What was the median room rate for all comparable Embassy Suites By Hilton hotels in 2023?

According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the median room rate for all comparable hotels in 2023 was $168.88. This figure represents the midpoint of room rates across a set of 220 comparable Embassy Suites By Hilton hotels operating in the U.S., excluding territories and possessions. These comparable hotels met specific criteria, including being active for at least one full calendar year, not undergoing brand or ownership changes, avoiding substantial property damage or large-scale capital projects, and maintaining a consistent number of guest rooms.

For a prospective franchisee, this median room rate provides a benchmark for evaluating potential revenue. It's important to understand that this is a median value, meaning half of the comparable hotels had room rates above this figure, and half had rates below. The actual room rates for comparable hotels ranged from $116.58 to $385.46 in 2023, indicating a wide range of performance within the Embassy Suites By Hilton system. Factors such as location, competition, and hotel amenities can significantly influence individual hotel performance.

The FDD also provides the average room rate for all comparable hotels in 2023, which was $182.63. Comparing the average and median rates can offer insights into the distribution of room rates. In this case, the average is higher than the median, suggesting that there may be some hotels with significantly higher room rates that are pulling the average upward. Franchisees should consider these factors and conduct their own market analysis to determine realistic room rates for their specific location.

It is important to note that the FDD also presents financial performance data for 'New Generation Comparable Hotels,' which are hotels opened during or after 2015. The median room rate for these newer hotels was $184.44 in 2023, higher than the median for all comparable hotels. This suggests that newer hotels may be able to command higher room rates. Prospective franchisees should carefully review all the financial performance representations in the FDD and consult with professional advisors to assess the potential financial performance of an Embassy Suites By Hilton franchise.