Hyatt Place Hotels Franchise
Cost, fees, owner earnings, closure rate and litigation for a Hyatt Place Hotels franchise — pulled from the franchisor's own public FDD (2005), not its sales material.
Disclosure honesty
Hyatt Place Hotels discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
FPR discloses occupancy, ADR, RevPAR, Smith Travel indices, World of Hyatt contribution data for 346 covered hotels. Omits net income/profit figures and operating expense details.
What a Hyatt Place Hotels 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 | $23,431,820 – $29,885,898 | Item 7 — franchisor's own low/high estimate |
5% royalty, 3.5% commercial services fee, 4% World of Hyatt assessment, PMS $3.90/room/month plus various mandatory and optional service fees.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Hyatt Place Hotels system size and owner turnover
| Total outlets | 347 |
| Ceased operations | 1 |
| Terminated by franchisor | 2 |
| Transferred to new owners | 20 |
| Closure rate | 0.3% of outlets |
Low termination/closure rate indicates system stability; minimal recent failures observed.
From Item 20 of the FDD 2005. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Hyatt Place Hotels worth it? — how it compares to 436 similar franchises
| Ongoing fees | 8.5% of sales | about average |
| Startup cost | from $23,431,820 | pricier than 99% of peers |
| Disclosure honesty | Grade B | more honest than 84% of other franchises franchises |
| Closure rate | 0.3% 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 Place Hotels
The franchisor's framing: FPR discloses occupancy, ADR, RevPAR, Smith Travel indices, World of Hyatt contribution da… 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 Place Hotels franchise — frequently asked
- How much does a Hyatt Place Hotels franchise cost?
- The FDD lists a total initial investment of about $23,431,820–$29,885,898, including a $75,000 initial franchise fee.
- How much do Hyatt Place Hotels franchise owners make?
- FPR discloses occupancy, ADR, RevPAR, Smith Travel indices, World of Hyatt contribution data for 346 covered hotels. Omits net income/profit figures and operating expense details. We grade this disclosure B for honesty.
- What are the Hyatt Place Hotels franchise fees?
- Hyatt Place Hotels' 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, 3.5% commercial services fee, 4% World of Hyatt assessment, PMS $3.90/room/month plus various mandatory and optional service fees.
- What is the Hyatt Place Hotels franchise profit margin?
- Hyatt Place Hotels does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: FPR discloses occupancy, ADR, RevPAR, Smith Travel indices, World of Hyatt contribution data for 346 covered hotels. Omits net income/profit figures and operating expense details. 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 Place Hotels franchise failure rate?
- Low termination/closure rate indicates system stability; minimal recent failures observed.
- How many Hyatt Place Hotels locations are there?
- Hyatt Place Hotels' FDD reports 347 total outlets, with 1 that ceased operations in the most recent reporting year and 20 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Hyatt Place Hotels have complaints or lawsuits?
- Hyatt Place Hotels 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 Place Hotels franchise worth it?
- It depends on the numbers, not the pitch. Hyatt Place Hotels scores B 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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Source: WI DFI Franchise Registration (2005). FranchiseValidate is independent and not affiliated with Hyatt Place Hotels or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.