What is the basis for calculating the Room Addition Fee for an Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
tes. Unless otherwise stated, these are not refundable under any circumstances.
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| General | |||
| Franchise Application Fee – New Development or Conversion | $100,000, plus $400 for each additional guest room or suite over 250. | With Application. | See Note 1. |
| Franchise Application Fee – Change of Ownership | $200,000 | With Application. | See Note 1. |
| Franchise Application Fee – Re-licensing | $100,000 | With Application. | See Note 1. |
| Property Improvement Plan ("PIP") Fee | $10,000 | Before PIP inspection is scheduled. | Payable to prepare a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. In some circumstances, we may waive the PIP fee or apply the PIP fee |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS towards the payment of the Franchise Application Fee, but we are not obligated to do so. |
| Construction or Renovation Work Extension Fee | $10,000 | With written request for extension. | You must start and complete the construction work or renovation work at your Hotel by the dates specified in your Franchise Agreement. See Note 2. |
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the Room Addition Fee is currently $400 per guest room or suite. This fee is multiplied by the number of additional guest rooms or suites being added to the hotel. This fee is due when the franchisee submits an application for approval to add or construct additional guest rooms after the initial hotel opening.
Embassy Suites By Hilton requires franchisees to pay this fee and sign an amendment to the Franchise Agreement when adding rooms. It is important to note that the Room Addition Fee is non-refundable once Embassy Suites By Hilton approves the application. This means that if a franchisee's plans change after approval, the fee will not be returned.
This fee structure is fairly standard in the hotel franchising industry. It compensates the franchisor for the increased brand presence and potential revenue associated with a larger property. Prospective franchisees should carefully consider the costs associated with potential future expansions when evaluating the financial feasibility of an Embassy Suites By Hilton franchise.