What factors does The Standardx consider when approving a site for a Hotel?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you begin operating the Hotel, we or another member of the Hyatt Group will:
-
- Approve a site for the Hotel that meets our requirements. We do not provide any site selection assistance or specify an area within which you may look for a site. We do not own hotel premises and lease them to franchisees. In determining whether to approve a site, we consider, among other things, demographic characteristics, traffic patterns, parking, visibility, allowed signage, the predominant character of the neighborhood, competition from other lodging facilities in the area, the nature of other businesses near the site, and other commercial characteristics (including the purchase price or rental obligations and other lease terms) and the proposed site's size, appearance, and other physical characteristics. You may not develop a Brand Hotel at a site that we do not approve. We and you will not sign a Franchise Agreement until you have located and we have approved the Hotel's site. 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)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 48–64)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, site approval is a crucial step before a franchisee can begin operating a hotel. The Standardx does not offer site selection assistance or lease premises to franchisees. Instead, the franchisee is responsible for finding a potential location that The Standardx must then approve. The Franchise Agreement cannot be signed until The Standardx approves the hotel site.
When evaluating a site, The Standardx considers a variety of factors. These include demographic characteristics of the area, traffic patterns, availability of parking, visibility of the site, and allowed signage. The company also assesses the character of the neighborhood, the level of competition from other lodging facilities, the nature of nearby businesses, and other commercial characteristics such as purchase price, rental obligations, and lease terms.
Furthermore, The Standardx evaluates the physical characteristics of the proposed site, including its size and appearance. For franchisees converting an existing hotel from another brand, The Standardx will inspect the property and prepare a Property Improvement Plan (PIP) detailing required upgrades. This PIP ensures the conversion aligns with The Standardx's standards. The Standardx retains the right to disapprove any site that does not meet its requirements, emphasizing the importance of thorough due diligence and communication with the franchisor during the site selection process.