Motto by Hilton Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$19,235,559 - $90,960,697
Franchise Fee
$50,000
Min Cash Required
$800,000
Total US Locations
5
Business Summary
Motto by Hilton franchises operate hotels that provide distinctive, high-quality lodging services primarily targeting the upper midscale market. Motto by Hilton also offers optional restaurant brand concepts to be operated within the hotel facilities, which feature distinctive identities, concepts, and themes for dining experiences.
Corporate History
Hilton Franchise Holding LLC, the franchisor for Motto by Hilton, was established in September 2007. It began franchising Motto by Hilton hotels in the US on September 14, 2018. The franchisor is part of a larger corporate family, with its parent company, Hilton Domestic Operating Company Inc., formed in July 2016, and its ultimate parent, Hilton Worldwide Holdings Inc., formed in March 2010. The overall guest lodging business that these entities are part of has a history dating back to 1946 through predecessors like Hilton Hotels Corporation. Hilton Franchise Holding LLC also franchises numerous other hotel brands under the Hilton Worldwide umbrella, such as Canopy, Curio, DoubleTree, Hampton, and Hilton Garden Inn.
Financial Overview
Investment Range
$19,235,559 - $90,960,697
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$150,000
Minimum Cash Required
$800,000
Royalty %
5%
Marketing %
4%
Equipment Costs (Low)
$14,979,059
Equipment Costs (High)
$74,978,485
Working Capital
$1,000,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Hilton Franchise Holding LLC, the franchisor for Motto by Hilton, is a financially sound company with increasing net income, reaching over $1.4 billion in 2024. Cash flow from operations also showed year-over-year increases. However, its cash balance significantly decreased in 2024 due to large distributions of retained earnings to its parent company and an increase in receivables from affiliates. The company's assets and franchise contracts are pledged as collateral for its parent company's debt obligations, which mature between 2025 and 2033, indicating a substantial financial commitment within the Hilton corporate structure. The company also acquired Graduate brand franchise contracts in 2024 for approximately $85 million, financed by an affiliate. Despite these large intercompany transactions and debt guarantees, the independent auditor has issued an unqualified opinion, meaning Motto by Hilton's financial statements fairly represent its financial position.
Financing Details
Motto by Hilton generally does not offer direct or indirect financing to its franchisees. However, it may, at its sole discretion, offer development incentives which are financial contributions to help with hotel development or conversion. These incentives are not loans and do not need to be repaid unless the franchise agreement ends prematurely or a transfer of the hotel occurs. The repayable amount of the incentive reduces each year the hotel operates. If an incentive becomes due and is not paid, it will accrue interest at 1.5% per month or the highest legal rate. Motto by Hilton may occasionally offer other types of financing, such as mezzanine loans or guarantees, in unique situations, but the specific terms for these are decided individually and are not standard offerings.
Performance Metrics
Total US Locations
5
Franchised Units
5
Corporate Units
0
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
11
Litigation Summary
Motto by Hilton has been involved in several legal disputes, including five ongoing class-action lawsuits filed between 2024 and 2025. These lawsuits allege that Motto by Hilton and other hotel companies violated the Sherman Act by improperly sharing information and using revenue management software to inflate room rates across various hotel markets. Motto by Hilton states it intends to vigorously defend its position in these cases. In addition, Motto by Hilton, or its parent Hilton, concluded six other significant actions since 2013. These included two cases from the States of Texas (filed 2023, settled 2025) and Nebraska (filed 2019, settled 2024) concerning the disclosure of mandatory guest fees, both resulting in settlements. A lawsuit filed by Motto by Hilton against a former franchisee for breach of contract, with a counterclaim of fraudulent inducement, was settled in 2022. A separate wrongful termination lawsuit by a franchisee in New Jersey (filed 2019) was settled in 2020. An older class action from 2013 regarding resort fee disclosures in Hawaii settled in 2015. Finally, an antitrust case from 1970 was concluded in 1971 with an injunction against its predecessor. No collection suits were brought against Motto by Hilton franchisees in 2024.
Bankruptcy History
Motto by Hilton has no bankruptcy history to disclose.
Agreement Terms
Initial Term
22 years
Renewal Conditions
Motto by Hilton franchisees do not have the right to renew or extend their franchise agreement. However, if Motto by Hilton decides, at its sole discretion, to offer a re-licensing, franchisees may be required to sign a new contract with terms and conditions that are significantly different from their original agreement. Additionally, franchisees would need to comply with any property improvement plan (PIP) performance conditions specified by Motto by Hilton.
Training & Support Program
Franchisor Assistance
Motto by Hilton provides extensive support to its franchisees both before and after opening. Before a hotel opens, Motto by Hilton lends the operational manual, reviews and approves the franchisee's chosen architect, interior designer, general contractor, and subcontractors, and also approves the hotel's construction and design plans, ensuring compliance with accessibility laws. It also approves the hotel's management and provides agreements for critical information technology systems like OnQ, which handles reservations, property management, and revenue management. Initial training programs are specified for the general manager and other key staff members, covering various operational aspects, although franchisees bear the costs for these programs, including travel and materials. During operations, Motto by Hilton publishes hotel directories, includes the hotel in national and regional marketing campaigns, and provides access to its global Reservation Service. It maintains a quality assurance program through regular inspections, guest satisfaction surveys, and audits to ensure compliance with brand standards. For optional Restaurant Brands within the hotel, Motto by Hilton offers menu templates, design guides, and consultations. The franchisor also offers ongoing computer system support, various sales and distribution programs, and an optional Advance Purchase Program for guests. Marketing efforts are funded by the Monthly Program Fee, with Motto by Hilton having sole discretion over how these funds are allocated for advertising, promotion, market research, and system maintenance.
Training Location
Various locations, including virtual, online, and on-site.
Ongoing Support
Motto by Hilton provides ongoing support to its franchisees after the hotel opens. This includes publishing directories and incorporating the hotel into national and regional marketing campaigns, as well as providing access to its global Reservation Service. Motto by Hilton also conducts a quality assurance program through regular inspections, guest satisfaction surveys, and audits to ensure compliance with brand standards. For optional Restaurant Brands within the hotel, Motto by Hilton offers menu templates, design guides, and consultations. The franchisor offers optional consultation services in operations, facilities, and marketing for a fee. There are ongoing training programs, and hotels that consistently fail quality standards may be required to participate in a Service Quality Improvement Program involving a service improvement plan, re-training, and coaching. Additionally, Motto by Hilton provides ongoing maintenance and support for required computer systems like OnQ, Guest Internet Access, Connected Room, and Delphi.
Franchise Requirements
Ideal Candidate Profile
Motto by Hilton seeks franchisees who can provide qualified and experienced management for the operation of their hotel. This could be the franchisee directly, if they receive prior written approval and complete the required training, or an approved third-party management company. The franchisor will assess the proposed management for managerial skills, operating capacity, and adherence to franchise obligations. Franchisees or their management companies must not be a "Competitor," meaning they cannot own, license, or franchise a hotel brand that Motto by Hilton deems competitive.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Limited
Territory Size Requirements
Motto by Hilton's territories, when a "Restricted Area Provision" is granted (which is not standard but may be agreed upon), are not exclusive. The boundaries of this restricted area vary in size and shape, depending on the local market and competitive conditions at the time the franchise agreement is signed. These boundaries are not set by a standard formula but can be defined by factors like cities, metropolitan areas, counties, streets, highways, or a specific radius around the hotel. The size and continuation of any restricted area are not influenced by factors like sales volume, market penetration, or population changes.
Staffing Notes
Motto by Hilton requires franchisees to ensure their hotel is run by qualified and experienced management, which can either be the franchisee directly or an approved third-party management company. Key personnel, such as the general manager and director of sales, are required to complete specific training programs like the General Manager, Commercial and Sales Leader Training, Hilton Core Sales Skills, and Hilton Honors Training. If these key roles become vacant, replacements must complete their respective training within 90 days. All hotel staff are mandated to complete Motto Brand Learning Programs, Problem Avoidance/Satisfaction Guarantee Training, and annual compliance training covering topics such as diversity, inclusion, harassment prevention, and human trafficking.