Of the Comparable Embassy Suites hotels, how many were Company-Managed as of December 31, 2024?

According to Embassy Suites's 2025 Franchise Disclosure Document, as of December 31, 2024, there were 258 Embassy Suites hotels operating in the US. Of these, 220 were classified as "Comparable Hotels". Within this subset of comparable hotels, 32 were Company-Managed, meaning they were owned and/or managed by Hilton Worldwide or its affiliates, including franchised hotels. The remaining 188 comparable hotels were Franchisee-Managed, indicating they were managed by the franchisee or a non-Hilton Worldwide management company retained by the franchisee.

It is important to understand Embassy Suites's specific definition of "Comparable Hotels." To be classified as such, hotels must have been active and operating in the Embassy Suites system for at least one full calendar year as of the end of the current period, and open January 1st of the previous year. They also must not have undergone a change in brand or ownership type during the reported periods, sustained substantial property damage, undergone large-scale capital projects impacting common areas or guest rooms, or removed or added a substantial number of guest rooms. Finally, comparable results must be available for the hotel.

For a prospective franchisee, this information provides a snapshot of the management structure within the Embassy Suites system. Knowing the ratio of Company-Managed to Franchisee-Managed hotels can offer insights into the level of support and control exerted by the franchisor, as well as the opportunities for franchisee autonomy. Understanding the criteria for "Comparable Hotels" is also crucial for evaluating the financial performance data presented in Item 19, as this data is based on this specific subset of hotels. A potential franchisee should consider how their own hotel's characteristics and management plans align with these classifications when assessing the potential financial performance of their investment.