Embassy Suites by Hilton franchise
2023 filing · March 30, 2023Shares sales figures
Embassy Suites by Hilton at a glance
A Hilton upscale all-suite hotel brand with two-room suites, free cooked-to-order breakfast and an evening reception. At the end of 2022 there were 235 Embassy Suites by Hilton locations in the US, all franchised.
The business
- Industry
- Hotel
- Franchisor
- Hilton Franchise Holding LLC
- The company that sells the franchises
- Franchisor based in
- McLean, Virginia
What you pay
- Cost to open
- $47.9M–$75.6M
- New 174-suite hotel, excluding land
- Franchise fee
- $100,000
- For a new or converted hotel, plus $400 for each suite above 250.
- Royalty
- 3.5–5.5%
- 3.5% of gross rooms revenue in the first year, 4.5% in the second and 5.5% after that for a new or converted hotel; 5.5% for a change of ownership
- Brand fund
- Yes
- 4% of gross rooms revenue as a monthly program fee covering marketing, reservations and other system services
Where it is
- US locations, 2022
- 235
- Franchised and company-owned
- Franchised
- 235
- Company-owned
- 0
- States
- 41
- Most in Texas, California and Florida
From Hilton Franchise Holding LLC’s 2023 filing; revenue and net income from its audited financial statements, page 114; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Embassy Suites by Hilton among all franchises with the same figure.
| Figure | Embassy Suites by Hilton | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $61,758,246 | Costs more than 99% of franchises |
| Franchise feePaid once, when you sign | $100,000 | Higher than 98% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5.5% | Lower than 66% of brands with a set rate |
| US locationsFranchised and company-owned | 235 | More than 88% of franchises |
How much a Embassy Suites by Hilton franchise costs
Opening new 174-suite hotel, excluding land costs an estimated $47,889,448 to $75,627,044. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction and leasehold improvement costs ($35,017,500 to $50,715,000) and furniture, fixtures and equipment ($5,434,000 to $8,150,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Franchise Application Fee | $100,000 | ||
| Property Improvement Plan Fee | $0 | $10,000 | |
| Construction and Leasehold Improvement Costs | $35,017,500 | $50,715,000 | |
| Designer and Engineering Fees | $1,050,525 | $1,521,450 | |
| Furniture, Fixtures and Equipment | $5,434,000 | $8,150,000 | |
| Inventory and Operating Equipment | $404,000 | $1,097,000 | |
| Signage | $27,500 | $110,000 | |
| Computer Hardware and Software | $104,095 | $204,695 | |
| Guest Internet Access Program | $84,800 | $132,000 | |
| Delphi Sales and Events System | $990 | $41,000 | |
| Required Pre-Opening Training | $5,000 | $17,500 | |
| ADA Consultant Fee | $2,500 | $15,000 | |
| Construction/Renovation Extension Fees | $0 | $10,000 | |
| Organizational Expense | $75,000 | $268,724 | |
| Permits and Licenses | $525,263 | $760,725 | |
| Miscellaneous Pre-Opening and Project Management Expenses | $1,050,525 | $1,521,450 | |
| Contingencies | $3,501,750 | $5,071,500 | |
| Additional Funds | $500,000 | $900,000 | |
| Eforea Spa Initial Fee | $0 | $25,000 | |
| Additional Funds for Eforea Spa Implementation | $0 | $4,950,000 | |
| Other Required Pre-opening Services Fees | $6,000 | ||
| Total | $47,889,448 | $75,627,044 | |
Source: Hilton Franchise Holding LLC, 2023 filing, page 40
Embassy Suites by Hilton franchise fee
The franchise fee is $100,000, For a new or converted hotel, plus $400 for each suite above 250.. You pay it when you sign the franchise agreement.
Source: Hilton Franchise Holding LLC, 2023 filing, page 22
Royalty and ongoing fees
| Royalty | 3.5% of gross rooms revenue in the first year, 4.5% in the second and 5.5% after that for a new or converted hotel; 5.5% for a change of ownership. |
|---|---|
| Brand or marketing fund | 4% of gross rooms revenue as a monthly program fee covering marketing, reservations and other system services. |
| Permitted Transfer Processing Fee | Currently, $5,500. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Hilton Franchise Holding LLC, 2023 filing, page 27
Other fees as filed, from page 32. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Embassy Suites by Hilton publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Hilton Franchise Holding LLC, 2023 filing, page 85
How Embassy Suites by Hilton compares
Of the 116 hotel franchises on this site, Embassy Suites by Hilton is the 104th cheapest to open and the 26th largest by number of locations.
| Figure | Embassy Suites by Hilton | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $47.9M | $9.44M | $222K |
| Cost to open, high end | $75.6M | $21.3M | $477K |
| Franchise fee | $100K | $54K | $40K |
| Royalty | 5.5% | 5% | 6% |
| US locations | 235 | 37 | 21 |
| Change in franchised locations, 0 yrs | +2.2% | +9.2% | – |
| Shares earnings figures | Yes | 71 of 116 | 2,147 of 3,352 |
Typical is the median across the 116 brands in hotel franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned |
|---|---|---|
| 2020 | 232 (+2) | 0 |
| 2021 | 234 (+2) | 0 |
| 2022 | 235 (+1) | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: hotel franchise costs and franchise failure rates.
Source: Hilton Franchise Holding LLC, 2023 filing, page 89
Where Embassy Suites by Hilton locations are
At the end of 2022, Embassy Suites by Hilton had franchised locations in 43 states and territories. The most are in Texas, California and Florida.
- Texas30
- California24
- Florida16
- Georgia12
- North Carolina11
- Illinois9
| State | Franchised |
|---|---|
| Texas | 30 |
| California | 24 |
| Florida | 16 |
| Georgia | 12 |
| North Carolina | 11 |
| Illinois | 9 |
| Tennessee | 9 |
| Virginia | 9 |
| Colorado | 8 |
| Arizona | 7 |
All 43 states
Source: Hilton Franchise Holding LLC, 2023 filing, page 91
Who owns Embassy Suites by Hilton?
Embassy Suites by Hilton franchises are sold by Hilton Franchise Holding LLC. It is a subsidiary of Hilton Domestic Operating Company.
Embassy Suites by Hilton is one of the 15 Hilton brands here. Hilton Worldwide Holdings is a public company based in McLean, Virginia. Its shares trade on the New York Stock Exchange as HLT.
From Hilton Franchise Holding LLC’s 2023 filing, page 9; SEC.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 18–22. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Hilton Franchise Holding LLC, 2023 filing, litigation on pages 18–22, bankruptcy on page 22
Embassy Suites by Hilton filings
The figures on this page come from Hilton Franchise Holding LLC’s 2023 filing, issued March 30, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | March 30, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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