After closing due to damage, what are the restrictions on promoting the Embassy Suites By Hilton hotel?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2.1 You must immediately inform us if the Hotel is damaged by fire or other casualty or event of Force Majeure. If the damage or repair requires closing the Hotel, you may choose to repair or rebuild the Hotel according to the Standards, provided you: begin reconstruction within six (6) months after closing and reopen the Hotel for continuous business operations as soon as practicable (but in any event no later than eighteen (18) months after the closing of the Hotel) and give us at least thirty (30) days' notice of the projected date of reopening. Once the Hotel is closed, you will not promote the Hotel as a System Hotel or otherwise identify the Hotel using any of the Marks without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, if the hotel is damaged and requires closure for repairs, there are specific restrictions on promoting the hotel. Once the hotel is closed due to damage, the franchisee is prohibited from promoting the hotel as a System Hotel or using any of the brand's marks without obtaining prior written consent from Embassy Suites By Hilton.
This restriction remains in place until the hotel reopens for continuous business operations. The franchisee must begin reconstruction within six months after closing and reopen no later than eighteen months after the closure. The franchisee is also required to provide Embassy Suites By Hilton with at least thirty days' notice of the projected reopening date.
This policy ensures that the Embassy Suites By Hilton brand is not misrepresented or negatively impacted during the period when the hotel is non-operational due to damage. It protects the brand's reputation by preventing the promotion of a hotel that cannot provide the expected services and amenities. Franchisees need to be aware of these restrictions to avoid potential breaches of the franchise agreement and possible penalties.