HYATT PLACE HOTEL

Item 7 of the 2025 FDD pegs total investment at $17.9 million to $52.1 million, covering construction, furnishings, and startup for 150-250 room properties—far beyond typical franchise plays. Franchise fee hits $75,000 upfront, followed by 5% royalties on gross room revenue plus a 3.5% commercial services fee bundling marketing and brand support. Add $1,500-$7,500 monthly for mandatory contracts like tech and reservations, and $500-$5,000 for other corporate services, pushing ongoing costs to 10%+ of sales. Item 19 shines here: average gross revenue clocks $5,806,621, median $5,162,286 across disclosed units, implying solid 60-70% occupancy in strong markets but razor-thin margins after debt service on those mega-loans.

System health looks steady with 318 franchised locations, low 2 terminations signaling few bailouts amid hospitality volatility. SBA data reveals only 5 loans averaging $4.36 million—sparse uptake suggests franchisees tap private financing or Hyatt affiliates, fitting the high-barrier profile. No contraction evident; Hyatt's global muscle drives selective expansion. For deep-pocketed investors eyeing $4M+ EBITDA potential post-ramp-up, it's viable if markets align—but execution risks loom large in labor-intensive hotels.