What was the average room rate for all comparable Embassy Suites hotels in 2024?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels which met or | 59/31.4% | 58/30.9% | | exceeded Average Room Rate | | | | Number & Percentage of Comparable Franchisee-Managed Hotels which met or | 86/45.7% | 87/46.3% | | exceeded Median Room Rate | | |
Source: Hilton
| Room Rate | 2023 | 2024 | |---|---|---| | Average Room Rate of all Comparable Hotels | $182.63 | $184.12 | | Median Room Rate of all Comparable Hotels | $168.88 | $171.32 | | Number & Percentage of Comparable Company-Managed Hotels which met or | 16/50.0% | 17/53.1% | | exceeded Average Room Rate | | | | Number & Percentage of Comparable Company-Managed Hotels which met or | 24/75.0% | 23/71.9% | | exceeded Median Room Rate | | | | Number & Percentage of Comparable Franchisee-Managed Hotels which met or | 59/31.4% | 58/30.9% | | exceeded Average Room Rate | | | | Number & Percentage of Comparable Franchisee-Managed Hotels which met or | 86/45.7% | 87/46.3% | | exceeded Median Room Rate | | | Source: Hilton
The Room Rate for all Comparable Hotels above ranged from $116.58 to $385.46 in 2023, and from $109.57 to $375.87 in 2024. The Occupancy rate for all Comparable Hotels ranged from 49.6% to 95.9% in 2023, and from 47.9% to 95.6% in 2024.
The following charts show the Occupancy Index and RevPAR Index for Comparable Hotels, open as of January 31, 2024, and the number and percentage of Company-Managed and Franchisee-Managed Comparable Hotels that met or exceeded the average. Occupancy Index and RevPAR Index calculations are based on competitive set data provided by STR, LLC and its affiliates (collectively "STR"), an independent research firm that provides information to the hotel industry.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 87–92)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the average room rate for all comparable hotels in 2024 was $184.12. The median room rate for all comparable hotels was $171.32. Also, the average room rate for all New Generation Comparable Hotels was $205.12, with a median room rate of $184.62. The comparable hotels consist of properties that have been operating in the Embassy Suites system for at least one full calendar year as of the end of the current period, open January 1st of the previous year. They also have not undergone a change in brand or ownership type during the current or comparable periods reported. They also 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.
For prospective franchisees, this data provides a benchmark for understanding the potential revenue generation of an Embassy Suites hotel. The average room rate is a key indicator of the pricing strategy and market positioning of the brand. It is important to note that these figures represent averages across a range of properties, and individual hotel performance may vary based on location, competition, and management effectiveness.
The FDD also provides the range of room rates for comparable hotels, which was $109.57 to $375.87 in 2024. This range gives a better picture of the possible variability in room rates across different Embassy Suites locations. Furthermore, the average room rate for New Generation Comparable Hotels was $205.12 in 2024, which is higher than the average for all comparable hotels. This suggests that newer hotels or those that have been recently renovated may command higher room rates.
It is essential for potential franchisees to conduct their own market research and feasibility studies to determine the potential room rates and occupancy levels that can be achieved in their specific location. Factors such as local demand, competition, and economic conditions can significantly impact a hotel's financial performance. The franchisor recommends consulting with professional advisors and obtaining a market study to project potential sales, costs, income, and profits.