What constitutes 'under construction' for an Embassy Suites hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
For the Hotel to be considered under construction, you must have begun to pour concrete foundations for the Hotel or otherwise satisfied any site-specific criteria for "under construction" set out in the Addendum.
[If Adaptive Reuse, include: For the Hotel to be considered under construction, you must have: (a) submitted final plans to us, (b) received our approval of your final plans, (c) submitted to us a building permit for Hotel construction, and (d) substantially completed, to our satisfaction: (i) exterior demolition, if applicable, and (ii) interior
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, a hotel is considered 'under construction' when concrete foundations have begun to be poured for the hotel. Alternatively, the site-specific criteria for 'under construction' outlined in the Addendum to the franchise agreement must be satisfied.
For adaptive reuse projects, the criteria are more extensive. To be considered under construction, the franchisee must have (a) submitted final plans to Embassy Suites, (b) received approval of those final plans, (c) submitted a building permit for hotel construction, and (d) substantially completed, to Embassy Suites' satisfaction, both exterior demolition (if applicable) and interior demolition and construction of new permanent interior walls.
These requirements ensure that franchisees make tangible progress toward opening their Embassy Suites location and adhere to the brand's standards. The specific requirements in the Addendum allow for flexibility based on the unique characteristics of each site and project. Franchisees should carefully review the Addendum to understand the specific milestones required to meet the 'under construction' designation for their particular project.