What variables can affect the actual expenditures for an Embassy Suites By Hilton franchise?

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, several variables can influence the actual expenditures for establishing a franchise. These include the size and location of the real property, which can significantly impact costs due to geographic price variations and special assessments. The quantity and quality of purchased items, 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, further affect expenditures. Additionally, fluctuations in material and labor costs can cause the actual expenditures to differ from the estimated amounts.

For franchisees converting an existing hotel, renovation costs are subject to variables such as the age of the facility, compliance with current building codes, and the physical condition of the structure and its contents. The type of existing facility, whether it is already a hotel or an adaptive reuse project, also influences renovation expenses. The condition of furniture, fixtures, equipment, and finishes, and their conformance to Embassy Suites By Hilton's brand standards, will also impact the overall cost of conversion.

Insurance premiums are another variable, with costs varying widely based on the hotel's location, size, and the type of coverage purchased. Similarly, the fees for licenses and permits required to operate the hotel depend on the specific regulations of the state, county, or other political subdivision in which the hotel is located. These factors highlight the importance of conducting thorough due diligence and consulting with business advisors to accurately assess potential costs before investing in an Embassy Suites By Hilton franchise.