Are early arrival fees included in the Upsell Revenue calculation for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
As part of these other corporate services, the Hyatt Group currently provides "upsell" services for Brand Hotels and other Participating Hotels, offering room upgrades to guests having reservations at the Hotel before they arrive. If the guest purchases the room upgrade, you must pay the Hyatt Group a commission on the additional revenue. That commission currently is 5% of the difference between the Gross Rooms Revenue at the upgraded rate and the Gross Rooms Revenue at the rate the guest originally booked, excluding taxes (the "Upsell Revenue"). The Upsell Revenue currently does not include any additional revenue resulting from the upgrade, such as early arrival fees and additional revenue derived from upgrades to the F&B Operations.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, early arrival fees are not included in the Upsell Revenue calculation. The Upsell Revenue is the basis for calculating the commission The Standardx franchisees must pay to the Hyatt Group for room upgrades purchased by guests before arrival. The commission is 5% of the difference between the Gross Rooms Revenue at the upgraded rate and the Gross Rooms Revenue at the originally booked rate, excluding taxes.
The 2025 FDD specifies that the Upsell Revenue does not include any additional revenue resulting from the upgrade, such as early arrival fees. It also excludes additional revenue derived from upgrades to the Food and Beverage (F&B) Operations. This means that while The Standardx franchisees must pay a commission on the room upgrade revenue itself, they do not pay a commission on any ancillary revenue generated by the upgrade, such as fees for early check-in or increased spending on food and beverages.
For a prospective The Standardx franchisee, this is a notable benefit. It allows them to retain the full revenue from these additional services and fees, potentially increasing their overall profitability. This exclusion could incentivize franchisees to actively promote and sell room upgrades, as they can directly benefit from the associated incremental revenue streams beyond the core room rate difference.