What is the estimated range for designer and engineering fees for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Designer and Engineering Fees | $1,440,000 to $2,200,000 | As agreed | As incurred | Suppliers |
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
| (Note 23) | THESE FIGURES DO NOT INCLUDE REAL ESTATE COSTS, MARKET STUDY, INSURANCE, INTEREST OR SEPARATELY IDENTIFY THE COSTS OF IMPROVEMENTS UNDER A CONVERSION, RE-LICENSING OR CHANGE OF OWNERSHIP LICENSE. |
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 cost for designer and engineering fees ranges from $1,440,000 to $2,200,000. These fees are paid as agreed upon with the suppliers and are due as incurred.
This significant cost is part of the overall initial investment required to establish an Embassy Suites By Hilton hotel. It is important for prospective franchisees to factor in these expenses when planning their budget. These fees cover the costs associated with designing the hotel and ensuring that the engineering aspects meet the brand's standards and specifications.
As with other expenses, the actual amount may vary depending on the specifics of the project, such as the size and complexity of the hotel. It is advisable for potential franchisees to conduct thorough due diligence and consult with experienced professionals to obtain accurate estimates for their specific location and project requirements.
The FDD notes that these figures do not include real estate costs, market study, insurance, interest, or separately identify the costs of improvements under a conversion, re-licensing, or change of ownership license. Therefore, franchisees should consider these additional costs when evaluating the total investment required.