To what extent does Embassy Suites By Hilton suggest room rates and pricing policies?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
We may suggest room rates and pricing policies to the extent allowed by law. You will determine the room rates and the prices of the services and amenities that you offer to guests, except that we may establish maximum rates and prices for marketing and promotions if permitted by law. For the efficiency and consistency of our distribution programs, and to enable us to operate certain marketing and promotions (such as our Price Match Guarantee), we may also require that the rates and prices you advertise through certain distribution channels be the same as or better than the rates and prices you advertise through other distribution channels as permitted by law.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, Embassy Suites By Hilton may suggest room rates and pricing policies to franchisees, as long as it is legally permissible. While franchisees ultimately determine the room rates and prices for services and amenities, Embassy Suites By Hilton has the right to establish maximum rates and prices for marketing and promotional activities, provided it is allowed by law.
To maintain consistency and efficiency across distribution channels, Embassy Suites By Hilton may also require that the rates and prices franchisees advertise through certain channels are the same as or better than those advertised through other channels, again, as permitted by law. This enables Embassy Suites By Hilton to effectively manage marketing and promotions like the Price Match Guarantee.
This policy gives Embassy Suites By Hilton some influence over pricing, especially in the context of marketing and promotions, while allowing franchisees to set their own rates. Prospective franchisees should understand the extent to which Embassy Suites By Hilton can mandate pricing, and how this might affect their revenue management strategies.