FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Home2 Suites by Hilton.
Based on 2025 FDD · 2 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Home2 Suites by Hilton franchise shows an estimated initial investment of $15.7M – $24.4M. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $100K franchise fee · 9.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Home2 Suites by Hilton requires a total initial investment of $15.7M to $24.4M (midpoint approximately $20.1M), with an initial franchise fee of $100K. The ongoing fee burden is 9.5% (6% royalty plus 3.5% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.
Home2 Suites by Hilton does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.
Home2 Suites by Hilton operates approximately 48 franchised units. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 7.2%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2020-2023). 4 loans across 4 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Hilton franchise costs $49.7M-$204.3M to open with a $85,000 franchise fee. 5% royalties.
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