What is a 'Network Hotel' according to the Embassy Suites FDD?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not engage, directly or indirectly, in any cross-marketing or cross-promotion of your Hotel with any other hotel, motel or related business without our prior written consent, except for System Hotels and Network Hotels. You also may not utilize a list of customers (whether acquired before or during the term of your franchise) without our prior approval. The term "System Hotels" means hotels operating under the System using the Brand name and the Standards. The term "Network" means the elements, including know-how, that we or our Affiliates designate to distinguish the hotels, inns, conference centers, timeshare or residential properties and other hospitality-related businesses that Hilton Worldwide and its subsidiaries own, control, license, lease, operate or manage now or in the future. The term "Network Hotel" means any hotel, inn, conference center, timeshare or residential property or other hospitality-related business within the Network.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, a 'Network Hotel' is defined as any hotel, inn, conference center, timeshare or residential property, or other hospitality-related business within the 'Network'. The 'Network' itself encompasses the elements, including know-how, that Hilton Worldwide and its subsidiaries designate to distinguish the hotels, inns, conference centers, timeshare or residential properties and other hospitality-related businesses that Hilton Worldwide and its subsidiaries own, control, license, lease, operate, or manage now or in the future.
This definition is important for prospective Embassy Suites franchisees because it outlines the scope of properties with which they may be interconnected or to which they may be required to refer guests. The FDD specifies that franchisees may not engage in cross-marketing or cross-promotion with any other hotel, motel, or related business without prior written consent, except for System Hotels and Network Hotels. Franchisees must also refer guests and customers, wherever reasonably possible, only to System Hotels and, if directed, Network Hotels.
Furthermore, franchisees must display all material, including brochures and promotional material provided to System Hotels and Network Hotels, and allow advertising and promotion only of System Hotels and Network Hotels on their premises. This means that as an Embassy Suites franchisee, your marketing and promotional efforts will be closely aligned with other hotels within the Hilton network, potentially broadening your reach but also limiting your autonomy in choosing marketing partners. Understanding the 'Network Hotel' definition is crucial for navigating these requirements and opportunities within the Embassy Suites franchise system.