factual

What elements are included in the estimated initial investment for an Embassy Suites By Hilton hotel?

Embassy_Suites_By_Hilton Franchise · 2025 FDD

Answer from 2025 FDD Document

ESTIMATED INITIAL INVESTMENT**

YOUR ESTIMATED INITIAL INVESTMENT EMBASSY SUITES (176 Suites)

Type of Expenditure Amount Method of Payment When due To whom payment is to be made
Franchise Application Fee $100,000 Lump sum With Us
(Note 1) Application
Property Improvement Plan Fee (Note 2) $0 to $10,000 Lump sum Before we prepare PIP Us
Market Study Varies As agreed As incurred Supplier
(Note 3)
Environmental Assessment Varies As agreed As incurred Supplier
(Note 4)
Real Property Varies As agreed As agreed Supplier
(Note 5)
Construction and Leasehold Improvement Costs (Note 6) $36,000,000 to $55,000,000 As agreed As agreed Suppliers
Designer and Engineering Fees $1,440,000 to $2,200,000 As agreed As incurred Suppliers
Furniture, Fixtures and $6,000,000 As required As incurred Suppliers
Equipment to
(Note 7) $9,000,000
Inventory and Operating $404,000 As required As incurred Suppliers
Equipment to
(Note 8) $1,097,000
Signage $27,500 to $110,000 As required As incurred Supplier
(Note 9)
Computer Hardware and Software Systems (Note 10) $77,071 to $157,679 Lump sum or as required 45 days before opening Us or Supplier
Guest Internet Access System (Note 10) $84,519 to $123,517 Lump sum or as required 45 days before opening Supplier
Connected Room System (Note 10) $40,180 to $48,020 Lump sum or as required 45 days before opening Us
Type of Expenditure Amount Method of Payment When due To whom payment is to be made
Delphi Sales and Events System (Note 10) $900 to $41,000 As required As incurred Supplier
Required Pre-Opening $5,000 to $17,500 As required As incurred Us and Suppliers
Training
(Note 11)
ADA Consultant Fee $2,500 to $15,000 Lump sum On request Supplier
(Note
12)
Construction/Renovation $0 to $10,000 Lump sum On request Us
Extension Fees
(Note 13)
Insurance Varies As required As arranged Agent/Insurer
(Note 14)
Organizational Expense $75,000 to $285,104 As agreed As agreed Accountant/
(Note 15) Attorney
Permits and Licenses (Note 16) $540,000 to $825,000 As required As required Government Agencies
Miscellaneous Pre-Opening $1,080,000 As agreed As incurred Suppliers
and Project Management to
Expenses (Note 17) $1,650,000
Contingencies (Note 18) $3,600,000 to $5,500,000 As agreed As incurred Suppliers
Additional Funds (Note 19) $600,000 to $1,000,000 As agreed As incurred Suppliers
Eforea Spa Initial Fee (Note 20) $0 to $25,000 Lump sum With Application Us
Additional Funds for Eforea $0 to $4,950,000 As agreed As incurred Suppliers
Spa Implementation
(Note
21)
Other Required Pre-opening Services Fees (Note 22) $6,000 Lump sum Before opening Us
TOTAL $50,082,670 to $82,170,820
(Note 23) THESE FIGURES DO NOT INCLUDE REAL ESTATE COSTS, MARKET STUDY, INSURANCE, INTEREST OR SEPARATELY IDENTIFY TH

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)

What This Means (2025 FDD)

According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the estimated initial investment for an Embassy Suites By Hilton hotel encompasses a variety of expenses, with the total ranging from $50,082,670 to $82,170,820. These figures do not include real estate costs, market study expenses, insurance, interest, or separately identify the costs of improvements under a conversion, re-licensing, or change of ownership license.

The investment includes a franchise application fee of $100,000, and a Property Improvement Plan (PIP) fee ranging from $0 to $10,000. Further costs include construction and leasehold improvements estimated between $36,000,000 and $55,000,000, designer and engineering fees from $1,440,000 to $2,200,000, and furniture, fixtures, and equipment costs ranging from $6,000,000 to $9,000,000. Inventory and operating equipment are estimated to cost between $404,000 and $1,097,000, while signage costs range from $27,500 to $110,000.

Technology costs are also a significant part of the initial investment, including computer hardware and software systems ($77,071 to $157,679), guest internet access system ($84,519 to $123,517), connected room system ($40,180 to $48,020), and the Delphi Sales and Events System ($900 to $41,000). Additional pre-opening expenses, such as training, can range from $5,000 to $17,500. Furthermore, the initial investment also considers potential costs such as ADA consultant fees ($2,500 to $15,000), construction/renovation extension fees ($0 to $10,000), organizational expenses ($75,000 to $285,104), permits and licenses ($540,000 to $825,000), miscellaneous pre-opening and project management expenses ($1,080,000 to $1,650,000), contingencies ($3,600,000 to $5,500,000), and additional funds ($600,000 to $1,000,000).

For franchisees considering adding an eforea spa, there is an initial fee of $0 to $25,000, with additional implementation costs ranging from $0 to $4,950,000. Other required pre-opening services fees amount to $6,000. These estimates are based on Hilton's extensive experience and should be carefully reviewed with a business advisor. Conversion costs can vary significantly based on the condition of the existing hotel, its age, physical structure, and the quality of furnishings, making it difficult to provide an average cost for conversions.

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.