What is the Franchise Application Fee for a new development or conversion of an Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
tes. Unless otherwise stated, these are not refundable under any circumstances.
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| General | |||
| Franchise Application Fee – New Development or Conversion | $100,000, plus $400 for each additional guest room or suite over 250. | With Application. | See Note 1. |
| Franchise Application Fee – Change of Ownership | $200,000 | With Application. | See Note 1. |
| Franchise Application Fee – Re-licensing | $100,000 | With Application. | See Note 1. |
| Property Improvement Plan ("PIP") Fee | $10,000 | Before PIP inspection is scheduled. | Payable to prepare a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. In some circumstances, we may waive the PIP fee or apply the PIP fee |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS towards |
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Franchise Application Fee for a new development or conversion is $100,000, plus an additional $400 for each guest room or suite exceeding 250. This fee is due when the application is submitted. However, the FDD also notes that Embassy Suites By Hilton may elect to reduce the Franchise Application Fee after considering factors such as incentives for hotel development within the system, a hotel's market position, property size, and the number of hotels the franchisee operates within the system. In certain unique cases, Embassy Suites By Hilton may waive part of the Franchise Application Fee or negotiate the fee, especially with franchisees they have previously worked with.
The Franchise Application Fee is generally non-refundable once the application is approved, with a few exceptions. If the applicant withdraws their application before approval or if Embassy Suites By Hilton denies the application, the fee will be refunded, minus a $7,500 processing fee, which may be waived or reduced at Embassy Suites By Hilton's discretion. A similar refund policy applies if the application is for a Change of Ownership that does not occur.
It's important to note that if the number of rooms or suites increases after the Franchise Application is approved but before the hotel opens, the franchisee must obtain approval from Embassy Suites By Hilton and pay any additional Franchise Application Fee owed, as if those additional rooms or suites were part of the original application. Prospective franchisees should carefully review the terms and conditions related to the Franchise Application Fee and understand the circumstances under which a refund may be possible.