Hyatt Select

Item 7 lays out the steep financial entry: initial investment spans $11,066,886 to $19,969,517, dwarfing many hotel peers and reflecting build-out for tech, design, and amenities like grab-and-go breakfast plus 24/7 markets. The $50,000 franchise fee is standard-ish for the category, but royalties at 5% pair with 3% for brand/ad fund, then pile on $2,950-$4,450 monthly Hyatt Select services and $2,000-$12,500 for mandatory contracts—pushing total ongoing fees higher than typical 5-6% norms, potentially squeezing margins in a cutthroat lodging market. No Item 19 means zero validated revenue or profit snapshots from existing units (there are none yet, as franchising launched 2025), a glaring void when evaluating ROI against competitors disclosing $1M+ AUVs.

System health shows Hyatt Select as a nascent venture: projected 10 new units signals measured rollout from parent Hyatt Hotels Corp in Chicago, not explosive growth. That single arbitration—franchisor chasing franchisees for unpaid royalties—flags potential cash flow strains or disputes early on, though minimal compared to litigation-heavy brands. For deep-pocketed investors eyeing Hyatt's reservation muscle and marks, this could leverage corporate/leisure traffic, but brand-new status amps risks of unproven demand; weigh against SBA default trends absent here, but hotel category averages hover 20-30%—proceed only if your $15M+ capital can weather ramp-up uncertainties.