To whom is the Property Improvement Plan (PIP) Fee payable for an Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
tes. Unless otherwise stated, these are not refundable under any circumstances.
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| General | |||
| Franchise Application Fee – New Development or Conversion | $100,000, plus $400 for each additional guest room or suite over 250. | With Application. | See Note 1. |
| Franchise Application Fee – Change of Ownership | $200,000 | With Application. | See Note 1. |
| Franchise Application Fee – Re-licensing | $100,000 | With Application. | See Note 1. |
| Property Improvement Plan ("PIP") Fee | $10,000 | Before PIP inspection is scheduled. | Payable to prepare a PIP for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. In some circumstances, we may waive the PIP fee or apply the PIP fee |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS towards the payment of the Franchise Application Fee, but we are not obligated to do so. |
| Construction or Renovation Work Extension Fee | $10,000 | With written request for extension. | You must start and complete the construction work or renovation work at your Hotel by the dates specified in your Franchise Agreement. See Note 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 Property Improvement Plan (PIP) Fee is payable to the franchisor. This fee is currently $10,000 and is due before the PIP inspection is scheduled.
The PIP fee is required for a Conversion, Change of Ownership, or Re-licensing of an existing hotel. It also applies to any Room Addition or renovation project in which a PIP is required. The purpose of the fee is to prepare a PIP for these specific situations.
Embassy Suites By Hilton may, in some cases, waive the PIP fee, but they are not obligated to do so. This fee covers the cost for Embassy Suites By Hilton to assess the property and determine what improvements are needed to meet brand standards. Franchisees should inquire under what specific conditions the franchisor may consider waiving this fee.