What costs are included in the furniture, fixtures, and equipment estimates for a new Embassy Suites hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
extent of the food and beverage service offered, restaurants, lounges and supporting facilities. Estimates for new hotels include the cost of furniture, fixtures and equipment for guest rooms, corridors, all public areas, kitchen equipment, laundry equipment, and telephone systems. If you are converting an existing hotel, your costs will most likely be lower, but you must conform guest rooms, public areas, the exterior, and all other areas to our Brand Standards.
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- Inventory includes food and beverages and other immediately consumable items such as fuel, soap, cleansing material, matches, stationery and similar items. Operating equipment includes such items as chinaware, glassware, linens, silverware and uniforms.
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- Signs include freestanding signs and primary identification for the building.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the estimated initial investment for furniture, fixtures, and equipment for a new hotel ranges from $6,000,000 to $9,000,000. These estimates encompass the costs associated with furnishing guest rooms, corridors, all public areas, kitchen equipment, laundry equipment, and telephone systems. The actual cost can vary based on the number and type of guest rooms, such as the mix of double and king rooms, and the extent of food and beverage services offered, including restaurants, lounges, and supporting facilities.
For franchisees considering converting an existing hotel, the costs for furniture, fixtures, and equipment may potentially be lower. However, these franchisees must ensure that all guest rooms, public areas, the exterior, and all other areas conform to Embassy Suites' Brand Standards. This conformance may require additional investment to upgrade existing furniture, fixtures, and equipment.
Prospective franchisees should carefully consider these factors and conduct thorough due diligence to determine the specific costs applicable to their situation. The FDD advises franchisees to independently investigate the cost of all items before executing the Franchise Agreement, as these costs will significantly impact their overall investment. Understanding these variables is crucial for accurate financial planning and ensuring the new or converted hotel meets the required brand standards.