What is OnQ in relation to an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
l for at least the first year of operations. At the end of the year, if you request it, we will reevaluate this requirement.
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- We will provide you with the HITS Agreement (which will be countersigned by HSS) before you open your Hotel. The HITS Agreement governs your access to and use of OnQ, Hilton's proprietary computerized business system which is an integral part of the System we license to you (see Computer System below.) The HITS Agreement also governs the installation and on-going support and maintenance of your Guest Internet Access (HITS Agreement, Exhibit G).
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- We will make available to you for use in your Hotel various purchase, lease, or other arrangements with respect to exterior signs, operating equipment, operating supplies and furnishings, which we or Hilton may have and which we make available to other Brand franchisees (Franchise Agreement, Section 4.7).
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- If you open an eforea spa with your Hotel, before your spa opens, we or one of our affiliates will provide you with the eforea design and construction guidelines, a collateral suite and spa menus (Spa Amendment, Paragraph 4). We will also loan to you a copy of the eforea spa Manual and/or provide you with electronic access to the eforea spa Manual on the Hilton Intranet resources library. The eforea spa Manual is confidential and is the property of our affiliate, HIH (Franchise Agreement, Section 4.6). The Table of Contents of the eforea spa Manual is attached at Exhibit H-2. We will also provide you with a list of approved suppliers and specifications for required operating equipment, products, supplies and furnishings in the spa (Spa Amendment, Paragraph 4).
- We will specify initial and ongoing required and optional training programs (Franchise Agreement, Section 4.1). You must pay a fee for these programs and the training materials. You must also pay travel, lodging and other expenses associated with training (see Training below).
We are not obligated to assist you with locating, purchasing or leasing a site for your Hotel.
Computer System
You must use our required business computer system, which we may periodically change (Franchise Agreement, Sections 5.1.3 and 5.1.6). Currently, we require you to use "OnQ," which connects System Hotels to Hilton's reservation offices and travel planners worldwide. OnQ is comprised of proprietary components for reservations, property management, revenue management, rate & inventory management, forecast management, learning management, and other components we consider necessary to support the following activities: reservations, distribution, sales, customer relationship management, hotel operations, and business intelligence gathering and analysis. The complete OnQ package currently includes hardware, software, installation, and support. We also require you to use our required Guest Internet Access System, which we may periodically change. The components of each are described below, and the cost estimates are based on a standard prototype Brand hotel.
The OnQ System
OnQ Hardware and Software. You must use authorized hardware and the required software for the OnQ system. You may acquire the authorized hardware from HSS or its preferred providers, or you may purchase or lease it through other third-party providers. If you acquire the hardware from another (non-preferred) third party, you must also pay HSS for its reasonable expenses in determining that it conforms to our specifications. You must also pay for all necessary communications vehicles for OnQ (wide area network connections, electronic mail, and Internet connections), along with the installation and configuration costs, and travel and other expenses of the employees and vendors who perform the installation and configuration services.
The property management system component within the OnQ system is called the Hilton Property Management System ("HPMS"). HPMS may also be referred to as the Property Engagement Platform ("PEP®"). You are required to license the HPMS software from our affiliate, HSS. HSS is the only supplier of the HPMS software because of its proprietary nature. We are not able to determine a separate market price because there is no third-party market for this product in its entirety.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 53–67)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton FDD, OnQ is the brand's required business computer system that connects System Hotels to Hilton's reservation offices and travel planners worldwide. It is an integral part of the System that Embassy Suites By Hilton licenses to franchisees. The OnQ system is comprised of proprietary components for reservations, property management, revenue management, rate & inventory management, forecast management, learning management, and other components necessary to support reservations, distribution, sales, customer relationship management, hotel operations, and business intelligence gathering and analysis. The complete OnQ package includes hardware, software, installation, and support. Franchisees are also required to use the Guest Internet Access System. The property management system component within the OnQ system is called the Hilton Property Management System ("HPMS"), which may also be referred to as the Property Engagement Platform ("PEP®").
Embassy Suites By Hilton franchisees must sign an agreement for OnQ (HITS Agreement) approximately 90 to 120 days before opening their hotel. The cost for OnQ connectivity is billed to the franchisee by HSS and costs between $400 and $600 per month, beginning when the hotel's internet access circuit is installed, about 45 days before opening. These fees are not refundable. Franchisees must also purchase certain software licenses such as Windows Server operating systems and related client access licenses, database applications, and virus detection and removal tools. If a franchisee purchases the standard hardware and software from HSS, it is estimated to cost between $70,576 and $151,184, including hardware, software, installation, and certain other costs and fees, based on the size of the hotel and number of workstations. These fees are not refundable.
Embassy Suites By Hilton franchisees must use authorized hardware and the required software for the OnQ system. They may acquire the authorized hardware from HSS or its preferred providers, or they may purchase or lease it through other third-party providers. If the franchisee acquires the hardware from another (non-preferred) third party, they must also pay HSS for its reasonable expenses in determining that it conforms to the brand's specifications. The franchisee must also pay for all necessary communications vehicles for OnQ (wide area network connections, electronic mail, and Internet connections), along with the installation and configuration costs, and travel and other expenses of the employees and vendors who perform the installation and configuration services.
In addition to OnQ, Embassy Suites By Hilton franchisees must use the Digital Key system, which enables hotel guests to open their guest room doors wirelessly through the Hilton Honors App. The software for the Digital Key system is within the OnQ system, and the hardware consists of electronic door locksets and a programming device which are included in the construction cost estimates. For other business computer systems outside of OnQ, franchisees can contract with the supplier of their choice for both the hardware and software, subject to meeting the brand's standards on features and functionality. However, if such hardware and software need to interface to OnQ, the choice of supplier would be restricted to those that have a working interface to OnQ.