Embassy Suites by Hilton Franchise

Embassy Suites by Hilton Franchise Opportunity

Embassy Suites by Hilton stands out as an all-suite, upper upscale hospitality franchise within the prestigious Hilton Worldwide Holdings portfolio. Offering unparalleled guest experiences with two-bedroom suites, dining areas, workspaces, and generous amenities such as complimentary breakfast and happy hour, Embassy Suites consistently rises above competitors in the hospitality market.

Franchise At-A-Glance

• Liquid Capital Required: $100,000
• Total Investment: $39,478,895 - $63,035,693
• Franchise Fee: $75,000
• Royalty Fee: 3.5% - 5.5%
• Financing Options: Available
• Units in Operation: 240
• Founded: 1983
• Franchising Since: 1984

Franchise Overview and History

The first Embassy Suites opened its doors in Kansas in 1984, under the Holiday Corporation's umbrella. The brand became part of Hilton in 1999, enhancing its reach and reputation. Since then, Embassy Suites has flourished across North and South America, boasting approximately 250 locations with over 80% of them being franchised.

Investment and Fees

Initial Investment: Opening a standard 174-suite Embassy Suites hotel requires an investment between $17,380,700 and $74,956,150. This cost excludes real estate and insurance costs but includes other essential setup expenditures.

Franchise Application Fees: Prospective franchisees must pay a $75,000 application fee plus $400 for each suite over 250. For a change of ownership application, an additional $175,000 fee applies. These fees are refundable minus a $7,500 processing charge. For conversions or change of ownership, an extra $7,500 Product Improvement Plan (PIP) inspection fee is required, which is non-refundable.

Ongoing Royalties and Program Contributions:

• New Development or Conversion Hotel:
  • 3.5% of Gross Rooms Revenue during the 1st year of operation
  • 4.5% during the 2nd year
  • 5.5% thereafter
• Ownership Change or Re-Licensing Hotel: 5.5% of Gross Rooms Revenue
• Eforea Spa: 2% of Gross Spa Revenue

Additionally, there’s an ongoing monthly program fee of 4% of Gross Rooms Revenue, which may reduce to 3.5% at the franchisor's discretion.

Additional Business Options

Embassy Suites franchisees may have the option to incorporate Hilton's Eforea spa or another approved spa system into their property. This requires an initial $25,000 fee and the execution of the Spa Amendment. Franchisees must ensure that their chosen spa system aligns with the franchisor’s design, build, and management requirements.

Embassy Suites Franchise System Size and Composition

By the end of 2018, Embassy Suites had around 245 hotels worldwide (237 in the U.S. and 8 international). Approximately 81% of these are franchised, while the rest are corporate-owned. Collectively, Embassy Suites generates an estimated $2.6 billion in global sales.

Part of the Hilton Family

As a subsidiary of Hilton Worldwide Holdings Inc., Embassy Suites benefits from the branding and resources of its parent company. Hilton's portfolio includes renowned brands such as DoubleTree, Hilton Garden Inn, and Waldorf Astoria, offering franchisees robust support and a vast network.

Key Takeaways

• Investment range: $17,380,700 to $74,956,150
• Franchise Fee: $75,000
• Liquid Capital Required: $100,000
• Royalty Fee: 3.5% - 5.5%
• Financing Options: Available
• Units in Operation: 240
• Founded in 1983, Franchising since 1984

For detailed financial requirements and additional information, prospective franchisees are encouraged to download the franchise disclosure document or fill out the free information request form on this page.