FRANCHISE DISCLOSURE DOCUMENT HAMPTON INNS ...

percentage of the eligible guest folio, depending on the type of promotion. Similarly, bonus airline
mileage credit that guests earn as a result of promotions that your hotel agrees to participate in will
result in an additional fee payable by your hotel – amount varies by participating airline partner
program. All program costs are subject to change.
In addition to the basic program fees outlined above, hotels are also responsible for the cost of certain
guest amenities provided to HHonors members. Hotels must allocate a certain percentage of room
inventory for free night reward redemption by HHonors members as specified by the HHonors
program. Hotels will be reimbursed for these reward redemptions on the same basis as other similarly
situated participating hotels as specified by the HHonors program.
ITEM 7
ESTIMATED INITIAL INVESTMENT 1
YOUR ESTIMATED INITIAL INVESTMENT
52 ROOM HAMPTON INN PROTOTYPE
TABLE 1
(1)
Type of Expenditure
(2)
Amount
(3)
Method Of
Payment
(4)
When Due
(5)
To Whom Payment
is to be Made
Development Services Fee $65,000
Note 1
Lump Sum
With license
application
Us
Product Improvement Plan
$5,000 fee
Note 2
Lump Sum
Before preparation of
plan
Us
Market Study Note 3 As arranged As arranged Nationally recognized
independent
consulting firm
Phase 1 Environmental
Assessment
$0-$10,000
Note 4
As Arranged
Before you purchase
the land
Engineering or
consulting firm
Real Property Note 5 As Incurred As Incurred Suppliers
Construction/Leasehold
Improvements
New Development:
$2,500,000 to
$4,000,000
Note 6
--------------------------
-
Change of
Ownership, Relicensing
and
As Incurred As Incurred Suppliers
1 The expenses shown in these charts are for typical new hotels of the type and size shown. If you are
converting an existing hotel, your costs will most likely be lower. Your conversion costs will depend on the type,
age, physical structure, and condition of your hotel and its furnishings. Due to these variables, we cannot give
average conversion costs.
{000011-999987 00174938.DOC; 2}
March 31, 2011 Hampton
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