What are the criteria that would exclude an Embassy Suites hotel from being considered a 'Comparable Hotel'?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
"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.
As of December 31, 2024, there were a total of 258 Embassy Suites branded hotels operating in the US. Of these 258 hotels, 220 were classified as Comparable Hotels.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 87–92)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, several criteria determine whether a hotel is considered a 'Comparable Hotel' for financial performance representation purposes. These criteria are important because Embassy Suites uses the performance data of 'Comparable Hotels' to provide prospective franchisees with an understanding of potential financial outcomes.
Specifically, to be considered a 'Comparable Hotel', an Embassy Suites location must meet all of the following conditions: it 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. Additionally, the hotel must not have undergone a change in brand or ownership type during the current or comparable periods reported. Furthermore, the hotel should not have sustained substantial property damage or undergone large-scale capital projects impacting common areas and/or available guest rooms. The hotel also must not have removed or added a substantial number of guest rooms. Finally, comparable results must be available for the hotel.
If an Embassy Suites hotel fails to meet any of these criteria, it will not be included in the 'Comparable Hotels' group, and its financial performance data will not be used in the financial performance representations provided to potential franchisees. This ensures that the data presented is relevant and representative of hotels with stable operating conditions, consistent branding, and without significant disruptions that could skew financial results. As of December 31, 2024, there were a total of 258 Embassy Suites branded hotels operating in the US, and 220 of these were classified as Comparable Hotels.