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Buying a Hampton Inn Franchise

Written by: Patrick Findaro
Last Updated: August 18, 2022
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This article is based on its most recent FDD.

Top 20 Most Popular Franchises: Hampton Inn

Vetted Biz is the leading platform for accessible and analytical data on franchises and businesses available in the U.S. Our research team has reviewed over 1,500 franchises. And knows the key facts and data that signal a successful franchise system. Upon extensive review, our team was able to compile a shortlist of the “Top 20 Most Popular Franchises in the U.S.” In the article below, we review the business model proposed by one of these 20 franchises: Hampton Inn. And the requirements that encompass its franchise application process.

About Hampton Inn

In 1984, Promus Hotel Corporation founded the Hampton Inn in Memphis Tennessee. With the intent of inaugurating the “mid-price national hotel” market, Hampton Inn was rapidly demanded by many guests given. This is not only for attractive pricing but also for its luxury features for the time. Also, offer such as a continental breakfast offering for all guests and complimentary phone call services. This growing demand prompted Hilton Worldwide to acquire the company. Today the company currently has over 2,430 hotels across 20 countries totaling several over 250,000 rooms worldwide. The company is currently headquartered in McLean, Virginia, and your Chief Executive Officer since 2007 is Christopher J Nassetta.

How Much Does a Hampton Inn Franchise Cost?

The first factor to consider when interested in investing in a Hampton franchise is the financial requirements accompanying this investment opportunity. The total investment amount to establish a Hampton Inn franchise ranges from $7,662,800-$20,306,500 including the company’s franchise fee that is $75,00 and excluding any land or lease costs. Once the store has been operations begin, franchisees are to pay the parent company a fee of 6%. And an additional marketing fee of 4% on gross sales in exchange for the marketing services provided by the franchisor. The franchisor is particularly looking for experienced candidates who are truly driven to own a Hampton Inn franchise. Additionally, the minimum net worth required to own the franchise range is at least $100,000 and the applicant must have liquid assets totaling at least $50,000.

Hampton Inn in Numbers

When evaluating a Hampton Inn franchise’s potential for growth one does not need to go beyond Hilton Hotel’s reputation to better understand the prospect for success of the opportunity at hand. According to the Business Travel News, the Hotel industry had a 2.1% growth in 2019. And even with the current pandemic crisis – economists expect a 1.9% growth in the industry for the year 2020. Looking at the franchise’s internal performance, we found that only 9 franchises terminated their contracts in 2018. This is an insignificant value when contrasted with the total amount of franchises under Hampton Inn’s franchise system. 

 

Moving forward, Hampton Inn is looking to establish new units across the country as well as worldwide, as the chain spreads its comfort and safety across different cultures.

 Summary

Investing in this franchise is an attractive opportunity, especially for individuals who are business-driven and enjoy the hospitality industry. As seen, the Hotel industry is constantly growing and expanding. Specifically, because traveling has more than ever become a huge part of our society’s daily lives and routines. That said, if you are an individual with previous business management experience and are willing to invest an amount ranging from $7,662,800-$20,306,500 or more, Hampton Inn is the right franchise for you!

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