What was the average room rate for all comparable Embassy Suites hotels in 2023?

According to Embassy Suites's 2025 Franchise Disclosure Document, the average room rate for all comparable hotels in 2023 was $182.63. This data is based on Embassy Suites hotels operating in the U.S., excluding its territories and possessions. The term 'Comparable Hotels' includes those that were active and operating in the system for at least one full calendar year as of the end of the current period, open January 1st of the previous year, have not undergone a change in brand or ownership type during the current or comparable periods reported, have not sustained substantial property damage or undergone large-scale capital projects impacting common areas and/or available guest rooms, have not removed or added a substantial number of guest rooms, or for which comparable results are not available.

It's important to note that this average is calculated from a pool of 220 hotels that meet specific criteria to ensure comparability. Of these 220 hotels, 32 were Company-Managed and 188 were Franchisee-Managed. However, the average room rate presented does not differentiate between company-managed and franchisee-managed hotels; it represents an overall average for all comparable hotels. The FDD also provides the range of room rates for all Comparable Hotels, which was from $116.58 to $385.46 in 2023.

For prospective franchisees, this average room rate serves as a benchmark to evaluate potential revenue and financial performance. However, Embassy Suites cautions that individual results may vary, and there is no assurance that a franchisee will achieve the same room rates. Factors such as local competition, the age and facilities of the hotel, and the demand for hotel accommodations in the specific geographic area can significantly impact a hotel's financial performance. Therefore, Embassy Suites recommends consulting with professional advisors and conducting a market study to assess the potential room rates and overall financial viability of a specific location before entering into any agreement.

Additionally, the FDD includes data on 'New Generation Comparable Hotels,' which are hotels opened during or after 2015. The average room rate for these newer hotels was $202.23 in 2023, higher than the average for all comparable hotels. This may indicate that newer hotels or those with the latest amenities and designs tend to command higher room rates. Franchisees should consider these factors when evaluating the potential return on investment for a new or existing Embassy Suites hotel.