What was the median room rate for all comparable Embassy Suites hotels in 2024?

According to Embassy Suites's 2025 Franchise Disclosure Document, the median room rate for all comparable hotels in 2024 was $171.32. This is based on data from 220 comparable hotels operating in the U.S., excluding territories and possessions. These comparable hotels met specific criteria, including being active for at least one full calendar year, not undergoing brand or ownership changes, avoiding substantial property damage or large-scale capital projects, and maintaining a consistent number of guest rooms.

For a prospective franchisee, this median room rate provides a benchmark for evaluating the potential revenue performance of an Embassy Suites hotel. It's important to note that this figure represents the midpoint of room rates among comparable hotels, meaning that half of the hotels had rates above this value and half had rates below. The actual room rates achieved by a specific hotel can vary significantly based on factors such as location, competition, and the quality of the property.

The FDD also provides the average room rate for all comparable hotels in 2024, which was $184.12. Comparing the median and average rates can give a sense of the distribution of room rates. In this case, the median is lower than the average, suggesting that there may be some hotels with significantly higher room rates that are pulling the average up. Franchisees should conduct their own market studies to determine achievable room rates in their specific location.

It is important for potential franchisees to consider these figures in conjunction with other financial performance metrics provided in the FDD, such as occupancy rates and RevPAR (revenue per available room), to develop a comprehensive understanding of the potential financial performance of an Embassy Suites franchise. Consulting with financial advisors and conducting thorough market research are crucial steps in evaluating the viability of this franchise opportunity.