Does Hilton collect money for the Hilton Honors program for the Embassy Suites brand?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
r logo, trademark or service mark from a supplier approved by us. We may derive profit from such sales.
We did not sell any goods, services or supplies to our franchisees in 2024. Hilton collects money for the Hilton Honors program for all of our brands, but transmits this money to Hilton Honors Worldwide and we do not record it as revenue. For the fiscal year ended December 31, 2024, Hilton and its other affiliates (including Hilton Honors Worldwide) had revenues from sales of goods, services, computer systems and/or supplies to franchisees of Hilton's subsidiaries of $1,101,161,898 (for clarity
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–50)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Hilton collects money for the Hilton Honors program for all of its brands. However, the collected funds are then transmitted to Hilton Honors Worldwide, and Hilton does not record this as revenue. For the fiscal year ending December 31, 2024, Hilton and its affiliates, including Hilton Honors Worldwide, reported revenues of $1,101,161,898 from sales of goods, services, computer systems, and/or supplies to franchisees of Hilton's subsidiaries. This figure excludes royalty and program fees, pass-through commissions, and HSM amounts.
This means that while Embassy Suites franchisees participate in the Hilton Honors program and contribute to its revenue through customer activity, the funds are managed separately by Hilton Honors Worldwide. The substantial revenue generated from sales to franchisees indicates the scale of the supply chain and service network supporting the Hilton franchise system.
For a prospective Embassy Suites franchisee, this highlights the importance of understanding the Hilton Honors program's impact on customer loyalty and hotel operations. While Hilton manages the financial aspects of the program, franchisees benefit from increased customer traffic and brand recognition associated with Hilton Honors. Franchisees should inquire about the specific costs and benefits associated with the Hilton Honors program to fully assess its value to their business.