JdV by Hyatt Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$42,040,926 - $142,134,233
Franchise Fee
$69,500
Total US Locations
18
Business Summary
JdV by Hyatt offers franchises to operate lifestyle resort and hospitality affiliations. These JdV by Hyatt hotels operate under a separate tradename owned by the franchisee but are affiliated with the JdV by Hyatt brand. JdV by Hyatt expects these hotels to be unique properties that reflect their local market, targeting both corporate business travelers and leisure travelers.
Corporate History
Hyatt Franchising, L.L.C. was incorporated in Delaware as Hyatt Franchise Corporation and later converted to a Delaware limited liability company. Its parent company, Hyatt Hotels Corporation, has been involved in operating and managing hotels since 1957. Hyatt Franchising, L.L.C. itself began offering franchises for full-service Hyatt hotels in December 1994. In December 2018, an affiliate acquired Two Roads Hospitality, which included the JdV by Hyatt brand. JdV by Hyatt began offering franchises for its Brand Hotels in May 2019.
Financial Overview
Investment Range
$42,040,926 - $142,134,233
Franchise Fee (Low)
$69,500
Franchise Fee (High)
$192,100
Minimum Net Worth
$7,348,000
Royalty %
7%
Marketing %
3.5%
Equipment Costs (Low)
$37,167,550
Equipment Costs (High)
$128,823,500
Working Capital
$950,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor, Hyatt Franchising, L.L.C., provides unaudited financial statements, meaning they have not been independently verified by a certified public accountant. The consolidated financial statements for its parent company, Hyatt Hotels Corporation, are audited and received an unqualified opinion. Key audit matters for the parent company include the deferred revenue related to its loyalty program, which is a significant liability of $1,333 million and relies on subjective estimates for future point redemptions. Additionally, the parent recognized $110 million in goodwill impairment charges, with a substantial goodwill balance of $2,541 million, requiring significant management judgment in fair value estimations.
Financing Details
Hyatt Franchising, L.L.C. typically does not offer financial assistance to franchisees and does not guarantee notes, leases, or obligations. However, in some cases, it may periodically offer financial assistance to franchisees developing new Brand Hotels or converting existing hotels. The terms of any such assistance, including amounts, interest rates, and repayment, are not fixed and vary based on agreements and circumstances, and Hyatt has no obligation to provide it.
Performance Metrics
Total US Locations
18
Franchised Units
6
Corporate Units
12
Franchising Since
1994
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
JdV by Hyatt has disclosed one litigation case. In 2024, Hyatt Franchising, L.L.C. initiated an arbitration claim against Imperial Hotels, LLC and several individuals for unpaid royalty fees. No other litigation cases are required to be disclosed.
Bankruptcy History
JdV by Hyatt has no bankruptcy history to disclose.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew their JdV by Hyatt franchise, franchisees must have substantially complied with the Franchise Agreement throughout its term and be in full compliance at the time of expiration. They must also meet JdV by Hyatt's current standards for new franchisees and have received passing quality assurance scores in the previous three years. Franchisees must also have the right to maintain possession of the hotel for at least ten years after the current agreement expires. The renewal process involves renovating, remodeling, or expanding the hotel and its furniture, fixtures, and equipment (FF&E). Franchisees must provide notice, sign JdV by Hyatt's then-current franchise agreement (which may have materially different terms and fees) and ancillary documents, pay a Property Improvement Plan (PIP) fee, and sign general releases if permitted by state law.
Training & Support Program
Franchisor Assistance
JdV by Hyatt provides extensive assistance both before and during the operation of the hotel. Before opening, JdV by Hyatt assists with site approval, communicates design and construction standards, identifies approved furniture, fixtures, and equipment (FF&E), and approves design and renovation plans. It also approves food and beverage operations and operators, and assists with setting up a pre-opening sales office. JdV by Hyatt provides IT project management services, access to its central reservation system (CRS), and initial training programs for the hotel's general manager and Core Management team. During operation, JdV by Hyatt continues to provide System Services, offers ongoing advice and guidance, and allows franchisees to use its proprietary marks, copyrighted materials, and confidential information. It maintains System Standards, offers access to the CRS and advertising listings, conducts quality assurance inspections, and provides property management system hosting services. Additionally, JdV by Hyatt offers optional services such as revenue management, field marketing, central sales, global property guest services, and digital ancillary services.
Initial Training Hours
535
Training Location
Chicago, Illinois, virtually, or at a designated Hyatt hotel location or the franchisee's hotel.
Ongoing Support
JdV by Hyatt provides ongoing support by continuing System Services, advising on hotel operations and System Standards, and ensuring access to Proprietary Marks, Copyrighted Materials, and Confidential Information. It conducts regular inspections through the Quality Assurance and Compliance Program and provides property management system hosting services. JdV by Hyatt also requires Core Management and other personnel to participate in regional and national conventions, meetings, and brand standard training programs. Additionally, optional training programs, including eCornell courses and virtual programs, are offered for a fee.
Franchise Requirements
Ideal Candidate Profile
JdV by Hyatt expects franchisees to be business entities rather than individuals. The ideal candidate entity, or its parent or an affiliate, should have been in business for at least five years and possess a minimum net worth of $7,348,000. Additionally, the franchisee entity or its approved management company must meet JdV by Hyatt's minimum qualifications and ensure its personnel successfully complete required brand standard training programs, demonstrating direct management control over the hotel's operations.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
5
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Limited
Territory Size Requirements
JdV by Hyatt defines the Area of Protection for its franchisees using geographic references like streets or rivers, or as a circle with the hotel at its center. The size of this area varies based on the hotel's size and location, ranging from a few blocks in dense urban areas to approximately a 3-mile radius from the hotel's entrance in less populated areas.
Staffing Notes
JdV by Hyatt franchisees or their approved management company are solely responsible for hiring, training, and setting employment terms for all hotel personnel, including the Core Management team. The Core Management team includes positions such as 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 must be in place at all times and dedicate their full working time to the hotel's operational responsibilities, without holding concurrent positions in other lodging facilities. If a revenue manager is employed, they must be certified by JdV by Hyatt and may manage revenue for a maximum of 20 Brand Hotels.