Embassy Suites by Hilton Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Embassy Suites by Hilton is an upscale, all-suite hotel franchise with free made-to-order breakfast and evening receptions. Franchisees own and operate individual properties, running suites, food and beverage, and guest services to Hilton standards.
FranchiseVerdict summary · 2026
A Embassy Suites by Hilton franchise does not disclose total investment in its current FDD, including a $100K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $59.1M
- 68th pct Lodging
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 5.5%
- 38th pct Lodging
- Units
- 239
- 55th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $59.1M including a $100K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 discloses ADR, Occupancy, RevPAR, and RevPAR Index for 221 Comparable Hotels in US for 2025. These are per-room operational metrics, not total gross revenues. Actual hotel revenues not disclosed.
- RISKVerdict A (Strongest tier), verdict score 60/100 (higher is better).
- LEGAL15 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hilton Franchise Holding LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- Predecessor
- Embassy Suites Franchise LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- CEO experience
- 2013 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $1.6B
- vs $1.5B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 43
Can you afford it, and what does the money buy?
Source: FDD 2026 · Items 5–7
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $59.1M
- Bottom third — review vs category
- Liquid capital req'd
- $600K – $1.0M
- Middle of category vs category
- Franchise fee
- $100K
- Middle of category vs category
- Royalty
- 5.5%
- tiered · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Training fee | $18K |
| Transfer fee | $200K |
| Renewal fee | $100K |
| Inventory (initial) | $700K – $1.0M |
| Total fee load | 9.5% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Embassy Suites by Hilton did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Embassy Suites by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
0%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 19 discloses ADR, Occupancy, RevPAR, and RevPAR Index for 221 Comparable Hotels in US for 2025. These are per-room operational metrics, not total gross revenues. Actual hotel revenues not disclosed.
Includes company-owned outlets
- Item 19 type
- RevPAR and Room Rate (operational hotel metrics, not gross revenues)
- Sample size
- 221 outlets
- vs category median 99 · large
- Reporting year
- 2026
- Fiscal year the figures cover
- Source filing
- FDD 2026
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 174 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.5% (near the Lodging average).
Disclosure
Item 19 reports RevPAR and Room Rate (operational hotel metrics, not gross revenues) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (+1.3% 3-year CAGR) with 239 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Embassy Suites by Hilton Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 239
- Opened
- 3
- Last reporting year
- Closed
- 0
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -1.3%
- Net unit change over 3 years
- 3-yr CAGR
- +1.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 4
- Closed (3yr)
- 0
- Terminated (3yr)
- 7
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 28
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 3.8%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Embassy Suites presents elevated risk due to litigation exposure, absent financial transparency, negligible growth despite brand strength, and unprotected territories creating cannibalization risk.
Litigation (Item 3)
5 pending actions (1 vs franchisor breach of contract, 4 class action antitrust); 5 concluded actions involving franchisor (breach of contract, consumer protection/fee disclosure settlements with TX $2.1M and NE $300K, franchise disputes); 4 collection suits against former franchisees; 1 historical 1971 Sherman Act consent decree involving predecessor HHC
Largest disclosed settlement: $2,100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 60 / 100 verdict
- 01MINORStagnant unit growth (0.8% YoY) suggests franchisee recruitment and retention challenges despite major brand recognition
- 02MINORMultiple active antitrust lawsuits and recent AG settlements indicate systemic compliance issues with pricing transparency and guest fee disclosures
- 03MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents prospective franchisees from validating unit economics or ROI claims
- 04MINORUnprotected territory creates direct competition risk; franchisees may face cannibalization from nearby Embassy Suites locations
- 05HIGHLitigation pattern shows breach of contract and termination disputes with franchisees, suggesting contentious franchisor-franchisee relationships
- 06HIGH23-year term is lengthy given declining unit trajectory and litigation exposure; exit options may be limited
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 23 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 17 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | Fairfax County, Virginia (Puerto Rico only) |
| Jury trial waiver | Yes |
| Governing law | NY |
| Litigation count | 15 |
View Item 3 litigation summary
5 pending actions (1 vs franchisor breach of contract, 4 class action antitrust); 5 concluded actions involving franchisor (breach of contract, consumer protection/fee disclosure settlements with TX $2.1M and NE $300K, franchise disputes); 4 collection suits against former franchisees; 1 historical 1971 Sherman Act consent decree involving predecessor HHC
Items 10, 11
Training & Operations
- Classroom training
- 113 hrs
- On-the-job training
- 1 hrs
- Training location
- Virtual and on-site at the hotel
- Ongoing training
- Required
- Time to open
- 36 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- OnQ (Hilton Property Management System / PEP)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ (Hilton Property Management System / PEP)
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Embassy Suites by Hilton · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
What do Embassy Suites by Hilton franchise owners earn?
Embassy Suites by Hilton does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Embassy Suites by Hilton FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Embassy Suites by Hilton FDD and qualifies whose outlets they describe.
What is Embassy Suites by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Embassy Suites by Hilton (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Embassy Suites by Hilton franchise locations are there?
As of their most recent FDD filing, Embassy Suites by Hilton has 239 total units in the United States, including 239 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Embassy Suites by Hilton a good franchise to buy?
FranchiseVerdict rates Embassy Suites by Hilton as a A-grade franchise with a verdict score of 60 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.