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Hyatt House Franchise ProfileRestaurant Franchises > Full-Service Restaurants |
How To Open a Hyatt House Franchise?
To begin your journey toward owning a Hyatt House franchise, you should first assess your financial standing to ensure you meet the high capital requirements, including a net worth of $15,000,000 and $5,880,000 in liquid cash. The process typically involves submitting a formal inquiry to Hyatt's development team, followed by an evaluation of your proposed site and professional background. If your application moves forward, you will review the Franchise Disclosure Document in detail and pay an initial franchise fee of $75,000. Because these are large-scale hospitality projects, you will undergo extensive corporate review and planning sessions to align with Hyatt's brand standards before breaking ground on your upscale extended-stay hotel.
What Might Make a Hyatt House Franchise a Good Choice?
Hyatt House is a prominent player in the extended-stay hospitality segment, backed by the global reputation of the Hyatt brand. The franchise has shown steady growth, increasing from 105 franchised units in 2021 to 111 units by 2023. This stability, combined with the presence of corporate-owned locations, demonstrates the franchisor's direct commitment to the brand's operational success. While the initial investment is significant-ranging from approximately $16.7 million to over $57.1 million-the model is designed for sophisticated investors looking for a high-revenue asset. With median annual revenues reported at $15,000,000, the brand offers a substantial footprint in the premium hotel market.
Why You May Want to Start a Hyatt House Franchise?
Starting a Hyatt House franchise allows you to tap into the lucrative extended-stay market with a brand that emphasizes a "home away from home" experience. Hyatt provides a robust support system for its franchisees, including a comprehensive marketing program funded by a 3.5% marketing fee and a structured royalty system of 5%. The brand's focus on upscale amenities and modern suites attracts long-term business travelers and families, potentially leading to consistent occupancy rates. As a franchisee, you benefit from Hyatt's global reservation system and loyalty program, which are critical drivers for customer acquisition in the competitive hospitality industry.
Is Owning a Hyatt House Franchise the Right Move for You?
Owning a Hyatt House requires a long-term vision and significant financial endurance, as the estimated investment payback period is approximately 187 months, with a breakeven time of 60 months. It is an ideal move for experienced real estate developers or hospitality groups who have the resources to manage a large-scale operation and the patience for a multi-year return on investment. If you are prepared to meet the rigorous standards of a world-class hotel chain and have the capital to navigate the $16.6 million minimum startup cost, Hyatt House offers a prestigious opportunity to build a high-value portfolio in the lodging sector.
Hyatt House Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Hyatt House Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Total Units | 105 | 115 | 119 | 9 |
| Net Change YoY | N/A | 10 | 4 | -110 |
| Franchised Units | 105 | 108 | 111 | N/A |
| Net Change YoY | N/A | 3 | 3 | N/A |
| Corporate Units | N/A | 7 | 8 | 9 |
| Net Change YoY | N/A | N/A | 1 | 1 |
Financial Investment Requirements
Embarking on a Hyatt House franchise requires a significant capital commitment, with total initial investment costs ranging from $16,665,875 to $57,134,018. Prospective franchisees must demonstrate a strong financial position, including a minimum net worth of $15,000,000 and liquid cash availability of at least $5,880,000 to ensure the project is properly capitalized from development through opening.
Franchise Fees and Royalties
To join the Hyatt House network, partners must pay an initial franchise fee of $75,000. Ongoing operational costs include a monthly royalty fee set at 5% of gross revenue for new units. Additionally, franchisees contribute 3.5% of gross revenue toward marketing fees, which fund the brand's global advertising efforts, reservation systems, and promotional initiatives to drive guest traffic.
Revenue Performance
Hyatt House properties show a strong earning potential with a median annual revenue per unit of $15,000,000. While the average annual revenue is reported at $5,880,000, top-performing locations have reached highs of $6,905,000. These figures reflect the brand's positioning in the extended-stay market, though individual results vary based on location and management.
Growth and Unit Count
The brand has maintained a steady upward trajectory in its domestic footprint. Between 2021 and 2023, the number of franchised units grew from 105 to 111. Simultaneously, corporate involvement has increased, with company-owned units rising from 7 in 2022 to 9 by the start of 2024, signaling a shared commitment between the parent company and its franchise partners.
Investment Timeline
Investing in a Hyatt House franchise is a long-term strategic move. Data indicates a breakeven time of approximately 60 months (5 years) for the operation to reach a point where revenues cover ongoing expenses. The total investment payback period, which accounts for the recovery of the substantial initial capital outlay, is estimated at 187 months.
Brand Concept
Hyatt House is a premium extended-stay brand designed to provide guests with a home-like atmosphere during long-term travel. By offering spacious suites with full kitchens and separate living areas, the franchise caters to business and leisure travelers seeking comfort and consistency. The brand combines the warmth of a residence with the high-end amenities and service standards synonymous with the Hyatt name.
Frequently Asked Questions
The total initial investment for a Hyatt House hotel ranges from a low of $16,665,875 to a high of $57,134,018. This includes the initial franchise fee and various costs associated with property development and construction.