What is the franchisee encouraged to do before executing the Franchise Agreement for an Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
You may also elect to lease certain items such as the real property.
In New Development, building construction costs vary greatly from region to region depending on material and labor costs and other variables.
In Conversions, the renovation costs will vary depending on the age of the facility (including code compliance), performance-based requirements (including fire & life safety systems and strategy); the use of the existing facility (an existing hotel or an Adaptive Reuse), the condition of the facility (including the physical integrity of the structure and envelope), and the state of all accoutrements (including the furniture, fixtures, equipment, and finishes) in relationship to conformance with our Brand Standards.
You are encouraged to independently investigate, before executing the Franchise Agreement, the cost of all such items as they will specifically affect your investment.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Embassy Suites By Hilton encourages prospective franchisees to independently investigate all costs that will specifically affect their investment before executing the Franchise Agreement. This recommendation is particularly relevant because the initial investment for an Embassy Suites By Hilton franchise can range from $50,082,670 to $82,170,820, excluding real estate costs, market study expenses, insurance, interest, or specific conversion-related improvements. These costs can vary significantly based on factors like location, the size of the hotel, and whether it's a new development or a conversion of an existing property.
For new developments, construction costs can differ greatly depending on material and labor costs in the region. For conversions, renovation costs depend on the facility's age, code compliance, performance-based requirements, the use of the existing facility, its condition, and the state of all furniture, fixtures, equipment, and finishes relative to Embassy Suites By Hilton's Brand Standards. Given these variables, it is crucial for franchisees to conduct thorough due diligence to understand the specific costs they will incur.
Prospective Embassy Suites By Hilton franchisees should take this encouragement seriously and consult with financial advisors, contractors, and other relevant professionals to assess all potential expenses. This proactive approach can help ensure that franchisees are fully aware of the financial commitments involved and can make informed decisions before entering into the Franchise Agreement. Understanding these costs upfront can mitigate financial risks and contribute to the long-term success of the franchise.