What was the amount of Embassy Suites franchise sales and change of ownership fees in 2024?

According to Embassy Suites' 2025 Franchise Disclosure Document, the franchise sales and change of ownership fees for the year 2024 amounted to $49,340. This figure represents the total of application, initiation, and other fees collected by Embassy Suites from new hotels entering the system, changes in hotel ownership, and contract extensions with existing hotels. These fees are typically fixed, collected upfront, and recognized as revenue over the term of the franchise contract.

For a prospective Embassy Suites franchisee, understanding these fees is crucial. These fees contribute to the overall revenue of the franchisor and reflect the activity in the franchise system, such as the addition of new locations or changes in existing ownership. The fees are not considered to include a significant financing component because they protect Embassy Suites from a hotel owner failing to fulfill their obligations under the franchise contract, including maintaining the hotel according to the franchisor's standards.

It's important to note that these fees are distinct from franchise royalty fees, which are based on a percentage of the hotel's monthly gross room revenue and potentially food and beverage revenues. Franchise sales and change of ownership fees provide an upfront revenue stream for Embassy Suites, while royalty fees represent ongoing income during the term of the franchise agreement. Franchise termination fees are charged when a franchise contract is terminated by the hotel owner and are generally recognized in the period the payment is received.