Canopy Hotel Details
The total investment necessary to begin operation of a newly constructed 200-room Canopy hotel, excluding real property, is $42,204,655 to $99,412,600, including up to $408,600 that must be paid to Hilton or to its affiliates.
Market and Competition
Canopy hotels compete in the upper upscale market of hotels and cater to business travelers, families, vacationers and groups depending on the market and location. The market for its services will depend on the property's location, size and its type of operation. Canopy franchisees seek customers and business referrals from the local community and typically solicit business from conventions, and tour and travel groups, on a regional and national level. In general, franchisees will compete with national hotel and motel chains and independently operated local hotels and restaurants offering similar types of hotel rooms and food and beverage services to the same clientele. The meeting facilities of a Canopy hotel will compete with national and independent hotels in its own and other regions.
Franchise Application Fee
Franchise Application Fee for a New Development or Conversion is $75,000 plus $400 for each guest room/suite over 250. If franchisee increases proposed number of guest rooms/suites at any time after Application is approved and before the hotel opens, franchisee must obtain Hilton's approval and pay any additional Franchise Application Fee. The Franchise Application Fee for a re-licensing to the same owner is $75,000. The Franchise Application Fee for a Change of Ownership is $125,000.
Product Improvement Plan Fee
To convert an existing hotel to a Canopy hotel or apply for a Change of Ownership or other re-licensing of an existing Canopy hotel, Hilton will charge an additional non-refundable fee of $7,500 to prepare the product improvement plan ("PIP”) for the hotel. The fee must be paid prior to PIP inspection.