About Spark by Hilton Franchise
Spark by Hilton is an economy hotel franchise within the Hilton portfolio, catering to business travelers, families, vacationers, and groups seeking quality accommodations at an affordable price point.
The franchise fee is $75,000, and the brand has been franchising since 2022 under Hilton Domestic Operating Company Inc.
Spark by Hilton properties deliver a clean, modern, and reliable lodging experience that brings the trusted Hilton name to the economy hotel segment.
Spark by Hilton Franchise Cost & Fees
Minimum Investment
$2.9M
Average Investment
$4.1M
Maximum Investment
$5.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 | One-time payment upon signing |
| Royalty Fee | 5.5% of Gross Rooms Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3.5% of Gross Rooms Revenue | National brand fund |
| Total Investment Range | $2,902,390 – $5,339,890 | Includes build-out, inventory, working capital |
The investment range of $2.9M–$5.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Rooms Revenue) and marketing fee (3.5% of Gross Rooms Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Application Fee | $75,000 | $75,000 |
| Property Improvement Plan | $10,000 | $10,000 |
| Market Study | N/A | N/A |
| Environmental Assessment | N/A | N/A |
| Real Property | N/A | N/A |
| Construction/Renovation and Leasehold Improvements | $1,100,000 | $2,700,000 |
| Designer and Engineering Fees | $22,000 | $54,000 |
| Furniture, Fixtures and Equipment | $800,000 | $960,000 |
| Inventory and Operating Equipment | $200,000 | $240,000 |
| Signage | $20,000 | $30,000 |
| Computer Hardware and Software Systems | $28,690 | $94,990 |
| Guest Internet Access System | $57,700 | $71,400 |
| Connected Room System | $20,500 | $24,500 |
| Required Pre-Opening Training | $5,000 | $15,000 |
| ADA Consultant Fee | $2,500 | $10,000 |
| Renovation Extension Fees | $0 | $10,000 |
| Insurance | N/A | N/A |
| Organizational Expenses | $20,000 | $60,000 |
| Permits and Licenses | $0 | $54,000 |
| Miscellaneous Pre-Opening and Project Management Expenses | $150,000 | $230,000 |
| Contingencies | $110,000 | $270,000 |
| Additional Funds | $275,000 | $425,000 |
| Other Required Pre-opening Services Fees | $6,000 | $6,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Change of Ownership Application Fee ($75,000), Permitted Transfer Processing Fee ($5,500) |
| Renewal Fee | Re-licensing Application Fee ($75,000) |
| Technology Fee | OnQ Connectivity Fees (between $590 and $1,260 per month), OnQ Hardware and Software Maintenance Fees (between $1,580 and $5,000 per month), Connected Room Maintenance Fees ($3.50 guest room per month), OnQ Email Fees ($7.92 per user per month and $12.50 per month for delivery to mobile devices), Delphi Sales and Events System (optional user licenses for $858 per user per year) |
| Audit Fee | Actual deficiency plus interest |
| Room Addition Fee | $400 per guest room |
| Guest Assistance Program: Customer Satisfaction Guarantee | $300 per handled transaction for Hilton Honors Diamond members, $250 for Gold members, $200 for other guests |
| Guest Assistance Program: Price Match Guarantee | Hotels must honor a 25% discount off the lower rate on all approved claims |
| Guest Assistance Program: First Contact Resolution | $15 administrative fee |
| Guest Assistance Program: Online Complaints | $25 per complaint administrative fee |
| Quality Assurance Re-evaluation Fee | $1,000 to $3,000 per re-evaluation visit |
| Quality Assurance Special Re-evaluation Fee | $3,000 per re-evaluation visit |
| Quality Improvement Program for Failure to Meet Minimum Performance Standards | (1) $495 per month; and (2) a 1-time fee of $3,950 to $4,950 |
| Brand Conference | Up to $2,500 per attendee |
| General Manager, Commercial and Sales Leader Training | Up to $1,200 per attendee |
| Other Training Programs and Training Materials | Up to $5,000 per attendee per program |
| Travel Clubs | $0.30 per available room plus 10% commission |
| Hilton Advance Program | 1.35% of eligible Digital Direct Revenue, not to exceed $30 per stay |
| Group Preferred Partnership Program | $1.50 per room night plus applicable commission (will not exceed $2.50 per room night plus commission) |
| Frequent Traveler/Guest Reward Program | 4.0% of total eligible guest folio (waived if guest enrolled on-property in Hilton Honors) |
| Hilton Honors Event Planner Bonus Program | $0.0025 to $0.0050 per Hilton Honors bonus point awarded |
| Online Group Event Booking Charges | Up to 2% of GRR, plus applicable commissions |
| Centralized Payment Programs: Third-Party Reservation Charges | Up to $5.59 per stay |
| Centralized Payment Programs: FastPay Program | Up to $1.40 per transaction, plus commission |
| Centralized Payment Programs: Travel Planner Centralized Payment Program | $0.18 per transaction processing charge plus up to 10% commission |
| Centralized Payment Programs: Unlimited Rewards Program | $0.71 for a weekday stay, $1.42 for a weekend stay with 1 Fri/Sat/Sun night, $2.13 for a weekend stay with 2 Fri/Sat/Sun nights, Double Dollars amounts increase to $1.42, $2.63, and $3.84 respectively |
| US Government Travel Agency Programs | Up to $2.30 per consumed room night or 1.5% of consumed room revenue |
| ResMax Program | 5.4% to 5.9% of consumed revenue from a ResMax booking with a 3-night maximum (will not exceed $5.00 per call) |
| Revenue Management Services | Currently no charge for required services |
| Procurement and Services Fees | Up to 7% of the cost of goods ordered |
| Service Charges for Overdue Payments | 1.5% per month or highest percentage permissible by law |
| Taxes | Actual amount |
| Identity, Sales, and Distribution Non-Compliance Fee | $500 per instance |
| Franchise Agreement Non-Compliance Fee | 1% of Gross Rooms Revenue |
| FastPay Non-Compliance Fee | Varies and escalates, up to the greater of $3,000 or 10% of gross group room revenue (not to exceed $7,500) per violation |
| Consultation and Service Fees | Set by us on a project-by-project basis |
| Consortia Program | Up to $2.70 for each consumed night booked under the Consortia “parity” rate, plus applicable commission |
| TMC Pay-On-All-Pay-For Performance Program | Up to $1.03 for each consumed night booked by a TMC travel agency, plus up to 10% commission or fee (will not exceed $1.15 plus applicable commission or fee) |
| Management Fees | Established by mutual agreement |
| Actual Damages Under Special Circumstances | Varies |
| Liquidated Damages for Unauthorized Opening | $5,000 per day plus our costs |
| Liquidated Damages for Pre-Opening Termination | $10,000 multiplied by the number of approved Guest Rooms |
| Liquidated Damages for Post-Opening Termination | The greater of (a) Hotel’s Average Monthly Royalty Fees multiplied by 60; or (b) $10,000 multiplied by the number of approved Guest Rooms |
| Indemnification | Reimbursement for all payments by us or our affiliates due to any claim, demand, tax, penalty, or judicial or administrative investigation or proceeding arising from any claimed occurrence at your Hotel |
| Insurance | Actual amount |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies by program |
| Classroom Training | Varies (Brand Conference), Up to 18 (General Manager, Commercial and Sales Leader Training), 1-5 (Hilton Property Management System (HPMS) Training), 5 (OnQ Rate & Inventory and GRO Training), 1 (Hilton Honors Training), Varies (ADA Training), 3-4 (Annual Compliance Training), Varies (Pre-Opening Training Resources), 16 (Owner Orientation), 20 (New to Hospitality Owner Education), 20 (Brand Learning Programs), 20 (Industry Education) |
| On-the-Job Training | 0 (Brand Conference), 0 (General Manager, Commercial and Sales Leader Training), 0 (Hilton Property Management System (HPMS) Training), 0 (OnQ Rate & Inventory and GRO Training), 0 (Hilton Honors Training), 0 (ADA Training), 0 (Annual Compliance Training), 0 (Pre-Opening Training Resources), 0 (Owner Orientation), 0 (New to Hospitality Owner Education), 4 (Brand Learning Programs), 0 (Industry Education) |
| Training Location | Varies (Brand Conference), Virtual (GM, HPMS, OnQ, Hilton Honors, ADA, Owner Orientation, New to Hospitality Owner Education, Industry Education), Online or On-site (Annual Compliance Training, Brand Learning Programs), On-site (Pre-Opening Training Resources) |
| Additional Training | We may charge you for the training services and materials, including any Pre-Opening Training Resources. You must also bear the cost of wages, travel, lodging, food, and other expenses of your general manager and any other attendees. We may charge additional training costs based on the number of personnel that require training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | The boundaries will vary in size and shape from hotel to hotel. Boundaries are not delineated according to any standard formula, but may be delineated in various ways, including references to cities, metropolitan areas, counties or other political subdivisions, references to streets or highways, or references to an area encompassed within a radius of specified distance from the front door of the hotel. |
| Description | We may agree to give franchisees certain specific territorial restrictions (“Restricted Area Provision”) for an area surrounding the franchised hotel and encompassing the immediate competitive market for the hotel. This provision is normally for an agreed-on time period, shorter than the franchise term, for New Development or Conversion projects. We do not normally grant a Restricted Area Provision for a Change of Ownership or Re-licensing. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 to 20 years after the Opening Date (Conversion); remaining Term under existing agreement or other approved term (Change of Ownership) |
| Renewal Term | No right to renew or extend |
| Renewal Fee | $75,000 |
| Renewal Conditions | If we agree to re-license, you may be asked to sign a new contract with materially different terms and conditions and must comply with any PIP performance conditions we specify. |
| Transfer Fee | Change of Ownership Application Fee ($75,000), Permitted Transfer Processing Fee ($5,500) |
| Transfer Conditions | Transfers are prohibited unless expressly allowed. Two types of allowed transfers: Permitted Transfers (not changing control) and Change of Ownership Transfers (changing control). Transferee may not be a Sanctioned Person or a Competitor. Specific conditions apply for each type, including notice, fees, submission of information, and meeting business requirements. |
| Termination for Cause | We may terminate for cause with opportunity to cure (e.g., failure to pay sums due, failure to complete Hotel Work, failure to maintain insurance, failure to comply with other provisions). Immediate termination without opportunity to cure may occur for repeated non-compliance, three notices of material default, failure to pay debts, bankruptcy, loss of possession, failure to operate for 5 consecutive days, contesting ownership of System/Marks, engaging in adverse conduct, concealing revenues/false records, non-compliant transfer, becoming a Sanctioned Person, disclosure of adverse information, guarantor breach, public health/safety threat, becoming a Competitor, or termination of other Hotel Agreements. |
| Non-Compete Period | During the term of this franchise |
| Non-Compete Details | You and your affiliates may not, directly or indirectly, own or be a licensor or franchisor of a hotel brand that competes with the System, a System Hotel or Network Hotel in our sole judgment, but you may own a minority interest in a Competitor under certain circumstances, and you may be a franchisee of a Competitor, or manage a property of a Competitor. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Your Hotel must be operated either by you or a third-party management company (“Management Company”) that we have approved. If you wish to manage your Hotel directly, you must have our prior written approval and successfully complete our training program, unless waived. If you hire a Management Company, you must obtain our prior written approval. |
| Required Suppliers | You must use Hilton Supply Management LLC (“HSM”) as your sole Brand Package service provider. You must purchase exterior signage from a vendor currently licensed by us. You must use our required business computer systems, including OnQ software components from HSS or designated vendors, and install a Guest Internet Access circuit from a preferred provider. |
| Supply Restrictions | You must use a Brand Package for the Conversion of your hotel, and you must purchase or lease the items in the Brand Package only from approved suppliers. You may not obtain any Brand Package or any item within a Brand Package from any other source. You must use HSM as your sole Brand Package service provider. You must purchase exterior signage from a vendor currently licensed by us. You must use our required business computer systems, which we may periodically change. You must use the Reservation Service for reservation referrals. |
| Franchisor Revenue from Suppliers | For the fiscal year ended December 31, 2022, Hilton and its other affiliates had revenues from sales of goods, services, computer systems and/or supplies to franchisees of Hilton’s subsidiaries of $897,864,952. HSM had revenues of $8,852,637 in rebates and allowances on purchases made by franchisees of all of our brands, and $17,466,018 in administrative fees on purchases made by franchisees of all of our brands. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | We may, in our sole discretion, offer incentives for new hotels (“Incentives”). An Incentive is a financial contribution that we make to assist with the development or conversion of your Hotel. To receive an Incentive, you and your principals must sign a development incentive note (“Note”). An Incentive does not have to be repaid unless the franchise terminates before the end of the Term or a transfer occurs. The repayable amount of the Incentive decreases over time, reduced by an equal annual percentage of the Term each year. An Incentive bears no interest. We generally do not offer any other financing or guarantee any note, lease, or other obligations, but in unique circumstances, we may offer other types of financing such as mezzanine loans or guaranties. |
Spark by Hilton Franchise Earnings — Item 19
Spark by Hilton does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Spark by Hilton does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Spark by Hilton Litigation & Risk Flags
2 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Spark by Hilton System Growth
Total Units
0
Franchised
0
Company-Owned
0
Spark by Hilton currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1229.5M
Net Income
$1233.4M
Total Assets
$1163.9M
Audited by Cherry Bekaert LLP for year ending December 31.
Spark by Hilton Franchise — FAQ
The total investment to open a Spark by Hilton franchise ranges from $2,902,390 to $5,339,890, per their Franchise Disclosure Document. This includes the initial franchise fee of $75,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Spark by Hilton charges a royalty fee of 5.5% of Gross Rooms Revenue of gross sales, plus a 3.5% of Gross Rooms Revenue contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Spark by Hilton Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Spark by Hilton to ensure you have the most up-to-date version.
Spark by Hilton does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Spark by Hilton has been franchising since 2022. The FDD shows an investment range of $2,902,390-$5,339,890, a 5.5% of Gross Rooms Revenue royalty, and no Item 19 earnings disclosure. There are 2 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $75,000 and the total investment ranges from $2,902,390 to $5,339,890 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Spark by Hilton and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Spark by Hilton or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com