Under what conditions is the 'Intermediate Model' RMCC service required for an Embassy Suites hotel?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
el performance. The program terms, eligibility, and fees are subject to change.
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- RMCC is optional except in the following circumstances. Category 1: If your Hotel is open and has an active PIP, it must participate in our one-time "Foundation Audit." Category 2: If you are a first-time franchise owner, the Hotel is your first Brand Hotel, the Hotel is a new construction Hotel, or you change your General Manager, your Hotel must participate in our monthly service "Intermediate Model." If your Hotel is projected to generate or does generate over $10 million in annual Gross Room Revenue or is located in a dynamic market with a complex mix of business and a need for forecasting support, it must participate in our monthly full service "Premier Model." Brand Performance Guidelines: In addition, if your Hotel fails to achieve minimum performance
guidelines ("Brand Performance Guidelines") at any time during the term, a one-time Audit will be conducted including a consultation with you on the results. If your Hotel still does not meet the Brand Performance Guidelines 6 months after that Audit, it will be required to participate in the applicable Category 2 service model for at least 12 months. RMCC programs and fees are subject to change.
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, the 'Intermediate Model' of the Revenue Management Common Center (RMCC) service is mandatory under specific circumstances. If a franchisee is a first-time owner, and the hotel represents their first Embassy Suites franchise, participation in the monthly 'Intermediate Model' service is required. This requirement also applies to newly constructed hotels and situations where the General Manager has been changed.
However, the FDD also specifies that if an Embassy Suites hotel is projected to generate or actually generates over $10 million in annual Gross Room Revenue, or if it is situated in a dynamic market necessitating forecasting support, the hotel must participate in the monthly full-service 'Premier Model.'
Additionally, if an Embassy Suites hotel fails to meet the minimum Brand Performance Guidelines at any point during the franchise term, a one-time audit will be conducted, followed by a consultation. Should the hotel continue to fall short of the Brand Performance Guidelines six months after the initial audit, participation in the applicable Category 2 service model (which includes the 'Intermediate Model') becomes mandatory for a minimum of 12 months. It is important to note that RMCC programs and associated fees are subject to change, so prospective franchisees should confirm the latest details with Embassy Suites.