How many company-owned Embassy Suites hotels were reacquired from franchisees in 2022?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2 | 0 | 0 | 0 | 0 | 0 | 2 | | Total | 2022 | 234 | 5 | 0 | 0 | 0 | -4 | 235 | | | 2023 | 235 | 4 | 0 | 0 | 0 | -3 | 236 | | | 2024 | 236 | 4 | 3 | 0 | 0 | 0 | 237 |
Table No. 4 Status of Company-Owned Hotels For Years 2022 to 2024
| State | Year | Hotels at Start of Year | Hotels Opened | Hotels Reacquired from Franchisees | Hotels Closed | Hotels Sold to Franchisees | Hotels at End of the Year |
|---|---|---|---|---|---|---|---|
| All States | 2022 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
| State | Year | Hotels at Start of Year | Hotels Opened | Hotels Reacquired from Franchisees | Hotels Closed | Hotels Sold to Franchisees | Hotels at End of the Year | |---|---|---|---|---|---|---|---| | | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | | | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | | | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | Table No. 5 Projected Openings as of December 31, 2024
| State | Franchise Agreements Signed but Hotels Not Opened | Projected New Franchised Hotels in the Next Fiscal Year | Projected New Company Owned Hotels in the Next Fiscal Year |
|---|---|---|---|
| Alabama | 1 | 1 | 0 |
| California | 3 | 0 | 0 |
| Florida | 8 | 0 | 0 |
| Georgia | 1 | 0 | 0 |
| Kentucky | 0 | 0 | 0 |
| Maryland | 0 | 0 | 0 |
| Mississippi | 1 | 0 | 0 |
| Missouri | 1 | 0 | 0 |
| Montana | 1 | 0 | 0 |
| Nevada | 1 | 0 | 0 |
| North Carolina | 0 | 0 | 0 |
| Oklahoma | 1 | 0 | 0 |
| South Carolina | 0 | 0 | 0 |
| Tennessee | 3 | 2 | 0 |
| Texas | 7 | 0 | 0 |
| Virginia | 1 | 0 | 0 |
| Wisconsin | 0 | 0 | 0 |
| Total | 29 | 3 | 0 |
In these tables, all fiscal year numbers are as of December 31 of each year. Any hotel that had temporarily modified or reduced operations or was temporarily closed in connection with the COVID-19 pandemic is not considered to have 'closed' or 'ceased operations.'
Exhibit A lists all Brand franchisees and the addresses and telephone numbers of all of their outlets as of December 31, 2024.
Exhibit B lists all Brand franchisees who had an outlet terminated, cancelled or not renewed, or otherwise voluntarily or involuntarily ceased to do business under the Franchise Agreement during 2024, or who has not communicated with us within 10 weeks of the issuance date of this Disclosure Document.
As of December 31, 2024, there were 2 eforea spas in operation at franchised hotels in the US, and there were 3 eforea spas in operation at Company-Managed hotels in the US.
If you buy this franchise, your contact information may be disclosed to other buyers when you leave the franchise system.
During the last 3 fiscal years, some current and former franchisees have signed provisions restricting their ability to speak about their experience with us. You may wish to speak with current and former franchisees, but be aware that not all such franchisees will be able to communicate with you.
We have not created, endorsed, or sponsored any trademark-specific franchisee organizations associated with the System. There are no trademark-specific franchisee organizations associated with the franchise system which are incorporated or otherwise organized under state law and have asked us to be included in our disclosure document during the next fiscal year.
ITEM 21 FINANCIAL STATEMENTS
Attached as Exhibit C are our audited consolidated balance sheets as of December 31, 2024 and 2023, the related consolidated statements of operations and member's capital and cash flows for the years ended December 31, 2024, 2023, and 2022, and the related notes to the consolidated financial statements.
EXHIBIT C
Hilton Franchise Holding LLC Financial Statements For the years ended December 31, 2024, 2023 and 2022
Hilton Franchise Holding LLC Index to Financial Statements
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Report of Independent Auditor
To the Member Hilton Franchise Holding LLC McLean, Virginia
Opinion
We have audited the accompanying financial statements of Hilton Franchise Holding LLC (the "Company") which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of comprehensive income and member's equity and cash flows for the years ended December 31, 2024, 2023, and 2022, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024, 2023, and 2022, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audits.
Tysons Corner, Virginia March 18, 2025
2
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Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 92–97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, across all states, there were zero company-owned hotels reacquired from franchisees in 2022. This is based on the provided table outlining the status of company-owned hotels from 2022 to 2024. The table specifically tracks the number of hotels reacquired from franchisees each year.
Looking at specific states, such as Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, and Hawaii, the number of hotels reacquired by the franchisor was zero in 2022. This pattern continues across other states listed, including Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, and Massachusetts, with no re acquisitions reported in 2022.
This data indicates that Embassy Suites did not reacquire any company-owned hotels from its franchisees during the year 2022 in any of the states listed in the provided excerpts. For a prospective franchisee, this could suggest stability in the franchise network, as there were no indications of the company needing to take back properties from franchisees during this period.