Overall costs for Hilton Hotels & Resorts run anywhere from $20,955,095 to $100,393,315. See how the costs break down and what funding options might be right for your new venture into the franchise foray.
How COVID-19 affects franchising costs
Strict sanitation and employee protection measures during the coronavirus outbreak add to the typical costs you face when opening a new franchise. Paired with the unusually heavy amount of promotions that may be required by the franchise, you may not see as much in the way of profits starting out. For more information on what support is out there, read our guide to
loans for businesses affected by the coronavirus.
Estimated initial costs
Our cost estimates are accurate as of 2019 from
https://www.franchisedirect.com and include opening fees and expenses only. Your location may result in higher or lower fees.
Franchise fees
Hilton Hotels & Resorts franchise fees total around $95,000, which is more than the $37,000 average for the 200 largest franchises.
| Franchise application fee |
$95,000 to $95,000 |
| Estimated total |
$95,000 to $95,000 |
Equipment fees
Equipment fees total $363,745 for Hilton Hotels & Resorts. This costs more than the $180,023 average for the top 200 franchises.
| Signage |
$50,000 to $150,000 |
| Computer hardware and software |
$151,095 to $376,395 |
| Estimated total |
$201,095 to $526,395 |
Real estate fees
Real estate will set you back $53,355,000 for Hilton Hotels & Resorts, which is more expensive than the average of $788,376 for the top 200 franchises.
| Construction and leasehold improvements |
$16,000,000 to $86,000,000 |
| Designer and engineering fees |
$700,000 to $4,000,000 |
| Construction or renovation extension fee |
$0 to $10,000 |
| Estimated total |
$16,700,000 to $90,010,000 |
Training fees
Hilton Hotels & Resorts initial training costs total $12,500 — more than the nationwide average of $9,788.
| Required pre-opening training |
$5,000 to $20,000 |
| Estimated total |
$5,000 to $20,000 |
Inventory costs
Initial inventory for Hilton Hotels & Resorts shakes out to $2,325,000. This is more expensive than the nationwide average of $53,119.
| Inventory and operating equipment |
$1,500,000 to $3,150,000 |
| Estimated total |
$1,500,000 to $3,150,000 |
Licenses and permits costs
Hilton Hotels & Resorts initial licenses and permits will set you back $770,000. This comes out to more than $18,770 — the overall nationwide average.
| Permits and licenses |
$240,000 to $1,300,000 |
| Estimated total |
$240,000 to $1,300,000 |
Administrative fees
Hilton Hotels & Resorts administrative fees total up to $352,960 — which comes in over the overall nationwide average of $6,761.
| Product improvement plan |
$0 to $7,500 |
| Guest Internet access program |
$136,500 to $223,500 |
| Delphi Sales and Events system |
Currently, $798 per user per year. |
| ADA consultant fee |
$2,500 to $15,000 |
| Organizational expenses |
$75,000 to $245,920 |
| Audit |
Actual amount of deficiency plus interest. |
| Estimated total |
$214,000 to $491,920 |
Other expenses
Miscellaneous expenses for Hilton Hotels & Resorts total $3,400,000 — more than the nationwide average of $69,970.
| Miscellaneous pre-opening and project management expenses |
$1,000,000 to $3,200,000 |
| Three months' additional funds |
$1,000,000 to $1,600,000 |
| Estimated total |
$2,000,000 to $4,800,000 |
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2019.
How to finance
The best way to finance Hilton Hotels & Resorts comes down to your personal financial situation. What assets you have available will largely determine how much you need to borrow, and which option suits you best. Potential solutions include:
- Bank loan. Your personal credit plays a large role in getting a business term loan from a bank. Typically this type of funding is for larger amounts.
- Online loan. Credit requirements may be more flexible for an online loan than a bank loan, but amounts may max out at a lower amount — typically around $1 million.
- SBA loan. The good part about SBA loans is that they top out at $5 million, but your business has to meet a number of requirements.
- Credit card. Small costs that aren't fixed, such as stray inventory and supply purchases, may be better off on a business credit card. Just make sure you can pay it off quickly to avoid high APRs.
Also check if Hilton Hotels & Resorts franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.
Compare small business lenders
How Hilton Hotels & Resorts stacks up
Compare how Hilton Hotels & Resorts holds up against two similarly sized franchises.
| Average Franchise fees |
$50,000 |
$95,000 |
$24,000 |
| Average Equipment fees |
$4,250 |
$363,745 |
$25,728 |
| Average Real estate fees |
$9,075 |
$53,355,000 |
$31,000 |
| Average Training fees |
$2,000 |
$12,500 |
$1,200 |
| Average Inventory fees |
NA |
$2,325,000 |
$2,020 |
| Average Marketing fees |
$9,250 |
NA |
$10,000 |
| Average Licenses and permits fees |
$2,500 |
$770,000 |
NA |
| Average Insurance fees |
$2,500 |
NA |
NA |
| Average Admin fees |
$1,500 |
$352,960 |
$330 |
| Average Personnel fees |
NA |
NA |
NA |
| Average Other fees |
$3,250 |
$3,400,000 |
NA |
Bottom line
Hilton Hotels & Resorts franchise costs run a total of $60,674,205. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing
read our guide to franchise financing.
