What were the total revenues for Embassy Suites franchise operations in 2023?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
05 | | 616,454 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | $ 1,269,897 | $ | 1,183,147 |
See notes to financial statements.
Hilton Franchise Holding LLC Statements of Comprehensive Income and Member's Equity (in thousands)
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Franchise royalty fees | $ 1,434,453 | $ 1,331,169 | $ 1,184,827 |
| Franchise sales and change of ownership fees | 49,340 | 43,294 | 39,881 |
| Franchise termination fees and other | 18,276 | 2,434 | 4,757 |
| Total revenues | 1,502,069 | 1,376,897 | 1,229,465 |
| Expenses | |||
| Op |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the total revenues for franchise operations in 2023 were $1,376,897. This figure represents the sum of franchise royalty fees, franchise sales and change of ownership fees, and franchise termination fees and other revenues. Franchise royalty fees accounted for $1,331,169 of the total, while franchise sales and change of ownership fees contributed $43,294. Franchise termination fees and other revenues made up the remaining $2,434.
For a prospective Embassy Suites franchisee, understanding the revenue streams of the franchise operations is crucial. The majority of the revenue comes from royalty fees, which are typically a percentage of the gross sales of each franchised location. The other revenue components, such as sales and termination fees, are less predictable but still contribute to the overall financial health of the franchise system.
It's important to note that these revenues do not represent the profits of Embassy Suites franchise operations, as they do not account for operating expenses, credit losses, amortization, and other expenses. However, the FDD does list the operating income for 2023 as $1,371,192, after subtracting total expenses of $5,705 from the total revenues. Reviewing these figures in the context of the expenses provides a more complete picture of the financial performance of the Embassy Suites franchise system.