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Hilton Garden Inn
Hilton Garden Inn is one of the largest hospitality brands managed under the Hilton Worldwide Holdings Inc. umbrella. Although advertised as a mid-priced hotel, Garden Inn hotels offer guests an upscale lodging experience by providing a variety of in-room features such as free WiFi, a refrigerator, a coffee maker, multi-bed options, and a lounge area. Junior suites and larger rooms may also be available depending on location. More about the cost of owning a Hilton Garden Inn franchise is below.
Facts & figures
Hilton Garden Inn Franchise Formats Offered
The standard Hilton Garden Inn Hotel is a 2 to 6-floor, 132-room structure, though they can range from as few as 80 rooms to as many as 300.
The hotel common areas typically feature these amenities:
- Casual, inviting, living room-style lobby
- "Pavilion Pantry" area selling food, beverages, and assorted travel items
- Laundry room
- Vehicle parking
- Internet / Business Center
- Fitness room
Guest rooms typically feature these attributes:
- Free wireless internet
- A work area that includes ergonomic desk chair, desk lamp, data-ready landline connection, and power outlets
- Coffee machine, microwave, and refrigerator
- Television
Hilton Garden Inn Franchise Opportunities - History
The Hilton Garden Inn brand was founded in 1990 as one of several other hospitality brands in the Hilton Worldwide portfolio. The hotel began franchising immediately after its establishment and quickly jumped into its plans for rapid expansion. The first international location opened in 2012, by 2015 Hilton Garden Inn had grown to over 700 locations, and today the chain has passed the 800-location mark. The brand is continuing to develop throughout the Americas and Europe, with additional plans for further Eastern expansion.
How Much Does A Hilton Garden Inn Franchise Cost?
Initial Investment
The estimated initial investment required to open a Hilton Garden Inn franchise is $12 million to $23 million, excluding the cost of the underlying real estate and related expenses.
Franchise Application Fees
Opening a new hotel in the system or converting an existing property into a Hilton Garden Inn location requires an upfront application fee of $75,000, plus $400 for every room beyond 150. Transferring ownership of an existing Hilton Garden Inn requires an application fee of $175,000. If these applications are not approved, the fees are refundable, less a $7,500 processing charge.
Ongoing Royalties and Program Contributions
Hilton Garden Inn franchisees must pay an ongoing monthly royalty fee of 5.5% of gross room revenue. In addition, there is a monthly program fee of 4.0% of gross room revenue. The program fees are utilized by the franchisor to pay for services such as promotion, ads, marketing, research, and other efforts to drive awareness, brand recognition, and bookings for hotels in the system.
Hilton Garden Inn Franchise System Size and Composition
There are over 800 Hilton Garden Inn locations across more than 40 countries worldwide. Approximately 80% of the hotels are located in the United States and around 90% are franchised units. Altogether the Hilton Garden Inn system generates some $3.9 billion in global revenue.
Hilton Garden Inn is one of the larger chains within the broader Hilton Worldwide Holdings Inc. portfolio, which also includes such hotel brands as DoubleTree, Hilton Hotels & Resorts, Homewood Suites, Home2Suites, Hampton, Waldorf Astoria, and other hospitality franchises.
