What are 'System Hotels' as defined in 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' 2025 Franchise Disclosure Document, 'System Hotels' are defined as hotels operating under the Embassy Suites system, utilizing the brand name and adhering to the standards set forth by the franchisor.
This definition is important for prospective franchisees because it clarifies that all hotels operating under the Embassy Suites brand are expected to maintain consistent standards. These standards cover various aspects of the hotel's operation, including design, construction, renovation, appearance, equipping, furnishing, supplying, opening, operating, maintaining, marketing, services, service levels, quality, and quality assurance. By adhering to these standards, Embassy Suites aims to ensure a consistent guest experience across all its locations.
The FDD also mentions 'Network Hotels,' which are hotels, inns, conference centers, timeshare or residential properties, and other hospitality-related businesses within the Hilton Worldwide network. While franchisees must primarily refer guests to System Hotels, they may also be directed to refer guests to Network Hotels. Franchisees are also required to display promotional materials for both System Hotels and Network Hotels on their premises, and are generally restricted from advertising or promoting hotels outside of these networks without prior written consent.
Therefore, understanding the definition of 'System Hotels' is crucial for franchisees as it sets the foundation for brand consistency and operational standards within the Embassy Suites franchise system. It also highlights the importance of adhering to the franchisor's guidelines to maintain the integrity of the brand and ensure a uniform experience for guests.