• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Only
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

Franchise Costs: Detailed Estimates of Hyatt Regency Franchise Costs (2016 FDD)

Published on September 10, 2016 by Franchise Chatter Leave a Comment
in Franchise Costs, Hotel Franchise

hyatt-regency-photo-from-tripadvisor



Learn Which Franchises Can Make You Rich

Detailed Estimates of Hyatt Regency Franchise Costs Based on Item 7 (Estimated Initial Investment) of Hyatt Regency’s 2016 Franchise Disclosure Document

1.  Application Fee:  $100,000 to $150,000

  • The Application Fee listed above is for a Hyatt Regency Hotel with 250 to 500 guest rooms.

2.  Market Study:  $15,000 to $25,000

America's Most Lucrative Franchises of the Year

3.  Architecture and Design:  $1.2 million to $4.4 million

4.  Pre-opening Marketing and Sales Expenses:  $100,000 to $550,000

  • This item includes costs for marketing and sales programs that you undertake before the Hotel opens, including payments of the applicable Centralized Services Charges during the Pre-Opening Period and the costs to establish and operate a sales office during the Pre-Opening Period.

5.  Construction, Improvements, Remodeling, Decorating Costs, and Other Sitework:  $24 million to $115 million

6.  Signage:  $50,000 to $220,000

Financial Calculator

7.  Furniture, Fixtures, Other Fixed Assets, Equipment, and Inventory:  $6 million to $19.1 million

  • Costs for fixtures; equipment; furnishings; furniture; telephone systems; communications systems; facsimile machines; copiers; signs; the Technology System and other property management, revenue management, in-room entertainment, and other computer and technology systems; and other similar items the franchisor periodically specifies for the Hotel (collectively, “FF&E”) depend mostly on the Hotel’s size and configuration.

8.  Telephone and Telecom Equipment:  $500,000 to $1.1 million

9.  Security and Technology System Equipment and Fees:  $350,000 to $1.72 million

  • The franchisor or its affiliate will inspect the Hotel and/or its plans and specifications to develop a specific proposal relating to the telephone and telecom equipment and the Technology System equipment for your Hotel.
  • The franchisor includes in the estimate for the Technology System the projected costs of acquisition/installation and the annual support and service contracts for the first year that the Hyatt Group provides as part of Mandatory Services.

10.  General and Administrative:  $400,000 to $660,000

Franchises Ranked by Average Revenues and Profits
  • This item includes costs for permit fees, security deposits, utility deposits and startup requirements, impact fees (one-time charges that the government levies to offset service costs relating to the new development), tap fees (charges for connecting to existing water or sewer lines), and various business licenses.
  • Landlords sometimes pay some of the tap or impact fees, and the amount depends on municipal requirements and the final Hotel configuration.
  • This item also includes costs for insurance, legal, and accounting expenses.

11.  Liquor License:  $7,500 to $440,000

  • Liquor license costs vary widely depending on the jurisdiction. In most jurisdictions, the cost will be on the low end of the range, but could be on the high end (or even exceed the high end) in those jurisdictions that consider a liquor license to be an asset. You may be able to re-sell your liquor license in those jurisdictions.
  • The liquor license must include beer, wine, and full spirits.

12.  Training Expenses:  $10,000 to $25,000

13.  Miscellaneous Opening Costs:  $150,000 to $550,000

  • This item includes costs for office and other supplies, wages for Hotel management and employees, the franchisor’s training team’s expenses, the comfort letter fee, the Extension Fee (if applicable), and other miscellaneous pre-paid opening expenses.

14.  Additional Funds – 3 Months:  $500,000 to $1.65 million

  • This item estimates your initial start-up expenses (other than the items identified separately in the table). These expenses include payroll costs for the Hotel’s personnel but not any management fees or similar draw.

15.  Total Estimated Initial Investment:  $33,382,500 to $145,590,000

  • The estimated amounts presented in the table above are for a Hyatt Regency Hotel with 250 to 500 guest rooms. The franchisor relied on its affiliates’ experience in developing and operating hotels since 1957 to compile the estimate for additional funds and other figures.
  • Hyatt Regency Hotels typically are in primary markets at suburban, airport, highway, and city center sites. They will typically have from 250 to 500 guest rooms and occupy property of 2 to 10 acres, but the amount of land the Hotel requires will vary greatly depending upon local building codes, setback requirements, parking requirements, and similar factors.
  • Leasing or purchase costs vary widely and depend on geographic location, size, visibility, local rental rates, other businesses in the area, other local economic conditions, the site’s market potential, the type of ownership or leasehold interest, and other factors.
  • Because of these factors, this table does not estimate the costs for the Hotel’s rent or security deposit or the purchase price for the building or land on which the Hotel is located (if you decide to buy, rather than lease, the land and/or premises).


Franchise Winners and Losers Last Year

Financial Calculator

Tagged as: Hyatt Regency

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: FDD Talk 2016: The Wow 1 Day Painting Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

Next post: Franchise Costs: Detailed Estimates of H&R Block Franchise Costs (2016 FDD)

Primary Sidebar

Financial Calculator

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

Want to Know the Next Great Franchises for Your Area?

SuperFranchise (New Series)

Learning From the SuperFranchises

Ace Hardware Franchise

Raising Cane’s Franchise

Jollibee Franchise

F45 Training Franchise

Crumbl Cookies Franchise

Dutch Bros. Coffee Franchise

Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Dry Cleaning Franchises

Best Hot Dog Franchises

Best Breakfast Restaurant Franchises

Best Insurance Franchises

Best Carpet Cleaning Franchises

Best Tax Preparation Franchises

Best Tech Franchises

Best Painting Franchises

Best Convenience Store Franchises

Best Travel Agency Franchises

Best “Paint and Sip” Franchises

Best Trampoline Park Franchises

Best Chocolate/Candy Franchises

Best Tools Distribution Franchises

Best Sign Franchises

Best Salon Suites Franchises

Best Property Management Franchises

Best Laboratory Services Franchises

Best Staffing/Recruiting Franchises

Best Lawn Care Franchises

Best Advertising Services Franchises

Best Printing/Marketing Franchises

Best Real Estate Franchises

Most Profitable Franchises

Top Low Cost Franchises

Franchise Chatter uses affiliate links for Franchise Help and Franchise Brokers Association.

Franchise Chatter © 2022