When is the Monthly Royalty Fee due for an Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| General | |||
| Monthly Royalty Fee – New Development or Conversion | 3.5% of Gross Rooms Revenue during 1st year of operation; 4.5% of Gross Rooms Revenue during 2nd year of operation; and 5.5% of Gross Rooms Revenue for the remainder of the Term. | Payable monthly by the 15th day of the following month. | See Note 1. |
| Monthly Royalty Fee – Change of Ownership or Re licensing | 5.5% of Gross Rooms Revenue. | Payable monthly by the 15th day of the following month. | See Note 1. |
| Monthly Spa Royalty Fee | 2% of Gross Spa Revenue. | Payable monthly by the 15th day of the following month. | Payable only if Eforea Spa Amendment is in effect. See Note 1. |
| Monthly Program Fee | 4% of Gross Rooms Revenue. | Payable monthly by the 15th day of the following month. | We can change the Monthly Program Fee. See Notes 1 and 2. |
Source: Item 6 — OTHER FEES (FDD pages 27–41)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Monthly Royalty Fee is payable monthly by the 15th day of the following month. The amount of the Monthly Royalty Fee varies depending on whether the hotel is a new development or conversion, or a change of ownership or re-licensing. For new developments or conversions, the fee is 3.5% of Gross Rooms Revenue during the 1st year of operation, 4.5% during the 2nd year, and 5.5% for the remainder of the term. For a change of ownership or re-licensing, the fee is 5.5% of Gross Rooms Revenue.
In addition to the Monthly Royalty Fee, Embassy Suites By Hilton franchisees must also pay a Monthly Spa Royalty Fee of 2% of Gross Spa Revenue if the Eforea Spa Amendment is in effect. This fee is also due by the 15th day of the following month. Franchisees are also required to pay a Monthly Program Fee of 4% of Gross Rooms Revenue, which is also due by the 15th day of the following month. Embassy Suites By Hilton retains the right to change the Monthly Program Fee.
It is important for prospective franchisees to understand the different royalty fee structures and due dates, as well as the potential for changes to the Monthly Program Fee. Failure to pay fees on time could result in penalties or termination of the franchise agreement. Franchisees should also carefully review the definitions of "Gross Rooms Revenue" and "Gross Spa Revenue" in the FDD to ensure accurate calculation of the royalty fees.