Franchise Deep Dive: Hilton Garden Inn's Franchise Costs, Fees, Profit and Data

Under the ownership of the global Hilton Hotel brand, Hilton Garden Inn has become a go-to hotel franchise for travelers seeking comfortable, mid-priced accommodations.

Hilton garden inn overview

Hilton Garden Inn is a global hotel brand that operates under the larger hospitality company Hilton. The franchise provides business and leisure travelers with upscale, affordable accommodations and modern amenities. Hilton Garden Inn says its goal is to make each guest’s stay “better and brighter.”

Hilton Garden Inn is one of the many hotel brands operated by Hilton, which also includes names such as Waldorf Astoria Hotels & Resorts, Homewood Suites by Hilton and DoubleTree by Hilton.

As of August 2023, there are more than 980 hotels spanning 58 countries and territories around the world.

Hilton Garden Inn operates as a midscale hotel brand that offers comfortable and mid-priced accommodations to both business and leisure travelers. Hilton Garden Inn operates its properties near key destinations such as business districts and airports, providing a convenient place for busy travelers to stay the night. In addition to its conveniently situated locations, the brand also emphasizes its technology integration and offers amenities like free Wi-Fi and digital check-in to enhance guest convenience.

Hilton Garden Inn also offers a loyalty program, dubbed Hilton Honors, which rewards members with exclusive perks when they stay at Hilton-owned properties. These grant benefits such as free nights, the ability to choose your own room, no resort fees and experiences.

For prospective franchisees, Hilton says there are a number of benefits, including:

• Open communication with regular events and conferences

• Global and local expertise in tune with owners’ goals

• Ongoing support and innovation

• The ability to join a growing, award-winning network of hotels

The potential earnings for Hilton Garden Inn owners can vary depending on factors such as location, occupancy rates and operational efficiency. You can learn more about the potential earnings of a Hilton Garden Inn franchise by checking the Item 19 in the Franchise Disclosure Document (FDD), which you can find here.

Franchise costs and fees

The initial investment to open a typical 132-room Hilton Garden Inn hotel franchise ranges between $21,206,245 to $31,066,970. This investment is broken down into the following costs:

• Franchise Application Fee: $75,000

• Property Improvement Plan: $0 to $10,000

• Market Study: Varies

• Environmental Assessment: Varies

• Real Property: Varies

• Construction and Leasehold improvements: $14,375,000 to $21,275,000

• Design and Engineering Fees: $431,250 to $638,250

• Furniture, Fixtures, Equipment: $2,587,500 to $4,312,500

• Inventory and Operating Equipment: $220,000 to $550,000

• Signage: $20,000 to $75,000

• Computer Hardware and Software: $55,695 to $149,145

• Guest Internet Access Program: $64,300 to $100,000

• Delphi Sales and Events System: $1,500 to $33,000

• Required Pre-Opening Training: $5,000 to $17,500

• ADA Consultant Fee: $2,500 to $10,000

• Construction/Renovation Extension Fees: $0 to $10,000

• Insurance: Varies

• Organizational Expense: $50,000 to $127,075

• Permits and Licenses: $215,625 to $319,125

• Miscellaneous Pre-Opening and Project Management Expenses: $359,375 to $531,875

• Contingencies: $1,437,500 to $2,127,500

• Additional Funds: $300,000 to $700,000

• Other Required Pre-Opening Services Fees: $6,000

Royalty fees and requirements

Franchise owners must also pay an ongoing 5.5% royalty fee of gross rooms revenue and a 4% monthly program fee.

Hilton Garden Inn has a franchise application fee of $75,000.

• Christopher Nassetta — President and CEO

• Kristen Campbell — Executive Vice President, General Counsel and Chief ESG Officer

• Laura Fuentes — Executive Vice President and Chief Human Resources Officer

• Danny Hughes — Executive Vice President and President, Americas

• Kevin Jacobs — Chief Financial Officer and President, Global Development

• Matthew Schuyler — Chief Brand and Communications Officer

• Chris Silcock — Executive Vice President and Chief Commercial Officer

• Simon Vincent — Executive Vice President & President, Europe, Middle East and Africa

• Alan Watts — Executive Vice President & President, Asia Pacific

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