What elements are included in the estimated initial investment for an Embassy Suites hotel?

According to Embassy Suites' 2025 Franchise Disclosure Document, the estimated initial investment for an Embassy Suites hotel encompasses a variety of expenses. These include the franchise application fee of $100,000, a property improvement plan fee ranging from $0 to $10,000, and costs for a market study and environmental assessment, which vary depending on the supplier. Real property costs also vary, while construction and leasehold improvement costs are estimated to be between $36,000,000 and $55,000,000. Designer and engineering fees range from $1,440,000 to $2,200,000.

Further, the initial investment includes furniture, fixtures, and equipment, estimated between $6,000,000 and $9,000,000, and inventory and operating equipment ranging from $404,000 to $1,097,000. Signage costs range from $27,500 to $110,000. Franchisees must also account for computer hardware and software systems, with costs between $77,071 and $157,679, a guest internet access system ($84,519 to $123,517), and a connected room system ($40,180 to $48,020). The Delphi Sales and Events system costs between $900 and $41,000.

Additional costs include required pre-opening training ($5,000 to $17,500), an ADA consultant fee ($2,500 to $15,000), and potential construction/renovation extension fees ($0 to $10,000). Insurance costs vary, while organizational expenses range from $75,000 to $285,104. Permits and licenses are a significant expense, estimated between $540,000 and $825,000, and miscellaneous pre-opening and project management expenses range from $1,080,000 to $1,650,000. Contingencies are estimated between $3,600,000 and $5,500,000, with additional funds ranging from $600,000 to $1,000,000. An Eforea Spa initial fee can range from $0 to $25,000, with additional funds for spa implementation ranging from $0 to $4,950,000. Other required pre-opening services fees amount to $6,000. The total estimated initial investment ranges from $50,082,670 to $82,170,820; however, this excludes real estate costs, market study, insurance, interest, or separately identified costs of improvements under a conversion, re-licensing, or change of ownership license.

Prospective Embassy Suites franchisees should note that these figures are estimates and the actual costs can vary significantly based on factors such as location, the scope of renovations (for conversions), and specific project management decisions. The FDD advises franchisees to independently investigate these costs and consult with business advisors to make informed decisions. The wide range in costs for items like construction, furniture, and pre-opening expenses highlights the importance of thorough due diligence and careful planning.