What is the 'PIP' referenced in the context of renovation work for an Embassy Suites franchise?

According to Embassy Suites's 2025 Franchise Disclosure Document, the term "PIP" is referenced in the context of renovation work required for conversions, re-licensing, or change of ownership projects. Specifically, franchisees must begin renovation work by the date agreed upon in the Franchise Agreement or PIP, which is determined on a project-by-project basis. Furthermore, a Property Improvement Plan ("PIP") Fee of $10,000 is required before a PIP inspection is scheduled for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. This fee is payable to prepare the PIP, though Embassy Suites may waive it or apply it in some circumstances.

In essence, the PIP outlines the specific renovations and upgrades an existing hotel must undertake to meet Embassy Suites' brand standards. This ensures consistency and quality across all franchised locations. The $10,000 fee covers the cost of assessing the property and creating this customized plan. The start and completion dates for these renovations are also tied to the PIP, highlighting its importance in managing the upgrade process.

For a prospective Embassy Suites franchisee considering a conversion, re-licensing, or change of ownership, understanding the PIP is crucial. It dictates the scope of required renovations, the associated costs, and the timeline for completion. The franchisee should carefully review the PIP and factor these costs into their financial projections. The possibility of negotiating the PIP fee, as mentioned in the FDD, could also be explored to potentially reduce initial expenses.