For 321 Franchised Covered Hotels operating for all of 2025, Item 19 reports average RevPAR of $112.46 and median RevPAR of $99.06. It does not disclose operating profit, Hotel EBITDA, net income, owner salary, distributions or cash flow.
RevPAR means Gross Rooms Revenue divided by available room nights. It is a revenue measure. Applying RevPAR to a room count can estimate room revenue, but it cannot by itself establish what the owner keeps.
| Item 19 population | Hotels | Average RevPAR | Median RevPAR |
|---|---|---|---|
| Franchised Covered Hotels | 321 | $112.46 | $99.06 |
| Franchised Urban Hotels | 82 | $140.45 | $120.27 |
Source: Hyatt Place 2026 FDD, Item 19, pp. 74–82. The Franchised Covered Hotel cohort combines U.S. and Canadian hotels. Covered Hotels averaged 139 rooms and 11.8 years under the Hyatt Place name; the FDD's Item 7 investment model uses 127 rooms. Urban results are shown for context and are not substituted into the principal U.S. scenario.
The FDD excluded 11 hotels that opened during 2025 and four hotels that temporarily closed. Its RevPAR range for Franchised Covered Hotels was $27.30 to $273.23, which demonstrates substantial property-level dispersion. The range is descriptive, not a probability distribution.
Item 20 reports 322 U.S. franchised outlets at year-end 2025, after seven openings, two terminations and one reacquisition. That count is not directly comparable with Item 19's 321-hotel cohort because Item 20 is U.S.-only while Item 19 pools the United States and Canada and limits the cohort to hotels operating for the full measurement year. Source: Hyatt Place 2026 FDD, Item 20, pp. 82–97.
How was the annual owner-earnings range calculated?
The estimate converts Item 19 RevPAR into Gross Rooms Revenue for the FDD's 127-room development model, applies a U.S. hotel operating benchmark, and then deducts the FDD-required mature-hotel capital reserve. The Conservative, Base and Upside cases are analytical scenarios, not forecasts or probabilities.
| Scenario | RevPAR anchor | Gross Rooms Revenue | Cash margin | Estimated owner earnings |
|---|---|---|---|---|
| Conservative | FDD median: $99.06 | $4.59M | 29.8% | $1.37M |
| Base | FDD average: $112.46 | $5.21M | 32.8% | $1.71M |
| Upside | 120% of FDD average: $134.95 | $6.26M | 35.8% | $2.24M |
Model assumptions and boundaries
- Revenue: Conservative uses the official median RevPAR; Base uses the official average RevPAR; Upside uses 120% of the average as an explicit editorial spread because Item 19 provides no upper quartile.
- Operating benchmark: Summit Hotel Properties' 2025 portfolio generated $243.365 million of Hotel EBITDA on $643.795 million of room revenue. Its operating expenses include labor, sales and marketing, repairs, utilities, property taxes, insurance, management fees and franchise fees.
- Capital spending: The model deducts 5% of Gross Rooms Revenue for the mature CapEx Account required by Item 8. The FDD rate is 3% in year one and 4% in year two, but early-year ramp-up is not modeled.
- Excluded: Interest, loan principal, depreciation, personal income taxes, owner-level corporate overhead and extraordinary renovations are outside the result.
- Rounding: Calculations use full-precision inputs and are displayed to the nearest $10,000 or two decimal places in millions.
Estimated pre-tax owner earnings before debt service for a mature 127-room hotel
Interpretation: Revenue and margin assumptions compound. A lower RevPAR and a three-point margin contraction produce the $1.37 million case; a 20% revenue uplift and a three-point margin expansion produce the $2.24 million case.
Sources: Hyatt Place 2026 FDD, Item 19, pp. 74–82; Summit Hotel Properties 2025 Form 10-K lodging-property results. Scenario spreads are editorial assumptions.
What does the base scenario leave after hotel operations?
The base bridge starts with $5.21 million of derived Gross Rooms Revenue, estimates $0.69 million of food, beverage and other revenue using the benchmark portfolio mix, and arrives at about $1.71 million after unit-level operating expenses and the mature CapEx reserve. This is still before financing and personal taxes.
Millions of dollars; operating expenses include franchise and management fees
Interpretation: The bridge uses the benchmark's actual relationship among room revenue, ancillary revenue, operating expenses and Hotel EBITDA. The FDD's 5% mature CapEx deposit is then treated as restricted owner cash rather than distributable cash.
Sources: Hyatt Place 2026 FDD, Items 8 and 19, pp. 37–38 and 74–82; Summit Hotel Properties 2025 Form 10-K. The benchmark portfolio is a proxy, not a Hyatt Place-only cohort.
The $5.21 million base Gross Rooms Revenue figure is not income to the owner. Payroll, housekeeping, utilities, repairs, property tax, insurance, sales and marketing, franchise charges, management fees and other hotel costs must be paid before residual cash exists.
How does owner involvement change the result?
Hyatt Place is not modeled as a simple owner-operator business in which the owner replaces the general manager. Item 15 requires an approved operator and a full-time Core Management team. Owner involvement may avoid an external management-company fee only when Hyatt approves the owner to manage the hotel and the owner performs the corresponding oversight work.
| Operating structure | Economic treatment | Modeled annual result |
|---|---|---|
| Approved management company | Benchmark management fees and hotel management payroll remain operating expenses. | $1.37M–$2.24M |
| Hyatt-approved owner management | Adds the modeled value of avoiding an external management fee, but not the general manager's salary or Core Management payroll. | $1.48M–$2.39M |
| Passive capital owner | No separate Item 19 result. Returns depend on the management agreement, asset-level debt, reserves and owner-level overhead. | Not disclosed |
The approved owner-management increment is approximately $112,000 to $153,000 across the three scenarios, based on the benchmark's 2025 management-fee ratio of 2.45% of room revenue. The base owner-managed benefit is about $1.84 million. That increment compensates management labor and responsibility; it should not be described as passive business profit.
FDD basis: Hyatt Place 2026 FDD, Item 15, pp. 65–68. Labor context: the U.S. Bureau of Labor Statistics Accommodation industry profile reports lodging-management employment and wage data, but the scenario does not add back a lodging-manager wage because Item 15 still requires Core Management.
Which franchise charges materially affect owner earnings?
The largest clearly disclosed percentage charges are the 5% Royalty Fee and 3.5% Commercial Services Fee, both based on Gross Rooms Revenue. Additional charges use narrower revenue bases or fixed allocations. They are economically important, but the scenario does not subtract them a second time because the selected Hotel EBITDA benchmark already includes franchise fees.
- Royalty Fee
- 5% of Gross Rooms Revenue. Hyatt Place 2026 FDD, Item 6, pp. 14 and 23.
- Commercial Services Fee
- Currently 3.5% of Gross Rooms Revenue. Item 6, pp. 19–20 and 26–28.
- Digital Acquisition Fee
- Currently 1.35% of Gross Rooms Revenue generated through defined Digital Channels. Item 6, pp. 20 and 27–28.
- World of Hyatt assessment
- Currently 4% of eligible member revenue, or 2% for an enrolling on-property stay. Item 6, pp. 14 and 23.
- Shared mandatory services
- Mandatory contracts currently $1,500–$7,500 monthly and other corporate services $500–$5,000 monthly, subject to change and allocation.
- CapEx Account
- 3% of Gross Rooms Revenue in year one, 4% in year two and 5% thereafter; the hotel may need to spend more than the account balance.
The Summit Hotel Properties proxy identifies franchise fees, management fees, labor, sales and marketing, repairs, utilities, property taxes and insurance within hotel operating expenses. Applying its Hotel EBITDA ratio and then separately subtracting Hyatt's Royalty Fee or Commercial Services Fee would charge those categories twice. Only the FDD-required CapEx reserve is deducted separately.
Is the modeled amount the owner's take-home pay?
No. The $1.37 million to $2.24 million range is pre-tax, pre-financing property cash after a modeled capital reserve. Interest and principal payments, personal or entity income taxes, owner-level overhead, extraordinary capital projects and distributions among investors can reduce the amount available to an individual owner.
The 2026 FDD estimates a total initial investment of $23.43 million to $29.89 million for a new 127-room Hyatt Place, excluding real estate costs. That is a development-cost disclosure, not an annual operating expense. It also indicates why capital structure can materially change owner distributions: two hotels with similar operating results may produce very different equity cash flow if their loan amounts, interest rates, amortization schedules or required reserves differ.
- Included
- Normal hotel operating expenses, franchise fees embedded in the benchmark, management fees for the manager-run case, property taxes, insurance and the mature CapEx reserve.
- Excluded
- Interest, principal amortization, depreciation, personal income taxes, owner-level corporate overhead and unmodeled PIP or major-renovation spending.
- Not estimated
- After-tax take-home pay, return on investment, payback period, property value or portfolio-level distributions.
What should a buyer verify before relying on this range?
A buyer should treat the scenario as a screening range and replace every proxy with property-specific evidence before underwriting a transaction. The most useful evidence is written Item 19 substantiation, actual profit-and-loss statements from comparable U.S. Hyatt Place hotels, the proposed management agreement and the buyer's real financing terms.
Evidence to request and reconcile
- Written substantiation for Item 19, including the exact U.S. versus Canadian mix and results for hotels closest to the proposed room count, market type and age.
- Three years of room revenue, ancillary revenue, payroll, utilities, property tax, insurance, franchise charges, management fees and Hotel EBITDA from comparable franchisees.
- The property's actual management-company base fee, incentive fee, centralized-service charges and owner-level accounting or asset-management costs.
- CapEx Account balances, planned property-improvement requirements, deferred maintenance and historical capital spending above the FDD minimum deposit.
- Loan amount, rate, amortization, maturity, reserves, covenants and annual debt service; do not infer them from the Item 7 investment range.
- Interviews with current and former franchisees listed in Item 20 and its exhibits, with separate questions for urban, suburban, converted and newly built hotels.
What is the strongest defensible Hyatt Place earnings answer?
The strongest defensible answer is a scenario-based range of approximately $1.37 million to $2.24 million in annual pre-tax owner earnings before debt service for a mature, 127-room hotel, with a base case near $1.71 million. It is not an official owner-profit figure. The principal earnings driver is RevPAR—the combination of occupancy and Average Daily Rate—because much of a hotel's cost base is fixed or semi-fixed.
The largest unresolved uncertainty is that Item 19 supplies no outlet-level profit and no U.S.-only performance cohort. A buyer should therefore verify Item 19 substantiation, comparable franchisee P&Ls, management fees, capital requirements and financing terms before treating any point in the range as usable underwriting.