HILTON HOTELS & RESORTS Franchise Cost and Opportunities
Hilton Hotels & Resorts is one of the top leaders when it comes to global hospitality. It is one of the most recognised hotels in the world. It is a place where history is made at different points in time: From Hollywood gala nights to inaugural balls to other events and businesses. It is quite interesting that one of the topmost hotels in the world offers franchise opportunities to the public. Now you may want to know how much is a Hilton Hotels & Resorts franchise.
THE FRANCHISE OVERVIEW
In order for you to open a franchise unit with Hilton Hotels & Resorts, you will be required to have a minimum $1,000,000 in the form of liquid capital. You will also be required to have a minimum investment requirement of about $50,500,000. You can be expected to even spend more. Just like every other franchise, you will make a franchise fee of $85,000 and there are about 550 franchise units of the hotels spread in different parts of the world.
The franchisor is Hilton Franchise Holding and they are also the parent company of variety of top businesses across the world. They manage Conrad Hotels, Home2 Suites, Homewood Suites, Hilton Garden Inn, Hampton Inn & Suites, Hampton Inn, Embassy Suites Hotels alongside Hilton Hotels & Resorts.
THE FRANCHISE OFFER
When you buy a Hilton Hotels & Resorts franchise, the company licenses the Hilton system which is inclusive of the following elements: access to reservation service, marketing, training, advertising, servicing of the hotel in the brand name of the franchisor and so many other services rendered by the company.
IS HILTON HOTELS & RESORTS A FRANCHISE?
The hotel was established in the year 1919, but didn’t start selling franchises to the public until 1965. They have more than 500 locations in different countries of the world. And have a working franchise model that is guaranteed to bring success to the franchise unit, if applied appropriately. So Hilton Hotels & Resorts is a franchise
HOW MUCH DOES A HILTON HOTELS & RESORTS FRANCHISE COST?
The Hilton Hotels & Resorts franchise cost will be the entire value of the investment that will be needed in setting up a franchise unit with the hotel chain. And this will be in the tune of $29,000,000 and $100,000,000. Franchisees with the company will also be expected to have a liquid capital in the tune of $1,000,000
HILTON HOTELS & RESORTS FRANCHISE FEE
Hilton Hotels & Resorts franchise fee is the payment expected of the franchisee to the company. This will grant them the license to operate under the company’s brand name for a period of tike. The initial franchise fee payment is about $75,000. Franchisees will also need to make an ongoing royalty fee of about 5% and an ad royalty fee of 4% of the monthly gross revenue that the franchise unit make.
HOW MUCH DOES A HILTON HOTELS & RESORTS FRANCHISE MAKE?
There is no exact figure attached to the actual earning of a Hilton Hotels & Resorts franchise owner. The average income that can be realised in any franchise unit will be dependent on the location of the unit, the patronage it enjoys, the competition around it and the ability of the management of the unit to utilise the business model of the Hilton Hotels & Resorts Brand, which is already proven to be successful.
WHO QUALIFIES FOR A HILTON HOTELS & RESORTS FRANCHISE?
Anyone can qualify for a franchise opportunity with the company as long as they are able to meet up with the requirement to establish one. They also have to be experienced in the hospitality business although training will be given to every successful candidate with the company.
Everyone that buys into the Hilton Hotels & Resorts franchise will be required to undergo a mandatory training. The training program of the company is divided into 9 different sessions which must be completed before the certification is awarded to the franchisee. Trainings will be held at the company’s corporate office and an ongoing support will also be afforded to the franchisee in the course of running their hotel franchise unit.
Franchisees that buy into the Hilton Hotels & Resorts franchise may not receive an exclusive territory to operate from. They are likely to face competition from any other brands that is being operated by the franchisor.
TERMS OF AGREEMENT
The period through which a franchisee can hold the license to operate under the license of the company is 23 years from the time the franchise agreement is signed. The franchisor however does not offer a renewal right.
Franchisees will not have a direct access to funding with the hotel chain. However those that require extra funding can get the assistance of the franchisor through linkages with any of their 3rd party affiliates that offer funding to cover for the cost of the franchise fee, accounts receivable, cost of equipment, startup costs and any other expenses.
HOW TO OPEN A HILTON HOTELS & RESORTS FRANCHISE
Information on how to open a Hilton Hotels & Resorts franchise has been explained in this article. However to complete your application, you will need to proceed to the company’s website and them submit your application.
If you are considered eligible for a franchise opportunity with the company, you will be allocated a franchise manager whose responsibility will be to assist you in setting up your new Hilton Hotels & Resorts franchise.