factual

What is the assessment rate for The Standardx when a guest is enrolled on-property in World of Hyatt?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

Brand Hotels must participate in, and pay all charges related to, the Hyatt Group's frequent guest loyalty program (the "Loyalty Program"), called the "World of Hyatt" program. The Hyatt Group assesses each Participating Hotel and certain other hotels an amount in the Hyatt Group's discretion to operate the Loyalty Program, which amount may change periodically. The assessment for each participating Brand Hotel (including the Hotel) is currently 4.5% of all eligible revenue generated at that hotel from members of the program (excluding applicable taxes) who provide their World of Hyatt member number when booking or 2.25% of that eligible revenue when a guest is enrolled on-property in World of Hyatt for that enrolling stay.

Source: Item 6 — Other Fees (FDD pages 20–36)

What This Means (2025 FDD)

According to The Standardx's 2025 Franchise Disclosure Document, participating hotels are required to participate in the World of Hyatt loyalty program. As part of this program, The Standardx hotels must pay an assessment fee based on revenue generated from program members.

The assessment rate is 4.5% of eligible revenue from World of Hyatt members who provide their member number when booking. However, a reduced rate of 2.25% applies to eligible revenue when a guest is enrolled in the World of Hyatt program on-property during their stay. This lower rate incentivizes on-site enrollment.

This assessment fee contributes to the operation of the World of Hyatt program. The Hyatt Group has the discretion to adjust this amount periodically. Franchisees should be aware of these ongoing fees as they impact the overall cost of operating a The Standardx franchise and should factor them into their financial projections. The FDD also mentions that the Hyatt Group has alliances with other companies like American Airlines and Headspace, but owners of participating hotels bear no cost from including these programs in the Loyalty Program.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.