- 2023 Franchise 500 Rank
#50 Ranked #85 last year
- Initial investment
$20.3M - $30.1M
- Units as of 2022
534 8.5% over 3 years
Homewood Suites by Hilton is an upscale, all-suite, extended-stay hotel with more than 500 locations. They're strategically distributed across the U.S., Mexico, and Canada. Homewood Suites by Hilton has more than 57,000 rooms, mostly franchised and operated by independent franchisees. The hotel chain continues to seek to expand operations worldwide.
Franchising since 1988, Homewood Suites by Hilton is an award-winning leader of the hotel industry, providing guests with comfortable accommodations and all the essential amenities. They offer free internet, breakfast, and evening socials. As a Homewood Suites by Hilton franchisee, you'll be part of the Hilton Worldwide family.
Other Hilton-operated brands include Waldorf Astoria Hotels & Resorts, Hilton Hotel Resort, DoubleTree by Hilton, Hampton by Hilton, the Hilton Home2 Suites, and more. For more than 30 years, Hilton hotels have established a presence in over 90 countries worldwide.
Why You May Want to Start a Homewood Suites by Hilton Franchise
As a Homewood Suites by Hilton franchisee, you may get an opportunity to shape one of the hotel industry's more well-known sectors. As you build a name for your franchise, you may earn a coveted spot in the extended-stay market with the Hilton brand's full support.
Running a Homewood Suites by Hilton hotel is more than simply running a basic place for customers to stay. Instead, more so, you are forming a relationship with the whole Hilton family of hotels. The Hilton name has several critical advantages, including a warm and welcoming corporate staff. They strive to offer a streamlined central reservations system, third-party financing support, and a top-notch Hilton Honors guest reward program. In addition, being a Homewood Suites by Hilton franchisee gives you a role in the company's ongoing advocacies, including a partnership with the New York-based Books for Kids program, which promotes child literacy.
What Might Make Opening a Homewood Suites by Hilton Franchise a Good Choice?
Many times in the past few decades, Homewood Suites by Hilton has been ranked in Entrepreneur’s Franchise 500. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
Other benefits to being a Homewood Suites by Hilton franchisee include training and ongoing support from the Hilton brand. This may manifest in design and construction support while building cutting-edge technology, quality assurance, and branding teams. You'll also get business reports and a franchise location website.
How To Open a Homewood Suites by Hilton Franchise?
To be part of the Homewood Suites by Hilton team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, ongoing fees will include advertising, royalty, or renewal fees.
To begin the process of opening a Homewood Suites by Hilton franchise, submit an inquiry form. But before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. Speak to existing franchisees and ask questions directed to the Homewood Suites by Hilton team. If you match the brand’s requirements, you may qualify to open a Homewood Suites by Hilton franchise.
After you sign the contract, you will likely go through training and other preparations before opening your Homewood Suites by Hilton franchise to your first guests.
About Homewood Suites by Hilton
|Related Categories||Hotels & Motels|
|Leadership||Christopher Nassetta, CEO|
7930 Jones Branch Dr.
McLean, VA 22102
|Social||Facebook, Twitter, Instagram|
|Franchising Since||1988 (2023-1988 years)|
|# of employees at HQ||6,998|
This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Central America, Canada, South America, Mexico
|# of Units||534 (as of 2022)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Homewood Suites by Hilton 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.
|$20,276,671 - $30,054,220|
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||Homewood Suites by Hilton 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||153-160 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||25|
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.
Interested in ownership opportunities like Homewood Suites by Hilton? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Homewood Suites by Hilton landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Homewood Suites by Hilton ranked on other franchise lists? Find out below.
Ranked #50 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
Ranked #36 in 2023
If you're interested in an opportunity with international appeal, start your search with our ranking of the top franchises seeking to expand outside the U.S.
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