What is the role of Hilton Honors program in relation to revenue for Embassy Suites?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
r logo, trademark or service mark from a supplier approved by us. We may derive profit from such sales.
We did not sell any goods, services or supplies to our franchisees in 2024. Hilton collects money for the Hilton Honors program for all of our brands, but transmits this money to Hilton Honors Worldwide and we do not record it as revenue. For the fiscal year ended December 31, 2024, Hilton and its other affiliates (including Hilton Honors Worldwide) had revenues from sales of goods, services, computer systems and/or supplies to franchisees of Hilton's subsidiaries of $1,101,161,898 (for clarity
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–50)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, Hilton collects money for the Hilton Honors program across all its brands, but this revenue is directly transmitted to Hilton Honors Worldwide and is not recorded as revenue for Hilton itself. This means that while the Hilton Honors program is a significant aspect of the Hilton brand and likely drives business to Embassy Suites locations, the franchise does not directly account for this revenue on its financial statements.
For a prospective Embassy Suites franchisee, this indicates that the benefits of the Hilton Honors program are realized through increased customer traffic and loyalty, rather than direct monetary compensation. The Hilton Honors program is a key component of the overall Hilton brand appeal, and franchisees benefit from the brand recognition and customer loyalty it fosters. However, franchisees should be aware that the revenue generated by the Hilton Honors program is not reflected in Hilton's reported revenue figures, as it is managed separately by Hilton Honors Worldwide.
In 2024, Hilton and its affiliates, including Hilton Honors Worldwide, had revenues of $1,101,161,898 from sales of goods, services, computer systems, and/or supplies to franchisees of Hilton's subsidiaries. This figure excludes royalty and program fees, pass-through commissions, and HSM amounts. This demonstrates the scale of financial transactions between Hilton and its franchisees, although the Hilton Honors revenue is not included in this specific calculation.