What constitutes 'under construction' for an Embassy Suites By Hilton hotel?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
ides services (including as a consultant) to the Competing Brand, or exercises, or has the right to exercise, Control over the business decisions of the Competing Brand.
- "Construction Commencement Date" means the date set out in the Addendum, if applicable, by which you must commence construction of the Hotel. For the Hotel to be considered under construction, you must have begun to pour concrete foundations for the Hotel or otherwise satisfied any site-specific criteria for "under construction" set out in the Addendum.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, a hotel is considered 'under construction' when concrete foundations have begun to be poured for the hotel. Alternatively, the site-specific criteria for 'under construction' that is outlined in the Addendum to the franchise agreement must be satisfied.
For adaptive reuse projects, the criteria are more extensive. To be considered under construction, the franchisee must have (a) submitted final plans to Embassy Suites By Hilton, (b) received approval of those final plans, (c) submitted a building permit for hotel construction, and (d) substantially completed to Embassy Suites By Hilton's satisfaction: (i) exterior demolition, if applicable, and (ii) interior demolition and construction of new permanent interior walls.
These criteria are important for franchisees to understand, as they dictate the timeline and requirements for development. Meeting these milestones is crucial for adhering to the franchise agreement and avoiding potential penalties or termination. The specific requirements in the Addendum could vary based on the location and nature of the project, so franchisees should carefully review this document with Embassy Suites By Hilton.