Spark by Hilton franchise cost
Spark by Hilton (Hilton) charges a royalty of 5.5% of gross room revenue plus a further 3.5% in marketing, reservation or system fees, according to its franchise disclosure document issued March 30, 2026. The franchisor estimates the total cost of converting a hotel at $3,251,531 to $5,906,193, not counting land.
- Royalty
- 5.5%of gross room revenue
- Marketing
- 3.5%of gross rooms revenue
- Fee to take over on a purchase
- None statedItem 5 lists no separate transfer fee. Ask Hilton what it charges on a change of ownership.
- Fee for a new franchise
- $75,000Item 5 formula at 60 rooms. Fees actually charged can be lower; see the notes below.
- Total investment
- $3.25M to $5.91MItem 7 estimate for converting a hotel
Recurring fees in the 2026 FDD
| Royalty | 5.5% of Gross Rooms Revenue |
|---|---|
| Marketing or brand fund | Monthly Program Fee (covers reservations, marketing, some technology): 3.5% of gross room revenue; cap: rate will not exceed current rate plus 1% of Gross Rooms Revenue over the term |
| Reservation, loyalty and technology | No separate reservation fee: reservation service is funded by the Monthly Program Fee. Separate monthly OnQ technology fees (connectivity, hardware/software maintenance, email, Connected Room maintenance) and one-time OnQ hardware/software/installation fees listed in Items 5-6. |
| Initial fee (Item 5) | Franchise Application Fee -Conversion $75,000 |
| Conversion (Item 7) | $3,251,531 to $5,906,193 |
| What Item 7 assumes | Item 7 table: 'SPARK BY HILTON HOTEL - 100 GUEST ROOM CONVERSION'. (Cover page wording says 'newly constructed 100-room' for the same figures; the Item 7 table heading says conversion.) Recorded as conversion. Excludes land. |
From the filing: Spark is a conversion brand (application fee listed only for Conversion). In 2025 franchisees paid Franchise Application Fees from $0 to $75,000.
What the fees cost a 60-room hotel
Take a 60-room Spark by Hilton 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 9%, or $135,000 a year. That is $135,000 a year, about $11,250 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, $135,000 of fees is $108,000 a year of payment you can no longer borrow against, or about $990,000 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 Spark by Hilton fees filled in.
Financing a Spark by Hilton
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
Spark by Hilton Franchise Disclosure Document, issued March 30, 2026, as published by Hilton on its franchise development website. Hilton files exemption notices rather than FDDs with Minnesota and California, so the franchisor's own copy is the public source. Cover p.1; Item 5 FDD p.15; Item 6 FDD p.20; Item 7 FDD p.33. View the filing record. Fees change every year and the franchise agreement you sign controls. Read on 2026-10-24.
Other Hilton brands
- Hampton by Hilton: royalty 6%, all percent fees 10%
- Hilton Garden Inn: royalty 5.5%, all percent fees 9.5%
- Home2 Suites: royalty 6%, all percent fees 9.5%
- Tru by Hilton: royalty 5.5%, all percent fees 9.5%
Buying or building a Spark by Hilton?
Send the deal to Janover Capital, which runs this site and arranges hotel financing through lenders.