What is a PIP, and when is it prepared for a Caption By Hyatt conversion?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are converting an existing hotel from another brand to the Hotel System, we will inspect the hotel and prepare a PIP to provide details on our upgrade requirements. Each Comfort Letter Party must sign a comfort letter or similar agreement that we reasonably specify. (Sections 2.1 and 2.7 of Franchise Agreement)
- (2) Communicate our then current specifications and requirements for designing and developing a Brand Hotel, including the Design and Construction Standards. We will provide a briefing virtually, at our headquarters, or at another location we designate, to acquaint your managing owner or senior operations officer with our building process and support structure. If you are constructing a new Hotel at the site, you must design and construct the Hotel according to our Design and Construction Standards and Hotel System. If you are converting an existing hotel from another brand to the Hotel System, you must renovate the Hotel according to the PIP, which may reference some or all of our Design and Construction Standards and the Hotel System. The PIP is attached to the Franchise Agreement when we and you sign it. You may not make any material changes to plans set forth in the PIP (including any changes to any structural or life safety equipment or systems, the number and/or type of guest rooms or common areas, or any architectural features), without our prior written consent, which we will not unreasonably
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–65)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, a PIP, or Property Improvement Plan, provides details on the franchisor's upgrade requirements when converting an existing hotel from another brand to a Caption By Hyatt Hotel.
Specifically, if a prospective franchisee is converting an existing hotel to a Caption By Hyatt, Hyatt Franchising, L.L.C. will inspect the hotel and prepare the PIP. This document outlines the specific upgrades and renovations required to meet Caption By Hyatt's brand standards. The PIP may reference the Design and Construction Standards and the Hotel System standards.
The PIP is attached to the Franchise Agreement when both parties sign it, making it a crucial document for understanding the financial and operational obligations associated with the conversion. The franchisee cannot make material changes to the PIP without prior written consent from Caption By Hyatt, especially concerning structural, life safety equipment, guest rooms, common areas, or architectural features. This ensures brand consistency and quality across all Caption By Hyatt locations.