Where can I find the Construction Commencement Date for my Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
Construction Commencement Date: [EY HAM HGI H2 HWS PO RU UAB: Due fifteen (15)
months from the Effective Date
[CI DT ES GU HFS OL PY QQ UP: Due Sixteen (16) months from the Effective Date
[If Adaptive Reuse, include:
For the Hotel to be considered under construction, you must have: (a) submitted final plans to us, (b) received our approval of your final plans, (c) submitted to us a building permit for Hotel construction, and (d) substantially completed, to our satisfaction: (i) exterior demolition, if applicable, and (ii) interior demolition and construction of new permanent interior walls.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the Construction Commencement Date is specified in the Addendum or any Property Improvement Plan (PIP) attached to the Franchise Agreement. The Construction Commencement Date refers to the date by which you, as the franchisee, must begin the hotel's construction. For certain Embassy Suites By Hilton brands like CI, DT, ES, GU, HFS, OL, PY, QQ, and UP, the Construction Commencement Date is due sixteen (16) months from the Effective Date of the agreement. For other brands like EY, HAM, HGI, H2, HWS, PO, RU and UAB, it is due fifteen (15) months from the Effective Date.
The FDD also states that to be considered under construction, you must have begun pouring concrete foundations for the hotel or satisfied any site-specific criteria outlined in the Addendum. It is important to note that the Construction Commencement Date, along with other deadlines, may be automatically extended by thirty (30) days on a rolling basis unless Embassy Suites By Hilton provides at least sixty (60) days' notice that these extensions no longer apply. Any further extensions beyond this require the franchisor's approval.
Prospective franchisees should pay close attention to the Addendum and any PIP to understand the specific Construction Commencement Date applicable to their franchise. Understanding these dates is crucial because failure to commence construction by the specified date can have legal and financial repercussions, as outlined in the franchise agreement. Franchisees should also clarify with Embassy Suites By Hilton the criteria for being considered 'under construction' to ensure compliance and avoid potential disputes.