The DoubleTree by Hilton franchise cost represents one of the most significant investments in the upscale hotel segment, with total startup costs ranging from $29 million to over $100 million depending on location and property size. Whether you are converting an existing hotel or building from the ground up, understanding your financing options is critical to making your DoubleTree franchise a success. Crestmont Capital specializes in helping hotel franchise owners secure the capital they need to open, expand, or refinance their properties.
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DoubleTree by Hilton is one of Hilton's most recognized upscale hotel brands, famous for its signature warm chocolate chip cookies served at check-in. Founded in 1969 and now part of Hilton's global portfolio, DoubleTree operates more than 600 properties in over 50 countries. The brand targets the upper-midscale to upscale segment, appealing to both business and leisure travelers who want more than a standard hotel experience without paying full luxury rates.
As a franchisee, you benefit from Hilton's powerful Honors loyalty program, global distribution system, and industry-leading marketing infrastructure. Hilton regularly ranks as one of the most valuable hospitality brands in the world, giving your property built-in credibility and a steady flow of repeat guests. The brand's positioning means your property can command premium rates compared to midscale competitors while still attracting a broad traveler base.
Owning a DoubleTree franchise means you are operating within Hilton's strict quality standards and brand guidelines. Properties must meet specific design requirements, amenity standards, and guest satisfaction benchmarks. In return, you get access to Hilton's revenue management tools, training programs, and a network of fellow franchise owners. For entrepreneurs serious about the hotel business, DoubleTree represents a compelling opportunity backed by one of the strongest brands in hospitality.
If you are researching similar hotel franchise opportunities, you may also want to read our guides on Hyatt Place franchise financing and Courtyard by Marriott franchise loans to compare your options across brands.
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Apply Now →Before you can secure financing, you need to understand exactly how much it costs to open a DoubleTree by Hilton. This is not a small investment. The brand sits firmly in the upscale segment, and Hilton enforces standards that require meaningful capital commitment from every franchisee.
The DoubleTree by Hilton franchise fee is approximately $75,000 to $90,000 for a standard property. This one-time fee grants you the right to operate under the DoubleTree brand and access Hilton's systems. For larger properties or conversions from other brands, the fee structure may differ. Hilton's Franchise Disclosure Document (FDD) provides the most current and legally binding fee schedules.
According to Hilton's most recent FDD filings and industry data from sources like Forbes, the total investment for a DoubleTree by Hilton property typically ranges from $29 million to over $100 million. This wide range reflects differences in:
Beyond the initial investment, DoubleTree franchisees pay ongoing fees that you must factor into your financial projections:
Important Note on Fee Accuracy
Franchise fees and investment ranges change over time. Always review the current Franchise Disclosure Document (FDD) provided by Hilton directly. The figures above are for general reference and educational purposes.
DoubleTree by Hilton: Key Investment Stats
$29M+
Minimum Total Investment
~5%
Royalty Rate on Rooms Revenue
600+
Properties Worldwide
~4%
Program Services Fee
Because the DoubleTree by Hilton franchise cost is substantial, most franchisees use a combination of financing products to fund their projects. Understanding the full menu of options helps you structure the most cost-effective capital stack for your situation.
For new construction or property acquisition, commercial real estate (CRE) loans are the backbone of hotel financing. These loans are secured by the property itself and typically offer longer amortization periods (20-25 years) and competitive interest rates. Hotel CRE loans require detailed feasibility studies, market analysis, and strong sponsorship from the borrower.
The Small Business Administration (SBA) 7(a) loan program is one of the most powerful financing tools available to hotel franchise owners. With loan amounts up to $5 million and government-backed guarantees, SBA 7(a) loans offer lower down payments and longer repayment terms than conventional financing. Hotels are an SBA-eligible business type, and Hilton franchise agreements are well-recognized by SBA-approved lenders.
The SBA 504 program is specifically designed for major fixed-asset purchases, making it ideal for hotel construction and renovation projects. This program allows you to finance up to 90% of total project costs through a combination of a conventional first mortgage (typically 50%), a Certified Development Company (CDC) loan (up to 40%), and your equity contribution (as low as 10%). The 504 program offers fixed interest rates on the CDC portion, providing payment stability over 20-25 years.
For ground-up development, construction loans provide short-term financing during the build phase. These loans are typically interest-only during construction and convert to permanent financing once the project is complete. Construction loan underwriting is more complex and requires detailed project timelines, contractor agreements, and cost breakdowns.
Bridge loans provide short-term capital to franchisees who need to act quickly on an acquisition or who are waiting for permanent financing to close. These loans are typically more expensive than long-term financing but provide critical flexibility in competitive markets.
Hotel operations require substantial equipment investment, from commercial kitchen equipment to HVAC systems, elevator upgrades, and laundry facilities. Equipment financing allows you to fund these purchases separately, preserving your working capital for operations. Equipment loans are secured by the equipment itself, making them easier to qualify for than unsecured options.
A business line of credit gives hotel owners revolving access to capital for operational needs, seasonal cash flow gaps, and unexpected expenses. Unlike a term loan, you only pay interest on the amount you draw, making a line of credit a cost-effective tool for managing day-to-day business needs.
Pre-opening expenses and the first months of operation often require more cash than new franchisees expect. Small business loans and working capital products help bridge the gap between opening day and reaching stable occupancy levels.
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Apply Now →SBA loans are the go-to financing vehicle for many hotel franchise owners, particularly those acquiring or developing properties in the $2 million to $15 million range. The SBA's backing reduces lender risk, enabling better terms for borrowers who might not qualify for conventional financing alone.
The SBA's franchise registry includes Hilton brands, which means lenders do not need to conduct as extensive a review of the franchise agreement. This streamlines the approval process significantly. Additionally, the SBA's guidelines allow for lower equity injections (typically 10-20%) compared to conventional hotel loans, which can require 25-35% down.
As reported by CNBC, SBA loans have been a critical lifeline for small business owners in capital-intensive industries, including hospitality. The government guarantee component (up to 85% on loans under $150,000 and 75% on loans above) gives lenders confidence to approve deals they might otherwise decline.
| Feature | SBA 7(a) | SBA 504 |
|---|---|---|
| Max Loan Amount | $5 million | $5.5 million (CDC portion) |
| Down Payment | As low as 10% | As low as 10% |
| Use of Funds | Broad (real estate, equipment, working capital) | Fixed assets (real estate, major equipment) |
| Repayment Term | Up to 25 years (real estate) | 20-25 years |
| Rate Type | Variable or fixed | Fixed (CDC portion) |
Our SBA loan specialists at Crestmont Capital can help you determine which program best fits your project structure, timeline, and financial profile.
Qualifying for hotel franchise financing requires meeting the standards of both the lender and the franchisor. Understanding these requirements upfront helps you prepare a stronger application and avoid surprises.
Most commercial lenders and SBA-approved banks will evaluate the following criteria when underwriting a DoubleTree franchise loan:
In addition to lender requirements, Hilton evaluates prospective franchisees on their financial capacity, operational experience, and commitment to brand standards. Key Hilton requirements include:
Pro Tip: Strengthen Your Application
Partnering with an experienced hotel management company can significantly improve your chances of approval, especially if this is your first hotel franchise. Many lenders and franchisors view third-party management agreements as risk mitigation.
Crestmont Capital is rated the #1 business lender in the United States, and we have deep expertise helping hotel franchise owners navigate the complex world of hospitality financing. Our team understands the nuances of Hilton franchise agreements, hotel underwriting standards, and the specific challenges that DoubleTree franchisees face.
We offer a comprehensive suite of financing solutions tailored to hotel franchise owners at every stage of development:
We are not a one-size-fits-all lender. Our hotel franchise specialists take the time to understand your specific project, market, and financial situation before recommending a financing strategy. We work with our network of SBA-preferred lenders, commercial banks, and alternative capital providers to find the best possible terms for your deal.
Our clients benefit from:
Understanding how financing works in practice can help you plan more effectively. Here are three representative scenarios for DoubleTree franchise financing.
A developer acquires a 120-room independent hotel in a mid-size metro market for $8 million and plans to invest $4 million in renovations to convert it to a DoubleTree. Total project cost: $12 million.
Financing structure: SBA 504 loan covers $9.6 million (80% of project). The developer contributes $1.2 million in equity (10%) with a $1.2 million conventional first mortgage covering the remaining 10%. Monthly payments are manageable due to the 25-year amortization on the 504 portion.
An experienced hotel operator plans a 150-room DoubleTree in a growing suburban market. Total construction cost: $22 million.
Financing structure: Construction-to-permanent SBA 7(a) loan for $5 million combined with conventional commercial real estate financing for $12.5 million. The developer contributes $4.5 million in equity (approximately 20%). Equipment financing of $800,000 covers the FF&E package separately.
A multi-property hotel owner wants to add a DoubleTree to their portfolio. They have existing real estate they can leverage as additional collateral.
Financing structure: Cross-collateralized commercial real estate loan using equity from existing properties, combined with a business line of credit for pre-opening and ramp-up costs. The existing portfolio history significantly strengthens the underwriting.
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Apply Now →Applying for hotel franchise financing is a multi-step process that requires careful preparation. Here is what to expect and how to put your best foot forward.
Lenders will need to review a comprehensive package of financial information. Start gathering these documents early:
A strong hotel business plan is essential. Your plan should include:
Before formally applying to Hilton for a franchise agreement, getting pre-qualified with a lender gives you confidence in your budget and demonstrates financial seriousness to the franchisor. Crestmont Capital can provide a pre-qualification assessment quickly, often within 24-48 hours.
Once pre-qualified, your Crestmont Capital specialist will guide you through the full application process, coordinating with the lender on your behalf to minimize delays and maximize your chances of approval.
Hotel loan underwriting typically takes 30-90 days depending on loan type and project complexity. SBA loans may take longer due to government processing requirements. Your specialist will keep you informed throughout the process and help address any lender questions promptly.
Timing Tip
Start your financing process before you need the money. Hotel franchise financing can take 60-120 days from application to closing. Beginning early gives you negotiating leverage and reduces stress as your project timeline progresses.
The total investment for a DoubleTree by Hilton franchise typically ranges from approximately $29 million to over $100 million, depending on the size of the property, location, and whether you are building new or converting an existing hotel. The initial franchise fee is approximately $75,000 to $90,000.
What financing options are available for DoubleTree franchise owners?DoubleTree franchisees can access SBA 7(a) loans, SBA 504 loans, commercial real estate loans, construction loans, bridge loans, equipment financing, and business lines of credit. Most projects use a combination of these products to build an efficient capital stack.
Can I use an SBA loan to finance a DoubleTree franchise?Yes. Hilton franchise brands, including DoubleTree, are eligible for SBA 7(a) and SBA 504 loans. The SBA franchise registry recognizes Hilton, which simplifies the lending process. SBA loans are particularly useful for hotel conversions and smaller development projects.
What credit score do I need to get a hotel franchise loan?Most lenders require a minimum personal credit score of 680 for hotel franchise loans, with 700 or above preferred for SBA programs. A higher score generally leads to better interest rates and terms. If your score is below 680, it is worth spending time improving it before applying.
How much equity do I need to bring to a DoubleTree financing deal?Equity requirements vary by loan type. SBA 504 loans may require as little as 10% equity. Conventional commercial real estate loans typically require 25-35%. The specific amount depends on your credit profile, property type, market, and lender requirements.
Does Crestmont Capital specialize in hotel franchise financing?Yes. Crestmont Capital has significant experience helping hotel franchise owners across all major brands, including Hilton brands like DoubleTree. Our specialists understand the unique underwriting requirements of hotel projects and can guide you through the entire financing process.
What is the DoubleTree franchise royalty fee?The DoubleTree by Hilton royalty fee is approximately 5% of gross rooms revenue. In addition, franchisees pay a program services fee of approximately 4% of gross rooms revenue, which covers marketing, the Hilton Honors loyalty program, and distribution systems. Always verify current fee structures in Hilton's FDD.
Is prior hotel experience required to get a DoubleTree franchise loan?Prior hospitality experience is not always legally required, but it significantly improves your chances of approval with both Hilton and lenders. If you lack direct experience, partnering with an experienced hotel management company or bringing in an experienced operator can address this concern.
How long does it take to get approved for a hotel franchise loan?Approval timelines vary significantly by loan type. Pre-qualification can happen within 24-48 hours with Crestmont Capital. Full underwriting and approval for SBA loans typically takes 60-90 days. Conventional commercial real estate loans may close faster or slower depending on lender processes and project complexity.
Can I finance hotel furniture, fixtures, and equipment (FF&E) separately?Yes. Equipment financing is a popular and efficient way to fund hotel FF&E separately from real estate financing. This approach preserves working capital and may offer tax advantages through accelerated depreciation. Crestmont Capital offers competitive equipment financing for hotel franchise owners.
What is a debt service coverage ratio (DSCR) and why does it matter?DSCR is the ratio of your property's net operating income to its annual debt service (loan payments). Lenders use it to assess whether the property generates enough income to comfortably cover loan payments. Most hotel lenders require a minimum DSCR of 1.25x. A DSCR of 1.25x means the property earns $1.25 for every $1.00 of debt payments.
What documents do I need for a DoubleTree franchise loan application?Typical documentation includes: personal tax returns (3 years), business tax returns (3 years if applicable), personal financial statements, bank statements (6-12 months), a detailed business plan with financial projections, property appraisal (if existing property), construction plans and budget (if building), and your Hilton franchise agreement (or Letter of Intent).
Is it better to finance a hotel conversion or new construction?From a financing perspective, conversions are generally lower risk and easier to underwrite because there is existing operational history for the property. New construction carries more risk (construction delays, cost overruns, ramp-up period) but may offer greater long-term value if the market supports a new property. Your lender and Crestmont Capital specialists can help you evaluate both options.
What is RevPAR and why do hotel lenders care about it?RevPAR stands for Revenue Per Available Room, a key performance metric calculated by multiplying occupancy rate by average daily rate (ADR). Lenders use RevPAR benchmarks to assess a hotel's income potential compared to its competitive set and market. Strong projected RevPAR supports your loan application and financial projections.
Can I refinance my existing hotel property to fund a DoubleTree franchise?Yes. Cash-out refinancing of an existing property is a common strategy for experienced hotel owners looking to fund new franchise acquisitions. The equity you have built in your current properties can serve as the down payment or equity contribution for a new DoubleTree project. Crestmont Capital can help you evaluate this strategy and structure the right financing.
Your DoubleTree Franchise Financing Roadmap
The DoubleTree by Hilton franchise represents a significant but potentially rewarding investment in the upscale hotel segment. With the right financing strategy, experienced advisors, and a well-prepared application, the dream of owning a DoubleTree property is achievable for qualified investors and operators.
Crestmont Capital has helped countless hotel franchise owners navigate the complex world of hospitality financing. Whether you are exploring SBA loans, commercial real estate financing, equipment lending, or a comprehensive multi-product capital stack, our team has the expertise and lender relationships to find the best solution for your project.
Do not let financing complexity stand between you and your DoubleTree franchise. Contact Crestmont Capital today to start your journey toward hotel ownership with the confidence of having the nation's #1 business lender in your corner.
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Apply Now →Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.