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- 2022 Franchise 500 Rank
#17 Ranked #24 last year
- Initial investment
$12.3M - $22.8M
- Units as of 2022
2,824 13.4% over 3 years
Here’s what you need to know if you’re interested in opening a Hampton by Hilton franchise.
Hampton by Hilton, also known as Hampton Inn & Suites, is known as one of the leading hotel franchises in the United States. Hampton by Hilton has more than 2,200 franchises in the U.S., over 50 in Canada, and more than 250 internationally.
Hampton by Hilton guests can enjoy hotel breakfasts, fresh coffee, discounted rates, business travel meeting space, free internet access, and exercise rooms. If you're a potential franchisee searching for a hotel and restaurant business, then starting a Hampton by Hilton franchise business might be the best choice for you.
Why You May Want to Start a Hampton by Hilton Franchise
To be part of the Hampton 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, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. The typical term of agreement for a Hampton by Hilton franchisee lasts for 22 years, at which point you can seek to renew your franchise for a sum if the franchisor wishes to remain in business with you.
Brand name recall is one of the easiest ways for you to get around. Backed by the name Hampton by Hilton, the brand has served as a great choice for many American families for several years. To ensure that the company runs during off-peak seasons, Hampton by Hilton hotels also serves as a destination for visitors and residents in their respective areas.
What Might Make Hampton by Hilton Franchise a Good Choice?
As you decide if you wish to open a Hampton by Hilton franchise, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Hampton by Hilton franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth. The cost of the franchise usually depends on the hotel's location. The company may find the best place to set up a Hampton by Hilton franchise if you need support.
Another way to ensure a steady business flow is by organizing business meetings and activities in the hotel. It might be one of the sources of revenue for hotels such as Hampton by Hilton. The affordability and simplicity of hotel conference rooms may result in it being considered one of the best places to hold business meetings. Holding these kinds of activities within your franchised hotel might be a smart way to advertise.
Hampton by Hilton usually offers a 100% guarantee for their guests. If guests are not entirely pleased with clean rooms and friendly service, Hampton by Hilton may refund the cost of the stay. Hampton by Hilton wants their customers to leave happy, which should help you can clientele in the early years of your business.
How Do You Open a Hampton by Hilton Franchise?
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. If you are chosen as a franchisee, the business generally offers on-site consultations and training to you and your management, crew, and service personnel to help you find the right place in the market.
You may receive multiple weeks of preparation at Hampton by Hilton headquarters in McLean, Virginia. The brand typically provides further support in the form of newsletters, meetings, and a helpline. They also may offer promotional assistance, standard procedures, and a grand opening kit for your new franchise.
About Hampton by Hilton
- Franchising Since
- 1984 (38 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees worldwide.
- # of Units
- 2,824 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Hampton 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.
- Initial Investment
- $12,254,771 - $22,788,906
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.
- Veteran Incentives
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
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
- 22 years
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?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Hampton 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.
- Classroom Training
- 140-173 hours
- Additional Training
- General manager training
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingMarketing Planning & SupportSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- 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
- 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 franchise ownership like Hampton by Hilton? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Hampton by Hilton landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Hampton by Hilton ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Hampton by Hilton.
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