Hyatt Centric Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$42,720,726 - $143,100,233
Franchise Fee
$137,400
Min Cash Required
$650,000
Total US Locations
32
Business Summary
Hyatt Centric offers franchises to operate upscale, full-service hotels that typically feature 150 to 300 guest rooms. These hotels provide a full range of food and beverage facilities, banquet services, and meeting amenities, catering to both transient business and leisure guests seeking an intimate cosmopolitan experience in exciting destinations.
Corporate History
Hyatt Franchising, L.L.C. was incorporated in Delaware as Hyatt Franchise Corporation before converting to its current form. The franchisor itself began offering franchises for Brand Hotels in February 2015. Its parent company, Hyatt Hotels Corporation, has a longer history, having owned, operated, and managed hotels since 1957. Hyatt Franchising, L.L.C. previously offered franchises for other full-service hotels under names like Hyatt Regency® and Hyatt® starting in 1994, and later under The Unbound Collection by Hyatt®, Destination by Hyatt®, JdV by Hyatt®, Caption by Hyatt®, and Hyatt Studios™.
Financial Overview
Investment Range
$42,720,726 - $143,100,233
Franchise Fee (Low)
$137,400
Franchise Fee (High)
$246,900
Minimum Cash Required
$650,000
Minimum Net Worth
$7,348,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$6,947,350
Equipment Costs (High)
$16,116,500
Working Capital
$950,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Hyatt Hotels Corporation's independent auditors, Deloitte & Touche LLP, issued an unqualified opinion on the consolidated financial statements for the period ended December 31, 2024. However, the audit report highlights two critical audit matters. One involves deferred revenue related to the loyalty program, which the auditors note is actuarially determined with significant judgment on the breakage assumption. The other is a goodwill impairment of $110 million recognized in 2024 for a reporting unit within the management and franchising segment, indicating that the carrying value exceeded its fair value, which required significant management judgments in valuation. Despite these matters, the financial statements reflect a net income attributable to Hyatt Hotels Corporation of $1,296 million in 2024.
Financing Details
Hyatt Franchising, L.L.C. does not have a fixed financial assistance program and typically does not offer financing to its franchisees. However, in some specific cases, Hyatt Franchising, L.L.C. may offer financial assistance to franchisees developing new Hyatt Centric hotels or converting existing hotels to the Hyatt Centric system. The terms of any such assistance, including amounts, interest rates, and repayment schedules, are not standardized and will vary based on individual agreements and circumstances. Hyatt Franchising, L.L.C. has no obligation to provide financial assistance and does not guarantee franchisee notes, leases, or obligations.
Performance Metrics
Total US Locations
32
Franchised Units
21
Corporate Units
11
Avg Square Footage
87,120
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Hyatt Franchising, L.L.C. has disclosed one litigation case. In the 2024 fiscal year, Hyatt Franchising, L.L.C. brought a claim against Imperial Hotels, LLC and several individuals for unpaid royalty fees. This arbitration case is identified as No. 01-24-0008-8964 (AAA 2024). No other litigation is required to be disclosed.
Bankruptcy History
Hyatt Franchising, L.L.C. has no bankruptcy history to disclose.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew, Hyatt Centric franchisees must have substantially complied with their Franchise Agreement during its term and be in full compliance at expiration. They must also meet Hyatt Franchising, L.L.C.'s then-current standards for new franchisees, have achieved passing quality assurance scores in the prior three years, and have rights to possess the hotel for at least 10 years. Franchisees are required to renovate, remodel, or expand the hotel and its furniture, fixtures, and equipment (FF&E) to meet current standards. They must provide notice, sign the then-current form of agreement (which may have materially different terms), pay a Property Improvement Plan (PIP) fee, and sign general releases, if permitted by state law.
Training & Support Program
Franchisor Assistance
Hyatt Franchising, L.L.C. provides various forms of assistance to Hyatt Centric franchisees. Before opening, this includes approving the hotel site and design/development plans, providing Design and Construction Standards, identifying approved FF&E and suppliers, and approving F&B Operations Plans and pre-opening marketing programs. Hyatt Franchising, L.L.C. also offers IT Project Management Services, data installation for reservation systems, and listings in advertising publications. Initial training is provided for Core Management and other hotel personnel at various locations, including a mandatory Owner Briefing, Owner/Operator Orientation, and General Manager University. A pre-opening team also assists on-site. Ongoing support during operation includes continuous access to the System Standards, periodic advice on hotel operations and marketing, use of Proprietary Marks, and access to Confidential Information and Copyrighted Materials. Hyatt Franchising, L.L.C. conducts regular quality assurance inspections and offers optional training programs. For hotels choosing or required to participate, Hyatt also provides revenue management, field marketing, central sales, global property guest services, and digital ancillary services.
Initial Training Hours
535
Training Location
Corporate headquarters in Chicago, Illinois, virtually, and at the franchisee's hotel
Ongoing Support
After opening, Hyatt Centric franchisees receive ongoing System Services, including access to central reservation systems and advertising listings. Hyatt Franchising, L.L.C. provides periodic advice on hotel operations and marketing, and conducts quality assurance inspections. Franchisees have access to hosting services for their property management system. Optional programs for a fee include revenue management, field marketing, central sales, global property guest services, and digital ancillary services. Franchisees are also invited to regional and national conventions and may be required to attend additional brand standard training programs.
Franchise Requirements
Ideal Candidate Profile
Hyatt Centric expects to franchise primarily to business entities, not individuals. Ideal candidates or their parent companies/affiliates must have been in business for at least five years and possess a minimum net worth of $7,348,000. Franchisees are expected to either manage the hotel directly (if approved as an operator) or engage an approved management company, ensuring direct management control over all aspects of the hotel's business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
5
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Hyatt Centric defines the Area of Protection using geographic references like streets or rivers, or as a circle centered on the hotel. The size varies based on the hotel's size and location, ranging from a few blocks in dense urban areas to about a 1- or 2-mile radius from the hotel's entrance in less populated regions.
Staffing Notes
Hyatt Centric requires a Core Management team, which includes the general manager, assistant general manager, rooms director, director of sales, engineering director, director of food and beverage, director of catering, and executive chef. This team, and other specified hotel personnel, must attend and successfully complete mandatory brand standard training programs. Once hired, Core Management members must devote all their working time to their roles at the Hyatt Centric hotel and cannot hold positions at other lodging facilities. If there's a general manager vacancy, the owner/operator must fill it with a permanent or interim general manager within six months, who then must complete the General Manager University training. The owner or approved management company is solely responsible for hiring, firing, and determining employment terms for all hotel employees.