Start a Embassy Suites by Hilton Franchise in 2024

2024 Franchise 500 Rank: #64 Ranked #57 last year

Initial investment: $50.1M - $82.2M

Units as of 2024: 246 2.5% over 3 years

Embassy Suites by Hilton is a leading chain in the all-suite, full-service hotel industry. The company was established under the Holiday Corporation in 1983 in Kansas. It started franchising the next year. The hotel chain later became a Hilton Hotel subsidiary when the two companies merged. Over the following years, the all-suite hotel brand expanded across South and North America through franchising. Today, the brand has over 225 locations. Most of the locations are franchised. So, what hotels are owned by Hilton?

The Hilton Hotel Corporation houses other brands like Hampton Inn & Suites, Hilton Hotel Resort, Doubletree, Hilton Garden Inn, and the recently introduced Homewood Suites by Hilton. The Embassy Suites by Hilton brand wants to be held in high regard due to its high-quality accommodations and service value. An atrium-style layout and a cooked-to-order breakfast characterize most of the hotels franchised by Embassy Suites by Hilton.

Why You May Want to Start an Embassy Suites by Hilton Franchise

The franchise is an excellent opportunity to be part of the Hilton Hotels brand. Hilton is associated with a fine reputation for luxury and excellence. Becoming a part of this international chain of hotels means getting access to a centralized reservation and referral system. With such a wide array of hotel brands and an option for cross-selling, there will always be an available room for guests.

As a franchisee, you gain all the benefits of partnering with Embassy Suites by Hilton. The company offers reliable design and construction support during project development, including design consultation, progress monitoring, site review, and referral to architects and contractors. The franchisor holds a strong presence in the industry regarding brand recognition, geographic distribution, operating performance, and system size.

What Might Make an Embassy Suites by Hilton Franchise a Good Choice?

The company is currently the largest all-suite hotel brand in the country. By dominating this industry segment, the brand has built a huge customer base that maintains its franchisees' profitability. Much of its success comes from its luxury offerings and pricing structure. What could make this opportunity even more appealing is that the franchise is well-suited to operate and thrive in just about any location. This means that you don't have to worry necessarily about being confined to locations in the United States.

The franchisor will have your hotel evaluated twice annually to ensure that brand integrity is maintained. This is vital to protect your investment and brand value. To be part of the Embassy Suites by Hilton team, you should make sure you’re financially ready for an initial investment that will include a franchise fee and other startup fees.

How Do You Start an Embassy Suites by Hilton Franchise?

The process to start an Embassy Suites by Hilton franchise is simple and straightforward. Start by contacting the company's regional developers via an initial inquiry. You can evaluate this franchise opportunity by downloading and reviewing the Embassy Suites by Hilton business plan and development brochure.

Embassy Suites by Hilton will then run a credit and background check on you. If you meet the minimum financial requirements, you may meet with the regional developer. The regional developer may issue you a Franchise Disclosure Document, and if mutual consent is established, you may proceed with your financial commitment and sign a franchise agreement.

Company Overview

About Embassy Suites by Hilton

Industry	Lodging
Related Categories	Hotels & Motels
Founded	1983
Parent Company	Hilton
Leadership	Christopher Nassetta, CEO
Corporate Address	7930 Jones Branch Dr. McLean, VA 22102
Social	Facebook, Twitter, Instagram

Business Overview

Franchising Since	1984 (40 years)
# of employees at HQ	8,397
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises in the following international regions: Middle East, Central America, Canada, South America, Mexico
# of Units	246 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Embassy Suites by Hilton franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$100,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$50,093,655 - $82,200,725
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	Varies
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	3.5%-5.5%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	4%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	23 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Embassy Suites by Hilton has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	1 hour
Classroom Training	118.5-121.5 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	75
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	No