What was the average occupancy of all comparable Embassy Suites By Hilton hotels in 2023?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| Occupancy | 2023 | 2024 |
|---|---|---|
| Average Occupancy of all Comparable Hotels | 72.9% | 74.4% |
| Median Occupancy of all Comparable Hotels | 73.8% | 75.3% |
| Number & Percentage of Comparable Company-Managed Hotels which met or | 19/59.4% | 20/62.5% |
| exceeded Average Occupancy | ||
| Number & Percentage of Comparable Company-Managed Hotels which met or | 18/56.3% | 18/56.3% |
| exceeded Median Occupancy | ||
| Number & Percentage of Comparable Franchisee-Managed Hotels which met or | 105/55.9% | 101/53.7% |
| exceeded Average Occupancy | ||
| Number & Percentage of Comparable Franchisee-Managed Hotels which met or | 92/48.9% | 92/48.9% |
| exceeded Median Occupancy |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 87–91)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the average occupancy rate for all comparable hotels in 2023 was 72.9%. This data is based on hotels operating in the U.S. that met specific criteria, including being active for at least one full calendar year, not undergoing changes in brand or ownership, and not experiencing substantial property damage or large-scale capital projects. The comparable hotels consist of 220 properties, with 32 being Company-Managed and 188 being Franchisee-Managed.
For a prospective franchisee, this occupancy rate provides a benchmark for assessing the potential performance of an Embassy Suites By Hilton hotel. It's important to note that this is an average, and individual hotel performance can vary significantly based on factors such as location, competition, and management. The FDD also indicates that the occupancy rate for all comparable hotels ranged from 49.6% to 95.9% in 2023, highlighting the variability in performance across different properties.
It is crucial for potential franchisees to conduct their own market studies and financial projections to determine the likely occupancy rates for their specific location. Embassy Suites By Hilton advises consulting with professional advisors and assessing local market conditions to develop a realistic business plan. While the average occupancy rate provides a general indication of performance, it should not be the sole basis for investment decisions. Understanding the factors that influence hotel occupancy, such as local demand, competition, and the hotel's amenities, is essential for making informed financial forecasts.
Furthermore, the FDD also presents data on 'New Generation Comparable Hotels,' which are hotels opened during or after 2015. These hotels had an average occupancy of 74.4% in 2023, slightly higher than the average for all comparable hotels. This distinction suggests that newer hotels might achieve better occupancy rates due to modern amenities or design. Franchisees should consider whether they are investing in a new generation hotel and how that might impact their potential occupancy rates.