Verified — real FDD extraction
Not found in the SBA Franchise Directory — SBA financing may be unavailable; verify with your lender
DESTINATION BY HYATT
Other · independent · est. —
Destination by Hyatt is Hyatt's collection brand of independent upscale hotels and resorts that keep their own identities while using Hyatt's reservation and loyalty systems. A franchisee is a hotel owner or developer operating a large full-service property under the collection's standards, serving leisure and group travelers.
DESTINATION BY HYATT net unit count grew 0.0% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Too new to judge
Distress
5 franchised units over 3 disclosed years is not a track record — systems this early have realized only a fraction of their eventual failures. Judge the disclosures, not a verdict.
Exit rate · latest year
0.0%
fiscal 2025, per Item 20
Cost to open
$93.5M–$153.4M
Item 7 total investment range
SBA loan defaults
No loan record
no SBA 7(a)/504 loans found for this brand
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 0 of 4 franchised outlets left the system — a 0.0% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 14 | 14 | 14 |
| Opened | 2 | 1 | 1 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 14 | 14 | 14 |
| Net change | 0 | 0 | 0 |
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $100K franchise fee (Item 5) and a total investment of $93.5M–$153.4M (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$93.5M–$153.4M
all-in investment range
Franchise fee (Item 5)
$100K
upfront, one-time
Royalty (Item 6)
7%
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$70K
7% of sales, before profit
Over a 10-yr term
$700K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for DESTINATION BY HYATT with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for DESTINATION BY HYATT. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing DESTINATION BY HYATT's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →DESTINATION BY HYATT franchise questions, answered from the filings
What percentage of DESTINATION BY HYATT franchises closed last year?
In DESTINATION BY HYATT's latest FDD Item 20 (fiscal 2025), 0 of 4 franchised outlets left the system — an annualized exit rate of 0.0%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a DESTINATION BY HYATT franchise cost?
Per DESTINATION BY HYATT's 2026 FDD, buying in requires an initial franchise fee of $100K (Item 5) and a total initial investment of $93.5M–$153.4M (Item 7).
What royalty does DESTINATION BY HYATT charge?
DESTINATION BY HYATT charges an ongoing royalty of 7.0% of gross sales, per Item 6 of its 2026 FDD.
Does DESTINATION BY HYATT disclose earnings (Item 19)?
No — DESTINATION BY HYATT's 2026 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.