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Home2 Suites b Hilton

Home2 Suites b Hilton

The total investment to open a Home2 Suites b Hilton franchise ranges from $15.7M to $24.4M. The initial franchise fee is $100,000. Ongoing royalties are 6% plus a 4% advertising fee.

What is the Home2 Suites b Hilton franchise?

Home2 Suites B Hilton operates in the extended stay hospitality segment and has 22 total units, all of them franchised. The brand’s founding year and the exact timing of its franchising history are not publicly available. Its connection to Hilton places it within an established global hospitality system. The current network of 22 active locations reflects a focused operating footprint, which may allow closer franchisor support and consistency across properties. The global hospitality market was estimated at over $4.7 trillion in 2023 and is projected to exceed $5.8 trillion by 2027. Home2 Suites B Hilton serves the extended stay segment, generally defined by stays of five nights or more. Its guests may include business travelers on long assignments, families relocating, and people needing temporary housing. This positioning places the brand in a lodging category shaped by changing travel habits and demand for longer stays.

The hospitality industry reached approximately $4.7 trillion in 2023 and is forecast to grow at a compound annual growth rate of 6.2% to reach $5.8 trillion by 2027. Demand for flexible accommodations with home like features has increased since the pandemic. Business trips that include leisure time, remote work, project assignments, family relocations, home renovations, and medical assignments can all create demand for extended stay lodging. Guests in this segment often seek kitchenettes, laundry facilities, and larger living areas. Their operating model can also require fewer staff members and experience less guest turnover. Home2 Suites B Hilton combines this model with the brand recognition and operating resources associated with Hilton. The segment offers access to a large hospitality market while serving guests who need accommodations for longer periods.

Investors evaluating Home2 Suites B Hilton should understand the expected cost structure for an upper midscale extended stay hotel. Comparable hotel brands typically charge an initial franchise fee from $60,000 to $90,000. Establishing a new property in this segment can require a total initial investment from $10 million to $20 million, excluding land costs. The amount depends on the location, construction costs, and property size. Expenses can include real estate acquisition or leasehold improvements, building construction, furniture, fixtures, and equipment, pre opening expenses, working capital, and other costs. Similar hotel franchises often require liquid capital from $1 million to $2.5 million for initial expenses and operating stability. Hotel development frequently requires net worth from $5 million to $10 million. A complete ownership analysis should also account for staffing, utilities, maintenance, property taxes, and other operating expenses. The capital requirement generally suits experienced developers or high net worth investors with access to significant financing.

A Home2 Suites B Hilton property is designed around the needs of extended stay guests, with an emphasis on efficiency, comfort, and a residential feel. Typical amenities include fully equipped in suite kitchens, complimentary internet access, flexible living and working areas, and pet friendly accommodations. Food and beverage operations are generally limited to complimentary breakfast and a 24 hour market, which can reduce labor needs. Staffing may include a smaller front desk team, a focused housekeeping staff, and employees with multiple guest service and maintenance responsibilities. Specific format choices are not detailed, but the brand typically uses a standardized prototype across its 22 units. Standardization can support construction, purchasing, and maintenance. Training for franchisees and management teams may cover guest service, property management systems, revenue management, and brand standards. Hilton affiliated properties generally receive access to Hilton’s global reservation system, marketing and sales programs, procurement resources, property management software, and ongoing operating guidance. The territory structure is not specified, though hotel franchise systems commonly provide development rights within a defined geographic area. Qualified franchisees may also be encouraged to pursue multiple properties, supporting scale in construction, operations, and portfolio development.

Investors therefore need to build their own projections using local demand, market conditions, operating costs, and discussions with existing franchisees when permitted. Industry data from 2023 placed average occupancy for extended stay properties at approximately 74.5%, compared with 63.8% for the overall hotel industry. Leaner staffing and lower guest turnover can support those margins. These figures describe industry conditions rather than guaranteed results for Home2 Suites B Hilton. The broader extended stay segment has shown steady demand and occupancy performance, which can inform property level projections and return analysis.

Home2 Suites B Hilton currently has 22 active locations, all of them franchised. That unit count suggests a deliberate and selective development approach rather than rapid expansion. Specific net new unit figures for recent periods are not available, but the 22 location network represents a focused presence. A controlled development pace may support brand consistency and franchisee service. Hilton adds a broad set of competitive resources, including the Hilton Honors loyalty program, which has over 170 million members worldwide. Franchisees may also benefit from Hilton’s global distribution system, centralized marketing, mobile check in, and digital key technology. These systems can support direct bookings, repeat business, guest satisfaction, and operating efficiency. Home2 Suites B Hilton therefore operates with the support of Hilton’s brand equity, customer network, and hospitality infrastructure despite its focused unit count.

The typical Home2 Suites B Hilton franchisee is an individual or development group with experience in real estate development, hospitality management, or another capital intensive industry. Candidates should have financial knowledge, access to substantial capital, and experience with complex projects, zoning, permitting, and local market analysis. Maintaining brand standards and delivering a consistent guest experience are also central responsibilities. Qualified franchisees within the Hilton system may be encouraged to develop multiple properties, creating potential efficiencies in construction, operations, and management. With 22 current locations, territory opportunities may exist in growing suburban areas, business parks, and areas near medical centers or universities where extended stay demand is strong. The timeline from signing a franchise agreement to opening a new build hotel can range from 18 to 36 months. This period may include site selection, design, permitting, construction, pre opening marketing, and staffing. The exact agreement term is not available, while standard hotel franchise terms often range from 15 to 20 years with renewal options. That structure can provide a long operating period for investors to pursue returns.

The model can use leaner staffing and serve guests seeking kitchen facilities, flexible living space, and longer stays. Hilton provides access to a loyalty program with over 170 million members, along with reservation, distribution, marketing, technology, and operating resources. The 22 unit network, with every unit franchised, reflects a focused brand presence. Investors still need to assess local demand, development costs, financing, operating expenses, and property level projections before proceeding. The opportunity is generally suited to experienced developers and high net worth investors prepared for a total initial investment from $10 million to $20 million, excluding land costs, and the related capital requirements of hotel development.

Loan Activity Score

45/100

SBA Default Rate

0.0%

Active Lenders

18

According to its Franchise Disclosure Document or public business records, Home2 Suites b Hilton has 22 locations, all owned by franchisees. Public SBA loan records show 18 lenders made 22 loans to franchisees of Home2 Suites b Hilton. PeerSense calculates Home2 Suites b Hilton's score as 45 out of 100, using public SBA loan performance and recent lending activity.

Franchising since 2009 · 22 locations

Investment

$15.7M to $24.4M

Franchise Fee

$100,000

Total Units

22

22 franchised

Loan Activity Score
High
45
SBA Lending
25
Lender Quality
7
Transparency
3
Reach
7
Momentum
3

Proprietary PeerSense metric

Fair
Capital Sources
18SBA lenders

Distinct lenders in public SBA records for Home2 Suites b Hilton

22

Total SBA loans

$3.4M

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

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SBA Lending Activity for Home2 Suites b Hilton

Loan Activity Score Breakdown

Growing (10 to 24 loans)

High Confidence
45out of 100
Fair
Market Momentum3/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety25/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence7/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency3/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint7/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

0.0%

vs 10.3% peer avg

SBA Loans

22

Total Volume

$75.8M

Active Lenders

18

States

10

vs. SBA Sector Average

+10.3%lower default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Low SBA default rate (0.0%)

Data Insights

Key performance metrics for Home2 Suites b Hilton based on SBA lending data

SBA Default Rate

0.0%

10.3% below peer avg

SBA Loan Volume

22 loans

Across 18 lenders

Lender Diversity

18 lenders

Avg 1.2 loans per lender

Investment Tier

Premium investment

$15,686,198 to $24,442,399 total

Payment Estimator

Loan Amount$12.5M
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$162,380

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Home2 Suites b Hilton, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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Home2 Suites b Hilton

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; it does not lend, fund, or approve loans, and 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