About LXR Hotels & Resorts Franchise
LXR Hotels & Resorts is a luxury hotel collection franchise within the Hilton Worldwide portfolio, offering select properties the opportunity to join a prestigious global brand while maintaining their individual character and identity.
Each LXR property delivers world class service standards, pioneering hospitality concepts, and the latest technology under the backing of one of the most recognized names in the hotel industry.
The franchise fee ranges from $100,000 to $150,000, and LXR Hotels & Resorts has been franchising since 2018 under Hilton Domestic Operating Company Inc.
LXR Hotels & Resorts Franchise Cost & Fees
Minimum Investment
$4.9M
Average Investment
$388.0M
Maximum Investment
$771.0M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $100,000 to $150,000 | 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 | $4,900,260 – $771,046,029 | Includes build-out, inventory, working capital |
The investment range of $4.9M–$771.0M 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 (Note 1) | $100,000 | $100,000 |
| Property Improvement Plan (Note 2) | $0 | $10,000 |
| Market Study (Note 3) | $0 | $0 |
| Environmental Assessment (Note 4) | $0 | $0 |
| Real Property (Note 5) | $0 | $0 |
| Construction and Leasehold Improvements (Note 6) | $0 | $621,000,000 |
| Designer & Engineering Fees | $0 | $49,680,000 |
| Furniture, Fixtures & Equipment (Note 7) | $0 | $15,300,000 |
| Inventory & Operating Equipment (Note 8) | $1,732,000 | $3,045,000 |
| Signage (Note 9) | $3,675 | $288,500 |
| Computer Hardware and Software (Note 10) | $150,695 | $332,655 |
| Guest Internet Access Program (Note 10) | $116,000 | $186,000 |
| Delphi Sales and Events System (Note 10) | $990 | $41,000 |
| Required Pre-Opening Training (Note 11) | $15,000 | $30,000 |
| ADA Consultant Fee (Note 12) | $10,500 | $78,750 |
| Construction/Renovation Extension Fee (Note 13) | $0 | $10,000 |
| Insurance (Note 14) | $0 | $0 |
| Organizational Expense (Note 15) | $75,000 | $268,724 |
| Permits & Licenses (Note 16) | $0 | $9,314,000 |
| Miscellaneous Pre-Opening & Project Management Expenses (Note 17) | $1,155,000 | $4,850,000 |
| Contingencies (Note 18) | $0 | $57,330,000 |
| Additional Funds (Note 19) | $1,500,000 | $2,000,000 |
| Spa (Note 20) | $0 | $7,150,000 |
| Other Required Pre-opening Services Fees (Note 21) | $41,400 | $291,400 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Change of Ownership Application Fee: $150,000; Permitted Transfer Processing Fee: $5,500; Public Offering or Private Placement Processing Fee: $5,000 |
| Technology Fee | OnQ Connectivity Fees: $1,485 to $2,150 per month; OnQ Maintenance Support Fees: $1,500 to $5,500 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 amount of deficiency plus interest |
| Room Addition Fee | $400 per guest room or suite, multiplied by the number of additional guest rooms |
| OnQ Additional Rooms Fee | $120 per additional guest room/suite |
| OnQ Interface Fees | $1,000 per additional interface |
| Guest Assistance Program: Customer Satisfaction Guarantee | $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 of the lower rate on all approved claims |
| 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 | $3,000 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 per room night plus the 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: Third-Party Reservation Charges | Up to $5.59 per stay |
| Centralized Payment Programs: FastPay Program | Up to $1.40 per transaction, plus commission |
| Centralized Payment Programs: Travel Planner Centralized Payment Program | $0.18 per transaction processing charge plus up to a 10% commission |
| Centralized Payment Programs: Unlimited Rewards Program | $0.71 for a weekday stay, $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 |
| 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 | 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 | Up to $1.03 for each consumed night booked by a TMC travel agency, plus up to 10% commission or fee where applicable |
| US Government Travel Agency Programs | Up to $2.30 per consumed room night or 1.5% of consumed room revenue, depending on program |
| ResMax Program | 5.4% to 5.9% of consumed revenue from a ResMax booking with a 3 night maximum |
| Revenue Management Consolidated Center (RMCC) Category 1 – One Time Service Models | $1,699 |
| Revenue Management Consolidated Center (RMCC) Category 2 – Monthly Full Support Models | $3,939 to $14,799 |
| Revenue Management Consolidated Center (RMCC) Category 3 – Monthly Reports Only Models | $1,129 to $1,749 |
| Revenue Management Consolidated Center (RMCC) Category 4 – Monthly Lead Management Service Models | $1,139 to $1,599 |
| Revenue Management Consolidated Center (RMCC) Category 5 – Monthly Group Rooms Coordinator Models | $775 to $5,195 |
| Procurement and Services Fees | 4% to 10% of project cost |
| 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 |
| Termination Fee for Pre-Opening Termination | $15,000 multiplied by the number of approved Guest Rooms at the Hotel |
| Termination Fee for Post-Opening Termination | The greater of: (a) the Hotel’s Average Monthly Royalty Fees multiplied by 60; or (b) $15,000 multiplied by the number of approved Guest Rooms at the Hotel |
| Termination Fee (after 2nd anniversary but before final 60 months) | The Hotel’s Average Monthly Royalty Fees multiplied by 60 |
| Termination Fee (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 | $500 per instance |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies (up to 100 hours of classroom/online training, plus 1 hour on-the-job) |
| Classroom Training | Varies (up to 18 hours for GM/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, 24 hours for Hilton Core Sales Skills, Varies for ADA Training, 2-3 hours for Annual Compliance, Varies for Pre-Opening Training Resources, 16 hours for Owner Orientation, 20 hours for New to Hospitality Owner Education, 16 hours for Forbes Travel Guide, 0-24 hours for LXR Orientation) |
| On-the-Job Training | 1 hour for Hilton Honors Training |
| Training Location | Varies (Virtual, Online, On-site, Online or On-site) |
| Additional Training | The franchisor offers various required and optional training programs, including Brand Conference, General Manager/Commercial and Sales Leader Training, OnQ Property Management System Training, OnQ Rate & Inventory Training, OnQ Forecast Management Training, GRO System Training, Hilton Honors Training, Hilton Core Sales Skills, ADA Training, Annual Compliance Training, Pre-Opening Training Resources, Owner Orientation, New to Hospitality Owner Education, Forbes Travel Guide Program Training, and LXR Orientation Program. Fees may apply for some programs and materials, and franchisees are responsible for travel, lodging, food, and other expenses for attendees. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive, but a 'Restricted Area Provision' may be granted. |
| Exclusive Territory | No |
| Description | The franchisor grants a non-exclusive license to operate a franchised hotel at a specified location. There is no exclusive territory. However, the franchisor may grant a 'Restricted Area Provision' for an area surrounding the franchised hotel, encompassing the immediate competitive market. The boundaries of this Restricted Area will vary in size and shape, not delineated by a standard formula, and may refer to cities, metropolitan areas, counties, streets, highways, or a specified radius. This provision typically restricts the franchisor and its affiliates from opening or allowing another Brand hotel within the Restricted Area for an agreed-upon 'Restrictive Period', which is usually shorter than the franchise term. Exclusions apply for existing hotels, hotels under other brands, gaming-oriented hotels, shared ownership properties, and hotels acquired through mergers/acquisitions. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | New Construction: 23 years; Conversion: 10 to 20 years; Change of Ownership: Remaining Term under existing agreement |
| Renewal Conditions | You do not have the right to renew or extend the Franchise Agreement. If the franchisor agrees to re-license, you may be asked to sign a new contract with materially different terms and conditions and comply with any PIP performance conditions. |
| Transfer Fee | Change of Ownership Application Fee: $150,000; Permitted Transfer Processing Fee: $5,500; Public Offering or Private Placement Processing Fee: $5,000 |
| Transfer Conditions | Transfers are prohibited unless expressly allowed. Permitted Transfers (not resulting in change of Control) may or may not require notice/consent depending on type (e.g., publicly traded equity interests, privately held equity interests <50% change, institutional investment funds do not require notice/consent; affiliate transfers, family member transfers, transfers on death, privately held equity interests >50% change require notice/consent). Change of Ownership Transfers (resulting in change of Control) require 60 days' notice, franchisor consent, payment of fees, resolution of pending actions, and the transferee must meet current business requirements and sign a new franchise agreement. |
| Termination for Cause | The franchisor may terminate for cause if the franchisee fails to pay sums due (10 days to cure), fails to commence/complete Hotel Work or open the Hotel (10 days to cure), fails to maintain required insurance (10 days to cure), or fails to comply with other provisions of the Agreement/Manual/Standards (30 days to cure). Immediate termination without opportunity to cure can occur for repeated non-compliance, three notices of material default in 12 months, failure to pay debts, bankruptcy, loss of possession of Hotel/Site, failure to operate for 5 consecutive days, contesting franchisor ownership of System/Marks, engaging in conduct adversely affecting reputation, concealing revenues/defrauding, non-compliant transfers, becoming a Sanctioned Person, Guarantor breach, public health/safety danger, becoming a Competitor, or termination of Your Hotel Agreements. |
| Non-Compete Period | During the term of this franchise |
| Non-Compete Details | During the term, you and your Affiliates may not, directly or indirectly, own or be a licensor or franchisor of a hotel brand that competes with the System, a System Hotel or Network Hotel in the franchisor's sole judgment. However, you may own a minority interest in a Competitor or be a franchisee/manager of a Competitor under certain circumstances. You may not allow any Competitor to use Your Marks without prior approval. After termination or expiration, there are no non-compete covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees must provide qualified and experienced management for the Hotel, which can be either the franchisee directly (with prior written approval and successful completion of training) or an approved third-party management company. The franchisor reserves the right to refuse approval of management if deemed inexperienced, unqualified, or unable to adhere to obligations. If an approved management company becomes a Competitor, resigns, or becomes unsuitable, a substitute must be retained within 90 days. The franchisee remains solely responsible for the management and operation of the Hotel, regardless of whether a third-party company is engaged. |
| Required Suppliers | Franchisees must install and use an approved property management system including business software and hardware, and purchase items bearing the franchisor's logo, trademark or service mark from an approved supplier. A luxury spa must be installed according to specifications. Required systems include OnQ system, Guest Internet Access system, Global Revenue Optimization (GRO) system, Connected Room system, Digital Key system, and Delphi.fdc system. Exterior signage must be purchased from a licensed vendor. |
| Supply Restrictions | Franchisor may require purchase of particular brands or types of products, fixtures, furniture, equipment, or services from authorized sources of distribution. While FF&E and other supplies can generally be purchased from any source meeting standards, the franchisor may require purchases from approved suppliers or specific brands/models in the future. Certain software (OnQ, GRO, Delphi.fdc) may have only one approved vendor. |
| Franchisor Revenue from Suppliers | $915,333,590 |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor generally does not offer direct or indirect financing, but may offer incentives for new hotels in its sole discretion. These incentives are financial contributions to assist with development or conversion, provided as a Development Incentive Note. The note does not bear interest and is forgiven annually over the term, but becomes repayable if the franchise terminates early or is transferred without assumption by the transferee. The franchisor may also offer other types of financing like mezzanine loans or guaranties in unique circumstances, with terms determined at origination. |
LXR Hotels & Resorts Franchise Earnings — Item 19
LXR Hotels & Resorts does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
LXR Hotels & Resorts 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.
LXR Hotels & Resorts 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.
LXR Hotels & Resorts System Growth
Total Units
3
Franchised
3
Company-Owned
0
LXR Hotels & Resorts currently operates 3 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 | 0 | 0 | 0 |
| 2021 | 3 | 0 | 3 |
| 2022 | 0 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1229.5M
Net Income
$1233.4M
Total Assets
$1163.9M
Audited by Cherry Bekaert LLP for year ending December 31.
LXR Hotels & Resorts Franchise — FAQ
The total investment to open a LXR Hotels & Resorts franchise ranges from $4,900,260 to $771,046,029, per their Franchise Disclosure Document. This includes the initial franchise fee of $100,000 to $150,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
LXR Hotels & Resorts 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 LXR Hotels & Resorts 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 LXR Hotels & Resorts to ensure you have the most up-to-date version.
LXR Hotels & Resorts does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
LXR Hotels & Resorts has been franchising since 2018. The FDD shows an investment range of $4,900,260-$771,046,029, a 5% of Gross Rooms Revenue royalty, and no 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 $100,000 to $150,000 and the total investment ranges from $4,900,260 to $771,046,029 depending on location size and market. A minimum of $1,500,000 in liquid capital is required. 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 LXR Hotels & Resorts and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with LXR Hotels & Resorts or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com