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Lodging

Unscripted by Hyatt Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$1,017,703 – $11,805,961

Franchise Fee

$75,000

Royalty Rate

5.0%

Initial Investment Range

Low: $1,017,703 High: $11,805,961

The total initial investment to open a Unscripted by Hyatt franchise ranges from $1,017,703 to $11,805,961, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $75,000.

Midpoint estimate: $6,411,832

Franchise Fee

$75,000

One-time initial fee

The Unscripted by Hyatt 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 Unscripted by Hyatt brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

5.0%

of gross revenue

Ad/Marketing Fund

N/A

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty Fee 5.0 PCT Due on 10th day of each month (Payment Day) based on Gross Rooms Revenue during previous month. Payments must be made by electronic funds transfer (EFT).
World of Hyatt program assessment 4.5 PCT Currently 4.5% of eligible revenue or 2.25% when guest is enrolled on-property in World of Hyatt for that enrolling stay. Could increase if costs increase. Guests choosing airline miles pay actual cost of miles charged by airline.
Comfort letter fee 2500.0 FIXED Currently $2,500 but could increase if costs increase. Due for each comfort letter you must obtain.
Quality assurance, franchisee compliance and guest satisfaction programs - FIP fees 5000.0 VARIABLE Focused Improvement Policy (FIP) fees range from $5,000 to $20,000 per stage (Stage 1: $5,000; Stage 2: $15,000; Stage 3: $20,000). Must also reimburse all costs, actions and additional training for personnel. May be reduced up to 100% based on improved performance. Could increase if costs increase.
Quality assurance, franchisee compliance and guest satisfaction programs - BPP fees 45000.0 FIXED Brand Protection Program fee is $45,000 per year if Hotel does not achieve passing scores by end of FIP Stage 3. May be reduced up to 100% based on improved performance. Could increase if costs increase.
On-site quality assurance inspections 1500.0 VARIABLE Currently $1,500 to $2,000 per annual inspection. Must also pay for any re-inspection needed due to failed inspection (currently $2,000 per inspection) and reverse folio charge for inspection company. Could increase if costs increase.
Additional training and assistance 950.0 FIXED Due if you request or we require supplemental/optional training programs, including replacement training for new Core Management personnel. Must also pay travel, lodging, and other expenses for attendees. Could increase if costs increase.
Training tools and materials 3.64 FIXED Currently $3.64 per guest room per year. Covers cost of developing certain training tools and materials relating to Hyatt standards and policies. Could increase if costs increase.
Fees for owner convention 2000.0 VARIABLE Currently $2,000 to $5,000 per attendee. Owner conventions held typically annually or biennially. Must also pay travel, lodging, and other expenses for attendees. Could increase if costs increase.
Fees for leadership summit 3000.0 VARIABLE Currently $3,000 to $6,000 per attendee. Leadership summits occur approximately once every 4 years. Must also pay travel, lodging, and other expenses for attendees. Could increase if costs increase.
Application Fee for new guest rooms 10000.0 VARIABLE Due only if proposing adding new guest rooms to Hotel during Franchise Agreement term. PIP fee (currently $10,000) due when requesting approval, remainder due when plans approved.
General Manager University 2700.0 FIXED Currently $2,700 per newly hired or promoted general manager. Required training program. Must also pay travel, lodging and other expenses for attendees. Could increase if costs increase.
Operator approval fee and re-entry fees 10000.0 VARIABLE Currently $10,000 to $20,000. Applies if appointing new management company not already approved as Brand Hotel operator. Could increase. Due before new management company enters operator screening process.
Transfer fee N/A FIXED No fee for transfers, but transferor or transferee must pay then-current Application Fee. Franchisor will refund Application Fee paid (less $7,500) if transfer disapproved. This is the only refundable fee.
Fee for review of offering materials 5000.0 FIXED Due only if franchisee or owners propose offering of ownership interests in franchisee or an owner. Due when submitting materials for review.
PIP fee for conversion or successor franchise 10000.0 FIXED Currently $10,000 but could increase. Due only if converting existing structure to Brand Hotel or applying for successor franchise. Due with franchise application.
Royalty fee upon termination 5000.0 FIXED Due only if, and while, franchisee fails to properly de-identify Hotel after expiration or termination.
Liquidated damages upon termination N/A VARIABLE Due if Franchise Agreement terminates before term expires. Formula: lesser of (36 or months remaining) x (Average Monthly Revenue x (3% or 3.5% for lost System Services Charges + 5% for lost Royalty Fees)). 150% of calculated amount if Consequential Termination. Due within 15 days after termination. See Note 5 for detailed calculation methodology.
Audit expenses N/A VARIABLE Due only if audit reveals understatement of 3% or more, or if franchisee fails to report on time or willfully underpays amounts.
Late fee 225.0 FIXED Late fee of $225 due on all overdue amounts.
Interest on late payments 1.5 PCT Lesser of 1.5% per month or highest rate law allows. Due on all amounts more than 7 days late or not available for withdrawal by due date.
Costs and attorneys' fees N/A VARIABLE Will vary under circumstances. Due if franchisor prevails in dispute.
Indemnification N/A VARIABLE Must reimburse franchisor and related parties for all claims and related costs arising from application, Hotel development/operation (including failure to open on time), breach, and Hotel's proportionate share of expenses in defending actions involving Hotel and other Hyatt Network Hotels.
Insurance 200.0 FIXED Currently $200 per guest room per year plus premiums and costs. Due only if franchisee fails to obtain and maintain insurance and franchisor chooses to obtain it on franchisee's behalf.
Commercial Services Fee 3.0 PCT Mandatory Service. Currently 3% of Gross Rooms Revenue for hotels with 5,000 or less square feet of meeting space, or 3.5% for hotels with more than 5,000 square feet. Due on Payment Day based on previous month. Could increase if costs increase. See Note 6.
Commercial Services Fee (large meeting space) 3.5 PCT Mandatory Service. For Brand Hotels with more than 5,000 square feet of meeting space. Due on Payment Day. Could increase if costs increase.
Digital Acquisition Fee 1.35 PCT Mandatory Service. Currently 1.35% of Gross Rooms Revenue through Digital Channels. Due on Payment Day. Could increase if costs or scope of services increase. See Note 7.
Global distribution services and other reservation services 8.5 FIXED Mandatory Service. Currently averages about $8.50 per reservation. Must subscribe to certain GDS and/or ADS through franchisor at its option. Due on Payment Day. Could increase if costs increase. See Note 8.
Costs for mandatory contracts 1500.0 VARIABLE Mandatory Service. Currently $1,500 to $7,500 per month. Covers contracts with vendors (credit card acceptance, music licenses, telecommunications) that cover Hotel and Brand Hotels. Due on Payment Day. Could increase if costs increase. See Note 9.
Other corporate services 500.0 VARIABLE Mandatory Service. Currently $500 to $15,000 per month. Due on Payment Day. Could increase if costs increase. See Note 10.
Field Marketing Program 996.0 VARIABLE Non-Mandatory Service (optional after first year). Currently $996 to $2,747 per month depending on service tier. Mandatory for first year of operation, optional thereafter. Due as incurred. Could increase if costs increase. See Note 11.
Revenue Management Services Program - Tactical Tier 1000.0 FIXED Non-Mandatory Service. Currently $1,000 per month for Tactical Tier. Due within 30 days after receiving invoice. Could increase if costs increase. See Note 11.
Revenue Management Services Program - Essential Tier 1000.0 VARIABLE Non-Mandatory Service. Currently $1,000 per month before Opening Month and $2,000 per month from and after Opening Month. Due within 30 days after receiving invoice. Could increase if costs increase. See Note 11.
Revenue Management Services Program - Premium Tier 1750.0 VARIABLE Non-Mandatory Service. Currently $1,750 per month before Opening Month and $3,500 per month from and after Opening Month. Due within 30 days after receiving invoice. Could increase if costs increase. See Note 11.
Central Sales Services Program - group sales management 1750.0 VARIABLE Non-Mandatory Service. Currently $1,750 to $6,300 per month for group sales management services. Due as incurred. Could increase if costs increase. See Note 11.
Central Sales Services Program - lead specialist 1000.0 VARIABLE Non-Mandatory Service. Currently $1,000 to $5,000 per month for lead specialist services. Due as incurred. Could increase if costs increase. See Note 11.
Central Sales Services Program - transient sales 1600.0 VARIABLE Non-Mandatory Service. Currently $1,600 to $3,200 per month for transient sales services. Due as incurred. Could increase if costs increase. See Note 11.
Central Sales Services Program - central director of sales 5050.0 VARIABLE Non-Mandatory Service. Currently $5,050 to $7,600 per month for central director of sales services. Due as incurred. Could increase if costs increase. See Note 11.
Central Sales Services Program - administrative support 2000.0 VARIABLE Non-Mandatory Service. Currently $2,000 to $2,500 per month for administrative support services. Due as incurred. Could increase if costs increase. See Note 11.
Global Property Guest Services (GPGS) Add-On Program 3.5 VARIABLE Non-Mandatory Service. Currently $3.50 to $16 per service interaction requested depending on services selected. Due as incurred. Could increase if costs increase. See Note 11.
Digital Ancillary Services Program 1250.0 VARIABLE Non-Mandatory Service. Currently $1,250 per month plus commission payable to vendor of 5% of net revenue actually received from bookings through vendor's channels. Due as incurred. Could increase if costs increase. See Note 11.
Purchasing services N/A VARIABLE Non-Mandatory Service. Will vary depending on items purchased. You might choose to buy items through franchisor's affiliate.
Optional corporate services N/A VARIABLE Non-Mandatory Service. Actual costs will vary depending on assistance needed. Hyatt Group corporate office may provide temporary employees for Hotel at franchisee's request.
Other related party transactions N/A VARIABLE Non-Mandatory Service. Hotel will routinely engage in transactions with Brand Hotels and other Hyatt Network Hotels. For example, paying for using another hotel's staff or for another hotel redeeming quality assurance certificates.
Optional technology services N/A VARIABLE Non-Mandatory Service. Will vary depending on service(s) acquired. Covers point-of-sale, accounting, procurement, guest service and other IT-related services that franchisee may choose to acquire.
Hyatt Sales Force (HSF) - group bookings 6.0 PCT Non-Mandatory Service. 6% of Group Contract Revenue (reduced to 3% if intermediary involved) for group bookings resulting from HSF leads, not exceeding $30,000. HSF offers sales services for small to mid-sized accounts on local/regional basis. Acceptance of HSF-generated business is optional; fees only apply to confirmed bookings.
Hyatt Sales Force (HSF) - transient room nights 3.0 PCT Non-Mandatory Service. 3% of Gross Rooms Revenue per transient room night resulting from HSF leads. Acceptance optional; fees only apply to confirmed bookings.
Hyatt Sales Force (HSF) - sales sourcing center leads 1.0 PCT Non-Mandatory Service. 1% of Gross Rooms Revenue per room night for leads generated from sales sourcing center (e.g., referrals). Acceptance optional; fees only apply to confirmed bookings.

What You Get

Category

Lodging

Franchise Score

53

out of 100

Unscripted by Hyatt delivers lifestyle hotel experiences that embrace local culture and spontaneity in key destinations worldwide. The brand offers curated accommodations with authentic, immersive travel experiences for modern leisure travelers.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

N/A

Net Unit Growth

0 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022
2023
2024

Is a Unscripted by Hyatt Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Unscripted by Hyatt franchise opportunity:

Overall Score

53/100

Moderate opportunity

Est. Payback Period

N/A

Insufficient data

Risk Level

N/A

Insufficient data

Unscripted by Hyatt 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.

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