About Motto by Hilton Franchise
Motto by Hilton is an upper midscale hotel brand within the Hilton Worldwide portfolio.
Franchisees operate hotels under the Motto brand, providing distinctive, high-quality lodging service to business travelers, families, and groups.
The hotels offer guest rooms, food and beverage service through the Motto Food and Beverage Program (primarily coffee and bar service), and access to the Hilton Honors loyalty program and reservation system.
Motto by Hilton Franchise Cost & Fees
Minimum Investment
$15.5M
Average Investment
$50.5M
Maximum Investment
$85.5M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $100,000 | 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 | $15,521,985 – $85,477,639 | Includes build-out, inventory, working capital |
The investment range of $15.5M–$85.5M 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 | $100,000 | $100,000 |
| Property Improvement Plan | $0 | $10,000 |
| Market Study | $0 | $0 |
| Environmental Assessment | $0 | $0 |
| Real Property | $0 | $0 |
| Construction and Leasehold Improvements | $8,000,000 | $57,500,000 |
| Designer and Engineering Fees | $570,000 | $2,300,000 |
| Furniture, Fixtures and Equipment | $3,000,000 | $12,000,000 |
| Inventory and Operating Equipment | $850,000 | $1,650,000 |
| Signage | $20,000 | $60,000 |
| Computer Software and Hardware Costs | $147,495 | $327,835 |
| Guest Internet Access Program | $116,000 | $186,000 |
| Delphi Sales and Events System | $990 | $32,000 |
| Required Pre-Opening Training | $5,000 | $17,500 |
| ADA Consultant Fee | $2,500 | $15,000 |
| Construction/Renovation Extension Fees | $0 | $10,000 |
| Insurance | $0 | $0 |
| Organization Expense | $50,000 | $119,304 |
| Permits and Licenses | $120,000 | $860,000 |
| Miscellaneous Pre-Opening and Project Management Expenses | $1,100,000 | $3,500,000 |
| Contingencies | $800,000 | $5,750,000 |
| Additional Funds | $600,000 | $1,000,000 |
| Other Required Pre-opening Services Fees | $20,000 | $20,000 |
| Motto Food and Beverage Program | $20,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $150,000 (Change of Ownership Application Fee) |
| Technology Fee | OnQ Connectivity: $1,200-$2,000/month; OnQ Maintenance: $1,200-$4,500/month |
| Audit Fee | Actual deficiency plus interest |
| Room Addition Fee | $400 per guest room/suite |
| OnQ Additional Rooms Fees | $120 per additional guest room/suite |
| OnQ Email Fees | $7.92 per user per month and $12.50 per month for mobile delivery |
| Delphi Sales and Events System | $858 per user per year |
| Guest Assistance Customer Satisfaction Guarantee | $200-$300 per handled transaction |
| Guest Assistance First Contact Resolution | $15 administrative fee |
| Guest Assistance Online Complaints | $25 per complaint |
| Quality Assurance Re-evaluation Fee | $800-$3,000 per visit |
| Brand Conference | $2,500 per attendee |
| Frequent Traveler/Guest Reward Program | 4.3% of total eligible guest folio |
| Hilton Advance Program | 1.35% of eligible Digital Direct Revenue |
| Franchise Agreement Non-Compliance Fee | 1% of Gross Rooms Revenue |
| Permitted Transfer Processing Fee | $5,500 |
| Re-licensing Application Fee | $100,000 |
| Lender Comfort Letter Processing Fee | $1,500-$3,500 |
| Public Offering/Private Placement Processing Fee | $5,000 |
| Identity, Sales, and Distribution Non-Compliance Fee | $500 per instance |
| Service Charges for Overdue Payments | 1.5% per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies by program; multiple required training programs before and after opening |
| Classroom Training | Varies (Brand Conference: Varies; GM/Commercial/Sales Leader: Up to 18; OnQ PMS: 1-5 per position; OnQ Rate & Inventory: 10; OnQ FM: 8-10; GRO: 10-12; Hilton Honors: 1; Hilton Core Sales Skills: 24; Owner Orientation: 16; New to Hospitality Owner Education: 20; Motto Brand Learning: 16-24; Problem Avoidance: 4-6; Annual Compliance: 2-3) |
| On-the-Job Training | Hilton Honors Training: 1 hour; Motto Brand Learning Programs: 4 hours; Problem Avoidance: 4 hours; all other programs: 0 hours |
| Training Location | Various locations including virtual, online, and on-site at hotel locations |
| Additional Training | ADA Training (varies), Annual Compliance Training (2-3 hours), Pre-Opening Training Resources (varies, on-site). We and our affiliates offer many additional optional learning programs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies - may negotiate a Restricted Area Provision |
| Description | Franchisees receive a non-exclusive license to use the System at a specified location. There are no provisions granting an exclusive territory. However, franchisor may agree to a Restricted Area Provision for an area surrounding the hotel encompassing the immediate competitive market. The Restricted Area boundaries vary in size and shape from hotel to hotel and are normally for an agreed-on time period (Restrictive Period) shorter than the franchise term. Restricted Area Provisions are not normally granted for Change of Ownership or Re-licensing. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 22 years (New Construction); 10-20 years (Conversion) |
| Renewal Term | No right to renew or extend; franchisor may offer re-licensing at its sole discretion |
| Renewal Fee | $100,000 (Re-licensing Application Fee) |
| Renewal Conditions | No right to renew or extend. Franchisor may, in its sole discretion, offer to re-license with materially different terms and conditions and PIP performance conditions. |
| Transfer Fee | $150,000 (Change of Ownership Application Fee); $5,500 (Permitted Transfer Processing Fee) |
| Transfer Conditions | Must give 60 days written notice, not be in default, pay all amounts due, provide adequate security, proposed transferee must meet franchisor's qualifications, sign then-current franchise agreement, and agree to hotel upgrades. |
| Termination for Cause | Franchisor may terminate for failure to pay sums due (10 day cure), failure to commence/complete construction (10 day cure), failure to maintain insurance (10 day cure), failure to comply with franchise agreement provisions (30 day cure), or immediately without cure for non-curable defaults including bankruptcy, repeated non-compliance, false reporting, abandonment, and safety threats. |
| Non-Compete Period | During the term only; no post-termination non-compete |
| Non-Compete Details | During the term, franchisee and 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, but may own a minority interest in a Competitor under certain circumstances, and may be a franchisee of a Competitor or manage a property of a Competitor. No post-termination non-competition covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee must provide qualified and experienced management for the hotel operation. Hotel must be operated by the franchisee or a third-party management company approved by the franchisor. If franchisee wishes to manage directly, must have prior written approval and complete the training program. Franchisor may require a professional hotel management company for at least the first year of operations. |
| Required Suppliers | Must purchase Hilton's proprietary OnQ computer software from HSS. Must purchase items bearing Hilton's logo, trademark or service mark from a supplier approved by Hilton. Must use an approved third-party design consultant (Designer). Must hire designated or approved third-party vendors for the Motto Food and Beverage Program. Must purchase exterior signage from a licensed vendor. |
| Supply Restrictions | Must comply with Standards for all purchases of products and services. May purchase FF&E from any source as long as Standards are met, but franchisor may require purchases from approved suppliers in the future. Must use approved reservation system, computer systems (OnQ), Guest Internet Access system, Connected Room system, GRO system, Digital Floor Plan, Digital Key system, and Delphi.fdc system. |
| Franchisor Revenue from Suppliers | For fiscal year ended December 31, 2022, Hilton and affiliates had revenues from sales of goods, services, computer systems and/or supplies to franchisees of $897,864,952. HSM had revenues of $8,852,637 in rebates and allowances, $2,400,836 from sales of goods/services/supplies, and $17,466,018 in administrative fees on purchases made by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Hilton may occasionally allow payment of the Franchise Application Fee in installments over a limited time period before the start of construction. No interest is charged. Hilton may also offer development incentives (Incentives) for new hotels, which are financial contributions to assist with development or conversion. An Incentive is a contingent liability, not a loan, that must be repaid if the franchise terminates before the end of the Term or if the hotel is transferred. The repayable amount decreases over time by an equal annual percentage of the Term. |
Motto by Hilton Franchise Earnings — Item 19
Motto by Hilton 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.
Motto 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.
Motto 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.
Motto by Hilton System Growth
Total Units
3
Franchised
3
Company-Owned
0
Motto by Hilton 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 | 1 | 0 | 1 |
| 2021 | 2 | 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.
Motto by Hilton Franchise — FAQ
The total investment to open a Motto by Hilton franchise ranges from $15,521,985 to $85,477,639, per their Franchise Disclosure Document. This includes the initial franchise fee of $100,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Motto 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 Motto 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 Motto by Hilton to ensure you have the most up-to-date version.
Motto by Hilton 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.
Motto by Hilton has been franchising since 2018. The FDD shows an investment range of $15,521,985-$85,477,639, 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 and the total investment ranges from $15,521,985 to $85,477,639 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 Motto 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 Motto by Hilton or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com