What is the due date 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. |
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 due with the Application for approval. This fee is applicable if a franchisee adds or constructs additional guest rooms at the hotel after the initial opening under the Embassy Suites By Hilton brand. Currently, the Room Addition Fee is $400 per additional guest room or suite.
It is important to note that this fee is non-refundable once Embassy Suites By Hilton approves the application. This means that a franchisee should carefully consider their plans for expansion before submitting the application and payment. The franchisee must also sign an amendment to the Franchise Agreement when adding or constructing additional guest rooms.
In addition to the Room Addition Fee, a Property Improvement Plan (PIP) Fee of $10,000 may also be required if the room addition project necessitates a PIP. This fee is due before the PIP inspection is scheduled. However, Embassy Suites By Hilton may waive the PIP fee in some circumstances, although they are not obligated to do so.
Prospective franchisees should factor these costs and deadlines into their financial planning if they anticipate expanding their Embassy Suites By Hilton location in the future. Understanding the timing and non-refundable nature of the Room Addition Fee is crucial for managing project budgets effectively.