If Embassy Suites grants a Restricted Area Provision, does it prevent competition from other brands?

According to Embassy Suites' 2025 Franchise Disclosure Document, a Restricted Area Provision, if granted, does not prevent competition from other brands. The Restricted Area Provision typically restricts Embassy Suites and its affiliates from operating or authorizing others to operate another 'Brand' hotel within the Restricted Area during the Restrictive Period. However, the term 'Brand' is specifically defined as the name used to identify the chain of hotels operated under the same Chain Code and Standards, excluding other brands or product lines containing "Embassy" in the name, as well as Hilton Worldwide Holdings Inc., its affiliates, and other chains of hotels that include the word "Hilton" as part of their brand name, such as "Hilton Garden Inn," "DoubleTree by Hilton" or "Homewood Suites by Hilton".

Furthermore, the Restricted Area Provision generally does not apply to hotels or motels under brands other than the 'Brand.' This means that even with a Restricted Area Provision, an Embassy Suites franchisee may still face competition from other hotel brands within their designated area. The FDD also states that the franchisee may compete with any Network Hotels in and near their area.

Embassy Suites, Hilton Worldwide, and their affiliates or subsidiaries may establish new franchised, company-owned, or company-managed Network Hotels in or near the franchisee's area. The document emphasizes that there is no mechanism for resolving conflicts that may arise between the franchisee's hotel and Network Hotels, and any resolution of conflicts regarding location, customers, support, or services will be entirely within the business judgment of Hilton Worldwide and Embassy Suites. Therefore, while a Restricted Area Provision offers some protection against direct competition from other Embassy Suites hotels, it does not eliminate competition from other brands or affiliated hotels.