Hyatt Place Franchise

Financing Details

Hyatt Place Franchising, L.L.C. generally does not have a fixed financial assistance program and typically does not offer direct or indirect financing to its franchisees. However, in certain specific cases, it may offer financial assistance to franchisees developing new Hyatt Place® hotels or converting existing hotels to the Hyatt system. The criteria for receiving such assistance, as well as the amount, interest rate, and repayment terms, are not formalized and vary depending on the individual agreement and the franchisee's particular circumstances. Hyatt Place Franchising, L.L.C. explicitly states it has no obligation to offer financial assistance and does not guarantee franchisee notes, leases, or other obligations.

Litigation Summary

Hyatt Place Franchising, L.L.C. has no litigation cases that are required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Hyatt Place Franchising, L.L.C. has not been involved in any material litigation proceedings within the reporting period.

Renewal Conditions

To renew their franchise agreement, Hyatt Place franchisees must have substantially complied with the agreement throughout the initial term and be in full compliance at the time of expiration. They also need to meet Hyatt Place Franchising, L.L.C.'s current standards for franchisees, have received passing quality assurance scores for the preceding three years, and have the right to maintain possession of the hotel for at least 10 years after the initial agreement ends. Franchisees must provide written notice of their intent to renew 18 to 21 months before expiration and pay a non-refundable Property Improvement Plan (PIP) fee. They are also required to renovate, remodel, or expand the hotel to meet current brand standards for new, similarly situated hotels, and sign Hyatt Place Franchising, L.L.C.'s then-current franchise agreement and related documents, which may contain materially different terms and fees. Franchisees and their guarantors must also sign a general release of claims against Hyatt Place Franchising, L.L.C. and its affiliates.

Staffing Notes

Hyatt Place hotels require a dedicated Core Management team, which includes a general manager, an assistant general manager, and a sales director. These core managers must commit all their working hours to fulfilling their management and operational responsibilities solely at the Hyatt Place hotel, without holding concurrent positions at other lodging facilities or in any other capacity related to the lodging industry. The franchisee or its approved management company is entirely responsible for hiring and properly training all Core Management and other hotel personnel, as well as setting their employment terms and conditions. If a general manager's performance does not meet quality assurance standards, the franchisor may require the franchisee or management company to hire a new general manager. All Core Management and other specified hotel personnel must attend and successfully complete Hyatt's brand standard training programs, including initial and supplemental training. If a Core Management member is replaced, their successor must complete the applicable training programs within 90 days of assuming the role. Additionally, Hyatt Place provides pre-opening training, sending a team of trainers to the hotel to assist staff with brand standards and day-to-day operations such as guest services, housekeeping, food and beverage, front desk, culinary (if applicable), and Hyatt's internal systems. If the franchisee chooses to retain a revenue manager for the hotel, that individual must be certified by Hyatt within 90 days of their hire date and can only provide revenue management services to a maximum of 20 Brand Hotels.