What was the amount of franchise royalty fees collected by Embassy Suites in 2022?

According to Embassy Suites's 2025 Franchise Disclosure Document, the franchise royalty fees collected in 2022 amounted to $1,184,827. This figure represents the revenue Embassy Suites generated from its franchisees based on a percentage of the hotels' monthly gross room revenue, and potentially a percentage of gross food and beverage revenues, and other revenues. These fees are a primary revenue stream for Embassy Suites, reflecting the ongoing services and brand support provided to its franchisees.

For a prospective Embassy Suites franchisee, understanding the royalty fee structure is crucial. These fees are typically calculated as a percentage of gross revenues, meaning that as a franchisee's revenue increases, so do the royalty payments to Embassy Suites. The FDD also indicates that consideration paid to incentivize hotel owners to enter into franchise agreements is amortized over the life of the contract as a reduction to franchise royalty fees.

It's also important to note that the $1,184,827 represents only one component of Embassy Suites's total revenues. In 2022, Embassy Suites also collected $39,881 in franchise sales and change of ownership fees, and $4,757 in franchise termination fees and other revenues. These additional fees contribute to the overall financial performance of Embassy Suites and highlight the various ways in which the company generates revenue from its franchise system.