What is the deadline for beginning reconstruction of an Embassy Suites hotel after it closes due to damage?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2.1 You must immediately inform us if the Hotel is damaged by fire or other casualty or event of Force Majeure. If the damage or repair requires closing the Hotel, you may choose to repair or rebuild the Hotel according to the Standards, provided you: begin reconstruction within six (6) months after closing and reopen the Hotel for continuous business operations as soon as practicable (but in any event no later than eighteen (18) months after the closing of the Hotel) and give us at least thirty (30) days' notice of the projected date of reopening. Once the Hotel is closed, you will not promote the Hotel as a System Hotel or otherwise identify the Hotel using any of the Marks without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, if an Embassy Suites hotel is damaged by fire, casualty, or a Force Majeure event that necessitates its closure, the franchisee has a specific timeframe to begin reconstruction to maintain their franchise agreement.
Specifically, the franchisee must begin reconstruction of the hotel within six months after the hotel's closure. Additionally, the franchisee is expected to reopen the hotel for continuous business operations as soon as is practically possible, but no later than eighteen months after the hotel's closure. The franchisee must also provide Embassy Suites with at least thirty days' notice of the anticipated reopening date.
Failure to adhere to these timelines could potentially lead to termination of the franchise agreement. Once the hotel is closed, the franchisee is prohibited from promoting the hotel as an Embassy Suites or using any of the brand's trademarks without prior written consent from Embassy Suites.