- 2023 Franchise 500 Rank
#46 Ranked #64 last year
- Initial investment
$38.9M - $162.5M
- Units as of 2023
542 5.9% over 3 years
If you love to travel, have a passion for customer service and are business savvy, then opening a Hilton Hotels and Resorts franchise might be for you.
One of the largest hospitality companies worldwide and providing customers with more than one million rooms, investing in a Hilton Hotels and Resorts franchise can be a successful business venture.
With 19 hotel brands located in 123 countries and territories and providing 7,165 properties worldwide, Hilton Hotels and Resorts is one of the world’s fastest-growing hospitality companies.
What is the history of the Hilton franchise?
Conrad Hilton started the Hilton Hotels and Resorts empire in 1919 by purchasing his first hotel, The Mobley, in Cisco, Texas. He later went on to buy other hotels in Texas to expand his business even further.
Conrad took the hospitality industry by storm when he opened the Waco Hilton, which became the first hotel to bear his name and have cold running water and air conditioning.
In 1949, Conrad expanded his business and became the world’s first international hotel chain when he purchased real estate in Puerto Rico and opened the Caribe Hilton Hotel.
By 1973 the company took the initiative and started a central reservations system where customers could book a room from one location rather than having to call up each individual hotel. Today, roughly 1.6 million people book rooms and services at Hilton hotels monthly using apps, websites and chatbots.
Today Hilton Hotels and Resorts, whose parent company is Hilton Worldwide Holdings Inc., is one of the most recognized hotel brands worldwide.
What are Hilton Hotels’ main values?
Hilton Hotels and Resorts prides itself on its values and diversity. They are committed to an inclusive work environment that includes all ages, genders, sexual orientations, nationalities, ethnicities and disabilities.
Their core values are broken down with the acronym HILTON:
- H: Hospitality (passionate about delivering exceptional guest experiences).
- I: Integrity (do the right thing all the time).
- L: Leadership (leaders in the industry and community).
- T: Teamwork (team players in everything they do).
- O: Ownership (of their actions and decisions).
- N: Now (operating with a sense of urgency).
What hotel brands fall under the Hilton name?
Consisting of 19 brands investing in a Hilton Hotels and Resorts franchise provides numerous opportunities for the franchise owner.
Read on for a breakdown of some brands that fall under Hilton Hotels and Resorts.
Doubletree by Hilton
Investing in this franchise with over 580 Doubletree hotels worldwide provides the potential for massive growth.
With amenities such as restaurants and bars, state-of-the-art fitness centers and world-renowned spas, your guests are sure to relax and enjoy themselves at this facility. Being welcomed with a warm chocolate chip cookie also helps exceed guest expectations.
Hampton by Hilton
One of the industry’s famous brands, Hampton by Hilton, offers over 2,500 hotels in 29 countries.
With amenities such as complimentary hot breakfast, wifi, on-site fitness facilities and a relaxing pool, Hampton Inn allows guests to keep their regular routine while enabling them to relax and enjoy their stay.
Hilton Garden Inn
Armed with spacious rooms, single-serve coffee machines and in-room refrigerators, the Hilton Garden Inn provides upscale accommodations and thoughtful amenities for its guests.
With added features such as cooked-to-order breakfast and customized drinks, customers will surely enjoy their time at this hotel.
Conrad Hotels & Resorts
With hotels and resorts in 23 countries, guests’ stays at Conrad Hotels & Resorts are sure to be enjoyable. From breathtaking views in exotic locations to comfortable accommodations closer to home, there is a hotel and amenity to suit every guest.
Home2 Suites by Hilton
Designed for customers who require a longer stay, typically five nights or more, the Home2 Suites by Hilton is the perfect mid-scale, cost-effective choice.
With complimentary breakfast, laundry, fitness facilities and pet-friendly room options, guests have positive experiences at Home2 Suites.
Waldorf Astoria Hotels & Resorts
From personal concierge service to complimentary bag-packing, this brand provides guests with a truly unique hotel experience.
Hilton Grand Vacations
Providing guests with spacious and elegant accommodations, a stay at one of the 80 Hilton Grand Vacations hotels is sure to impress.
With amenities that include the comforts of home and the top-notch customer service that Hilton is known for, guests are sure to relax at one of these beautiful hotels.
Homewood Suites by Hilton
When a customer is looking for an extended stay, a room at Homewood Suites by Hilton fits the bill. Ranging from studio to two-bedroom suites, there is a room for every guest's needs.
Each room has an in-suite kitchen, and a free complimentary breakfast is provided.
Embassy Suites by Hilton
Geared toward the business professional, a stay at Embassy Suites by Hilton will surely please even the most well-traveled guest.
With large two-room suites, cooked-to-order breakfast and a two-drink complimentary allowance, a stay here is sure to please.
Canopy by Hilton
Close to stores, restaurants and art galleries, a stay at the Canopy by Hilton has something for everyone.
Guests will surely enjoy the in-house cafe, restaurant, pool, fitness room and spacious meeting rooms for all their business needs.
What is the Hilton Honors loyalty program?
When a customer enrolls in the Hilton Honors loyalty program, the member will receive unique benefits and incentives when they stay at any Hilton Hotel and Resort. The Hilton Honors program is one of the most sought-after guest programs in the hotel industry.
Members are entitled to:
- Hilton Honors discount rates.
- Points towards free nights.
- No resort fees on reward stays.
- Convenient digital check-in.
- The ability to choose their room.
- An easy-to-use digital key.
- Access to free wifi.
What is involved in opening a Hilton franchise?
Once you have decided to enter into the hotel industry and open a Hilton Hotels & Resorts franchise, you will sign the franchise agreement with the franchisor, Hilton Franchise Holding LLC.
You should expect a total franchise cost of anywhere from $29 million upwards of $112 million, with an initial investment of approximately $75,000.
The franchise fee breakdown is as follows:
- Initial Franchise Fee: $75,000.
- Royalty Fee: 5%.
- Ad Royalty Fee: 4%.
What training do franchisees receive?
Once approved to open a new franchise with Hilton Hotels and Resorts, the franchisor requires you to partake in the necessary training as part of the certification process.
There are more than 10 training programs that are required, not including the new owner orientation and workshops. All programs must be completed to the franchisor’s satisfaction, and there are two training methods available:
- Online Training: this is done at the franchisee’s pace and is accessible anytime.
- Classroom Training: this is done in person in a classroom setting with an instructor.
For further information regarding a franchise opportunity with Hilton Hotels and Resorts, also provides each franchisee with a franchise disclosure document, including the agreement's terms.
Why choose a Hilton Hotel franchise?
With a proven history of delivering award-winning customer service for more than 100 years, opening a Hilton Hotels & Resorts franchise comes with a management team who knows the industry.
Recognized for its exceptional work environment, Hilton Hotels & Resorts has won the Fortune Best Companies to Work For award in the U.S. for two consecutive years. They are also the only hospitality company ever to receive a number-one ranking, proving what a reputable and profitable company they truly are.
Starting a franchise with Hilton Hotels & Resorts has two building options. You can purchase an existing hotel and convert it to fit with the Hilton brand. Alternatively, you can build your hotel from the ground up. Either way, you are backed by a design team that will be there with you every step of the way to ensure your vision and the vision of the Hilton brand come together seamlessly.
Start a Hilton Hotels & Resorts franchise today
Whether new to the hospitality industry or a seasoned professional, investing in a Hilton Hotels and Resorts franchise can be a wise business investment.
Backed with all the help you need to get your business up and running, opening a Hilton Hotels and Resorts franchise comes with the knowledge and experience gained from more than 100 years in the hotel industry.
From training and financial assistance to an award-winning design team, you will surely enjoy your franchise experience as you build a business you can be proud of for generations.
Check out Entrepreneur’s other articles for more information about Hilton Hotels & Resorts and other franchise opportunities.
About Hilton Hotels and Resorts
|Franchising Since||1965 (58 years)|
|# of employees at HQ||7,801|
This company is offering new franchisees throughout the US.
This company is offering new franchisees worldwide.
|# of Units||542 (as of 2023)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Hilton Hotels and Resorts franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
|$38,914,325 - $162,511,189|
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
Term of Agreement
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|Third Party Financing||Hilton Hotels and Resorts has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
|On-The-Job Training||1 hour|
|Classroom Training||134-167 hours|
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||No|
Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
|# of employees required to run||150|
Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Hilton Hotels and Resorts landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Hilton Hotels and Resorts ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Hilton Hotels and Resorts.
- Upscale extended-stay hotels
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