For Embassy Suites hotels, what was the average room rate of all comparable hotels in 2023?

According to Embassy Suites's 2025 Franchise Disclosure Document, the average room rate for all comparable hotels in 2023 was $182.63. This data point is based on information from Embassy Suites hotels operating in the U.S., excluding its territories and possessions. The term "Comparable Hotels" includes those that were active and operating in the Embassy Suites system for at least one full calendar year as of the end of the current period, open January 1st of the previous year, have not undergone a change in brand or ownership, have not sustained substantial property damage or undergone large-scale capital projects, have not removed or added a substantial number of guest rooms, or for which comparable results are not available. As of December 31, 2024, 220 of the 258 Embassy Suites hotels operating in the U.S. were classified as Comparable Hotels.

For a prospective franchisee, this average room rate provides a benchmark for evaluating the potential revenue that an Embassy Suites hotel might generate. However, it's important to recognize that this is just an average, and individual hotel performance can vary significantly based on factors such as location, competition, and management effectiveness. The FDD also notes that two comparable franchisee-managed Embassy Suites were excluded from this calculation due to insufficient data.

It is important for potential franchisees to conduct their own market research and consider various factors that could influence room rates in their specific location. The FDD advises consulting with professional advisors and obtaining a market study to project potential sales, costs, income, and profits. Understanding the range of room rates, from $116.58 to $385.46 in 2023, can further help in assessing the potential financial performance of a new Embassy Suites franchise.