What are 'Strategic Partnerships' in the context of an Embassy Suites By Hilton franchise agreement?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
We may enter into certain types of distribution, marketing, and/or loyalty relationships ("Strategic Partnerships") with third-party companies or vendors ("Strategic Partners") under which guests can make reservations and purchases through our Reservation Service and distribution system, and Hilton Honors members may receive benefits at such businesses. These Strategic Partnerships are "Other Businesses" under the Franchise Agreement. Strategic Partners are not Hilton Worldwide Brands. Strategic Partners are not our corporate affiliates, and do not offer franchises or management agreements for any of the Hilton Worldwide Brands. We may enter into, terminate, or modify any Strategic Partnership anywhere, at any time, in our discretion. Strategic Partners' businesses may be located in and near your area, including within your Restricted Area (if any). Your Hotel may compete with any hotels, motels, inns, campsites, other lodging facilities or accommodations, as well as any tours, excursions, or other customer experiences, products, or services offered by our Strategic Partners or through any of our Strategic Partnerships anywhere, at any time, other than as provided in your Restricted Area Provision (if any).
Source: Item 12 — TERRITORY (FDD pages 67–70)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, 'Strategic Partnerships' refer to specific relationships that Embassy Suites By Hilton may establish with other companies or vendors. These partnerships involve distribution, marketing, and/or loyalty programs. Through these arrangements, guests can make reservations and purchases via Embassy Suites By Hilton's reservation service and distribution system. Additionally, Hilton Honors members may receive benefits when using these partner businesses.
Embassy Suites By Hilton designates these Strategic Partnerships as 'Other Businesses' under the franchise agreement. However, it's important to note that these Strategic Partners are not considered Hilton Worldwide Brands, nor are they corporate affiliates that offer franchises or management agreements under the Hilton Worldwide umbrella. Embassy Suites By Hilton retains the discretion to enter into, terminate, or modify these Strategic Partnerships at any time and in any location.
For a prospective franchisee, this means that businesses affiliated with these Strategic Partners may be located near their Embassy Suites By Hilton location, potentially even within any designated Restricted Area. The franchisee's hotel may then compete with the hotels, motels, and other lodging facilities offered by these Strategic Partners. This competition can extend to tours, excursions, and other customer experiences, products, or services offered through these partnerships. Therefore, franchisees need to be aware that their business may face competition not only from other hotels but also from businesses associated with Embassy Suites By Hilton's Strategic Partnerships.