Hotel franchise fees › Graduate by Hilton
Graduate by Hilton Franchise Fees 2026: Royalty, Marketing and Initial Fee
Graduate by Hilton is a lifestyle brand from Hilton. Here is what it charges to join and to stay in the system, where the numbers come from, and how they compare with similar brands.
Graduate by Hilton fees at a glance
| Initial fee | $100,000 plus $400 for each additional guest room or suite over 250 (new development or conversion) |
|---|---|
| Royalty | 5% |
| Marketing or program fee | 4% |
| Royalty plus marketing | 9% of rooms revenue |
| Franchisor | Hilton |
| Segment | Lifestyle |
| Disclosure year | 2026 |
Source: Read in Graduate by Hilton’s 2026 Franchise Disclosure Document (FDD). Source 1
How Graduate by Hilton compares
Graduate by Hilton’s royalty and marketing fees add up to 9% of rooms revenue. That is above the 8.5% average for the 10 lifestyle brands in our table with a comparable headline figure, the highest of the 10.
| Lifestyle brand | Franchisor | Royalty | Marketing | Headline |
|---|---|---|---|---|
| Motto by Hilton | Hilton | 5% | 3% | 8% |
| Unscripted by Hyatt | Hyatt | 5% | 3% (Commercial Services Fee; 3.5% with more than 5,000 sq ft of meeting space) | 8% |
| TRYP by Wyndham | Wyndham | 5% | 3% (Marketing and Reservation Fee) | 8% |
| Hotel Indigo | IHG | 5% | 3.5% (Services Contribution) | 8.5% |
| Caption by Hyatt | Hyatt | 5% | 3.5% (Commercial Services Fee) | 8.5% |
| The StandardX | Hyatt | 5% | 3.5% (Commercial Services Fee) | 8.5% |
| The James Hotels | Sonesta | 5% | 3.5% (Brand Promotion Fee; can rise to 4.5%) | 8.5% |
| Canopy by Hilton | Hilton | 5% | 4% | 9% |
| Tempo by Hilton | Hilton | 5% | 4% | 9% |
| AC Hotels | Marriott | 6% | 2.5% | — |
What it costs on a typical hotel
Take a 100-room Graduate by Hilton running 70% occupancy at a $130 average daily rate. That is about $3,321,500 in rooms revenue a year.
| Royalty (5%) | $166,075 a year |
| Marketing (4%) | $132,860 a year |
| Royalty plus marketing | $298,935 a year |
Illustrative math by The Hotelier Times, not a quote. It leaves out reservation, loyalty, technology and other program fees, which usually push the real total higher.
What the headline number leaves out
Royalty and marketing are only the start. Most brands also charge for reservations and distribution, loyalty-program assessments on member stays, required technology and property-management systems, training and quality assurance. Brands also negotiate: ramp-up royalty discounts, key money and conversion incentives are common. Ask Hilton for its estimate of total fees as a share of rooms revenue, and read Items 5 and 6 of the current FDD before you sign. Our analysis of what owners really pay a brand puts the typical all-in bill at 10% to 13% of rooms revenue.
Other Hilton brands
Hampton by Hilton · Hilton Garden Inn · Home2 Suites by Hilton · Tru by Hilton · Homewood Suites by Hilton · DoubleTree by Hilton · Embassy Suites by Hilton · Hilton Hotels & Resorts · Curio Collection by Hilton · Tapestry Collection by Hilton · Canopy by Hilton · Motto by Hilton · Spark by Hilton · LivSmart Studios by Hilton · Tempo by Hilton · LXR Hotels & Resorts · Outset Collection by Hilton · Apartment Collection by Hilton · Undergraduate by Hilton
Keep going
- Compare franchise fees for all 164 brands
- Price per key, cap rate and OTA cost calculators
- Hotels for sale across the U.S.
- 2026 hotel sales tracker
The Hotelier Times is a publisher, not a franchise adviser. Fees change; confirm every figure in the brand’s current Franchise Disclosure Document. Spot an error? Email nathan@hoteliertimes.com.