Who determines the room rates and prices of services and amenities at my Embassy Suites hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We may suggest room rates and pricing policies to the extent allowed by law. You will determine the room rates and the prices of the services and amenities that you offer to guests, except that we may establish maximum rates and prices for marketing and promotions if permitted by law. For the efficiency and consistency of our distribution programs, and to enable us to operate certain marketing and promotions (such as our Price Match Guarantee), we may also require that the rates and prices you advertise through certain distribution channels be the same as or better than the rates and prices you advertise through other distribution channels as permitted by law.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees have the authority to determine the room rates and prices for services and amenities offered at their hotels. However, this is subject to certain conditions and potential influences from the franchisor. Embassy Suites may suggest room rates and pricing policies where legally permissible and can establish maximum rates and prices for marketing and promotions, also where permitted by law.
To maintain consistency and efficiency in distribution programs, Embassy Suites may require that the rates and prices franchisees advertise through certain channels are the same as or better than those advertised through other channels, as permitted by law. This ensures that customers receive consistent pricing information across all platforms and that Embassy Suites can effectively manage its marketing and promotional efforts.
Embassy Suites also requires franchisees to install the Global Revenue Optimization (GRO) system, which provides pricing recommendations based on data analytics and forecasting. While franchisees are not obligated to adopt these recommendations, the GRO system offers valuable insights that can influence pricing decisions. The franchisor also has independent access to the franchisee's hotel information stored in the GRO system, which allows them to monitor pricing strategies and potentially offer further guidance or requirements. Therefore, while the franchisee has the final say, Embassy Suites has mechanisms in place to influence and potentially control pricing to some extent.