FRANCHISE DISCLOSURE DOCUMENT HAMPTON INNS ...

may be greater. (See Item 5 for circumstances where the Development Services Fee will be greater).
We do not finance any fee.
2. If you apply to convert an existing hotel to a Hampton Inn or a Hampton Inn & Suites hotel or
apply for a change of ownership or other re-licensing, we charge a PIP fee. The PIP fee is nonrefundable.
In rare situations which probably do not apply to you, we may waive the PIP fee. We
occasionally apply the PIP fee towards payment of your Development Services Fee.
3. For all new Hampton Inn and Hampton Inn & Suites hotels, we recommend and may require a
market study from a nationally-recognized independent firm which discusses the competition for your
proposed hotel, together with a minimum five year operating pro forma from you, based upon the
marketing study, showing your anticipated operating results. While we do not require prospective
licensees who are converting existing hotels to obtain a market study, occasionally we may
encourage a prospective licensee to commission a market study to evaluate the economic
consequences of conversion. Our acceptance of the market study with a pro forma is not a financial
performance representation on our part or a ratification of the projections performed by the consultant.
(See Items 1 and 11).
4. Before you purchase the land, you should – at a minimum – consider obtaining a Phase 1
environmental assessment to determine the environmental condition of the land. Based on this Phase
1 report, additional investigations and tests may be necessary before you make your purchase
decision. Many lenders will require a Phase 1 report before lending purchase money.
5. We cannot estimate real estate costs. These costs vary widely by reason of location, size of
parcel, competitive market conditions and type of interest acquired. Typical locations for a Hampton
Inn hotel include suburban office parks and airport and commercial markets. Typical locations for a
Hampton Inn & Suites hotel include suburban office parks and commercial, destination and resort
markets.
6. We have estimated costs based on an 80-room Hampton Inn hotel with a building area of
47,489 square feet, a 101-room Hampton Inn & Suites hotel with a mix of 70 guest rooms and 31
guest studio suites and a building area of 60,845 square feet, and a 52-room Hampton Inn prototype
hotel with a building area of 24,485 square feet. Construction costs may vary due to unusual
conditions associated with site preparation, foundations, etc.
7. In a Change of Ownership, Re-licensing or Conversion situation, you will incur costs to bring
your existing property into conformity with the Hampton Inn System as specified in your Franchise
License Agreement. We cannot estimate these costs at this time as they vary significantly based upon
the amount, type and physical condition of the hotel's existing property, fixtures, equipment,
furnishings, furniture, signage, and similar items.
8. These amounts include the cost of the telephone system.
9. Signs include freestanding signs and primary identification for the building. The amount
includes installation, freight, foundation and wiring. You must install, display, and maintain signage
displaying or containing the Licensed Brand name and other distinguishing characteristics in
accordance with plans, specifications and standards we establish for System hotels. You must
purchase exterior signage from a vendor currently licensed by us. You may contact your Architecture
& Construction representatives for a current list.
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March 31, 2011 Hampton
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