Hyatt House Hotel
The total investment to open a Hyatt House Hotel franchise ranges from $129,144 to $57.1M. The initial franchise fee is $75,000. Ongoing royalties are 5% plus a 3.5% advertising fee.
What is the Hyatt House Hotel franchise?
Hyatt House operates in the upscale extended stay segment of hospitality. Hyatt Hotels Corporation began on September 27, 1957, when lawyer Jay Pritzker acquired the Hyatt House motel beside Los Angeles International Airport, or LAX. The property had opened in 1954 and cost $2.2 million. Jay Pritzker and his brother Donald Pritzker played central roles in the company’s early development. Based in Chicago, Illinois, Hyatt reported more than 1,450 hotels and all inclusive resorts in more than 80 countries and six continents as of November 2025. Its portfolio includes more than 30 brands across five categories: Luxury, Lifestyle, Inclusive, Classics, and Essentials. In 2022, Hyatt operated nearly 1100 hotels across six continents and 69 countries, with more than 235,000 rooms. Hyatt House was established in 2012 after Hyatt acquired Summerfield Suites in 2005 and rebranded it. Franchising began in 2015. The 2015 Franchise Disclosure Document reported 70 franchised locations in 19 U.S. states and Washington D.C., including 26 in the Southern U.S. More recent figures cite 100 or 107 U.S. franchises and 116 active units. PeerSense presents independent franchise research for buyers considering this brand. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders, but it is not a lender.
The global hotels market was valued at USD 1,071.49 billion in 2024 and is projected to reach nearly USD 2,166.55 billion by 2032, with a CAGR of 9.2% from 2025 to 2032. Other estimates place the market at USD 1,376.40 billion in 2023, growing to approximately USD 2,993.90 billion by 2032 at roughly 9.14% from 2024 to 2032. A separate forecast values it at USD 2,080.57 billion in 2025 and USD 3,931.42 billion by 2034, with a CAGR of 7.54%. The U.S. hospitality market is estimated at $247.45 billion in 2025 and is forecast to reach $313.87 billion by 2030, reflecting a CAGR of 4.87%. U.S. Hotels and Motels industry revenue is estimated to grow at a CAGR of 15.2% to $286.5 billion over the five years through 2025, including growth of 0.5% in 2025. Tourism and travel activity support lodging demand, while travelers increasingly seek customized packages and value for money hotels. Hyatt House serves guests who average 5 to 30 night stays, including business travelers and people needing corporate housing. The global market remains fragmented, although large brand families such as Hyatt Hotels Corporation hold significant scale. Mobile booking, artificial intelligence personalization, and other technology are changing guest service. Online booking held 55.25% market share in 2025 and is expected to record the fastest CAGR at 8.17%. Labor remains a concern, with annual turnover of 74% in the U.S. hospitality sector.
A Hyatt House franchise requires a substantial investment. The initial franchise fee ranges from $60,000 to $150,000, with some sources citing $60,000 or $75,000. The 2015 FDD reported total initial investment of $13,260,000 to $20,386,000. More recent estimates range from $17,834,075 to $37,846,410, or from $13,629,297 to $40,143,980. Another source reports $20,168,455 to $57,134,018, while another begins at $16,665,875 and reaches $37,622,250. Costs depend on land, construction, furniture, fixtures, equipment, pre opening expenses, property size, location, and amenities. The investment can include fully equipped kitchens, separate living areas, and business facilities. Liquid capital estimates range from $95,000 to $135,000, while another source cites minimum cash required ranging from $5,880,000. Franchisees must also meet significant net worth qualifications. The financial scale suits experienced hospitality operators and well capitalized investors with substantial assets and a proven hotel management record. Hyatt operates more than 1,450 properties across more than 80 countries.
The operating model centers on apartment style suites with fully equipped kitchens, separate living spaces, and modern amenities for stays of several days or weeks. Properties typically offer a complimentary Morning Spread breakfast with made to order omelets, evening social hours, flexible meeting space, business centers, fitness centers, and swimming pools. Grocery shopping services, laundry facilities, and pet friendly policies support longer stays. Staffing must cover revenue management, housekeeping standards, and guest service. New franchisees generally complete two to three weeks of training at a designated Hyatt corporate location. Hyatt provides brand recognition, reservation systems, training, operating methods, site selection support, construction guidance, and continuing operational assistance. Territory rights typically include market protection. The brand targets high income urban markets with business travel and corporate activity, especially sites near corporate offices, medical centers, and major transportation hubs. It has significant concentrations in California, Texas, and the Northeast corridor. Preferred markets include metropolitan areas with household incomes above $75,000 and access to business districts or major transportation corridors. Market analysis also identifies emerging technology hubs and secondary cities experiencing corporate migration. The operating complexity calls for an owner operator or a highly experienced management team rather than a purely absentee owner.
Hyatt Hotels Corporation reported net rooms growth of 19.5% in 2021. As of December 31, 2021, it had executed management or franchise contracts for approximately 540 hotels or 113,000 rooms, a 12% increase since 2020 and more than 60% growth since 2017. As of Q3 2025, the executed contract pipeline was approximately 141,000 rooms. The global hotels market is projected to grow at a CAGR of 9.2% from 2025 to 2032, while the U.S. hospitality market is forecast to grow at 4.87% from 2025 to 2030. U.S. Hotels and Motels industry revenue is estimated to grow at 15.2% over the five years through 2025. Hyatt House grew from 70 franchised locations in 2015 to 100 or 107 U.S. franchises and 116 active units in more recent reports. Plans for 2023 called for 14 new owners and portfolio expansion for five owners. Hyatt Place and Hyatt House expansion in the Americas was expected to add more than 6,400 rooms by year end 2023, or almost 9% of Hyatt’s total pipeline. The brand’s focus on guests averaging 5 to 30 night stays and its reported guest satisfaction support the case for further review, although they do not replace unit level financial disclosure.
Hyatt House has expanded since beginning franchising in 2015 with 70 U.S. franchised locations. More recent reports cite 100 or 107 U.S. franchises and 116 active units. Hyatt’s net rooms grew 19.5% in 2021. Its pipeline included approximately 540 hotels or 113,000 rooms under executed management or franchise contracts as of December 31, 2021, representing a 12% increase since 2020 and more than 60% growth since 2017. By Q3 2025, the pipeline had reached approximately 141,000 rooms under executed contract. In 2023, Hyatt planned to welcome 14 new owners and expand the portfolios of five owners in the U.S., including markets where a Hyatt hotel had not previously operated within five miles and airport locations. Targeted Hyatt House markets included Bentonville and Rogers, Arkansas, Colorado Springs Airport, Colorado, Lansing and University Area Lansing, Michigan, Mall of America and MSP Airport, Minnesota, and Vacaville, California. The planned Hyatt Place and Hyatt House additions in the Americas represented more than 6,400 rooms by year end 2023 and almost 9% of Hyatt’s total pipeline. Hyatt acquired AmeriSuites in 2004 and rebranded it to Hyatt Place, Summerfield Suites in 2005 and rebranded it to Hyatt House Hotel, Two Roads Hospitality in 2018, and Apple Leisure Group, or ALG, in 2021. Hyatt continues to develop five portfolio categories and introduced Hyatt Studios, its latest select service brand. Executed franchise agreements covered its first locations in Mobile, Alabama, and Marysville, California, with Mobile groundbreaking planned for Q4 2023. Hyatt House benefits from Hyatt’s brand recognition, reservation systems, training, operating methods, and focus on extended stay properties in urban and airport markets. Online booking held 55.25% market share in 2025.
The likely Hyatt House franchise candidate is an experienced hospitality operator or a well capitalized investor with substantial assets and a proven hotel management record. The property requires revenue management, strict housekeeping procedures, and strong guest service, so hands on ownership or an experienced management team is generally needed. The investment scale may also suit multi unit ownership. Available territories focus on U.S. markets without an existing Hyatt hotel within five miles and on major airports. The 2023 targets included Hyatt House Bentonville and Rogers, Arkansas, Hyatt House Colorado Springs Airport, Colorado, Hyatt House Lansing and University Area Lansing, Michigan, Hyatt House Mall of America and MSP Airport, Minnesota, and Hyatt House Vacaville, California. The brand also targets high income urban markets with corporate activity, including areas near corporate offices, medical centers, and major transportation hubs. Key concentrations include California, Texas, and the Northeast corridor. Preferred metropolitan areas have household incomes above $75,000 and access to business districts or major transportation corridors. Emerging technology hubs and secondary cities affected by corporate migration may offer additional potential. Territory rights typically provide market protection, although prime sites can have higher development costs. The source does not provide a specific signing to opening timeline, but hotel development is expected to take multiple years.
Loan Activity Score
53/100
SBA Default Rate
0.0%
Active Lenders
6
Franchisees account for 109 of Hyatt House Hotel's 118 locations. Public SBA loan records show 6 lenders made 6 loans to franchisees of Hyatt House Hotel. PeerSense calculates Hyatt House Hotel's score as 53 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2026 Franchise Disclosure Document.
Franchising since 1954 · 118 locations
$129,144 to $57.1M
$75,000
118
109 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for Hyatt House Hotel
6
Total SBA loans
$5.0M
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Hyatt House Hotel
Loan Activity Score Breakdown
Emerging (3 to 9 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
0.0%
vs 10.3% peer avg
SBA Loans
6
Total Volume
$29.9M
Active Lenders
6
1 selective
States
5
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Hyatt House Hotel based on SBA lending data
SBA Default Rate
0.0%
10.3% below peer avg
SBA Loan Volume
6 loans
Across 6 lenders
Lender Diversity
6 lenders
Avg 1.0 loans per lender
Investment Tier
Premium investment
$129,144 to $57,134,018 total
Payment Estimator
Estimated Monthly Payment
$1,337
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
Hyatt House Hotel, unit breakdown
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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
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