Hyatt House Franchise
Cost, fees, owner earnings, closure rate and litigation for a Hyatt House franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Hyatt House discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Provides 2025 data for 120 operating hotels: Occupancy 74.7%, ADR $166.96, RevPAR $124.77. Smith Travel indices show 106.0 for occupancy. World of Hyatt contributes 63.3% revenue. No certified audit; unaudited internal data only.
What a Hyatt House franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $75,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $26,934,987 – $33,427,565 | Item 7 — franchisor's own low/high estimate |
5% royalty on Gross Rooms Revenue; 3.5% Commercial Services Fee; 4% World of Hyatt loyalty program assessment; extensive mandatory system service charges.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Hyatt House system size and owner turnover
| Total outlets | 121 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 11 |
| Closure rate | 0.0% of outlets |
Zero terminations in 2025; 11 transfers suggest ownership changes; historically low failure rate.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Hyatt House worth it? — how it compares to 436 similar franchises
| Ongoing fees | 8.5% of sales | about average |
| Startup cost | from $26,934,987 | pricier than 99% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 1.5%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Hyatt House
The franchisor's framing: Provides 2025 data for 120 operating hotels: Occupancy 74.7%, ADR $166.96, RevPAR $124.77.… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Hyatt House franchise — frequently asked
- How much does a Hyatt House franchise cost?
- The FDD lists a total initial investment of about $26,934,987–$33,427,565, including a $75,000 initial franchise fee.
- How much do Hyatt House franchise owners make?
- Provides 2025 data for 120 operating hotels: Occupancy 74.7%, ADR $166.96, RevPAR $124.77. Smith Travel indices show 106.0 for occupancy. World of Hyatt contributes 63.3% revenue. No certified audit; unaudited internal data only. We grade this disclosure C for honesty.
- What are the Hyatt House franchise fees?
- Hyatt House's FDD discloses a $75,000 initial franchise fee, a 5% royalty on gross sales, a 3.5% advertising-fund contribution, for roughly 8.5% of gross sales in recurring fees before rent, labor, or debt service. 5% royalty on Gross Rooms Revenue; 3.5% Commercial Services Fee; 4% World of Hyatt loyalty program assessment; extensive mandatory system service charges.
- What is the Hyatt House franchise profit margin?
- Hyatt House does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Provides 2025 data for 120 operating hotels: Occupancy 74.7%, ADR $166.96, RevPAR $124.77. Smith Travel indices show 106.0 for occupancy. World of Hyatt contributes 63.3% revenue. No certified audit; unaudited internal data only. Recurring fees alone take about 8.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Hyatt House franchise failure rate?
- Zero terminations in 2025; 11 transfers suggest ownership changes; historically low failure rate.
- How many Hyatt House locations are there?
- Hyatt House's FDD reports 121 total outlets, with 0 that ceased operations in the most recent reporting year and 11 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Hyatt House have complaints or lawsuits?
- Hyatt House discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Hyatt House franchise worth it?
- It depends on the numbers, not the pitch. Hyatt House scores C on disclosure honesty, carries about 8.5% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Hyatt House to similar franchises
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Source: MN CARDS 35677-202603-04 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Hyatt House or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.