Can Embassy Suites divert reservations from a suspended hotel to other hotels in the system?

According to Embassy Suites' 2025 Franchise Disclosure Document, if Embassy Suites suspends a hotel from its Reservation Service due to a default, it has the right to divert reservations previously made for that hotel to other hotels within the Embassy Suites system or network. This is part of the interim remedies Embassy Suites can impose upon sending a written notice of default.

This means that if an Embassy Suites franchisee fails to meet the brand's standards or breaches the franchise agreement, Embassy Suites can take immediate action to protect the integrity of the brand and the network. One of these actions includes redirecting reservations from the non-compliant hotel to other, compliant hotels in the system. This can significantly impact the revenue of the suspended hotel, as reservations are a crucial source of income for hotels.

It is important to note that Embassy Suites' exercise of these interim remedies does not constitute a termination of the agreement, nor does it waive any breach by the franchisee. Furthermore, the franchisee is not entitled to any compensation for losses incurred as a result of Embassy Suites exercising its right to implement interim remedies. This provision highlights the importance of adhering to the franchise agreement and maintaining brand standards to avoid potential suspension and loss of reservation revenue.