Franchise Deep Dive: Home2 Suites by Hilton's Franchise Costs, Fees, Profit and Data

Home2 Suites by Hilton is a mid-tier, all-suite extended stay hotel concept operated under the hospitality company Hilton. Home2 Suites was first established in 2009 and has since become one of the fastest-growing brands in Hilton’s history. The brand offers stylish accommodations and flexible guest room configurations, as well as complimentary breakfast selections, laundry and fitness centers, Wi-Fi, outdoor spaces, 24-hour business centers, and pet-friendly rooms.

Upon its inception, Home2 Suites became the first new brand introduced by Hilton Worldwide in roughly 20 years. The hotel brand is one of many operated by Hilton, which also includes names such as Hilton Garden Inn, Hampton by Hilton, and Embassy Suites by Hilton.

As of August 2023, there are a total of 608 Home2 Suites hotels operating throughout the United States, Canada, Mexico, and China. Hilton has recently undertaken international expansion efforts and opened its first Home2 Suites in China in 2021. The brand has signed a deal to develop over 1,000 properties throughout the Asia-Pacific over the next 30 years.

Business model overview

Home2 Suites by Hilton operates with an extended-stay business model, which revolves around offering spacious suite-style hotel rooms for guests who need a place to stay for a week or more. The hotel’s amenities cater to longer stays and feature kitchenettes, laundry facilities, and (as mentioned) pet-friendly policies. Home2 Suites’ model emphasizes providing a home-away-from-home experience, which can attract both business and leisure travelers.

The potential earnings for Home2 Suites by Hilton owners can vary depending on factors such as location, occupancy rates, and operational efficiency. You can learn more about the potential earnings of a Home2 Suites by Hilton franchise by checking the Item 19 in the Franchise Disclosure Document (FDD).

Franchise costs and fees

The initial investment necessary to open a newly constructed Home2 Suites by Hilton hotel is $14,508,210 to $21,620,632. This investment is broken down into the following costs:

• Franchise Application Fee: $100,000
• Property Improvement Plan: $0 to $10,000
• Environmental Assessment: Varies
• Construction and Leasehold Improvements: $10,083,000 to $14,550,000
• Design and Engineering Fees: $302,490 to $436,500
• Furniture, Fixtures and Equipment: $1,932,000 to $2,898,000
• Inventory and Operating Equipment: $115,500 to $289,000
• Signage: $20,900 to $82,500
• Computer Hardware and Software: $43,195 to $130,895
• Guest Internet Access Program: $84,600 to $121,000
• Delphi Sales and Events System: $990 to $18,600
• 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
• Organizational Expense: $50,000 to $130,887
• Permits, Licenses and Governmental Fees: $151,245 to $218,250
• Miscellaneous Pre-Opening and Project Management Expenses: $302,490 to $436,500
• Contingencies: $1,008,300 to $1,455,000
• Additional Funds: $300,000 to $700,000
• Other Required Pre-Opening Services Fees: $6,000

The franchise fee required to open a Home2 Suites by Hilton is $100K.

Home2 Suites by Hilton operates under the leadership of a team including:

• 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