DESTINATION BY HYATT

The initial franchise fee clocks in at $100,000, granting access to Hyatt's reservation system, marks, and marketing muscle—essential for competing in full-service hotels targeting business and leisure crowds. Ongoing fees pile on: 7% royalty strictly on Channel Bookings Gross Rooms Revenue, plus a 3.5% Commercial Services Fee, 1.35% Digital Acquisition Fee, and mandatory fixed corporate services ranging $2,000 to $40,000 monthly depending on contracts. No Item 19 disclosure means no validated revenue or profit figures from existing units, forcing buyers to rely on unverified estimates or chats with the handful of franchisees. Item 7 likely outlines the full investment build-out for these resort-style hotels, but without specifics here, expect seven figures total given the industry's capital intensity.

System size remains tiny at 8 locations in 2024, up 14% from 7 the prior year since launching in 2019—a modest pace for a Hyatt offshoot. FDD notes litigation over unpaid royalties, signaling potential cash flow squeezes for owners in a competitive market. Transfers or terminations aren't detailed, but this early-stage brand offers upside for patient operators who can navigate the layered fees and build unique properties. For risk-tolerant investors eyeing hospitality, it's a high-barrier play with Hyatt's backing, but the no-revenue opacity and disputes demand extra scrutiny before signing.