HYATT HOUSE HOTEL

The entry point kicks off with a $75,000 franchise fee, followed by ongoing royalties at 5%, a 3.5% commercial services fee covering national advertising and marketing, plus mandatory corporate services ranging $2,000 to $12,500 monthly—fees that can add up quickly for operators. Item 19 provides earnings data from existing units, allowing vetted insight into revenue performance, though average figures aren't aggregated here; prospective investors must dig into the FDD for specifics on AUVs and profitability. System health shows 109 franchised locations alongside 10 corporate-owned, with just 2 terminations signaling franchisee retention strength, 7 transfers indicating some resale activity, and only 2 SBA loans recorded averaging $4,955,750 each—highlighting the capital-intensive nature where loans top $5M on average.

Growth trajectory since 2006 reflects measured expansion in primary and secondary markets, bolstered by Hyatt's reservation system and brand power, but the modest unit count and single 2024 franchisor lawsuit against franchisees raise flags on operational pressures or disputes. No contraction evident, yet low SBA volume suggests financing hurdles or owner-funded builds. For high-net-worth investors eyeing hospitality, this positions as a premium play with strong support but demands deep pockets and tolerance for elevated fees—strong Item 19 transparency helps, but validate against competitive hotel benchmarks before committing.