What criteria define 'Comparable Hotels' for Embassy Suites in Item 19?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
performance at a particular location or under particular circumstances.
The charts below set forth certain historic performance information for Embassy Suites hotels operating in the US (but not its Territories or Possessions).
In this Item 19, the term "Company-Managed" refers to hotels owned and/or managed by Hilton Worldwide or its affiliates, including franchised hotels. "Franchisee-Managed" refers to hotels that are franchised and are managed by the franchisee or a non-Hilton Worldwide management company retained by the franchisee. "Comparable Hotels" means those that: (i) were active and operating in our system for at least one full calendar year as of the end of the current period, and open January 1st of the previous year; (ii) have not undergone a change in brand or ownership type during the current or comparable periods reported; (iii) have not sustained substantial property damage or undergone large-scale capital projects impacting common areas and/or
available guest rooms; (iv) have not removed or added a substantial number of guest rooms; or (v) for which comparable results are not available.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 87–92)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, 'Comparable Hotels' are defined using specific criteria to ensure a fair comparison of financial performance. These criteria are used in Item 19, which presents historical performance data. For a hotel to be considered a 'Comparable Hotel', it must meet all of the following requirements.
First, the hotel must have been active and operating within the Embassy Suites system for at least one full calendar year as of the end of the current reporting period, and it must have been open since January 1st of the previous year. Second, the hotel must not have undergone any changes in brand or ownership type during the current or comparable periods being reported. This ensures consistency in the data being compared.
Additionally, a 'Comparable Hotel' must not have sustained substantial property damage or undergone large-scale capital projects that significantly impacted common areas and/or available guest rooms. The hotel also must not have removed or added a substantial number of guest rooms during the period. Finally, the hotel must have available results that are comparable; if data is missing or unreliable, it cannot be included in the 'Comparable Hotels' group. As of December 31, 2024, Embassy Suites identified 220 hotels as 'Comparable Hotels' out of a total of 258 operating in the US.