Best Western vs Hampton by Hilton
Best Western vs Hampton by Hilton: Best Western costs $510K to $2.8M to open; Hampton by Hilton costs $6.9M to $22.2M. Best Western has 702 units, Hampton by Hilton has 479. SBA loan history: Best Western = 882 loans (9.0% default); Hampton by Hilton = 582 loans (3.8% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Best Western vs Hampton by Hilton: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Best Western requires the lower minimum capital commitment ($510K vs $6.9M for Hampton by Hilton), a 93% spread. Initial franchise fees come in at $50K for Best Western versus $75K for Hampton by Hilton, Best Western has the lower entry fee.
System Scale & Tenure
On scale, Best Western operates 702 units to Hampton by Hilton's 479. Best Western has been operating 80 years (founded 1946) versus 42 for Hampton by Hilton (founded 1984), a 38-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Best Western has the deeper SBA lending track record, with 882 7(a) approvals compared with 582 for Hampton by Hilton. Best Western's peak SBA year was 2016 (53 loans); Hampton by Hilton's peak was 2012 (37 loans). Best Western's more recent peak generally indicates fresher lender appetite. Both systems have the most SBA funded units in TX. Borrowers in that state will find the deepest lender familiarity with either brand. Average SBA loan size on funded Best Western deals is $1.4M vs $1.8M for Hampton by Hilton, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 9.0% for Best Western and 3.8% for Hampton by Hilton, Hampton by Hilton has the cleaner SBA loss record by 5.2 points. PeerSense FPI scores come in at 41 (Fair) for Best Western and 59 (Moderate) for Hampton by Hilton, giving Hampton by Hilton the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 41/100 | 59/100 |
Health Tier | Fair | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 882 | 582 |
SBA Volume | – | – |
Default Rate | 9.0% | 3.8% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $510K to $2.8M | $6.9M to $22.2M |
Franchise Fee | $50K | $75K |
Royalty Rate | N/A | 6% |
Ad Fund | N/A | 4% |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 702 | 479 |
Franchised Units | 702 | 479 |
Company Owned | – | – |
Term Length | N/A | 22 yrs |
Brand Information
Year Founded | 1946 | 1984 |
Franchising Since | 1960 | 1960 |
Years Franchising | 66 yrs | 66 yrs |
Headquarters | Phoenix, AZ | HOUSTON, TX |
Category | Hotels | Hotels |
Website | ||
FDD Year | 2021 | 2023 |
Which Is Better, Best Western or Hampton by Hilton?
Lower upfront capital required
Best Western
Best Western: $510K starting · Hampton by Hilton: $6.9M starting
More SBA lender confidence
Best Western
Best Western: 882 SBA loans · Hampton by Hilton: 582 SBA loans
Lower SBA default rate
Hampton by Hilton
Best Western: 9.0% · Hampton by Hilton: 3.8%
Larger system & brand presence
Best Western
Best Western: 702 units · Hampton by Hilton: 479 units
More lender financing options
Best Western
Best Western: 275 unique lenders · Hampton by Hilton: 215 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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Best Western vs Hampton by Hilton: Franchise Funding Comparison
Comparing Best Western and Hampton by Hilton is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $510K to $22.2M.
Best Western has 882 SBA loans on record and Hampton by Hilton has 582. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Best Western vs Hampton by Hilton, Frequently Asked Questions
Which is a better franchise investment, Best Western or Hampton by Hilton?
How much does a Best Western franchise cost compared to Hampton by Hilton?
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Which has a lower SBA default rate, Best Western or Hampton by Hilton?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman