FRANCHISE DISCLOSURE DOCUMENT HAMPTON INNS ...

You must provide (at your cost) the communications vehicles necessary for the support and operation
of OnQ, currently including wide area network connections to the Reservations Service, electronic
mail and Internet via HSS’s converged OnQ/HSIA connection (INCS) and/or dial-up connection and
routers. The cost for the OnQ portion of the OnQ/HSIA connectivity will be billed to the hotel by Hilton
Worldwide or HSS, at $350 per month. OnQ/HSIA connection billing will begin at the time the circuit is
installed. This should occur approximately 45 days prior to opening. You will be responsible for any
fees that are assessed by the OnQ/HSIA connection installation vendor, including rescheduling or
cancellation fees. Rescheduling and cancellation fees typically range from $500 to $2,000 per incident
depending on circumstances and vendors.
Hilton Worldwide currently utilizes Microsoft Exchange for electronic mail service. The initial one time
set-up fee is $250. For each account, there is an additional $68 one time set-up fee per user. The
approximate ongoing monthly cost for this service is currently $9.20 per user per month for all users.
We currently pay for the cost of three email accounts per month per hotel. You pay for all additional
email accounts which are billed to the hotel. (See Item 6).
We encourage (and may require) you to sign a hardware maintenance contract for OnQ. If you sign a
maintenance contract for OnQ, you must pay the first month’s fee within 30 days following shipment of
the computer equipment. Although subject to change, in 2010, these fees ranged from $500 to
$1,200 per month.
The monthly maintenance fees for the OnQ/HSIA connection equipment and connections (to the
CRS, electronic mail and the Internet), as well as for OnQ support as described in the previous two
paragraphs, are subject to increase by us on an annual basis. These fees are non-refundable.
You must provide high speed internet access (“HSIA”) for all guest rooms and meeting rooms at your
hotel in accordance with brand standards. You must purchase and install hardware and software to
meet this HSIA requirement from Hilton Worldwide (or its designee) in addition to the hardware and
software for OnQ. The additional hardware, software and support must meet Hilton Worldwide’s
requirements and specifications. You must provide a dial in line for out-of-band equipment
management at your own cost.
The hardware for HSIA will be provided by third parties chosen by HSS, installed by HSS or a third
party that we designate, and maintained by HSS or a third party that HSS designates. Under rare
circumstances, we may permit you to purchase the hardware from a third party vendor, but if you do,
you must pay Hilton Worldwide or HSS for all its reasonable expenses in determining that the
equipment conforms to its specifications including configuration costs; installation costs; reasonable
travel and other expenses of Hilton Worldwide’s or HSS’ employees and vendors who perform
installation services; necessary communication vehicles (phone lines, network connections); and
installation fees for connection to communication vehicles. In 2010, costs for work to ensure that HSIA
hardware from third party vendors met the technical criteria ranged from $5,000 to $10,000 depending
upon a licensee’s location, local connection charges and the amount of HSIA equipment purchased
for the hotel.
We currently estimate that it will cost between $19,000 and $26,000 for a 52-room hotel, between
$21,000 and $27,000 for an 80-room hotel, and between $37,000 and $50,000 for a 101 room hotel,
depending on the type of solution you deploy. This estimate (exclusive of any taxes) is based on a
hotel with the number of guest rooms specified above and currently includes hardware, software,
installation, and certain other costs and fees, with the exception of structured cable and cabling
installation (Category 5e or Category 6). (See Items 7 and 11.)
{000011-999987 00174938.DOC; 2}
March 31, 2011 Hampton
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