About DoubleTree by Hilton Franchise
DoubleTree by Hilton is a full service upscale hotel brand known for its warm, welcoming hospitality and the signature warm chocolate chip cookie presented to every guest at check in.
Part of the Hilton Domestic Operating Company Inc.
portfolio, DoubleTree has been franchising since 1989 and operates hundreds of properties worldwide.
DoubleTree by Hilton Franchise Cost & Fees
Minimum Investment
$27.8M
Average Investment
$57.8M
Maximum Investment
$87.9M
| 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 | $27,836,825 – $87,851,779 | Includes build-out, inventory, working capital |
The investment range of $27.8M–$87.9M 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 | $16,000,000 | $57,500,000 |
| Designer and Engineering Fees | $628,000 | $2,300,000 |
| Furniture, Fixtures and Equipment | $6,500,000 | $10,500,000 |
| Inventory and Operating Equipment | $1,100,000 | $1,750,000 |
| Signage | $4,000 | $120,000 |
| Computer Hardware and Software | $150,695 | $332,995 |
| Guest Internet Access Program | $116,000 | $186,000 |
| Delphi Sales and Events System | $990 | $41,000 |
| Required Pre-Opening Training | $5,000 | $20,000 |
| ADA Consultant Fee | $2,500 | $15,000 |
| Construction/ Renovation Extension Fees | $0 | $10,000 |
| Insurance | $0 | $0 |
| Organizational Expense | $75,000 | $268,724 |
| Permits and Licenses | $240,000 | $860,000 |
| Miscellaneous Pre-Opening and Project Management Expenses | $570,000 | $1,800,000 |
| Contingencies | $1,600,000 | $5,750,000 |
| Additional Funds | $900,000 | $1,300,000 |
| 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 | Change of Ownership Application Fee: $175,000; Permitted Transfer Processing Fee: $5,500 |
| Technology Fee | OnQ Additional Rooms Fees: $120 per additional guest room/suite; OnQ Connectivity Fees: $1,485 to $2,150 per month; OnQ Interface Fees: $1,000 per additional interface; OnQ Maintenance Support Fees: $1,500 to $6,000 per month; OnQ Email Fees: $7.92 per user per month and $12.50 per month for delivery to mobile devices; Delphi Sales and Events System: $858 per user per year |
| Audit Fee | Actual deficiency plus interest. If audit reveals that underpayment is willful or for 5% or more of the total amount owed for the period being inspected, you must also reimburse us for all inspection and audit costs. |
| Monthly Spa Royalty Fee | 2% of Gross Spa Revenue |
| Room Addition Fee | $400 per guest room or suite |
| Guest Assistance Program: Customer Satisfaction Guarantee | $200 to $300 per handled transaction |
| Guest Assistance Program: Price Match Guarantee | 25% discount off the lower rate |
| Guest Assistance Program: First Contact Resolution | $15 administrative fee |
| Guest Assistance Program: Online Complaints | $25 per complaint administrative fee |
| Quality Assurance Re-evaluation Fee | $480 to $3,000 per re-evaluation visit |
| Quality Assurance Special Re-evaluation Fee | $3,000 per re-evaluation visit |
| Brand Conference | $2,500 per attendee |
| General Manager, Commercial and Sales Leader Training | Up to $1,200 per attendee |
| Hilton Core Sales Skills Training | Up to $850 per attendee |
| Other Training Programs and Training Materials | Up to $5,000 per program per attendee |
| Travel Clubs | $0.30 per available room plus 10% commission |
| Hilton Advance Program | 1.35% of eligible Digital Direct Revenue, not to exceed $30 per stay |
| Group Preferred Partnership Program | $1.50 to $2.50 per room night plus applicable commission |
| Frequent Traveler/Guest Reward Program | 4.3% of total eligible guest folio |
| Hilton Honors Event Planner Bonus Program | $0.0025 to $0.0050 per Hilton Honors bonus point awarded |
| Online Group Event Booking Charges | Up to 2% of GRR and up to $25 for included meeting space, plus applicable commissions |
| Centralized Payment Programs | Up to $5.59 per stay (Third-Party Reservation Charges), up to $1.40 per transaction plus commission (FastPay), $0.18 per transaction processing charge plus up to 10% commission (Travel Planner Centralized Payment Program), $0.71 to $3.84 per stay (Unlimited Rewards Program) |
| Re-licensing Application Fee | $85,000 |
| Lender Comfort Letter Processing Fee | $3,500 (Lender Comfort Letters), $1,500 (Lender Comfort Letter Assignments) |
| Public Offering or Private Placement Processing Fee | $5,000 |
| Liquidated Damages for Unauthorized Opening | $5,000 per day |
| Liquidated Damages for Pre-Opening Termination | System’s Average Monthly Royalty Fees multiplied by 60 |
| Liquidated Damages for Post-Opening Termination | Hotel’s Average Monthly Royalty Fees multiplied by 60 or System’s Average Monthly Royalty Fees multiplied by 60 (first 2 years); Hotel’s Average Monthly Royalty Fees multiplied by 60 (after 2 years, before final 60 months); Hotel’s Average Monthly Royalty Fees multiplied by remaining months (last 60 months) |
| Service Charges for Overdue Payments | 1.5% per month or highest percentage permissible by law |
| Identity, Sales, and Distribution Non-Compliance Fee | $500 per instance |
| Franchise Agreement Non-Compliance Fee | 1% of Gross Rooms Revenue |
| FastPay Non-compliance Fee | Up to the greater of $3,000 or 10% of gross group room revenue (not to exceed $7,500) per violation |
| Consortia Program | Up to $2.70 for each consumed night plus applicable commission |
| TMC Pay-On-All-Pay-For Performance Program | Up to $1.03 for each consumed night plus up to 10% commission or fee |
| US Government Travel Agency Programs | Up to $2.30 per consumed room night or 1.5% of consumed room revenue |
| ResMax Program | 5.4% to 5.9% of consumed revenue from a ResMax booking with a 3-night maximum, or up to $5.00 per call |
| Revenue Management Consolidated Center (RMCC) | Category 1: $1,699; Category 2: $2,475 to $14,799; Category 3: $1,129 to $1,749; Category 4: $1,139 to $1,599; Category 5: $775 to $5,195 |
| Procurement and Services Fees | 4% to 10% of project cost |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies by program (e.g., 1 hour to 'Varies') |
| Classroom Training | Varies (e.g., up to 18 for General Manager training, 1-5 for OnQ PMS, 10 for OnQ Rate and Inventory, 8-10 for OnQ Forecast Management, 10-12 for GRO System, 1 for Hilton Honors, 24 for Hilton Core Sales Skills, 2-3 for Annual Compliance, 16 for Owner Orientation, 20 for New to Hospitality Owner Education, 16 for Eforea Spa, 1 for DoubleTree New Employee Training) |
| On-the-Job Training | Varies (e.g., 1 for Hilton Honors Training, 0 for most others) |
| Training Location | Varies (Virtual, Online, On-site, or various hotel locations for Brand Conference) |
| Additional Training | The franchisor offers many additional optional learning programs and may develop more. Franchisees must pay fees for required and optional training, materials, and travel/lodging/meals for attendees and sometimes trainers. Annual compliance training is required for topics like diversity, harassment prevention, human trafficking, cybersecurity, and health & safety. |
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 by cities, metropolitan areas, counties, streets, highways, or a radius of specified distance. |
| Description | Franchisees receive a non-exclusive license. While a 'Restricted Area Provision' may be granted for a specific time (shorter than the franchise term), it typically restricts the franchisor and its affiliates from operating another *Brand* hotel within that area. This provision does not apply to other Hilton brands, existing hotels, or hotels acquired through mergers/acquisitions. The size and shape of the restricted area vary based on market and competitive circumstances. |
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: Generally, the remaining Term under the existing franchise agreement, or other approved term. Eforea spa: expires on the earlier of the termination of the Spa Amendment or the expiration/termination of the Franchise Agreement. HITS Agreement: runs concurrently with the Franchise Agreement. |
| Transfer Fee | Change of Ownership Application Fee: $175,000; Permitted Transfer Processing Fee: $5,500 |
| Transfer Conditions | Transfers are generally prohibited unless expressly permitted. Permitted Transfers (not changing 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 funds). Transfers requiring notice/consent include affiliates, family members, death, or >50% change in privately held equity. Change of Ownership Transfers (changing control) require 60 days' notice, franchisor consent (not unreasonably withheld), payment of fees, no defaults, transferee meeting current requirements, and signing a new agreement. Transferee cannot be a Sanctioned Person or Competitor. |
| Termination for Cause | Franchisor can terminate with cure period (10-30 days) for non-payment, failure to commence/complete Hotel Work, not maintaining insurance, or other agreement/Manual/Standard non-compliance. Immediate termination without cure is possible for repeated non-compliance (same breach in 24 months, 3 material defaults in 12 months), bankruptcy, loss of possession, failure to operate for 5 days, contesting franchisor ownership/marks, adverse conduct, concealing revenues/fraud, non-compliant transfer, 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 this 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 upscale market segment). Exceptions exist for minority interest ownership or managing a competitor's property under certain conditions. If operating an eforea spa, no other spa can be operated in, adjacent to, or associated with the hotel. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must provide qualified and experienced management, either directly (with prior written approval and training completion) or through an approved third-party Management Company. The franchisor can require a Management Company if the franchisee is deemed unqualified. The Management Company must be approved and its general manager and other key personnel must attend training. Franchisee remains solely responsible for hotel management and operations. Non-compete clauses apply during the term. |
| Required Suppliers | Hilton's proprietary computer software (OnQ) from Hilton or HSS; items bearing Hilton's logo, trademark, or service mark from an approved supplier; exterior signage from a licensed vendor. If operating an eforea spa, specific products and spa treatments must be sold/performed. Guest Internet Access hardware/software/circuit/service from preferred providers. Connected Room system from Hilton or approved vendors. GRO system from IDeaS. Delphi.fdc system from Amadeus Hospitality. |
| Supply Restrictions | Franchisees must build, design, furnish, equip, and supply hotels according to franchisor's Standards and Manual. Regular updates and upgrades (Renovation Schedules) are required. Specific brands or types of products/services may be mandated. Franchisor may enter into exclusive purchasing arrangements. |
| Franchisor Revenue from Suppliers | Hilton and its other affiliates (including Hilton Honors Worldwide) had revenues from sales of goods, services, computer systems and/or supplies to franchisees of Hilton’s subsidiaries of $897,864,952 in 2022. HSM had revenues of $8,852,637 in rebates and allowances on purchases made by franchisees of all brands in 2022. HSM had revenues from sales of goods, services and/or supplies to franchisees of all brands of $2,400,836 in 2022. HSM received administrative fees from manufacturers and suppliers between 0.5% and 7% of franchisee purchases, totaling $17,466,018 in 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor generally does not offer direct or indirect financing, except for a development incentive program (Note) which is a financial contribution that does not need to be repaid unless the franchise terminates early or a transfer occurs. The repayable amount decreases annually. The franchisor may occasionally allow Franchise Application Fee payments in installments without interest or security. In unique circumstances, other financing like mezzanine loans or guaranties may be offered, with terms determined on a case-by-case basis. |
DoubleTree by Hilton Franchise Earnings — Item 19
Average Revenue
$150.13
Median Revenue
$142.69
Sample Size
317 units
Past financial performance does not guarantee future results. Individual results will vary.
DoubleTree by Hilton Litigation & Risk Flags
2 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
DoubleTree by Hilton System Growth
Total Units
354
Franchised
354
Company-Owned
0
DoubleTree by Hilton currently operates 354 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 | 14 | 3 | 345 |
| 2021 | 8 | 8 | 345 |
| 2022 | 10 | 7 | 354 |
Transfers: 21 | Closures: 7
Franchisor Financials (Item 21)
Revenue
$1229.5M
Net Income
$1233.4M
Total Assets
$1163.9M
Audited by cbh.com for year ending December 31.
DoubleTree by Hilton Franchise — FAQ
The total investment to open a DoubleTree by Hilton franchise ranges from $27,836,825 to $87,851,779, per their Franchise Disclosure Document. This includes the initial franchise fee of $85,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
DoubleTree by Hilton charges a royalty fee of 5% of Gross Rooms Revenue of gross sales, plus a 4% of Gross Rooms Revenue contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the DoubleTree by Hilton Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from DoubleTree by Hilton to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, DoubleTree by Hilton franchise owners report average revenue of $150.13 and median revenue of $142.69. This is based on a sample of 317 units. Past performance does not guarantee future results.
DoubleTree by Hilton has been franchising since 1989. The FDD shows an investment range of $27,836,825-$87,851,779, a 5% of Gross Rooms Revenue royalty, and includes an Item 19 earnings disclosure. There are 2 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $85,000 and the total investment ranges from $27,836,825 to $87,851,779 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from DoubleTree by Hilton and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with DoubleTree by Hilton or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com