Hampton Inn

Hampton Inn, a Hilton Worldwide franchise, has been franchising since 1984 , currently with 2,700 total locations in the travel-hospitality sector, headquartered in VA. According to the 2024 FDD, the total initial investment ranges from $10.0M to $25.0M — a 150% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $75K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 6.0% of gross sales with an additional 4.0% national advertising fund contribution, bringing the combined ongoing cost to 10.0% of every dollar in sales. Critically, Hampton Inn does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $4.2M, meaning the typical unit pays roughly $252K per year in royalty alone. Revenue is not profit — actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently positive: Hampton Inn added units at a 1.9% net rate year-over-year (100 openings, 50 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.