In what market segment do Embassy Suites hotels primarily compete?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ompetition**
Embassy Suites hotels compete in the upper upscale hotel market segment and cater to business travelers, families, vacationers and groups depending on the market and location. The market for your services will depend on your property's location, size and its type of operation, including whether it is a resort, conference center or hotel for frequent business travelers, among other things. Our franchisees seek customers and business referrals from the local community and typically solicit business from conventions, and tour and travel groups, on a regional and national level. If you are operating an eforea spa, you will market your products and services to patrons of the hotel and the local community.
In general, you will compete with national hotel and motel chains and independently operated local hotels and restaurants offering similar types of hotel rooms and food and beverage services to the same clientele.
An Embassy Suites Hotel will compete with other national and regional hotel chains and local facilities primarily offering full service upscale all-suite accommodations. Due to its limited food and beverage operations, an Embassy Suites Hotel is unlikely to compete directly with local
establishments for the food and beverage business of the general public.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–15)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Embassy Suites hotels primarily compete in the upper upscale hotel market segment. These hotels aim to attract business travelers, families, vacationers, and groups, with the specific target market varying based on the hotel's location. The success of an Embassy Suites location depends on factors such as its size, type of operation (e.g., resort, conference center, or business-focused hotel), and the local market conditions. Franchisees are expected to actively engage with the local community and solicit business from conventions, tour groups, and travel agencies at both regional and national levels.
Embassy Suites hotels also face competition from other national hotel and motel chains, as well as independently operated local hotels and restaurants that offer similar accommodations and food and beverage services. Additionally, individual Embassy Suites hotels compete with other national and regional hotel chains and local facilities that offer full-service, upscale, all-suite accommodations. However, due to the limited food and beverage operations of Embassy Suites, they are unlikely to compete directly with local establishments for the general public's food and beverage business.
For franchisees considering adding an eforea spa to their Embassy Suites hotel, the spa will compete with other spa concepts, wellness centers, salons, and individual service providers like massage therapists. This competition requires franchisees to market their spa products and services to both hotel guests and the local community. The FDD emphasizes that the market and competition faced by an Embassy Suites hotel can vary significantly based on its specific location and operational focus, highlighting the importance of thorough market research before investing in a franchise.