About Curio Collection by Hilton Franchise
Curio Collection by Hilton is an upscale hotel brand that brings together unique, independent properties under the trusted Hilton umbrella.
Each hotel in the collection retains its own distinctive character and local charm while offering guests access to Hilton's world class loyalty program and reservation system.
The brand launched its franchise program in 2014 and is operated by Hilton Domestic Operating Company Inc.
Curio Collection by Hilton Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $85,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Rooms Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Gross Rooms Revenue | National brand fund |
| Total Investment Range | $3,977,625 – $140,531,439 | Includes build-out, inventory, working capital |
The investment range of $4.0M–$140.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Rooms Revenue) and marketing fee (4% of Gross Rooms Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Application Fee | $85,000 | $85,000 |
| Property Improvement Plan | $0 | $10,000 |
| Market Study | $0 | $0 |
| Environmental Assessment | $0 | $0 |
| Real Property | $0 | $0 |
| Construction and Leasehold Improvements | $0 | $95,500,000 |
| Designer & Engineering Fees | $0 | $4,000,000 |
| Furniture, Fixtures & Equipment | $0 | $17,000,000 |
| Inventory & Operating Equipment | $1,650,000 | $3,500,000 |
| Signage | $1,000 | $15,000 |
| Computer Hardware & Software | $144,995 | $332,655 |
| Guest Internet Access Program | $116,000 | $186,000 |
| Delphi Sales and Events System | $990 | $41,000 |
| Required Pre-Opening Training | $5,000 | $15,000 |
| ADA Consultant Fee | $6,000 | $15,000 |
| Construction/Renovation Extension Fee | $0 | $10,000 |
| Insurance | $0 | $0 |
| Organizational Expense | $75,000 | $268,724 |
| Permits and Licenses | $0 | $1,400,000 |
| Miscellaneous Pre-Opening & Project Management Expenses | $570,000 | $1,800,000 |
| Contingencies | $0 | $9,550,000 |
| Additional Funds | $1,300,000 | $1,800,000 |
| Eforea Spa Initial Fee | $0 | $25,000 |
| Additional Funds for Eforea Spa Implementation | $0 | $4,950,000 |
| Other Required Pre-opening Services Fees | $23,640 | $28,060 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Currently, $150,000 (Change of Ownership Application Fee); Currently, $5,500 (Permitted Transfers Processing Fee) |
| Technology Fee | Currently, between $1,485 and $2,150 per month (OnQ Connectivity Fees); Currently, $1,500 to $5,500 for monthly maintenance support (OnQ Maintenance Support Fees); Currently, $858 per user per year (Delphi Sales and Events System) |
| Audit Fee | Actual amount of deficiency plus interest. If willful or for 5% or more of the total amount owed for the inspection period, you must reimburse us for our costs. |
| Monthly Spa Royalty Fee | 2% of Gross Spa Revenue |
| Room Addition Fee | Currently, $400 per guest room or suite, multiplied by the number of additional guest rooms |
| OnQ Additional Rooms Fee | Currently, $120 per additional guest room/suite |
| OnQ Interface Fees | Currently, $1,000 per additional interface |
| OnQ Email Fees | Currently, $7.92 per user per month and $12.50 per month for delivery to mobile devices |
| Guest Assistance Program: Customer Satisfaction Guarantee | Currently, $300 per handled transaction for Hilton Honors Diamond members, $250 per handled transaction for Hilton Honors Gold members, and $200 per handled transaction for all other guests. |
| Guest Assistance Program: Price Match Guarantee | Hotels must honor a 25% discount off the lower rate on all approved claims. |
| Guest Assistance Program: First Contact Resolution | Currently, $15 administrative fee. |
| Guest Assistance Program: Online Complaints | $25 per complaint administrative fee. |
| Quality Assurance Re-evaluation Fee | Currently, $480 to $3,000 per re-evaluation visit. |
| Quality Assurance Special Re-evaluation Fee | Currently, $3,000 per re-evaluation visit. |
| Brand Conference | Currently, $2,500 per attendee. |
| General Manager, Commercial and Sales Leader Training | Currently, up to $1,200 per attendee. |
| Hilton Core Sales Skills Training | Currently, up to $850 per attendee. |
| Other Training Programs and Training Materials | Currently, up to $5,000 per program per attendee. |
| Travel Clubs | Currently, $0.30 per available room plus 10% commission. |
| Hilton Advance Program | Currently, 1.35% of eligible Digital Direct Revenue, not to exceed $30 per stay. |
| Group Preferred Partnership Program | Currently, $1.50 per room night plus the applicable commission. If we increase this fee this year, it will not exceed $2.50 per room night plus commission. |
| Frequent Traveler/Guest Reward Program | Currently, 4.3% of total eligible guest folio. This fee is waived for stays in which the guest is enrolled on-property in Hilton Honors. |
| Hilton Honors Event Planner Bonus Program | Currently, $0.0025 to $0.0050 per Hilton Honors bonus point awarded. |
| Online Group Event Booking Charges | Currently, up to 2% of GRR and up to $25 for included meeting space, plus applicable commissions. |
| Centralized Payment Programs (Third-Party Reservation Charges) | currently, up to $5.59 per stay. |
| Centralized Payment Programs (FastPay Program) | currently, up to $1.40 per transaction, plus commission. |
| Centralized Payment Programs (Travel Planner Centralized Payment Program) | currently, $0.18 per transaction processing charge plus up to a 10% commission. |
| Centralized Payment Programs (Unlimited Rewards Program) | currently, $0.71 for a weekday stay (Monday - Thursday nights), $1.42 for a weekend stay with 1 Fri/ Sat/Sun night and $2.13 for a weekend stay with 2 Fri/Sat/Sun nights. Double Dollars amounts increase to $1.42, $2.63 and $3.84 respectively. |
| Re-licensing Application Fee | Currently, $85,000. |
| Lender Comfort Letter Processing Fee | Currently, $3,500 for Lender Comfort Letters and $1,500 for Lender Comfort Letter Assignments. |
| Public Offering or Private Placement Processing Fee | Currently, $5,000. |
| Management Fees | Fees will be established by mutual agreement. |
| Actual Damages Under Special Circumstances | Varies. |
| Default Remedies | Actual expenses. |
| Indemnification | Actual amount paid by us or our affiliates due to any claim, demand, tax, penalty, or judicial or administrative investigation or proceeding arising from any claimed occurrence at your Hotel. |
| Insurance | Actual amount. |
| Liquidated Damages for Unauthorized Opening | $5,000 per day that your Hotel is open without authorization. |
| Liquidated Damages for Pre-Opening Termination | $11,200 multiplied by the number of approved Guest Rooms at the Hotel. |
| Liquidated Damages for Post-Opening Termination (before 2nd anniversary) | The greater of: (a) the Hotel’s Average Monthly Royalty Fees multiplied by 60; or (b) $11,200 multiplied by the number of approved Guest Rooms at the Hotel. |
| Liquidated Damages for Post-Opening Termination (after 2nd anniversary, before final 60 months) | The Hotel’s Average Monthly Royalty Fees multiplied by 60. |
| Liquidated Damages for Post-Opening Termination (within final 60 months) | The Hotel’s Average Monthly Royalty Fees multiplied by the number of months remaining in the Term. |
| Service Charges for Overdue Payments | 1.5% per month or highest percentage permissible by law, whichever is less. |
| Taxes | Actual amount. |
| Identity, Sales, and Distribution Non-Compliance Fee | Currently, $500 per instance. |
| Franchise Agreement Non-Compliance Fee | 1% of Gross Rooms Revenue. |
| FastPay Non-compliance Fee | Varies and escalates based on the number of violations. Currently, up to the greater of $3,000 or 10% of gross group room revenue (not to exceed $7,500) per violation. |
| Consultation and Service Fees | Set by us on a project-by-project basis. |
| Consortia Program | Currently, up to $2.70 for each consumed night booked under the Consortia “parity” rate, plus applicable commission. |
| TMC Pay-On-All-Pay-For Performance Program | Currently, up to $1.03 for each consumed night booked by a TMC travel agency, plus up to 10% commission or fee where applicable. If we increase this fee this year, it will not exceed $1.15, plus applicable commission or fee. |
| US Government Travel Agency Programs | Currently, up to $2.30 per consumed room night or 1.5% of consumed room revenue, depending on program. |
| ResMax Program | Currently, 5.4% to 5.9% of consumed revenue from a ResMax booking with a 3-night maximum. If we change the pricing model this year, it will not exceed $5.00 per call. |
| Revenue Management Consolidated Center (RMCC) Category 1 – One Time Service Models | currently $1,699. |
| Revenue Management Consolidated Center (RMCC) Category 2 – Monthly Full Support Models | currently $2,475 to $14,799. |
| Revenue Management Consolidated Center (RMCC) Category 3 – Monthly Reports Only Models | currently $1,129 to $1,749. |
| Revenue Management Consolidated Center (RMCC) Category 4 – Monthly Lead Management Service Models | currently $1,139 to $1,599. |
| Revenue Management Consolidated Center (RMCC) Category 5 – Monthly Group Rooms Coordinator Models | currently $775 to $5,195. |
| Procurement and Services Fees | Currently, 4% to 10% of project cost. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Mandatory training programs vary by role, including up to 18 hours for General Manager/Commercial/Sales Leader, 1-5 hours for OnQ PMS, 10 hours for OnQ Rate & Inventory, 8-10 hours for OnQ Forecast Management, 10-12 hours for GRO System, 1 hour for Hilton Honors (plus 1 hour on-the-job), 24 hours for Hilton Core Sales Skills, 2-3 hours for Annual Compliance, 16 hours for Owner Orientation, 20 hours for New to Hospitality Owner Education, 16 hours for Eforea Spa, and up to 24 hours for Curio Orientation. Brand Conference and Pre-Opening Training Resources duration varies. |
| Classroom Training | Varies, up to 143 hours (virtual/online) for various roles. |
| On-the-Job Training | 1 hour (Hilton Honors Training) |
| Training Location | Virtual, online, or on-site at designated locations or the Hotel. |
| Additional Training | Annual Brand or regional conferences are required for general managers and directors of sales. Additional optional learning programs are also available. Training costs, travel, lodging, and other expenses are the franchisee's responsibility. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive, but a Restricted Area Provision may be granted. |
| Exclusive Territory | No |
| Territory Size | Varies in size and shape from hotel to hotel, not delineated by standard formula, but may be by cities, metropolitan areas, counties, streets, highways, or a specified radius. |
| Description | Franchisees receive a non-exclusive license. However, a specific 'Restricted Area Provision' may be granted for an agreed-upon time, typically shorter than the franchise term. This provision restricts the franchisor and affiliates from operating another *Brand* hotel within that area. Exclusions apply for existing hotels, other brands, gaming-oriented hotels, shared ownership properties, and large acquisitions. The size and shape of the Restricted Area vary based on market conditions. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | New Construction: Generally, 23 years after the Effective Date. Conversion: Generally, 10 to 20 years after the Opening Date. Change of Ownership: Remaining Term under the existing franchise agreement, or other approved term. |
| Transfer Fee | Currently, $150,000 (Change of Ownership Application Fee); Currently, $5,500 (Permitted Transfers Processing Fee) |
| Transfer Conditions | Transfers are prohibited unless expressly permitted. Permitted Transfers (no change of control) may or may not require notice/consent depending on type (e.g., publicly traded equity, less than 50% change in privately held equity, institutional investment funds do not require notice/consent; affiliate transfers, family member/trust transfers, or transfers on death require 60 days' notice, consent, processing fee, and standard documents). Change of Ownership Transfers (change of control) require 60 days' notice, franchisor consent (not unreasonably withheld), payment of all amounts due, resolution of pending litigation, transferee meeting current business requirements (credit, background, experience), payment of franchise application fee, signing new franchise agreement, agreeing to upgrades, and indemnifying franchisor against certain claims. Transferee cannot be a Sanctioned Person or Competitor. |
| Termination for Cause | Franchisor can terminate with cure period (10-30 days) for failure to pay sums, failure to commence/complete Hotel Work, failure to maintain insurance, or failure to comply with other provisions. Immediate termination without cure is possible for repeated material breaches (same non-compliance within 24 months, 3 notices of material default in 12 months), bankruptcy, loss of possession of hotel, failure to operate for 5 consecutive days, contesting franchisor ownership of System/Marks, engaging in adverse conduct, concealing revenues/defrauding, non-compliant transfers, becoming a Sanctioned Person/Competitor, breach of guarantor, public health/safety threat, or termination of other Hotel Agreements. |
| Non-Compete Period | During the term of the franchise. |
| Non-Compete Details | Franchisee and affiliates may not directly or indirectly own, license, or franchise a hotel brand that competes with the System, a System Hotel, or Network Hotel (in the upper upscale market segment). However, a minority interest in a Competitor is allowed under certain circumstances, and being a franchisee or managing a property of a Competitor is permitted. If operating an eforea spa, no other spa may be operated in, adjacent to, or associated with the hotel. No non-compete covenants apply after the franchise is terminated or expires. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisees must provide qualified and experienced management, either directly with prior written approval and successful completion of training, or by retaining an approved third-party management company. The franchisor may require a management company if the franchisee is deemed unqualified. The franchisee remains solely responsible for the hotel's management and operations regardless of who manages it. No non-compete covenant after termination, but restrictions apply during the term regarding competing brands and cross-marketing. |
| Required Suppliers | You must install and use an approved property management system including business software and hardware. You must purchase items bearing our logo, trademark or service mark from a supplier approved by us. You must use our required business computer systems, including OnQ, Guest Internet Access System, Connected Room system, GRO system, Delphi.fdc system, Digital Floor Plan, and Digital Key system. If operating an eforea spa, you must sell all specified products and perform required spa treatments. |
| Supply Restrictions | Franchisees must maintain hotels according to Standards, which are regularly reviewed and updated. This includes periodic modernization and upgrades of fixtures, furnishings, equipment, and technology. Purchases of products and services must comply with Standards, and in some cases, specific brands or types of products may be required. Exterior signage must be purchased from a licensed vendor. OnQ software is proprietary and must be licensed from HSS. Guest Internet Access hardware/software and service must be from preferred providers. GRO system is from IDeaS. Delphi.fdc system is powered by Amadeus Hospitality. Eforea spa products and treatments are specified. |
| Franchisor Revenue from Suppliers | For the fiscal year ended December 31, 2022, Hilton and its other affiliates (excluding royalty and program fees, pass-through commissions, and HSM amounts) had revenues from sales of goods, services, computer systems and/or supplies to franchisees of Hilton’s subsidiaries of $897,864,952. HSM, a wholly-owned subsidiary of Hilton, had revenues of $8,852,637 in rebates and allowances on purchases made by franchisees of all brands, $2,400,836 from sales of goods, services and/or supplies to franchisees of all brands, and $17,466,018 in administrative fees on purchases made by franchisees of all brands. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor generally does not offer direct or indirect financing, but may offer development incentives (contingent liabilities) for new hotels. These incentives are disbursed after opening and do not need to be repaid unless the franchise terminates early or a transfer occurs. The repayable amount decreases annually over the term. In unique circumstances, other financing like mezzanine loans or guarantees may be offered, with terms determined on a case-by-case basis. |
Curio Collection by Hilton Franchise Earnings — Item 19
Curio Collection by Hilton does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Curio Collection by Hilton Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Curio Collection by Hilton System Growth
Curio Collection by Hilton currently operates 67 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 4 | 2 | 48 |
| 2021 | 15 | 1 | 62 |
| 2022 | 5 | 2 | 67 |
Transfers: 2 | Closures: 2
State Registrations
Registered in 33 states: AL, AZ, CA, CO, CT, DC, FL, GA, IL, IA, KY, LA, MD, MI, MN, MO, NE, NV, NM, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, PR
Franchisor Financials (Item 21)
Audited by PricewaterhouseCoopers LLP for year ending December 31.
Curio Collection by Hilton Franchise — FAQ
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