What was the average room rate for all New Generation Comparable Embassy Suites hotels in 2023?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Room Rate | 2023 | 2024 |
|---|---|---|
| Average Room Rate of all New Generation Comparable Hotels | $202.23 | $205.12 |
| Median Room Rate of all New Generation Comparable Hotels | $184.44 | $184.62 |
| Number & Percentage of New Generation Comparable Company-Managed Hotels | 3/100.0% | 3/100.0% |
| which met or exceeded Average Room Rate | ||
| Number & Percentage of New Generation Comparable Company-Managed Hotels | 3/100.0% | 3/100.0% |
| which met or exceeded Median Room Rate | ||
| Number & Percentage of New Generation Comparable Franchisee-Managed Hotels | 13/29.5% | 13/29.5% |
| which met or exceeded Average Room Rate | ||
| Number & Percentage of New Generation Comparable Franchisee-Managed Hotels | 21/47.7% | 21/47.7% |
| which met or exceeded Median Room Rate |
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 New Generation Comparable Hotels in 2023 was $202.23. This data is based on information routinely reported to Hilton Worldwide by individual System Hotels. The FDD specifies that of the 220 comparable hotels, 47 were opened during or after 2015, classifying them as 'New Generation Comparable Hotels'.
It's important to note that this average is calculated from a subset of Embassy Suites hotels that represent the most recent generation or 'prototype' of the brand. These hotels, opened in or after 2015, may reflect updated design standards, amenities, or operational efficiencies compared to older locations. This distinction is crucial for prospective franchisees as it provides insight into the potential performance of newer Embassy Suites properties.
The FDD also indicates the median room rate for these New Generation Comparable Hotels in 2023 was $184.44. The median provides another measure of central tendency, which is less sensitive to extreme values than the average. Furthermore, the room rates for these hotels ranged from $140.27 to $316.05 in 2023, illustrating the variability in room rates among different locations. A prospective franchisee should consider these ranges and the factors influencing them, such as location, market demand, and competition, when evaluating the potential financial performance of a specific Embassy Suites hotel.
Prospective franchisees should also note that the financial performance of a hotel can be influenced by various factors, including competition, the age and customer base of competing hotels, the amenities offered, and the demand for hotel accommodations in the area. Embassy Suites recommends consulting with professional advisors and conducting a market study to assess the potential sales, costs, income, and profits for a specific location.