Hyatt Place franchise cost
Hyatt Place charges a royalty of 5% of gross room revenue plus a further 3.5% in marketing, reservation or system fees, according to its franchise disclosure document issued March 27, 2026, as amended August 5, 2026. The franchisor estimates the total cost of a new-build hotel at $23,431,820 to $29,885,898, not counting land.
- Royalty
- 5%of gross room revenue
- Marketing
- 3.5%of gross rooms revenue
- Fee to take over on a purchase
- $150,000Transfer fee for a 60-room hotel, from the Item 5 formula
- Fee for a new franchise
- $75,000Item 5 formula at 60 rooms. Fees actually charged can be lower; see the notes below.
- Total investment
- $23.4M to $29.9MItem 7 estimate for a new-build hotel
Recurring fees in the 2026 FDD
| Royalty | Your Royalty Fee will be 5% of Gross Rooms Revenue |
|---|---|
| Marketing or brand fund | Commercial Services Fee (marketing, advertising, central reservations/Global Property and Guest Services): 3.5% of gross room revenue; cap: not to exceed 7% of Gross Rooms Revenue (cap may increase up to 10% each year) |
| Reservation, loyalty and technology | Reservations are included in the Commercial Services Fee (3.5% of Gross Rooms Revenue). World of Hyatt program assessment currently 4% of eligible revenue (2% when guest enrolled on property). Other Mandatory/Non-Mandatory System Services fees listed in Item 6. |
| Initial fee (Item 5) | new development application fee is $75,000 plus an additional $500 for each guest room in the Hotel over 150 rooms; Refundable less $7,500 if application withdrawn or not approved. |
| New build (Item 7) | $23,431,820 to $29,885,898 |
| What Item 7 assumes | Item 7 single table: construct a new full-size 127-room Hyatt Place (Note 11). No conversion table. Excludes land. |
From the filing: Royalty ramp disclosed: 'If you are constructing a new Hotel, we may agree to reduce your Royalty Fee for the first 1-3 years of the Hotel's operations.' Hyatt Place is registered in MN (not exempt) unlike Hilton/IHG/Marriott.
What the fees cost a 60-room hotel
Take a 60-room Hyatt Place with $1,500,000 of rooms revenue a year. The royalty and the marketing or system fees that apply to every room night come to 8.5%, or $127,500 a year. That is $127,500 a year, about $10,625 a month, before payroll or utilities. Fees charged only on some bookings, such as loyalty-member stays, central reservation bookings and online commissions, come on top.
Those fees come straight off NOI. At 1.25x coverage, $127,500 of fees is $102,000 a year of payment you can no longer borrow against, or about $940,000 of loan at 10% over 25 years.
Fees billed per reservation, per transaction or as a fixed amount are not in this total; they are listed in the table above as the FDD states them. Run your own numbers with Hyatt Place fees filled in.
Financing a Hyatt Place
Lenders read the franchise agreement as closely as the appraisal. On a purchase, expect the brand to require a change-of-ownership application, a new franchise agreement on current terms and often a property improvement plan (PIP), and expect the lender to fold the PIP cost into the project. For a new build, the Item 7 range is the starting point for the construction budget a lender will test.
Most owner-operators finance a branded hotel with an SBA 7(a) or 504 loan. Read SBA 7(a) for hotels and SBA 504 for hotels, or send the deal to Janover Capital.
Source
Hyatt Place Franchise Disclosure Document, issued March 27, 2026, as amended August 5, 2026, as filed with the Minnesota Department of Commerce (CARDS). Cover p.1; Item 5 FDD pp.9-13 (PDF p.15+); Item 6 FDD p.13 (PDF p.20); Item 7 FDD p.31. View the filing record. Fees change every year and the franchise agreement you sign controls. Read on 2026-10-24.
Buying or building a Hyatt Place?
Send the deal to Janover Capital, which runs this site and arranges hotel financing through lenders.