Embassy Suites by Hilton
Bottom line
- Total investment — including a $100K franchise fee, 3.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100.
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Embassy Suites by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
9%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 65 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Embassy Suites by Hilton · FDD (2026) PDF