What factors influence the cost of land for an Embassy Suites By Hilton hotel?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
These estimates do not include the cost of the real property due to wide variations in costs among geographic areas and at different sites.
The cost of land for a hotel varies depending on location, size, market prices in the area, accessibility, and special assessments, among other factors.
If you are converting an existing hotel that you already own or lease, you may have no additional real property costs.
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 cost of land for a hotel is subject to several factors. These include the location of the property, its size, prevailing market prices in the area, accessibility, and any special assessments that may be in place. These factors can cause wide variations in real property costs.
The FDD indicates that the estimated initial investment of $50,082,670 to $82,170,820 does not include real estate costs. However, if a franchisee is converting an existing hotel that they already own or lease, they may not incur additional real property costs. The document also recommends that prospective franchisees obtain an environmental assessment to determine the land's environmental condition before purchase, which may lead to further investigations and tests.
Given the significant impact of real estate costs on the overall investment, Embassy Suites By Hilton emphasizes the importance of conducting thorough due diligence. This includes evaluating the factors mentioned above and understanding their potential impact on the financial viability of the hotel project. Prospective franchisees should carefully consider these variables and consult with real estate professionals to assess the true cost of land acquisition for their specific location and project scope.