What is the range for Property Improvement Plan fees for an Embassy Suites By Hilton franchise?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
ESTIMATED INITIAL INVESTMENT**
YOUR ESTIMATED INITIAL INVESTMENT EMBASSY SUITES (176 Suites)
| Type of Expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Franchise Application Fee | $100,000 | Lump sum | With | Us |
| (Note 1) | Application | |||
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, a franchisee can expect to pay a Property Improvement Plan (PIP) fee ranging from $0 to $10,000. This fee is paid as a lump sum to Embassy Suites By Hilton before they prepare the PIP.
The Property Improvement Plan fee is applicable if a prospective franchisee is converting an existing hotel to an Embassy Suites By Hilton or applying for a change of ownership or relicensing. This fee covers the cost for Embassy Suites By Hilton to determine the upgrading requirements for the hotel to meet brand standards. This evaluation is crucial to ensure that the hotel aligns with the brand's quality and customer experience expectations.
It's important to note that the PIP fee is separate from the actual costs of the property improvements themselves, which can vary significantly based on the condition and requirements of the existing hotel. Franchisees should factor in potential renovation and upgrade expenses in addition to this initial fee. Understanding the scope of required improvements is essential for budgeting and financial planning when converting or relicensing an Embassy Suites By Hilton franchise.