How much does it cost to open a Hilton Garden Inn franchise?

The total initial investment for a Hilton Garden Inn franchise ranges from $21,933,881 to $32,375,601. This includes the franchise fee of $100,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Hilton Garden Inn franchise?

Hilton Garden Inn franchisees pay a 5.5% royalty fee and a 4.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Hilton Garden Inn franchise?

Hilton Garden Inn does not disclose financial performance data (Item 19) in their FDD. Revenue and profitability figures are not publicly available from the franchisor.

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Lodging 747 Units

Hilton Garden Inn Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$21,933,881 – $32,375,601

Franchise Fee

$100,000

Royalty Rate

5.5%

Initial Investment Range

Low: $21,933,881 High: $32,375,601

The total initial investment to open a Hilton Garden Inn franchise ranges from $21,933,881 to $32,375,601, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $100,000.

Midpoint estimate: $27,154,741

Franchise Fee

$100,000

One-time initial fee

The Hilton Garden Inn franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Hilton Garden Inn brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

5.5%

of gross revenue

Ad/Marketing Fund

4.0%

of gross revenue

Total Ongoing Fee Burden: 9.5% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Monthly Royalty Fee	5.5	PCT	Payable by the 15th day of the following month. May be reduced for qualifying franchisees (25 instances in 2023). In case of fire/casualty, fee based on forecasted GRR agreed with insurer.
Monthly Program Fee	4.0	PCT	Payable by the 15th day of the following month. May be changed but not to exceed current rate plus 1% over term. May be reduced via incentive programs but never less than 3.8%. Covers advertising, promotion, marketing, reservation systems, quality assurance, directories, and administration.
Room Addition Fee	400.0	FIXED	Payable with Application for approval when adding or constructing additional guest rooms after hotel opens. Non-refundable once approved.
OnQ Connectivity Fees	815.0	VARIABLE	Billed monthly. Fee ranges from $815 to $1,485 depending on equipment.
Hardware and Software Maintenance Support Fees	1120.0	VARIABLE	Billed monthly by the 15th day of following month. Covers OnQ hardware and software maintenance provided by franchisor. Does not cover vendor-provided maintenance.
OnQ Email Fees	7.92	FIXED	Billed quarterly. Minimum 3 accounts required. $12.50 per month for mobile device delivery.
Connected Room Maintenance Fees	570.0	VARIABLE	Billed monthly by the 15th day of following month.
Delphi Sales and Events System	858.0	FIXED	Billed annually. License and maintenance fees passed through to vendor less markup to recover costs.
Guest Assistance Program: Customer Satisfaction Guarantee	200.0	VARIABLE	Within 48 hours of receipt of invoice. $300 for Diamond members, $250 for Gold members, $200 for all other guests. Includes cost of rebate plus handling fee. Franchisor may change amounts.
Guest Assistance Program: Price Match Guarantee	25.0	PCT	When the stay is consumed. Applies when guest finds lower qualifying rate through third-party channel.
Guest Assistance Program: First Contact Resolution	15.0	FIXED	Within 10 days of billing. Payable if more than 5 files created in a month. Must also pay cost of guest compensation even if fee doesn't apply.
Guest Assistance Program: Online Complaints	25.0	FIXED	As invoiced. Due if hotel doesn't respond to guest complaint on designated websites/social media within 24 hours. Program subject to change.
Brand Compliance Consecutive Unacceptable Fee	5500.0	FIXED	Within 10 days of billing. For consecutive Unacceptable grades on brand compliance evaluations (QA, Stay Score, or FRCM). Must provide complimentary lodgings for Hilton representative. May increase up to $50,000 total over 6 months.
Brand Compliance Special Audit Fee	5500.0	FIXED	Within 10 days of billing. For special on-site quality assurance evaluations to verify default cure, after consecutive failures, failed opening inspection, or failed previous Special. Must provide complimentary lodgings.
Brand Compliance PIP Consecutive Failure Fee	10000.0	FIXED	Within 10 days of billing. For consecutive failures on PIP evaluation to verify proper and timely completion. Must provide complimentary lodgings.
Quality Improvement Program for Failure to Meet Minimum Performance Standards	495.0	FIXED	Within 10 days of billing. $495 per month plus one-time fee of $3,950 to $4,950. Required for at least 12 months if issued Brand notice of failure to meet minimum performance standards.
Brand Conference	2500.0	FIXED	Before attendance. General manager and director of sales must attend. Usually held biennially. Franchisor selects dates, location, and duration.
General Manager, Commercial and Sales Leader Training	1200.0	FIXED	Before attendance. General manager and commercial leaders must complete within 90 days of start. Required for new GMs and commercial leaders, or those away from Brand/role for 24+ months.
Hilton Core Sales Skills Training	600.0	FIXED	Before attendance. Director of sales and sales managers must complete within 90 days of start. May be modified for experienced trainees.
Other Training Programs and Training Materials	5000.0	FIXED	Before attendance or materials shipped. Some required, some optional. May provide some required courses without fee. May also pay attendee wages, travel, lodging, food, expenses, and/or trainer expenses.
Travel Clubs	0.3	VARIABLE	$0.30 per room billed annually on DS/TAC invoice by Q2. Commissions: if invoiced within 15 days, if ACH by 12th business day monthly. Currently for AAA, CAA, and AARP programs. Subject to change.
Hilton Advance Program	1.35	PCT	If invoiced within 15 days, if ACH by 12th business day of month. Drives bookings through Hilton's online direct booking channels via lower-funnel marketing, SEO, social media. Digital Direct Revenue = GRR from Hilton websites and mobile apps.
Group Preferred Partnership Program	1.8	VARIABLE	If invoiced within 15 days, if ACH by 12th business day monthly. Optional program. Up to $1.80 per consumed room night plus commission. May increase to $2.50 this year. May change to percentage-based fee. Provides access to top group intermediaries.
Hilton Honors Frequent Traveler/Guest Reward Program	3.6	PCT	10 days after billing. Must participate in brand-specific or System-wide guest frequency/reward program. Currently Hilton Honors. Fee waived for stays where guest enrolled on-property in Hilton Honors. Subject to change.
Hilton Honors Event Planner Bonus Program	0.0025	VARIABLE	As incurred. Optional commercial incentive program (auto-enrolled, may opt-out). Awards bonus points to event planners for group bookings. Planners can earn up to 5 points per $1 of booking revenue. May become mandatory. Subject to change.
Hilton For Business Program	3.0	PCT	As incurred. Optional commercial sales program (auto-enrolled, may opt-out annually). Enables small/medium companies to manage travel, receive discounts, Honors points, other benefits. Subject to change.
Online Group Event Booking Charges	2.0	PCT	On demand. Only if inventory loaded through designated online platform and group actualizes. Currently optional but may become required. Optional add-on services available at additional cost.
Third-Party Reservation Charges	5.76	FIXED	If invoiced within 15 days, if ACH by 12th business day (or 20th day for this charge). Required program. Centralizes/automates payments to third parties (OTAs, group planners, travel planners, other channels). Includes costs for GDS, airline reservations, internet providers.
FastPay Program	1.4	FIXED	If invoiced within 15 days, if ACH by 12th business day. Required program. Centralized payment for group intermediaries and meeting planners. Currently processes commissions up to 7% and customer rebates. All eligible charges must be paid through FastPay.
Travel Planner Centralized Payment Program	0.18	FIXED	If invoiced within 15 days, if ACH by 12th business day. Required program (TPCP). Consolidates commissionable consumed travel planner bookings, one payment per agency. Commission on total room rate and commissionable charges; transaction charge on all reservations including no-shows and cancellations.
Unlimited Rewards Program	0.71	VARIABLE	If invoiced within 15 days, if ACH by 12th business day. Required program. $0.71 weekday (Mon-Thu), $1.42 weekend with 1 Fri/Sat/Sun night, $2.13 weekend with 2 Fri/Sat/Sun nights. Double Dollars: $1.42, $2.63, $3.84 respectively. Remits funds to Avis Budget; portion to travel planner, remainder as processing charge.
Change of Ownership Application Fee	200000.0	FIXED	With Application. For any proposed transfer that does not qualify as a Permitted Transfer.
Permitted Transfer Processing Fee	5500.0	FIXED	When request submitted for consent. For any proposed transfer that qualifies as a Permitted Transfer that requires consent.
Re-licensing Application Fee	100000.0	FIXED	With Application. For relicensing to an existing franchisee.
Lender Comfort Letter Processing Fee	3500.0	FIXED	Before document issued. $3,500 for Lender Comfort Letters, $1,500 for Assignments. Only issued if requested and meets qualifications.
Public Offering or Private Placement Processing Fee	5000.0	FIXED	When request submitted for approval. Must also pay additional costs incurred in reviewing documents, including reasonable attorneys' fees.
Audit	N/A	VARIABLE	On demand. If audit reveals understatement/underpayment not offset by overpayments. If willful or 5%+ of total owed for period, must also reimburse all inspection and audit costs.
Service Charges for Overdue Payments	1.5	PCT	On demand. Late payment interest charge.
Identity, Sales, and Distribution Non-Compliance Fee	500.0	FIXED	On demand. Cost-recovery fee if hotel uses non-accredited third party intermediary or fails to comply with Identity, Sales and Distribution Standards. May result in loss of access to certain sales and distribution channels.
Franchise Agreement Non-Compliance Fee	1.0	PCT	On demand. Applies each month in which franchisee fails to comply with Franchise Agreement.
FastPay Non-compliance Fee	3000.0	VARIABLE	On demand. Up to greater of $3,000 or 10% of gross group room revenue (not to exceed $7,500) per violation. For non-compliance with FastPay program policies, rules or terms.
Restaurant Brands Annual Fee	9500.0	FIXED	Invoiced by January 15 each year. Not subject to change.
Consortia Program	3.0	VARIABLE	If invoiced within 15 days, if ACH 12th business day monthly. Must participate in BOTH Consortia and TMC Pay-On-All-Pay-For Performance or NEITHER. May change to percentage-based fee up to 1.45% of consumed room revenue. List of participating agencies may change.
TMC Pay-On-All-Pay-For Performance Program	1.85	VARIABLE	If invoiced within 15 days, if ACH 12th business day monthly. Must participate in BOTH Consortia and TMC Pay-On-All-Pay-For Performance or NEITHER. May change to percentage-based fee up to 1.06% of consumed room revenue. List of participating agencies may change.
US Government Travel Agency Programs	2.3	VARIABLE	Billed on TACS invoice due within 15 days if invoiced, 15th of month if ACH. Optional participation. Programs include FedRooms/StatesRates, CWTSato, DOD Preferred, Omega World Travel, ADTRAV Government. For FedRooms/StateRates and DOD Preferred, may increase to 5.0% of consumed room revenue this year. If participate in DOD Preferred must also participate in FedRooms at same rate.
ResMax Program	5.4	VARIABLE	As required by franchisor. 5.4% to 5.9% of consumed revenue, max 3 nights. If pricing model changes this year, will not exceed $5.00 per call. Fee varies by booking volume and other factors. Optional service but may be required in certain circumstances. If not enrolled and accepts referral, may be charged. If transfers calls to HRCC outside ResMax, may be billed up to $5.00 per call.
Revenue Management Consolidated Center (RMCC)	599.0	VARIABLE	Within 10 days of billing. Optional (may be required in certain circumstances). Category 1 (one-time): $1,769. Category 2 (monthly full support): $1,319-$15,399. Category 3 (monthly reports only): $599-$1,819. Category 4 (monthly lead management): $999-$5,599. Category 5 (monthly group rooms coordinator): $810-$5,400. Provides revenue management analysis, strategy, lead management, coaching. Subject to change.
Procurement and Services Fees	4.0	VARIABLE	As agreed. Payable if buying from HSM, in addition to product cost, freight, taxes and other actual costs incurred by HSM.

What You Get

Financial Performance (Item 19)

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.2%

Low risk — below industry average

Net Unit Growth

+747 units

From Next Fiscal Year to 2023

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
Next Fiscal Year	—	+12	—	—	—
2021	710	+22	-1	—	732
2022	732	+11	-1	—	743
2023	743	+7	-3	—	747

Is a Hilton Garden Inn Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Hilton Garden Inn franchise opportunity:

Overall Score

68/100

Moderate opportunity

Est. Payback Period

N/A

Insufficient data

Risk Level

Low

0.2% annual closure rate

Hilton Garden Inn shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.