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- 2023 Franchise 500 Rank
#27 Ranked #49 last year
- Initial investment
$13.8M - $20.6M
- Units as of 2022
551 66.0% over 3 years
Here’s what you need to know if you’re interested in opening a Home2 Suites by Hilton franchise.
Home2 Suites by Hilton is part of the portfolio of brands under Hilton. The corporate parent company has hotels in more than 90 countries all over the world. So, what hotels are owned by Hilton? Hilton Worldwide's other brands include Homewood Suites by Hilton, Waldorf Astoria & Resorts, DoubleTree by Hilton, and Conrad Hotels & Resorts.
Founded in 2008 and headquartered in McLean, Virginia, Home2 Suites by Hilton began franchising in 2009. In Hilton's history, Home2 Suites is one of the fastest growing brands. In the first five months after launching, this mid-tier, all-suite, extended-stay hotel concept received franchise application after franchise application after franchise application.
This hotel concept offers customizable and innovative guest room designs, complimentary breakfast with a wide range of combinations, complimentary WIFI, community spaces, and multiple outdoor spaces. Home2 Suites by Hilton has more than 400 hotels in the United States, as well as a handful in Canada.
Why You May Want to Start a Home2 Suites by Hilton Franchise
Starting a Home2 Suites by Hilton franchise offers you the opportunity to grab your share of one of the fastest-growing hotel industry segments. When you develop with this franchisor, you attain an upscale position in the extended-stay market and the backing of one of the world's biggest hotel chains.
By choosing to develop a Home2 Suites by Hilton, you establish a lasting relationship with the entire family of hotels under Hilton. There are several advantages enjoyed by the Home2 Suites by Hilton franchisees, such as central reservation systems, friendly corporate staff, and the Hilton Honors guest reward program. The franchisor offers a wide range of training and support to help franchisees achieve success in their businesses.
What Might Make a Home2 Suites by Hilton Franchise a Good Choice?
If you have been looking for the right franchise opportunity to start, then look no further. Home2 Suites by Hilton has become one of the most well-received franchises in the country because of its quality. Multiple times in recent years, Home2 Suites by Hilton has been ranked in Entrepreneur’s Franchise 500. That 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.
The franchisor operates under a well-thought-out and proven Hilton system used by thousands of hotels. This system is responsible for the impressive number of loyal customers to the brand by eliminating the need to ask questions like "what is my suite number?"
You’ll want to make sure you have enough capital available to cover an initial investment made up of a franchise fee and other startup costs. You should also be sure that you are financially sound enough to cover ongoing fees that will include royalty fees, advertising fees, and potential renewal fees.
How Do You Start a Home2 Suites by Hilton Franchise?
To start the evaluation process of owning this franchise, submit a franchise inquiry form. To determine if this franchise is right for you, complete your due diligence and thoroughly study the brand and your desired market area. As you wait for a review, the Home2 Suites by Hilton team will run background and credit checks on you.
If you qualify, Home2 Suites by Hilton may schedule you for a meeting with the regional developers. You will then receive, review, and submit the Franchise Disclosure Document. If you like the numbers and would like to take the opportunity, you can sign a franchise agreement. You will then formally become a Home2 Suites by Hilton franchisee.
About Home2 Suites by Hilton
- Franchising Since
- 2009 (14 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Asia, Canada
- # of Units
- 551 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Home2 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.
- Initial Investment
- $13,773,621 - $20,553,246
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
- Home2 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
- 155-173 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial 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 ownership opportunities like Home2 Suites by Hilton? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Home2 Suites by Hilton landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Home2 Suites by Hilton ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Home2 Suites by Hilton.
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