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Hyatt Place Franchise ProfileRestaurant Franchises > Full-Service Restaurants |
How to Start a Hyatt Place Franchise?
To begin your journey with Hyatt Place, you must first ensure you meet the substantial financial requirements, including a liquid cash requirement of $5,295,000 and a net worth that can range up to $50,000,000. The process typically involves submitting a formal application and undergoing a rigorous vetting process by Hyatt's corporate team. If approved, you will pay an initial franchise fee of $75,000. From there, you will work through site selection and construction for a project that requires a total initial investment between $13,629,297 and $52,134,018. Hyatt provides a robust business model with a focus on upscale service, aiming for an efficient ramp-up period with an estimated breakeven time of 18 months.
What Might Make a Hyatt Place Franchise a Good Choice?
Hyatt Place offers a premium opportunity in the hospitality sector with a strong track record of growth, expanding from 274 franchised units in 2019 to 309 units by 2023. The brand's stability is highlighted by the fact that it maintains a purely franchised model in recent years, with zero corporate-owned units. For investors looking for a high-revenue model, the average annual revenue per unit is approximately $5,295,000, and the highest-performing units have reached significant revenue milestones. Additionally, the investment payback period is estimated at a relatively swift 29 months, making it an attractive option for those with the capital to enter the upscale hotel market.
Why You May Want to Start a Hyatt Place Franchise?
Starting a Hyatt Place franchise allows you to align with one of the most recognized names in the global hospitality industry. The brand is designed for multi-unit developers and high-net-worth individuals who want to capitalize on the "select service" category, which combines luxury with functional efficiency. Franchisees benefit from a comprehensive support system, including a marketing program funded by a 3.50% fee and a royalty structure of 5%. With a median annual revenue range between $15,000,000 and $50,000,000 depending on the scale and location, the brand provides the tools and prestige necessary to compete at the highest levels of the lodging industry.
Is Owning a Hyatt Place Franchise the Right Move for You?
Owning a Hyatt Place is a major financial undertaking best suited for experienced developers or investment groups. The high initial investment, which can exceed $52 million, reflects the premium nature of the facilities and the Hyatt brand standards. While the lowest annual revenue recorded for a unit is $5,230,069, the brand consistently shows strong performance metrics across its 309 locations. If you are prepared for the ongoing operational demands and have the financial backing to support a large-scale hospitality project, Hyatt Place offers a proven framework for success in the competitive upscale hotel market.
Hyatt Place 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 Place Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Total Units | 274 | 292 | 309 | 309 | 309 |
| Net Change YoY | N/A | 18 | 17 | 0 | 0 |
| Franchised Units | 274 | 292 | 309 | N/A | N/A |
| Net Change YoY | N/A | 18 | 17 | N/A | N/A |
| Corporate Units | N/A | N/A | 0 | 0 | 0 |
| Net Change YoY | N/A | N/A | N/A | 0 | 0 |
Investment Requirements
Starting a Hyatt Place franchise requires a significant capital commitment, with an initial investment ranging from $13,629,297 to $52,134,018. Prospective franchisees must meet substantial financial benchmarks, including a required net worth between $15,000,000 and $50,000,000 and liquid cash availability of at least $5,295,000. These figures reflect the scale and premium nature of developing a world-class hospitality asset under the Hyatt brand.
Ongoing Fees and Royalties
Franchisees are responsible for an initial franchise fee of $75,000 to secure the rights to the brand. Once operational, the financial structure includes a royalty fee of 5% of gross revenues for new units. Additionally, to support the brand's global presence and guest acquisition strategies, there is a marketing fee of 3.50%. These fees ensure access to Hyatt's extensive reservation system, loyalty program, and international marketing reach.
Performance and Revenue
The Hyatt Place model demonstrates strong revenue potential, with the highest annual revenue per unit reaching $3,028,000 and an average annual revenue per unit of approximately $5,295,000. While individual performance varies by location and market conditions, the data indicates a median annual revenue range consistent with high-tier hospitality standards. The lowest recorded annual revenue per unit in the set was $5,230,069, showcasing the brand's robust market position.
Payback and Breakeven
For investors looking at long-term profitability, the Hyatt Place franchise offers a defined timeline for recovery of capital. Based on current data, the average breakeven time for a new unit is approximately 18 months. Furthermore, the total investment payback period is estimated at 29 months, allowing owners to move toward a profitable standing relatively quickly within the capital-intensive hotel industry.
Unit Growth and Expansion
Hyatt Place has shown consistent growth in its franchised footprint over recent years. The number of franchised units rose from 274 in 2019 to 309 by 2021, maintaining that level through 2023. This steady expansion highlights the brand's stability and the continued interest from developers in the select-service upscale lodging segment.
Corporate Ownership Strategy
A distinctive aspect of the Hyatt Place franchise model is its current focus on third-party ownership. As of the latest data from 2021 through 2023, there are 0 corporate-owned units, meaning the brand's growth is driven entirely by its franchise partners. This strategy allows the parent company to focus on brand management and support while providing entrepreneurs the opportunity to fully own and operate their hospitality portfolios.
Frequently Asked Questions
The total initial investment for a Hyatt Place location ranges from $13,629,297 to $52,134,018. This comprehensive range covers construction, equipment, and the initial franchise fee.