Hampton Inn Hotel/ Hampton Inn & Suites Hotel Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$15,218,226 - $25,958,214
Total US Locations
2,369
Business Summary
Hampton Inn operates hotels under the Hampton Inn or Hampton Inn & Suites brands, offering high-quality lodging at moderate prices. Hampton Inn hotels provide standard guest rooms, while Hampton Inn & Suites properties combine standard rooms with a significant block of two-room suites. Hampton Inn grants franchisees a license to use its hotel system, which includes brand names, trademarks, reservation services, marketing programs, and operational standards.
Corporate History
Hampton Inn is a hotel brand under Hilton Franchise Holding LLC, which was formed in September 2007 as a Delaware limited liability company. The broader Hilton enterprise, including its parent companies Hilton Domestic Operating Company Inc. (formed in 2016) and Hilton Worldwide Holdings Inc. (formed in 2010), has a guest lodging business history dating back to 1946. The Hampton Inn brand itself was first franchised in 1983 by a predecessor of Promus Hotel Systems, Inc., which later became part of Hilton in 1999. Hilton Franchise Holding LLC officially became the franchisor for Hampton brands in the U.S. on March 30, 2015.
Financial Overview
Investment Range
$15,218,226 - $25,958,214
Franchise Fee (High)
$200,000
Royalty %
6%
Marketing %
4%
Equipment Costs (Low)
$12,368,555
Equipment Costs (High)
$20,798,041
Working Capital
$500,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Hilton Franchise Holding LLC is financially healthy. The company's independent auditor issued an unqualified opinion on its financial statements for the years ending December 31, 2024, 2023, and 2022, indicating that the financial statements are presented fairly and there is no substantial doubt about its ability to continue as a going concern. The company reported significant net income of $1,487,571k in 2024 and maintained positive working capital, demonstrating its strong financial position.
Financing Details
Hampton Inn generally does not offer direct or indirect financing to its franchisees. However, it may, at its discretion, provide development incentives in the form of financial contributions to assist with new hotel development or conversion projects. These incentives do not typically need to be repaid unless the franchise agreement terminates early or a transfer of the hotel occurs. In rare and unique situations, Hampton Inn may consider offering other types of financing, such as mezzanine loans or guarantees for a franchisee's notes or obligations, but the specific terms would be determined on a case-by-case basis.
Performance Metrics
Total US Locations
2,369
Franchised Units
2,369
Corporate Units
0
Franchising Since
1983
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
11
Litigation Summary
Hampton Inn has several pending litigation cases. This includes five antitrust class actions filed in 2024, alleging that Hilton Worldwide improperly shared information with competing hotels through third-party software (IDeaS and Amadeus) to set higher room rates in extended stay and other hotel markets. Another pending case, filed in January 2025, is a breach of contract suit against Hilton Franchise Holding LLC related to a terminated franchise due to payment defaults. Hampton Inn intends to vigorously defend its interests in these matters. Additionally, Hampton Inn (and its parent companies) has had six concluded actions, including two multi-state lawsuits in 2023 and 2019 regarding how mandatory guest fees were disclosed to consumers, which resulted in settlements totaling $2.4 million and agreements to improve disclosure. Other concluded cases include a breach of contract dispute with a former franchisee in 2020 (settled in 2022), a wrongful termination claim in 2019 (settled in 2020), a class action from 2013 over undisclosed resort fees (settled in 2015), and an antitrust complaint from 1970 regarding preferential treatment to hotel suppliers (settled in 1971).
Bankruptcy History
Hampton Inn has no bankruptcy history to report.
Agreement Terms
Initial Term
22 years
Renewal Conditions
Hampton Inn franchisees do not have an automatic right to renew or extend their franchise agreement. However, if Hampton Inn decides to offer a re-licensing in its sole discretion, franchisees may be required to sign a new contract with potentially different terms and conditions and must meet any specified property improvement plan (PIP) performance conditions.
Training & Support Program
Franchisor Assistance
Hampton Inn provides comprehensive support to its franchisees. Before opening, the franchisor loans a copy of its Manual of Standards and reviews/approves architects, designers, contractors, construction plans, and proposed management. It also provides a HITS Agreement for access to its proprietary OnQ computer system, which handles reservations, property management, and more. Hampton Inn also makes purchase/lease arrangements available for signs, equipment, and furnishings. Required training programs are offered for general managers, sales leaders, and other key personnel, covering topics such as property management systems, revenue optimization, Hilton Honors, and ADA compliance, delivered through virtual, online, and on-site formats. During operation, Hampton Inn publishes directories, includes hotels in national/regional marketing programs, and provides access to its Reservation Service. It also administers a quality assurance program through periodic inspections and guest satisfaction surveys, and offers optional consultation services for operations, facilities, and marketing.
Initial Training Hours
110
Training Location
Various locations including virtual, online, and on-site at the Hotel or other designated facilities.
Ongoing Support
After opening, Hampton Inn franchisees receive continuous operational support. This includes administering a quality assurance program through periodic inspections, guest satisfaction surveys, and audits, with a Service Quality Improvement Program for hotels not meeting minimum standards. Hampton Inn continuously updates and refreshes its required computer systems, such as OnQ (every 3 years) and Guest Internet Access (every 4 years), and provides ongoing maintenance for these systems. Franchisees also have access to the global Reservation Service and participate in national/regional marketing programs funded by the Monthly Program Fee. Refresher training is required for replacement staff in key roles and for annual compliance topics. Optional consultation services and participation in programs like Hilton Honors and various sales and distribution initiatives are also available.
Franchise Requirements
Ideal Candidate Profile
Hampton Inn seeks franchisees or approved third-party management companies that can provide qualified and experienced management for hotel operations. Candidates are evaluated based on their proposed organizational structure, prior experience in managing similar first-class, focused-service hotels, and their ability to fully adhere to the brand's obligations and standards. If a franchisee wishes to manage the hotel directly, they must obtain prior written approval and successfully complete a training program. Franchisees are ultimately responsible for the hotel's management and operation at all times, even if a management company is engaged. Hampton Inn may refuse to approve inexperienced or unqualified management.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Staffing Notes
Hampton Inn requires franchisees to provide qualified and experienced management for their hotels. This can be achieved either by the franchisee directly (with prior written approval and training) or through an approved third-party management company. The general manager and other key personnel, such as commercial leaders, sales leaders, front desk staff, and revenue management staff, must complete various mandatory training programs including the Hilton Property Management System (HPMS), OnQ, Hilton Honors, and sales skills training. Annual compliance training on topics like diversity, cybersecurity, and health and safety is also required. Hampton Inn does not specify an overall staff count or dictate personnel policies, as franchisees are responsible for staffing decisions and hotel operations.