Motto by Hilton: Franchise Costs, Fees, Profit and Data

These Hilton-owned hotel franchises, located in prime neighborhoods within major cities around the world, provide locally inspired experiences to travelers.

REPORTED COST TO GET IN: 15,297,495 to $85,249,164

REPORTED ROI (Item 19): N/A

Motto by Hilton is a hotel franchise operated by Hilton Worldwide Holdings Inc. It is designed to cater to modern travelers who seek unique and locally inspired experiences in urban destinations.

Motto by Hilton was founded in 2018 and currently operates eight locations.

Business model

Motto by Hilton is focused on offering travelers a unique and locally inspired hotel experience in desirable urban locations around the world. Some key aspects of their business model include:

• Locally Inspired Spaces. Motto by Hilton aims to provide spaces that reflect the character and flavor of the neighborhoods in which they are located. This suggests a focus on creating a sense of authenticity and connection with the local community.

• Cleverly Compact Rooms. The introduction of Cleverly Compact Rooms prioritizes an efficient use of space and flexibility in room configurations. This may appeal to travelers who value practicality and functionality in their accommodations.

• Motto Commons. These inviting communal areas, which include Wi-Fi access, provide guests with a place to “talk, think, work, laugh and lounge.”

• Expansion into Coveted Neighborhoods. The franchise has a strategy of selecting prime locations to attract both leisure and business travelers seeking convenient and desirable accommodations.

Hilton does not make any representations about the future financial performance of franchisees or the past financial performance of its outlets, nor does it authorize employees or representatives to make any such representations.

Franchise costs

The total investment range is $15,297,495 to $85,249,164, according to the 2022 franchise disclosure document (FDD). The FDD breaks down the fees as follows:

• Franchise Application Fee: $75,000

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

• Construction and Leasehold Improvements: $8,000,000 - $57,500,000

• Designer and Engineering Fees: $570,000 - $2,300,000

• Furniture, Fixtures and Equipment: $3,000,000 - $12,000,000

• Inventory and Operating Equipment: $850,000 - $1,650,000

• Signage: $20,000 - $60,000

• Computer Software and Hardware Costs: $147,495 - $327,835

• Guest Internet Access Program: $116,000 - $186,000

• Delphi Sales and Events System: $1,500 - $32,000

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

• ADA Consultant Fee: $2,500 - $15,000

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

• Organization Expense: $50,000 - $115,829

• Permits and Licenses: $120,000 - $860,000

• Miscellaneous Pre-Opening and Project Management Expenses: $1,100,000 - $3,500,000

• Contingencies: $800,000 - $5,750,000

• Additional Funds: $400,000 - $800,000

• Other Required Pre-Opening Services Fees: $20,000

• Motto Food and Beverage Program: $20,000

Franchise fees may include:

• Franchise Application - New Development or Conversion - $75,000 with application.

• Franchise Application - Change of Ownership - $125,000 with application.

• Franchise Application - Re-licensing - $75,000

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