What was the median room rate for all comparable Embassy Suites hotels in 2023?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Room Rate |
|---|
| Average Room Rate of all Comparable Hotels |
| Median Room Rate of all Comparable Hotels |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 87–92)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the median room rate for all comparable hotels in 2023 was $168.88. This figure represents the midpoint of room rates among a set of 220 comparable Embassy Suites hotels operating in the U.S., excluding territories and possessions. These comparable hotels met specific criteria, including being active for at least a full calendar year, not undergoing brand or ownership changes, and not experiencing substantial property damage or large-scale capital projects.
For a prospective franchisee, this median room rate provides a benchmark for evaluating potential revenue. It's important to understand that this is a median value, meaning half of the comparable hotels had room rates above this figure, and half had rates below. The actual room rates for comparable hotels ranged from $116.58 to $385.46 in 2023, indicating a wide range of performance within the Embassy Suites system. Factors such as location, competition, and hotel amenities can significantly influence individual hotel performance.
It is important to note that the FDD also presents data for 'New Generation Comparable Hotels,' which are hotels opened during or after 2015. These hotels had a different median room rate of $184.44 in 2023. The franchisor recommends consulting with professional advisors and conducting a market study to assess potential room rates for a specific location, as there is no guarantee that a new franchisee will achieve the same results as existing hotels. The financial performance of an Embassy Suites hotel can be affected by various factors, including the competitive landscape, the age and customer base of competing hotels, and the availability of amenities.