Embassy Suites by HiltonFranchise Cost, Revenue & Review 2026
Data from FDD filing
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 3.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $100K
- 3rd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 3.5%
- 1st pct Lodging
- Units
- 239
- 42nd pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 239 to 236 over 3 years. Investigate why operators are leaving.
15 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $100K including a $100K franchise fee, 3.5% ongoing royalty.
- Item 19 discloses "Historical Performance" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 42/100.
- 15 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
- Legal entity
- HILTON FRANCHISE HOLDING LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- 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
- $1.4B
- vs $1.5B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate all-suite hotel properties under the Embassy Suites brand, managing daily operations including front desk, housekeeping, food and beverage service, and guest amenities. Franchisees must maintain Hilton's brand standards, pricing compliance requirements, and technology integrations while paying 3.5-5.5% royalties on gross rooms revenue. Hotel operations are capital-intensive, requiring significant upfront investment in property acquisition/renovation, staffing, and ongoing maintenance.
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 43
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $100K
- Better than avg vs category
- Liquid capital req'd
- N/A
- Near category avg vs category
- Franchise fee
- $100K – $100K
- Near category avg vs category
- Royalty
- 3.5%
- Gross Rooms Revenue · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.5% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Training fee | $18K |
| Transfer fee | $200K |
| Renewal fee | $100K |
| Total fee load | 7.5% of rev |
Financial Performance
This brand's FDD disclosed "Historical Performance" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Embassy Suites by Hilton Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 239
- Opened
- 3
- Last reporting year
- Closed
- 1
- Turnover rate
- 0.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.8%
- Net unit change last year
- 3-yr CAGR
- +1.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 9
- Transfer rate
- 3.8%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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 cases: (1) Bow Hospitality LLC v. Hilton - franchise termination dispute (Hampton Inn) filed Jan 2025; (2) In re Extended Stay Hotel Antitrust Litigation (N.D. Cal.) - class action alleging Sherman Act violations regarding information sharing and revenue management pricing; (3) Hanson Dai v. SAS Institute Inc. (N.D. Cal.) - class action alleging Sherman Act violations for improper rate setting; (4) Ryan Segal v. Amadeus IT Group (N.D. Ill.) - class action alleging Sherman Act violations for data exchange practices; (5) Jeanette Portillo v. CoStar Group (W.D. Wash.) - class action (text incomplete). Hilton is defendant in all cases and intends vigorous defense.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 42 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 23 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 15 |
View Item 3 litigation summary
5 pending cases: (1) Bow Hospitality LLC v. Hilton - franchise termination dispute (Hampton Inn) filed Jan 2025; (2) In re Extended Stay Hotel Antitrust Litigation (N.D. Cal.) - class action alleging Sherman Act violations regarding information sharing and revenue management pricing; (3) Hanson Dai v. SAS Institute Inc. (N.D. Cal.) - class action alleging Sherman Act violations for improper rate setting; (4) Ryan Segal v. Amadeus IT Group (N.D. Ill.) - class action alleging Sherman Act violations for data exchange practices; (5) Jeanette Portillo v. CoStar Group (W.D. Wash.) - class action (text incomplete). Hilton is defendant in all cases and intends vigorous defense.
Items 10, 11
Training & Operations
- Classroom training
- 119 hrs
- On-the-job training
- 1 hrs
- Training location
- franchisor location and on-site
- Ongoing training
- Required
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Item 20 · call current owners
Franchisee Contacts
22 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 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 risk score of 42 out of 100, 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.