What is the OnQ system used for in an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
es for some of these systems but not all of them, as described below.
OnQ System. Currently, we require you to use the "OnQ®" system, 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 for the operation of the Hotel. The complete OnQ package currently includes certain hardware, software, installation, and support.
You may acquire the hardware from our affiliate, HSS, or its preferred providers, or you may purchase or lease it from other (non-preferred) third-party vendors. You must acquire the OnQ software components from HSS or our designated vendors because certain elements are proprietary. 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®"). We developed HPMS in collaboration with HotelKey, Inc., a thirdparty technology company. Certain elements of HPMS are proprietary to Hilton. If you purchase the standard OnQ package from HSS, we estimate that it will cost within the range shown here for our prototype size of hotel shown in Item 7. This includes hardware, software, installation and certain other costs and fees, and is based on the size of the Hotel and number of workstations. We are not able to determine a separate market price for the OnQ system because there is no third-party market for OnQ in its entirety. See Item 11 for details.
You must update and upgrade ("refresh") the OnQ system at least every 3 years, or such longer period as we may specify. We may also require you to refresh the OnQ system in connection with a Change of Ownership or Relicensing, when a new franchise agreement is signed. We anticipate the cost of this to be the same or less than the cost of the original installations (but not including any elements that were needed for the original installation only).
Guest Internet Access System. You must provide internet access for all guest rooms and public spaces at your Hotel in accordance with our Standards ("Guest Internet Access"). Currently, our approved Guest Internet Access program is called "StayConnected." The initial set-up costs of this system are paid to vendors. See Item 11 for details.
GRO System. You must install our required Global Revenue Optimization ("GRO") system.
Source: Item 5 — INITIAL FEES (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, the OnQ system is a required business computer system that connects System Hotels to Hilton's reservation offices and travel planners worldwide. The OnQ system is comprised of proprietary components for reservations, property management, revenue management, rate and inventory management, forecast management, learning management, and other components for the operation of the Hotel. The complete OnQ package includes certain hardware, software, installation, and support. 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®). Certain elements of HPMS are proprietary to Hilton.
Embassy Suites By Hilton franchisees may acquire the hardware for the OnQ system from Hilton's affiliate, HSS, or its preferred providers, or they may purchase or lease it from other third-party vendors. However, franchisees must acquire the OnQ software components from HSS or Hilton's designated vendors because certain elements are proprietary. The initial cost for the OnQ system, including hardware, software, installation, and certain other costs and fees, is estimated to be between $70,576 and $151,184, based on the size of the Hotel and number of workstations. These costs do not include certain costs payable to third parties in connection with the OnQ system.
Embassy Suites By Hilton requires franchisees to update and upgrade the OnQ system at least every 3 years, or such longer period as Hilton may specify. Hilton may also require franchisees to refresh the OnQ system in connection with a Change of Ownership or Relicensing, when a new franchise agreement is signed. The cost of this refresh is anticipated to be the same or less than the cost of the original installations, not including any elements that were needed for the original installation only. The Digital Key system, which enables hotel guests to open their guest room doors wirelessly with their mobile phones through the Hilton Honors App, is part of OnQ, and there is no separate charge for it.