How much does a Hyatt House franchise cost in 2026?

Both FDDs list a $75,000 application fee, a $150,000 change of ownership fee, a 5 percent royalty and a 3.5 percent commercial services fee, and both use the same liquidated damages formula.^[1][3] The construction line is where the two part: $22,677,248 to $25,877,248 at Hyatt House (Item 7, p. 31).^[1]

The Item 19 samples differ in kind as well as size. Hyatt House reports on 120 hotels, 111 of them franchised, and says about 9.9 percent of 2025 reservations were for 30 or more nights and another 9.3 percent for 12 to 29 nights (Item 19, pp. 76-77).^[1] Financing for this segment is covered at extended-stay hotel financing. The full fee mechanics are on the Hyatt Place guide and the hotel franchise cost hub, so they are kept short here.

The new development fee rises by $500 for each guest room over 150. If Hyatt does not approve the application, or the applicant withdraws before approval, Hyatt refunds the fee less $7,500. After approval the fee is non-refundable (Item 5, p. 9).^[1]

A conversion or a purchase of an existing Hyatt House also pays a PIP preparation fee that Hyatt expects to run $5,000 to $10,000, on top of a design review fee of $5,000 to $45,000. Operator approval and onboarding is $15,000 for two participants when the owner or management company is not already an approved operator. Initial training tuition is estimated at $15,750 to $34,500. An opening deadline extension is $10,000 (Item 5, pp. 9-12).^[1] Hyatt states that in its 2025 fiscal year franchisees paid or committed to total initial fees of $35,077 to $186,998 (Item 5, p. 13).^[1] The terms are defined at PIP and comfort letter.

Hyatt says the commercial services fee could increase if costs increase, up to 7 percent of gross rooms revenue, a cap that may itself rise by up to 10 percent a year. The fee covers brand marketing, central reservations, large-account sales, the property management system services and Hyatt's digital platforms (Item 6, pp. 20, 28).^[1]

The digital acquisition fee is currently 1.35 percent of gross rooms revenue booked through Hyatt's own websites and apps. Global distribution system reservations currently average about $8.50 each, passed through at cost. The property management system subscription is $3.90 per room per month. Mandatory vendor contracts are allocated at $1,500 to $7,500 per month. Revenue management service is optional at $500 to $3,675 per month by tier (Item 6, pp. 15, 20-21, 29).^[1]

The World of Hyatt assessment is currently 4 percent of eligible revenue, or 2 percent when the guest enrolls at the hotel for that stay. Each lender comfort letter is currently $2,500 (Item 6, p. 14).^[1] These percentages apply to different revenue bases, so they cannot be added into one rate.

Construction, improvements and sitework are the largest line at $22,677,248 to $25,877,248. Furniture, fixtures and equipment run $1,792,000 to $2,944,000, operating supplies and equipment $640,000 to $1,024,000, and architecture and design $576,000 to $832,000. A liquor license is estimated at $30,000 to $400,000. The table includes three months of additional funds at $276,000 to $525,000 and excludes finance charges, interest and debt service. Hyatt says these hotels typically occupy 1 to 3 acres (Item 7, pp. 31-35).^[1] Hyatt does not state a per-room total, so none is printed here.

Item 7 does not price a conversion. Hyatt says an owner converting from another brand, or buying an existing Hyatt House, will still incur significant costs to renovate to current standards, that those costs vary widely with the hotel's condition, and that Hyatt will prepare a PIP before the franchise agreement is signed (Item 7, p. 35).^[1] Financing for that work is covered at brand conversion financing and PIP and renovation loans.

To qualify, the owner must have substantially complied during the term, be fully complying at the time, meet Hyatt's standards for new franchisees, have passing quality assurance scores for the previous three years, and hold rights to the hotel for at least 10 more years. The owner must also renovate, sign the then current agreement, which Hyatt says may be materially different including fees, pay the PIP fee, and sign a general release where state law allows (Item 17, p. 71).^[1]

Liquidated damages equal the lesser of 36 or the months remaining in the term, multiplied by the sum of 5 percent and 3.5 percent of average monthly gross rooms revenue. Payment is due within 15 days. The amount rises to 150 percent if the termination involves a transfer to a competitor, or if three or more Hyatt select service franchise agreements with the owner or its affiliates end through default or breach. An owner who keeps operating under the marks after termination owes $5,000 per day plus costs (Item 6, pp. 17, 26).^[1]

Hyatt charges no separate transfer fee, and says the change of ownership fee will not exceed $200,000, a cap that may rise by up to 10 percent a year. It refunds the fee, less $7,500, if it disapproves the transfer (Item 6, p. 17).^[1] Conditions for approval include a qualified buyer, completed training, a renovation commitment, a release from the seller and its guarantors, and Hyatt's view that the buyer's capital structure and debt service will not adversely affect the hotel. Hyatt may have the buyer sign its then current franchise agreement or assume the existing one. A buyer who acquires an existing Hyatt House from a franchisee takes the seller's remaining term (Item 17, pp. 71, 74).^[1]

Hyatt holds a right of first offer only where the parties sign Exhibit C, which Hyatt says it requires only in markets it treats as strategic (Item 17, p. 75).^[1] Hyatt-flagged hotels on the market are listed at Hyatt hotels for sale, and the flag decision is weighed at Should I buy a branded or independent hotel?.

Those 111 hotels are the franchised subset of 120 covered hotels in the United States and Canada that operated during all of 2025. Three hotels that opened in 2025 are excluded. The covered hotels average 145 rooms and had carried the Hyatt House name for an average of 10.1 years. Among the franchised hotels, the median average daily rate was $154.79 and the median RevPAR $112.14, and 45 of the 111, or 40.5 percent, exceeded the average RevPAR. Hyatt reports the 33 franchised urban hotels separately, at $138.97 RevPAR (Item 19, pp. 76-79).^[1]

Hyatt also reports an average Smith Travel RevPAR index of 107.1 for the franchised hotels, an average of 62.1 percent of revenue from World of Hyatt members, and 58.9 percent of gross rooms revenue from direct channels. Hyatt says it did not develop Smith Travel's methodology and cannot confirm its accuracy (Item 19, pp. 80-83).^[1]

These are revenue statistics. Hyatt states that no certified public accountant audited them and that they do not reflect cost of sales or operating expenses that must be deducted to obtain net income or profit (Item 19, p. 83).^[1] This page draws no profit conclusion from them. The measures are defined at RevPAR and ADR.

Guide

How much does a hotel franchise cost?

Other questions in this guide

• How much does a Hyatt Place franchise cost in 2026?
• How much does a Homewood Suites franchise cost in 2026?
• How much does a WoodSpring Suites franchise cost in 2026?
• How is extended-stay hotel financing different?
• How do I finance converting my hotel to a new brand?
• How do I finance a hotel PIP or renovation?
• Should I buy a branded or independent hotel?

Terms defined in the glossary

• Franchise Disclosure Document (FDD)
• Hotel Franchise Agreement
• PIP (Property Improvement Plan)
• Franchise Comfort Letter

Our own data

• Matthews Hotel Markets rate sheet