Can Embassy Suites suggest room rates and pricing policies for my hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
e provide to System Hotels and Network Hotels; and allow advertising and promotion only of System Hotels and Network Hotels on your Hotel premises (Franchise Agreement, Paragraph 5.1.13).
We may suggest room rates and pricing policies to the extent allowed by law. You will determine the room rates and the prices of the services and amenities that you offer to guests, except that we may establish maximum rates and prices for marketing and promotions if permitted by law. For the efficiency and consistency of our distribution programs, and to enable us to operate certain marketing and promotions (such as our Price Match Guarantee), we may also require that the rates and prices you advertise through certain distribution channels be the same as or better than the rates and prices you advertise through other distribution channels as permitted by law.
We may occasionally convene an advisory council to consult with us on advertising policies and marketing programs. Currently we have no such council. If we convene a council, it may consist of franchisees together with representatives of our company-managed hotels and company employees. We may select franchisees for the council by their hotel type, geographic location, being in good standing and demonstrating leadership in the System, or other considerations we deem relevant.
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, Embassy Suites may suggest room rates and pricing policies to franchisees, to the extent allowed by law. While the franchisee ultimately determines the room rates and prices for services and amenities, Embassy Suites can establish maximum rates and prices for marketing and promotions, if permitted by law.
To maintain consistency and efficiency in distribution programs, Embassy Suites may require that rates and prices advertised through certain channels are the same as or better than those advertised through other channels, as permitted by law.
Embassy Suites also requires franchisees to install the Global Revenue Optimization (GRO) system, an online application that provides pricing recommendations based on data analytics and forecasting. While use of the GRO system is mandatory, franchisees are not required to adopt the pricing recommendations it provides. The initial installation costs for the GRO system are approximately $3,800, but there is no ongoing fee to use the system.