For an Embassy Suites By Hilton franchise, what are the approved methods for operating the Hotel?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
You must provide qualified and experienced management for the operation of your Hotel. To fulfill this responsibility, your Hotel must be operated either by you or a third-party management company ("Management Company") that we have approved. No other person or entity may operate the Hotel.
We will only grant approval when we consider you or your proposed Management Company to be qualified to manage the Hotel. We may refuse to approve you or any proposed Management Company that, in our reasonable business judgment, is inexperienced or unqualified in managerial skills or operating capacity or capability, or is unable to adhere fully to the obligations and requirements of the Franchise Agreement.
If you wish to manage your Hotel directly, you must have our prior written approval and successfully complete our training program, unless we waive this requirement. If we determine that you are not qualified to operate the Hotel, at any time, we may require you to retain a Management Company that is acceptable to us to manage the Hotel.
If you wish to hire or are required to hire a Management Company to manage your Hotel, you must obtain our prior written approval. Your Management Company must have the authority to perform all of your obligations under the Franchise Agreement, including all indemnity and insurance obligations. After we approve the Management Company, we can require the general manager and other personnel, such as the director of sales, to attend training programs that pertain to the operational functions of the Hotel related to those roles as are necessary to meet our Brand Standards. If your Management Company resigns or is terminated by you, or otherwise becomes unsuitable or unqualified to operate the Hotel as determined by us, in our sole judgment, you must retain a new Management Company that is acceptable to us within 90 days.
You are solely responsible for the management and operation of your Hotel at all times, regardless of whether you are an individual, corporation, limited liability company, partnership or other entity. Your engagement of a Management Company does not reduce your obligations under the Franchise Agreement. We may communicate directly with your managers and Management Company, and we have the right to rely on their communications to us as being on made your behalf.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 74–75)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, an Embassy Suites By Hilton hotel must be operated either directly by the franchisee or through a third-party management company. The FDD stipulates that no other person or entity is authorized to operate the hotel. Both the franchisee and any proposed third-party management company are subject to approval by Embassy Suites By Hilton, which assesses their qualifications to manage the hotel effectively.
For a franchisee to manage the hotel directly, they must obtain prior written approval from Embassy Suites By Hilton and successfully complete the brand's training program, unless this requirement is waived. If Embassy Suites By Hilton determines that the franchisee is unqualified to operate the hotel at any point, they may require the franchisee to hire an approved management company. If a franchisee chooses to hire a management company, or is required to do so, that company must also receive prior written approval from Embassy Suites By Hilton. The management company must have the authority to fulfill all of the franchisee's obligations under the Franchise Agreement, including indemnity and insurance obligations.
Embassy Suites By Hilton may require the management company's general manager and other personnel, such as the director of sales, to attend training programs relevant to their roles to ensure compliance with brand standards. If a management company resigns, is terminated, or becomes unsuitable, the franchisee must find a replacement management company acceptable to Embassy Suites By Hilton within 90 days.
The franchisee remains ultimately responsible for the hotel's management and operation, regardless of whether they operate it themselves or engage a management company. Embassy Suites By Hilton retains the right to communicate directly with the franchisee's managers and management company and will rely on their communications as being made on behalf of the franchisee.