How much does a Tapestry Collection franchise cost in 2026?
Last updated: By Nate Solomon, Matthews Hotel Markets
Hilton's 2026 Tapestry Collection Franchise Disclosure Document, issued March 30, 2026, estimates $2,861,047 to $70,253,147 to open a typical 125-room hotel, excluding real estate. The width of that range comes from construction, which runs from $0 to $45,954,000. The application fee is $100,000, the monthly royalty is 5 percent of gross rooms revenue and the monthly program fee is 4 percent.[1]
Key takeaways
- Item 7 total: $2,861,047 to $70,253,147 for 125 rooms, which is about $22,900 to $562,000 per room by our arithmetic. The low end carries $0 for construction, design, furniture and contingencies.[1]
- Ongoing: 5 percent royalty plus 4 percent program fee on gross rooms revenue, Hilton Honors at 4 percent of total eligible guest folio, and a 2 percent spa royalty only if the hotel adds an eforea spa.[1]
- A buyer of an existing Tapestry pays a $150,000 change of ownership application fee and a $10,000 PIP fee.[1]
- The Tapestry FDD makes no financial performance representation. Item 19 contains no room rate, occupancy or RevPAR figures.[1]
- The FDD is Hilton's document and its fees change every year. Get the current FDD from Hilton before relying on these figures.
What does a Tapestry Collection franchise cost up front?
A $100,000 franchise application fee for a new build or a conversion, plus $400 for each guest room or suite over 250, under Item 5 of the 2026 Tapestry FDD.[1]
Item 5 (pp. 17-18) lists the other initial fees paid to Hilton or its affiliates. A change of ownership application is $150,000 and a re-licensing application is $100,000. The PIP fee, charged to prepare a property improvement plan for a conversion, change of ownership or re-licensing, is $10,000. The OnQ computer system costs $51,750 to $136,750 for hardware, software and installation, other start-up fees are $6,500, training program fees run $5,000 to $15,000, and the opening process services fee is $20,000. Pre-opening revenue management support, which Hilton may require when a hotel opens on an expedited schedule of 150 days or less, is $4,059 to $8,880.[1]
Two optional programs carry their own initial fees: $25,000 when the owner signs an eforea spa amendment, and a $75,000 development services fee for each Hilton restaurant brand selected.[1] The application fee is refundable, less a $7,500 processing fee, if Hilton denies the application, if the applicant withdraws before approval, or if a change of ownership does not occur (Item 5, Note 1, p. 19).[1]
What are the Tapestry Collection royalty and program fees?
The monthly royalty fee is 5 percent of gross rooms revenue and the monthly program fee is 4 percent of gross rooms revenue, both due by the 15th of the following month.[1]
Item 6 (p. 22) bases both fees on gross rooms revenue as defined under the Uniform System of Accounts for the Lodging Industry, including loyalty redemption revenue, mandatory guest fees such as resort fees, and guaranteed no-show revenue (Note 1, p. 33).[1] A monthly spa royalty of 2 percent of gross spa revenue is payable only if an eforea spa amendment is in effect. The Item 6 table lists no royalty on food and beverage revenue.[1] Hilton may change the program fee at any time, but the rate will not exceed the current rate plus 1 percent of gross rooms revenue over the term of the agreement (Note 2, p. 33).[1]
Other recurring charges sit on top. Hilton Honors is currently 4 percent of total eligible guest folio, waived for stays where the guest enrolls at the property. The Hilton Advance fee is 1.35 percent of eligible digital direct revenue, capped at $30 per stay (p. 26).[1] OnQ connectivity is $400 to $600 per month and hardware and software maintenance is $2,105 to $6,499 per month (p. 23).[1] These charges apply to different bases, so they do not add into one percentage.
Why is the Tapestry Item 7 range so wide?
Because the 2026 Tapestry FDD puts construction and leasehold improvements at $0 to $45,954,000 for a 125-room hotel, so the total runs from $2,861,047 to $70,253,147.[1]
Item 7 (pp. 36-38) shows $0 at the low end for four lines: construction and leasehold improvements ($0 to $45,954,000), design and engineering fees ($0 to $1,838,160), furniture, fixtures and equipment ($0 to $7,115,625) and contingencies ($0 to $4,595,400). Additional funds are $1,000,000 to $1,400,000, and an eforea spa adds $0 to $4,950,000.[1] Divided by 125 rooms, the total is about $22,900 to $562,000 per room. The division is ours. The FDD does not print a per-room figure.[1] The cover page adds that up to $400,630 of the total is paid to Hilton or its affiliates.[1]
The notes to Item 7 say conversion costs vary with the age of the building, code compliance, fire and life safety requirements, the condition of the structure and the state of the furniture and finishes against brand standards, and that a converting owner's furniture costs will most likely be lower than a new hotel's (Notes 6 and 7, pp. 38-39).[1] Item 7 also states in capitals that the figures do not include real estate costs, market studies, insurance or interest, and do not separately identify the cost of improvements under a conversion, re-licensing or change of ownership license (p. 38).[1] An owner converting an independent hotel gets the real number from Hilton's PIP, not from Item 7. Per-room pricing is defined at price per key.
What does Hilton report about Tapestry hotel performance?
Nothing. Item 19 of the 2026 Tapestry FDD makes no financial performance representation.[1]
Hilton writes: "We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets" (Item 19, p. 92).[1] That differs from Hilton's 2026 FDDs for brands such as Hampton and DoubleTree, which report room rate, occupancy, RevPAR and RevPAR index for comparable hotels.
Hilton adds that it does not authorize its employees or representatives to make such representations orally or in writing, and that a buyer of an existing hotel may be given that hotel's actual records.[1] An owner weighing a Tapestry conversion has to build the revenue case from the hotel's own history and a market study, not from the FDD. Item 7 notes that Hilton may encourage a converting owner to commission a market study, and that accepting one is not a performance representation by Hilton.[1]
How long is a Tapestry franchise agreement, and can I renew it?
Hilton's 2026 Tapestry FDD sets the term at generally 23 years from the effective date for new construction and 10 to 20 years from opening for a conversion, with no right to renew.[1]
Item 17 of the 2026 Tapestry FDD (p. 78) states that on a change of ownership the term is generally the remaining term under the existing franchise agreement, or another term Hilton approves.[1] The franchisee does not have the right to renew or extend. If Hilton agrees, in its sole discretion, to re-license the hotel, the owner may be asked to sign a contract with materially different terms and must meet any PIP conditions Hilton sets.[1] The re-licensing application fee is $100,000 (Item 6, p. 28).[1]
The franchisee is not authorized to terminate before the term expires. Item 17 treats a unilateral termination without cause as a material breach, and liquidated damages become payable on demand.[1] The contract itself is defined at franchise agreement.
What happens to the Tapestry franchise when the hotel is sold?
A sale that changes control of a Tapestry is a change of ownership transfer: the seller gives Hilton 60 days' written notice and the buyer applies for a new franchise.[1]
Item 17 of the 2026 Tapestry FDD (p. 86) requires the buyer to meet Hilton's then-current requirements for new franchisees, including credit, a background investigation and operations experience. The buyer submits a change of ownership application, pays the franchise application fee ($150,000), signs the then-current form of franchise agreement and agrees to Hilton's requested upgrades, which may include a PIP fee.[1] The seller must not be in default and must pay all amounts due through closing. If the buyer has SBA financing, buyer and seller must agree to escrow Hilton's estimated fees and disburse them at closing.[1]
Permitted transfers are those that do not change control. Transfers of publicly traded equity, and of privately held equity where the transferee holds less than 50 percent afterward, need no notice or consent. Transfers to affiliates, to a family member or trust, or on death need 60 days' written notice, Hilton's consent and a $5,500 processing fee.[1] An owner may mortgage the hotel to a lender that finances its acquisition, development or operation without Hilton's consent if the owner is the sole borrower and the loan is not secured by other hotels or other collateral. A lender comfort letter costs $3,500 (Item 6, p. 29).[1]
Hilton-family hotels on the market are listed at Hilton hotels for sale. The buyer's checklist is at What due diligence do I need before buying a hotel?.
What does it cost to leave Tapestry before the term ends?
Hilton's liquidated damages for a Tapestry that has been open more than two years are the hotel's average monthly royalty fees multiplied by 60, or by the months remaining in the final 60 months of the term.[1]
Item 6 of the 2026 Tapestry FDD (p. 29) sets four cases for a termination by Hilton. Before opening: the system's average monthly royalty fees multiplied by 60. From opening to the second anniversary: the greater of the hotel's average monthly royalty fees multiplied by 60, or the system's average monthly royalty fees multiplied by 60. After the second anniversary and before the final 60 months of the term: the hotel's average monthly royalty fees multiplied by 60. Within the final 60 months: the hotel's average monthly royalty fees multiplied by the number of months remaining.[1]
Note 8 to Item 6 (p. 35) defines the hotel's average as the royalty fees due for the 24 months before the month of termination, divided by 24. The system's average is the average monthly royalty per guest room owed by U.S. Tapestry hotels over the prior 12 full calendar months, multiplied by the hotel's approved guest rooms. Fee discounts, ramps and waivers are excluded from the calculation.[1] Opening without Hilton's written authorization costs $5,000 per day.[1] Item 6 states that the monthly royalty fee and liquidated damages are the only fees in the item that are not subject to change.[1]
Does Hilton offer key money on a Tapestry?
Hilton may, in its sole discretion, offer a development incentive on a Tapestry, and the 2026 FDD calls it a contingent liability, not a loan.[1]
Item 10 of the 2026 Tapestry FDD (p. 50) describes an incentive as a financial contribution toward the development or conversion of the hotel, documented by a development incentive note signed with the franchise agreement. It bears no interest and does not have to be repaid unless the franchise terminates before the end of the term or a transfer occurs. The repayable amount falls by an equal share for each year the hotel is open: one-twentieth a year on a 20-year term, in Hilton's example.[1] On a sale, the seller pays the then-current repayable amount unless Hilton permits the buyer to assume the note.[1] The FDD does not publish incentive amounts, and the program can be changed or ended at any time. The term is defined at key money.
How do owners finance Tapestry franchise fees, a PIP or a conversion?
Inside the acquisition or construction loan when the costs are part of a purchase or a build, or with a separate renovation loan when they are not.
Lenders size the loan to the hotel's income, and no lender type publishes its leverage limits or spreads. As of September 17, 2026, Prime is 7.00 percent, SOFR is 3.85 percent and the SBA 7(a) maximum allowable rate is 10.00 percent.[2] Item 7 of the Tapestry FDD notes that many lenders will require an environmental assessment report.[1] The loan structures are at How do I finance converting my hotel to a new brand? and How do I finance a hotel PIP or renovation?. The wider trade between a flag and independence is at Should I buy a branded or independent hotel?, and the upgrade list itself is defined at PIP.
Whose numbers are these, and how current are they?
Every figure on this page comes from Hilton's 2026 Tapestry Franchise Disclosure Document, issued March 30, 2026. It is the franchisor's document, not ours.[1]
The FDD is written by the franchisor, Hilton Franchise Holding LLC, and a prospective franchisee must receive it at least 14 calendar days before signing a binding agreement or paying anything.[1] Hilton reissues it every year and marks most fees "currently", which means they can change. Hilton also reports that it negotiates. It agreed to modify the monthly royalty fee in 28 instances during 2025 (Item 6, p. 33), and in 2025 franchisees paid application fees from $0 to $100,000 for new development or conversion and $75,000 to $150,000 for a change of ownership (Item 5, p. 19).[1]
Get the current FDD from Hilton, and read the franchise agreement attached to it, before you rely on any number here. This page is a neutral fee guide. It does not rank brands or recommend one. The document type is explained at franchise disclosure document, and the other brand guides are listed at How much does a hotel franchise cost?.
Tapestry Collection by Hilton franchise fees, 2026 FDD issued March 30, 2026 (Items 5, 6 and 7)
| Fee | Amount | Where in the FDD |
|---|---|---|
| Application fee, new development or conversion | $100,000 plus $400 per guest room or suite over 250[1] | Item 5, p. 17 |
| Application fee, change of ownership | $150,000[1] | Item 5, p. 17 |
| Application fee, re-licensing | $100,000[1] | Item 5, p. 17 |
| PIP fee | $10,000[1] | Item 5, p. 17 |
| OnQ system: hardware, software, installation | $51,750 to $136,750[1] | Item 5, p. 17 |
| Opening process services fee | $20,000[1] | Item 5, p. 18 |
| eforea spa initial fee (optional) | $25,000[1] | Item 5, p. 17 |
| Monthly royalty fee | 5% of gross rooms revenue[1] | Item 6, p. 22 |
| Monthly spa royalty fee (only with an eforea spa) | 2% of gross spa revenue[1] | Item 6, p. 22 |
| Monthly program fee | 4% of gross rooms revenue. May change, capped at the current rate plus 1%[1] | Item 6, pp. 22 and 33 |
| Hilton Honors | 4% of total eligible guest folio[1] | Item 6, p. 26 |
| Hilton Advance fee | 1.35% of eligible digital direct revenue, up to $30 per stay[1] | Item 6, p. 26 |
| OnQ connectivity, and hardware and software maintenance | $400 to $600 and $2,105 to $6,499 per month[1] | Item 6, p. 23 |
| Permitted transfer processing fee | $5,500[1] | Item 6, p. 28 |
| Lender comfort letter | $3,500, and $1,500 for an assignment[1] | Item 6, p. 29 |
| Liquidated damages, after year 2 | Hotel's average monthly royalty fees x 60, or x months remaining in the final 60 months[1] | Item 6, p. 30 |
| Estimated initial investment, 125 rooms | $2,861,047 to $70,253,147, excluding real estate[1] | Item 7, p. 38 |
Worked example
Hypothetical: one year of Tapestry Collection brand fees on assumed rooms revenue
Hypothetical. Assume a Tapestry Collection hotel earns $8,000,000 of gross rooms revenue in a year, has no eforea spa, and that $3,200,000 of guest folios are eligible Hilton Honors folios. These figures are assumptions chosen for round arithmetic. They are not forecasts and they are not from the FDD, which reports no performance figures for Tapestry.
Monthly royalty fee at 5 percent: $8,000,000 x 0.05 = $400,000.[1]
Monthly program fee at 4 percent: $8,000,000 x 0.04 = $320,000.[1]
Hilton Honors at 4 percent of eligible folio: $3,200,000 x 0.04 = $128,000.[1]
OnQ connectivity plus hardware and software maintenance: $2,505 to $7,099 per month, or $30,060 to $85,188 a year.[1]
Total of these four lines: $878,060 to $933,188. Hilton Advance fees, third-party reservation charges, travel planner commissions, training and guest assistance charges are extra and depend on how guests book, so they are left out. The example shows fees only. It says nothing about profit.
Frequently asked
- What does it cost to convert an independent hotel to Tapestry Collection?
- The 2026 FDD lists a $100,000 application fee and a $10,000 PIP fee. Its Item 7 range for a 125-room hotel starts at $2,861,047 with $0 of construction, but the FDD does not price conversions separately. Hilton's PIP sets the actual scope.[1]
- What are Tapestry Collection franchise fees?
- Under Hilton's 2026 FDD, issued March 30, 2026: a 5 percent monthly royalty and a 4 percent monthly program fee on gross rooms revenue, Hilton Honors at 4 percent of total eligible guest folio, and a 2 percent spa royalty only with an eforea spa.[1]
- Does Hilton publish Tapestry Collection RevPAR or occupancy?
- No. Item 19 of the 2026 Tapestry FDD states that Hilton does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets.[1]
- How long is a Tapestry Collection franchise agreement?
- Generally 23 years from the effective date for new construction and 10 to 20 years from opening for a conversion. A buyer generally takes the remaining term or another term Hilton approves. There is no right to renew.[1]
- I'm buying an existing Tapestry Collection hotel. What will Hilton charge me?
- A $150,000 change of ownership application fee and a $10,000 PIP fee, under the 2026 FDD. You sign Hilton's then-current franchise agreement and agree to its requested upgrades. In 2025, buyers paid $75,000 to $150,000.[1]
- Does Tapestry charge a royalty on restaurant revenue?
- The Item 6 table in the 2026 FDD charges the 5 percent royalty and 4 percent program fee on gross rooms revenue and lists no royalty on food and beverage revenue. A 2 percent spa royalty applies only under an eforea spa amendment.[1]
- What does it cost to leave Tapestry Collection early?
- After the second anniversary of opening, liquidated damages are the hotel's average monthly royalty fees multiplied by 60, or by the months remaining in the final 60 months of the term.[1]
Who wrote this
Hospitality Associate, Matthews Hotel Markets
(512) 839-6999nate.solomon@matthews.comLinkedIn
Reviewed by Luke Thompson, VP & Director, Capital Markets.
Sources
- 2026 Tapestry Collection by Hilton Franchise Disclosure Document (issued March 30, 2026): cover page; Item 5, pp. 17-21; Item 6, pp. 22-36; Item 7, pp. 36-41; Item 10, pp. 50-51; Item 17, pp. 78-91; Item 19, pp. 91-92 · Hilton Franchise Holding LLC · accessed September 18, 2026
- Matthews Hotel Markets September 2026 rate sheet · Matthews Hotel Markets · accessed September 18, 2026
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Terms defined in the glossary
Our own data
Matthews Hotel Markets sells and finances franchised hotels, so we read these disclosure documents alongside owners and buyers.