Is the renewal or extension of the Embassy Suites By Hilton HITS agreement guaranteed?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer's Conditions.
All benefits provided Customer herein and all obligations of HSS under this TSP Agreement are expressly subject to and conditioned upon the following:
(a) Customer is not, and continues not to be, in default of any agreement with HDOC HSS or any of their affiliates and subsidiaries, or any Brand division, including but not limited to this TSP Agreement, the HITS Agreement and Customer's License Agreement with HDOC or its affiliate or subsidiary.
(b) Customer continues to make all other payments to HSS's Preferred Providers under any applicable agreements and does not become in default under such agreements.
(c) Customer's Hotel remains (after conversion and rebranding if applicable) one of the following Hilton Brand divisions: Hampton Inn, Hampton Inn & Suites, Embassy Suites, Homewood Suites by Hilton, LXR, Canopy, Curio, Tapestry and Motto.
(d) Customer executes the HITS Agreement contemporaneously with this TSP Agreement.
(e) Customer's participation and continued cooperation with HSS in HSS's Total Solution Program, including, but not limited to, the refreshment of Network Authorized Equipment.
(f) Customer allows the removal and future replacement or refreshment of Network Authorized Equipment at such time and in such manner as may be determined by HSS in its sole discretion.
(g) If applicable, Customer must complete the Hotel's conversion and rebranding as a Hilton Brand division hotel.
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Termination.
HSS may terminate the above Equipment License on the Network Authorized Equipment and all other obligations of HSS under this TSP Agreement at HSS's option: (a) Immediately without notice in event of breach of Customer's obligations or conditions set forth in Sections 2 and 3 above, or (b) at any time, with or without cause, upon not less than ninety (90) days advance written notice to Customer.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 77–87)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the continuation of the HITS (Hilton's Information Technology System) Agreement for Embassy Suites By Hilton franchisees is contingent upon several factors. Hilton Systems Solutions, LLC ("HSS") provides computer hardware, software, and support services for all Hilton's brands and signs the HITS Agreement.
The franchisee's compliance with various conditions is crucial. These conditions include not being in default of any agreement with Hilton Domestic Operating Company Inc. (HDOC), HSS, or their affiliates, including the HITS Agreement and the Franchise Agreement. Maintaining timely payments to HSS's Preferred Providers and ensuring the hotel remains under a qualifying Hilton Brand division (Hampton Inn, Hampton Inn & Suites, Embassy Suites, Homewood Suites by Hilton, LXR, Canopy, Curio, Tapestry and Motto) are also necessary.
Furthermore, franchisees must execute the HITS Agreement contemporaneously with the TSP (Total Solution Program) Agreement, actively cooperate with HSS in the Total Solution Program (including refreshing Network Authorized Equipment), and allow for the removal and replacement of Network Authorized Equipment as determined by HSS. Failure to meet these conditions could lead to termination of the Equipment License and other obligations under the TSP Agreement, potentially affecting the HITS Agreement. HSS can terminate the Equipment License on the Network Authorized Equipment and all other obligations of HSS under this TSP Agreement at HSS's option: (a) Immediately without notice in event of breach of Customer's obligations or conditions or (b) at any time, with or without cause, upon not less than ninety (90) days advance written notice to Customer. Therefore, renewal or extension is not guaranteed and depends on fulfilling these requirements.