Hilton Garden Inn Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$21,933,588 - $32,384,982
Total US Locations
750
Business Summary
Hilton Garden Inn operates hotels designed to offer an approachable full-service experience. These hotels typically have 80-300 rooms across 2-6 stories, featuring a 'living room' style lobby, an exercise room, self-service laundry, and parking. Each location includes 'The Shop' for meals, snacks, and travel essentials, along with a full-service restaurant and bar serving breakfast and dinner daily, plus catering. Guest rooms are mid-priced and business-oriented, providing amenities like complimentary internet, a work desk, ergonomic chair, and a hospitality center with a coffee maker, microwave, and refrigerator. Franchisees have the option to integrate additional Restaurant Brands within their hotel's food and beverage facilities.
Corporate History
Hilton Garden Inn is part of a guest lodging business that has been operating since 1946, initially under Hilton Hotels Corporation and later Park Hotels & Resorts, Inc. Hilton Franchise Holding LLC, the specific franchisor entity, was formed in September 2007 in Delaware. It became the franchisor for Hilton Garden Inn brand hotels in the United States on March 30, 2015, succeeding Hilton Garden Inns Franchise LLC (which offered franchises from 2007-2015) and Hilton Inns, Inc. (which offered franchises from 1990-2007). The broader Hilton family of brands, including Hilton Garden Inn, is ultimately owned by Hilton Worldwide Holdings Inc., formed in 2010.
Financial Overview
Investment Range
$21,933,588 - $32,384,982
Franchise Fee (High)
$200,000
Minimum Net Worth
$7,348,000
Royalty %
5.5%
Marketing %
4%
Equipment Costs (Low)
$18,173,944
Equipment Costs (High)
$26,438,106
Working Capital
$700,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Hilton Franchise Holding LLC's financial statements show strong performance with net income of $1.48 billion in 2024, $1.37 billion in 2023, and $1.23 billion in 2022. The company's assets and franchise contracts are pledged as collateral for certain debt obligations of its parent company, Hilton, which unconditionally guarantees these debts. There are no concerns raised by the independent auditor regarding the company's ability to continue as a going concern. The company maintains intercompany balances with Hilton affiliates through a centralized cash management system, and recent activities include the acquisition of Graduate franchise contracts, funded by an affiliate, which was settled as a short-term note payable. Overall, Hilton Franchise Holding LLC demonstrates a financially sound position with no significant adverse findings in its audited financial statements.
Financing Details
Hilton Franchise Holding LLC generally does not offer direct or indirect financing to franchisees, except for a development incentive program. This program provides a financial contribution, called an "Incentive," to assist with the development or conversion of a Hilton Garden Inn hotel. Franchisees must sign a development incentive note to receive this Incentive. The Incentive does not need to be repaid unless the franchise agreement terminates before the term ends or a transfer occurs. The repayable amount of the Incentive decreases annually over the term of the franchise agreement. The Incentive itself bears no interest, but if it becomes repayable and isn't paid on time, it accrues interest at 1.5% per month or the highest legal rate. The franchisor reserves the right, in rare or unique circumstances, to offer other financing like mezzanine loans or loan guarantees, but the specific terms would be determined at that time.
Performance Metrics
Total US Locations
750
Franchised Units
750
Corporate Units
0
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
11
Litigation Summary
Hilton Franchise Holding LLC has a history of litigation, with several recent and ongoing cases. As of March 2025, there are five pending class action lawsuits against Hilton Worldwide (including Hilton Domestic Operating Company Inc.) regarding alleged antitrust violations. These lawsuits, filed in 2024, claim that Hilton and other hotel defendants improperly shared information and used revenue management software to inflate room rates in extended-stay and luxury hotel markets. Hilton Worldwide intends to vigorously defend its interests in these matters. Additionally, there were two significant state-level cases regarding mandatory guest fees: one with the State of Texas (filed May 2023, settled January 2025) and another with the State of Nebraska (filed July 2019, settled February 2024), where Hilton Domestic Operating Company Inc. agreed to pay settlements and improve fee disclosures without admitting fault. Historical cases include a 2020 lawsuit by Hilton Franchise Holding LLC against a former Curio brand franchisee for breach of contract, which was settled in 2022 after counterclaims were filed. A similar 2019 case with a Hampton hotel franchisee alleging wrongful termination was settled in 2020. An older class action from 2013 against Hilton Worldwide Inc. concerning undisclosed resort fees in Hawaii was settled in 2015. The earliest disclosed case, from 1970, involved antitrust allegations against Hilton Hotels Corporation regarding supplier treatment, which concluded in 1971 with an injunction.
Bankruptcy History
Hilton Franchise Holding LLC has no bankruptcy history that is required to be disclosed in Item 4 of this Franchise Disclosure Document.
Agreement Terms
Initial Term
22 years
Renewal Conditions
Hilton Garden Inn franchisees do not have the right to renew or extend their Franchise Agreement. However, if Hilton Franchise Holding LLC, in its sole discretion, agrees to re-license the hotel, the franchisee may be required to sign a new agreement with materially different terms and conditions from the original, and must comply with any specified Property Improvement Plan (PIP) performance conditions.
Training & Support Program
Franchisor Assistance
Hilton Franchise Holding LLC provides extensive assistance to its Hilton Garden Inn franchisees. During the pre-opening phase, this includes lending a copy of the Manual with all standards, reviewing and approving the selection of architects, interior designers, general contractors, and major subcontractors. Hilton Garden Inn also provides Prototype Drawings and a Design and Construction Manual, reviews and approves plans and designs, and ensures the proposed hotel management is satisfactory. Franchisees receive the HITS Agreement for access to proprietary computer systems. If a Restaurant Brand is utilized, Hilton Garden Inn provides menu templates, design guides, and consults on restaurant build-out. Required training programs for general managers and other key personnel are also specified and provided. During operation, Hilton Garden Inn publishes directories, includes hotels in national and regional marketing programs, and provides access to its Reservation Service. A quality assurance program is administered through periodic inspections and guest satisfaction surveys, and ongoing suggestions for restaurant/bar operations are offered. The franchisor requires the use of several computer systems, including OnQ for property management and reservations, Guest Internet Access, Global Revenue Optimization (GRO), Connected Room, Delphi for sales and events, Digital Floor Plan, and Digital Key system, with associated hardware, software, installation, maintenance, and support provided by Hilton or its affiliates. Additionally, Hilton Garden Inn operates an Advance Purchase Program for guest reservations.
Initial Training Hours
97
Training Location
Training for Hilton Garden Inn franchisees and their personnel can be conducted virtually, online, or on-site at various hotel locations, including the franchisee's property, or designated training facilities. Many core training programs such as General Manager, Commercial and Sales Leader Training, Hilton Property Management System (HPMS) Training, OnQ Rate & Inventory and GRO Training, Hilton Core Sales Skills, Owner Orientation, and New to Hospitality Owner Education are offered virtually or online. Other trainings, including Hilton Honors Training, Annual Compliance Training, Pre-Opening Training Resources, ADA Training, and HGI Orientation, may be delivered online or on-site.
Ongoing Support
After opening, Hilton Garden Inn franchisees receive ongoing support through a comprehensive quality assurance program that includes periodic inspections, guest satisfaction surveys, and audits to ensure compliance with standards. If a Restaurant Brand is used, the franchisor provides suggestions for improving restaurant and bar operations. Ongoing marketing and advertising support is funded by the Monthly Program Fee, which is used for System-wide benefits like advertising campaigns, Internet sites, and Reservation Service systems. Franchisees are required to use and maintain various computer systems, including OnQ, Guest Internet Access, GRO, Delphi, Connected Room, Digital Floor Plan, and Digital Key, with maintenance and support services provided by Hilton's affiliate, HSS. Required personnel, including the general manager and director of sales, must attend annual Brand or regional conferences, and various ongoing training programs, some of which are mandatory, are available for different roles to ensure continuous compliance with standards.
Franchise Requirements
Ideal Candidate Profile
Hilton Garden Inn is looking for franchisees or their approved third-party management companies who are qualified and experienced in managing hotel operations. When evaluating proposed management, Hilton Garden Inn considers their prior experience and performance in managing similar first-class, full-service, or focused-service hotels. Franchisees are expected to provide qualified and experienced management for the hotel's operation, either by managing it directly after obtaining written approval and completing training, or by retaining an approved management company. Financial strength is also a key consideration, with exemptions from certain disclosure requirements tied to a net worth of at least $7,348,000 or an investment of over $1,469,600.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Hilton Garden Inn franchisees receive a non-exclusive license and do not have a standard protected territory. However, Hilton Franchise Holding LLC may, in its discretion, agree to grant a specific territorial restriction (a "Restricted Area Provision") for an area immediately surrounding the franchised hotel. The boundaries of this Restricted Area are not determined by a standard formula but depend on the local market and competitive conditions at the time of signing the Franchise Agreement. These boundaries can be defined using references to cities, metropolitan areas, counties, other political subdivisions, streets, highways, or a specified radius from the hotel's front door.
Staffing Notes
Hilton Garden Inn franchisees are required to provide qualified and experienced management for their hotel's operation, which can be the franchisee directly (with prior written approval and training) or an approved third-party management company. The franchisor emphasizes that it does not direct or supervise franchisee personnel or control employment matters. Key personnel, including the general manager and director of sales (or equivalents), must complete required training programs, such as general manager and commercial/sales leader training, Hilton Property Management System (HPMS) training, OnQ Rate & Inventory and GRO training, Hilton Honors training, Hilton Core Sales Skills, ADA training, and a general Hilton Garden Inn orientation for all new hotel personnel. Franchisees are solely responsible for all employment-related policies and procedures.