Must an Embassy Suites franchisee honor confirmed reservations referred through the Reservation Service?

According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees are required to participate in and use the brand's Reservation Service. This includes any additions, enhancements, supplements, or variants that Embassy Suites or its affiliates develop or adopt. A critical aspect of this participation is that franchisees must honor and give first priority on available rooms to all confirmed reservations referred to their hotel through the Reservation Service. Furthermore, the Reservation Service is the only reservation system that franchisees may use for outgoing reservations referred by their hotel to other hotels or reservation services designated by Embassy Suites or its affiliates. This means franchisees cannot use any other reservation service for outgoing referrals.

This requirement ensures consistency and quality control across the Embassy Suites system. By centralizing reservations through a single service, Embassy Suites aims to maintain brand standards and optimize occupancy rates for all franchisees. It also allows Embassy Suites to manage customer relationships and loyalty programs more effectively. For a prospective franchisee, this means they must rely on the Reservation Service for both incoming and outgoing referrals, which could limit their flexibility in using alternative reservation platforms.

The franchisee must prioritize reservations coming through the Embassy Suites Reservation Service. This could potentially displace direct bookings or reservations from other sources if the hotel is near capacity. The franchisee needs to be aware of this prioritization and manage their inventory accordingly to avoid potential conflicts or customer dissatisfaction.

In practical terms, an Embassy Suites franchisee must integrate the Reservation Service into their hotel operations and train staff to prioritize these reservations. They should also understand the terms and conditions of the Reservation Service, including any fees or charges associated with its use. While this requirement ensures brand consistency and potentially drives business to the hotel, it also places restrictions on the franchisee's autonomy in managing reservations.