Is the PIP fee for converting an existing hotel to an Embassy Suites By Hilton refundable?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
If you apply to convert an existing hotel to a Brand hotel or apply for a change of ownership or other re-licensing, we charge an additional nonrefundable PIP fee to determine the upgrading requirements for the hotel.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–45)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the Property Improvement Plan (PIP) fee is nonrefundable. If a prospective franchisee applies to convert an existing hotel to an Embassy Suites By Hilton, the franchisor charges this additional fee to assess the upgrades needed to meet brand standards.
The FDD states that this fee ranges from $0 to $10,000. This fee is paid in a lump sum before Embassy Suites By Hilton prepares the PIP report. Because the fee is nonrefundable, prospective franchisees should carefully consider their conversion plans and budget before paying this fee to Embassy Suites By Hilton.
Franchise fees are typically nonrefundable in the hotel industry, as they cover the franchisor's costs of evaluating the property and preparing the PIP. This policy helps Embassy Suites By Hilton ensure that only serious and qualified candidates proceed with the conversion process. Franchisees should factor this nonrefundable fee into their initial investment calculations and be prepared to move forward with the conversion if they choose to pay it.