For an Embassy Suites franchise, what is the estimated range for Construction and Leasehold Improvement Costs?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
IMATED INITIAL INVESTMENT**
YOUR ESTIMATED INITIAL INVESTMENT EMBASSY SUITES (176 Suites)
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Franchise Application Fee | $100,000 | Lump |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the estimated initial investment for construction and leasehold improvement costs ranges from $36,000,000 to $55,000,000. These costs are paid to suppliers as agreed upon. This estimate is for a hotel with required elements such as food and beverage and recreational facilities.
Several factors can influence the actual amount spent on construction and leasehold improvements for an Embassy Suites franchise. These include the size and location of the property, the quality and quantity of purchased items, the terms of purchase agreements, and fluctuations in the costs of materials and labor. The FDD also notes that these estimates do not account for local requirements like earthquake requirements or impact fees, which could further increase costs.
Prospective franchisees should carefully consider these variables and conduct thorough independent investigations to determine the specific costs associated with their project. Understanding these costs is crucial for accurate financial planning and ensuring the long-term viability of the Embassy Suites franchise.