On what variables will the actual expenditures for an Embassy Suites By Hilton depend?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
These estimates relate to a hotel with the elements we require (food and beverage, recreational, and other facilities as applicable).
These estimates do not take into account local requirements such as earthquake requirements or impact fees.
Your actual expenditures will depend on many variables, such as the size and location of the real property, the quantity and quality of the items being purchased, the terms on which the purchases are made, and fluctuations in material and labor costs.
You may also elect to lease certain items such as the real property.
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, the actual expenditures for a hotel will depend on several variables. These include the size and location of the real property, which can significantly impact costs due to variations in market prices and accessibility. The quantity and quality of items purchased, such as furniture, fixtures, and equipment, also play a crucial role, with costs varying based on the number and type of guest rooms and the extent of food and beverage services offered. The terms on which these purchases are made, including potential leasing options for real property or equipment, will further influence the overall investment.
Fluctuations in material and labor costs are another significant factor affecting expenditures for an Embassy Suites By Hilton franchise. Construction costs, in particular, can vary greatly from region to region due to these fluctuations. For franchisees converting an existing hotel, renovation costs will depend on the age of the facility, code compliance requirements, the use of the existing facility, the condition of the facility's structure, and the state of all furniture, fixtures, equipment, and finishes in relation to Embassy Suites By Hilton's Brand Standards.
Prospective franchisees should carefully consider these variables and conduct thorough independent investigations to understand how they will specifically affect their investment. The FDD emphasizes the importance of reviewing these figures with a business advisor before making any decision to purchase the franchise, as the expenses shown are for typical New Development and Conversion hotels, and individual circumstances can greatly impact actual costs.