When is participation in the RMCC 'Foundation Audit' required for an Embassy Suites By Hilton hotel?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
on hotel performance. The program terms, eligibility, and fees are subject to change.
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- RMCC is optional except in the following circumstances. Category 1: If your Hotel is open and has an active PIP, it must participate in our one-time "Foundation Audit." Category 2: If you are a first-time franchise owner, the Hotel is your first Brand Hotel, the Hotel is a new construction Hotel, or you change your General Manager, your Hotel must participate in our monthly service "Intermediate Model." If your Hotel is projected to generate or does generate over $10 million in annual Gross Room Revenue or is located in a dynamic market with a complex mix of business and a need for forecasting support, it must participate in our monthly full service "Premier Model." Brand Performance Guidelines: In addition, if your Hotel fails to achieve minimum performance guidelines ("Brand Performance Guidelines") at any time during the term, a one-time Audit will be conducted including a consultation with you on the results. If your Hotel still does not meet the Brand Performance Guidelines 6 months after that Audit, it will be required to participate in the applicable Ca
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, participation in the Revenue Management Consolidated Center (RMCC) 'Foundation Audit' is required in specific circumstances. If an Embassy Suites By Hilton hotel is open and has an active Property Improvement Plan (PIP), participation in the one-time 'Foundation Audit' is mandatory.
Additionally, the RMCC participation is required under the 'Intermediate Model' monthly service if the franchisee is a first-time owner, the hotel is the franchisee's first Embassy Suites By Hilton hotel, the hotel is newly constructed, or if the General Manager changes. Furthermore, if the hotel is projected to generate or does generate over $10 million in annual Gross Room Revenue, or is located in a dynamic market requiring forecasting support, the hotel must participate in the monthly full-service 'Premier Model'.
Embassy Suites By Hilton also mandates a one-time audit and consultation if a hotel fails to achieve minimum performance guidelines ('Brand Performance Guidelines'). If the hotel still does not meet these guidelines six months after the audit, it will be required to participate in the applicable Category 2 service model for at least 12 months. It is important to note that RMCC programs and fees are subject to change, which could impact the financial obligations of the franchisee.