# How much does a Hyatt Place franchise cost in 2026? - URL: https://matthewshotelmarkets.com/hotel-franchise-costs/hyatt-place - Last updated: 2026-09-18 - Author: Nate Solomon, Hospitality Associate, Matthews Hotel Markets (https://matthewshotelmarkets.com/team/nate-solomon) - Reviewed by: Luke Thompson, VP & Director, Capital Markets (https://matthewshotelmarkets.com/team/luke-thompson) - Format: Markdown copy of the HTML page at the URL above. Same content, same data source. --- Hyatt's 2026 Hyatt Place disclosure document, issued March 27, 2026 and amended August 5, 2026, estimates $23,431,820 to $29,885,898 to build a 127-room hotel, excluding real estate. The application fee is $75,000, or $150,000 to buy an existing Hyatt Place. Ongoing, the royalty is 5 percent and the commercial services fee 3.5 percent of gross rooms revenue.[1] ## Key takeaways - Application fee: $75,000 plus $500 per room over 150 for a hotel new to the brand, and $150,000 for a change of ownership.[1] - Royalty: 5 percent of gross rooms revenue. Commercial services fee: currently 3.5 percent of gross rooms revenue.[1] - World of Hyatt assessment: currently 4 percent of eligible revenue from members, or 2 percent on a stay where the guest enrolls at the hotel.[1] - Term: 20 years from opening. A buyer of an existing Hyatt Place takes the seller's remaining term.[1] - Fees change every year. Hyatt's current FDD and the signed franchise agreement govern, not this page. ## From our rate sheet Matthews Hotel Markets' September 2026 rate sheet records Prime at 7.00% effective September 17, 2026 and the SBA 7(a) maximum allowable rate at 10.00%, the indexes a loan for an application fee, a PIP or a conversion is priced against.[2] [Matthews Hotel Markets rate sheet](https://matthewshotelmarkets.com/rates) ## What does Hyatt charge up front for a Hyatt Place franchise? Hyatt Place's 2026 Item 5 lists a $75,000 application fee for a hotel new to the brand and a $150,000 change of ownership application fee for a buyer of an existing Hyatt Place.[1] 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 Place 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. Each lender comfort letter is $2,500. 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 $43,027 to $221,098 (Item 5, p. 13).[1] The terms are defined at [PIP](https://matthewshotelmarkets.com/glossary/pip) and [comfort letter](https://matthewshotelmarkets.com/glossary/comfort-letter). ## What are the ongoing Hyatt Place franchise fees? Hyatt Place's 2026 Item 6 lists a 5 percent royalty and a 3.5 percent commercial services fee, both on gross rooms revenue, plus loyalty, digital and per-reservation charges billed on other bases.[1] Gross rooms revenue follows the Uniform System of Accounts definition of total rooms revenue, plus resort or destination fees. For a newly built hotel, Hyatt says it may agree to reduce the royalty for the first one to three years (Item 6, pp. 13, 21-22).[1] The commercial services fee covers brand marketing, central reservations, revenue management technology, large-account group sales, the property management system and Hyatt's digital platforms. Hyatt says it could increase if costs increase (Item 6, pp. 19, 26-27).[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 (Item 6, pp. 15, 19, 27).[1] The World of Hyatt assessment is currently 4 percent of eligible revenue from members who give their number when booking, or 2 percent when the guest enrolls at the hotel for that stay (Item 6, pp. 14, 22).[1] These percentages apply to different revenue bases, so they cannot be added into one rate. ## How much does it cost to build or convert a Hyatt Place? Hyatt Place's 2026 Item 7 estimates $23,431,820 to $29,885,898 to build a new 127-room Hyatt Place, excluding real estate costs.[1] Construction, improvements and sitework are the largest line at $19,325,082 to $22,500,082. Furniture, fixtures and equipment run $1,651,000 to $2,794,000, and operating supplies and equipment $635,000 to $1,016,000. The table includes three months of additional funds at $276,000 to $525,000 and excludes finance charges, interest and debt service (Item 7, pp. 29-33).[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 Place, 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. 33).[1] Financing for that work is covered at [brand conversion financing](https://matthewshotelmarkets.com/hotel-financing/brand-conversion-financing) and [PIP and renovation loans](https://matthewshotelmarkets.com/hotel-financing/pip-and-renovation-loans). ## How long is the Hyatt Place franchise term, and can I renew? The Hyatt Place franchise term expires 20 years after the first day of the month in which the hotel opens, and a complying franchisee may acquire one 10-year successor franchise on Hyatt's then current terms.[1] To qualify for the successor franchise, 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, pp. 69-70).[1] The franchisee may not terminate the franchise agreement except as the law allows, and Hyatt may not terminate it without cause (Item 17, pp. 70-71).[1] ## What happens to the Hyatt Place franchise when I sell the hotel? A sale of the hotel or of a controlling ownership interest needs Hyatt's approval, and the buyer or seller pays the then current change of ownership application fee, which is $150,000 in the 2026 FDD.[1] Hyatt charges no separate transfer fee. It refunds the change of ownership application fee, less $7,500, if it disapproves the transfer (Item 6, p. 16).[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 assumes an existing agreement takes the seller's remaining term (Item 17, pp. 69, 72-73).[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. 73).[1] Hyatt-flagged hotels on the market are listed at [Hyatt hotels for sale](https://matthewshotelmarkets.com/hotels-for-sale/hyatt). ## What does it cost to leave the Hyatt Place system early? Hyatt Place liquidated damages equal the lesser of 36 or the months remaining in the term, multiplied by 8.5 percent of average monthly gross rooms revenue.[1] The 8.5 percent is the sum of 5 percent for lost royalty fees and 3.5 percent for lost system services charges. Average monthly revenue is generally the hotel's average monthly gross rooms revenue over the 12 full months before termination. 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. 16, 24).[1] ## What does Hyatt's Item 19 say about Hyatt Place performance? Hyatt Place's 2026 Item 19 reports that 321 franchised Hyatt Place hotels open for all of 2025 averaged 71.2 percent occupancy, a $157.87 average daily rate and $112.46 RevPAR.[1] Those 321 hotels are the franchised subset of 346 covered hotels in the United States and Canada that operated during all of 2025. Eleven hotels that opened in 2025 and four that closed temporarily are excluded. The covered hotels average 139 rooms and had carried the Hyatt Place name for an average of 11.8 years. Among the franchised hotels, the median average daily rate was $141.12 and the median RevPAR $99.06, and 115 of the 321, or 35.8 percent, exceeded the average RevPAR (Item 19, pp. 75-77).[1] Hyatt also reports an average Smith Travel RevPAR index of 105.8 for the franchised hotels, an average of 56.5 percent of revenue from World of Hyatt members, and 57.2 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. 78-81).[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, pp. 81-82).[1] This page draws no profit conclusion from them. The measures are defined at [RevPAR](https://matthewshotelmarkets.com/glossary/revpar) and [ADR](https://matthewshotelmarkets.com/glossary/adr). ## Hyatt Place franchise fees, 2026 FDD issued March 27, 2026, as amended August 5, 2026 | Fee | Amount | Where in the FDD | | --- | --- | --- | | Application fee, hotel new to the brand | $75,000 plus $500 per room over 150[1] | Item 5, p. 9 | | Application fee, change of ownership | $150,000[1] | Item 5, p. 9 | | PIP preparation fee (conversion or purchase) | $5,000 to $10,000 expected[1] | Item 5, p. 9 | | Royalty fee | 5% of gross rooms revenue[1] | Item 6, p. 13 | | Commercial services fee (marketing, reservations, technology) | Currently 3.5% of gross rooms revenue[1] | Item 6, p. 19 | | World of Hyatt loyalty assessment | Currently 4% of eligible member revenue; 2% on an enrolling stay[1] | Item 6, pp. 14, 22 | | Digital acquisition fee | Currently 1.35% of gross rooms revenue booked through Hyatt's digital channels[1] | Item 6, p. 19 | | Global distribution and other reservation services | Currently averages about $8.50 per reservation[1] | Item 6, p. 19 | | Property management system subscription | $3.90 per room per month[1] | Item 6, p. 15 | | Transfer | No transfer fee; the then current change of ownership application fee applies[1] | Item 6, p. 16 | | Comfort letter | $2,500 per letter[1] | Item 6, p. 14 | | Liquidated damages | Lesser of 36 or months remaining, times 8.5% of average monthly gross rooms revenue; 150% in a consequential termination[1] | Item 6, p. 24 | | Estimated initial investment, new 127-room hotel | $23,431,820 to $29,885,898, excluding real estate[1] | Item 7, p. 31 | ## Worked example **Hypothetical: a year of Hyatt Place brand fees on assumed rooms revenue** Hypothetical. Assume a 127-room Hyatt Place earns $5,000,000 of gross rooms revenue in a year. The revenue figure and the channel splits below are assumptions for arithmetic. They are not forecasts and they are not figures from the FDD. Royalty fee at 5 percent: $5,000,000 x 0.05 = $250,000.[1] Commercial services fee at 3.5 percent: $5,000,000 x 0.035 = $175,000.[1] Together: $425,000, or 8.5 percent of rooms revenue. If $1,500,000 of that revenue is booked through Hyatt's digital channels, the digital acquisition fee at 1.35 percent is $20,250. If $2,500,000 is eligible World of Hyatt member revenue, the 4 percent assessment is $100,000. The property management system subscription at $3.90 x 127 rooms x 12 months is $5,943.60.[1] Per-reservation charges, training, conferences and quality assurance fees come on top and depend on the hotel, so they are not estimated here. ## Frequently asked ### How much does a Hyatt Place franchise cost? Hyatt's 2026 FDD lists a $75,000 application fee, a 5 percent royalty, a 3.5 percent commercial services fee, and an estimated $23,431,820 to $29,885,898 to build a 127-room hotel, excluding real estate.[1] ### I'm buying an existing Hyatt Place. What does Hyatt charge me? The 2026 FDD lists a $150,000 change of ownership application fee, a PIP preparation fee expected at $5,000 to $10,000, and the cost of whatever renovation the PIP requires. Hyatt must approve the buyer.[1] ### What percent of revenue does Hyatt Place take? Five percent royalty plus a 3.5 percent commercial services fee, both on gross rooms revenue. The World of Hyatt assessment, digital acquisition fee and reservation charges are billed on other bases on top.[1] ### How long is a Hyatt Place franchise agreement? Twenty years from the first day of the month the hotel opens. A complying franchisee may acquire one 10-year successor franchise on Hyatt's then current terms, which may differ materially.[1] ### Does the Hyatt Place Item 7 estimate include land? No. The 2026 total excludes real estate costs, and it also excludes finance charges, interest and debt service.[1] ### Does Hyatt publish what a Hyatt Place earns? Item 19 reports 2025 occupancy, average daily rate, RevPAR, Smith Travel indexes and loyalty contribution for 346 covered hotels. It reports revenue measures only. It gives no expenses and no profit.[1] ### Will these Hyatt Place fees be the same next year? Not necessarily. Hyatt reissues the FDD every year and marks many fees as current amounts that could increase. The current FDD and the signed franchise agreement govern.[1] ## Who wrote this [Nate Solomon](https://matthewshotelmarkets.com/team/nate-solomon) Hospitality Associate, Matthews Hotel Markets (512) 839-6999 · nate.solomon@matthews.com · [LinkedIn](https://www.linkedin.com/in/nathaniel-solomon-4b2b9125a/) Reviewed by [Luke Thompson](https://matthewshotelmarkets.com/team/luke-thompson), VP & Director, Capital Markets. ## Sources 1. [Hyatt Place 2026 Franchise Disclosure Document (issued March 27, 2026, as amended August 5, 2026): Item 5, pp. 9-13; Item 6, pp. 13-28; Item 7, pp. 29-33; Item 17, pp. 69-74; Item 19, pp. 74-82. Wisconsin DFI franchise registration file 640505](https://apps.dfi.wi.gov/apps/FranchiseSearch/details.aspx?id=640505&hash=1054368882&search=external&type=GENERAL) · Hyatt Place Franchising LLC, filed with the Wisconsin Department of Financial Institutions · accessed September 18, 2026 2. [Matthews Hotel Markets September 2026 rate sheet](https://matthewshotelmarkets.com/rates) · Matthews Hotel Markets · accessed September 18, 2026 ## Related ### Guide - [How much does a hotel franchise cost?](https://matthewshotelmarkets.com/hotel-franchise-costs) ### Other questions in this guide - [How much does a Comfort Inn or Comfort Suites franchise cost in 2026?](https://matthewshotelmarkets.com/hotel-franchise-costs/comfort-inn) - [How much does a La Quinta franchise cost in 2026?](https://matthewshotelmarkets.com/hotel-franchise-costs/la-quinta) - [How much does a Best Western franchise cost in 2026?](https://matthewshotelmarkets.com/hotel-franchise-costs/best-western) - [How do I finance converting my hotel to a new brand?](https://matthewshotelmarkets.com/hotel-financing/brand-conversion-financing) - [How do I finance a hotel PIP or renovation?](https://matthewshotelmarkets.com/hotel-financing/pip-and-renovation-loans) - [Should I buy a branded or independent hotel?](https://matthewshotelmarkets.com/buy-a-hotel/branded-vs-independent) ### Terms defined in the [glossary](https://matthewshotelmarkets.com/glossary) - [Franchise Disclosure Document (FDD)](https://matthewshotelmarkets.com/glossary/franchise-fdd) - [Hotel Franchise Agreement](https://matthewshotelmarkets.com/glossary/franchise-agreement) - [PIP (Property Improvement Plan)](https://matthewshotelmarkets.com/glossary/pip) - [Key Money](https://matthewshotelmarkets.com/glossary/key-money) ### Our own data - [Matthews Hotel Markets rate sheet](https://matthewshotelmarkets.com/rates) Matthews Hotel Markets sells and finances franchised hotels, so we read these disclosure documents alongside owners and buyers. [Talk through a Hyatt Place purchase or conversion](https://matthewshotelmarkets.com/contact) --- Cite as: Nate Solomon, Matthews Hotel Markets. "How much does a Hyatt Place franchise cost in 2026?." https://matthewshotelmarkets.com/hotel-franchise-costs/hyatt-place. Last updated 2026-09-18.