What is the billing frequency for 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. |
| Computer System Fees | |||
| OnQ Computer | Currently, between | As agreed. | See Note 3. |
| System Fees – | $70,576 | ||
| Hardware, Software | and | ||
| & Installation | $151,184. | ||
| Other Initial Start Up Fees | Currently, $6,500. | As incurred before opening. |
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Room Addition Fee is not billed on a recurring basis. Instead, it is a one-time payment of $400 per additional guest room or suite. This fee is due when you submit an application for approval to add or construct additional guest rooms at the hotel after its initial opening under the Embassy Suites By Hilton brand.
This means that if a franchisee decides to expand their Embassy Suites By Hilton location by adding more rooms, they must pay this fee upfront with their application. The fee is calculated by multiplying $400 by the number of new rooms being added. It is important to note that this fee is non-refundable once Embassy Suites By Hilton approves the application.
In addition to the Room Addition Fee, the franchisee must also sign an amendment to the Franchise Agreement to reflect the changes to the hotel. Furthermore, a Property Improvement Plan (PIP) fee of $10,000 is required before a PIP inspection is scheduled for any room addition or renovation project. This PIP fee may be waived in some circumstances, but Embassy Suites By Hilton is not obligated to do so.