What is the required ownership of the real property for an Embassy Suites By Hilton franchise?

Based on the 2025 Franchise Disclosure Document, the provided excerpts do not explicitly state that franchisees must own the real property where the Embassy Suites By Hilton hotel will be located. However, the document does reference a guarantor who has a tenant-in-common interest in the property. This suggests that franchisees may have the option to lease the property instead of owning it outright.

The FDD mentions a Guaranty agreement where the Guarantor represents ownership of a tenant-in-common interest in the hotel property. The Guarantor is responsible for ensuring the Franchisee fulfills its financial and operational obligations under the Franchise Agreement. This arrangement could allow for flexibility in how the real estate is handled, potentially opening the door for franchisees who prefer not to tie up capital in real estate ownership.

To fully understand the real property ownership requirements, prospective Embassy Suites By Hilton franchisees should ask the franchisor about the specific options available. Clarification should be sought on whether leasing is permitted, what the typical lease terms are, and what impact the ownership structure has on the franchise agreement. Understanding these details is crucial for making an informed investment decision.