factual

What is the current Property Improvement Plan (PIP) Fee for an Embassy Suites By Hilton?

Embassy_Suites_By_Hilton Franchise · 2025 FDD

Answer 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 Property Improvement Plan (PIP) Fee is currently $10,000. This fee is required before a PIP inspection is scheduled.

The PIP fee is payable when preparing a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. It also applies to any Room Addition or renovation project where a PIP is required. This means that if a prospective franchisee is converting an existing hotel to an Embassy Suites By Hilton, or if an existing franchisee is relicensing or adding rooms to their hotel, they will likely need to pay this fee to initiate the PIP process.

The FDD also notes that in some circumstances, Embassy Suites By Hilton may waive the PIP fee, but they are not obligated to do so. A prospective franchisee should confirm with Embassy Suites By Hilton whether the fee can be waived in their specific situation. It's important to note that this fee is separate from any costs associated with actually completing the property improvements identified in the PIP, and there is also a PIP/Renovation Failure Fee of $10,000 every 6 months if the renovations are not completed on time.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.