Big things are happening for developers of new Embassy Suites Hotels in 2005. Starting with our Developer's Advantage Program, you'll enjoy a number of great incentives from the premier upscale all-suite hotel brand.

REDUCED INITIAL FEE

Apply for a new development Embassy Suites Hotel franchise in 2005 and pay a reduced initial fee of only $75,000. And if you begin construction on a second hotel within 24 months of the first hotel breaking ground, we'll return 50% of the initial fee you paid on the first hotel.

GRADUATED ROYALTY FEE

Sign the license agreement in 2005 and your royalty rate will be reduced for the first 2 years of operation:

• Year 1: 2% of gross room revenues
• Year 2: 3% of gross room revenues
• Year 3+: 4% of gross room revenues

REDUCED PROGRAM FEE

During the first year of operation, you'll retain 1% of the program fee for use toward local advertising, marketing and promotional expenditures for your hotel. All advertising must meet brand standards.

OPENING TRAINING SUPPORT

The following incentives will give you something to build on during your hotel's first year:

• We'll pay up to $25,000 towards the Director of Sales first year's salary, as long as the Director of Sales is hired and working at least one year before the hotel's opening date

• We'll waive the General Manager initial training fees if the General Manager is hired and working at least 1 year before the hotel's opening date

• We'll also waive the initial training fees for other key operational managers (Assistant General Manager, Chief Engineer, Executive Housekeeper, Front Office Manager, Food and Beverage Director, Hotel Controller, Director of Human Resources) if they are hired and working at least 6 months before the hotel's opening date

PROPERTY LEVEL MARKETING

• We'll promote the hotel before it opens by brand-directed pre-opening marketing and public relations support if the hotel starts construction on the scheduled date

• We'll promote the hotel with 2 weeks of local spot radio advertising if the hotel opens on the scheduled opening date

A GIFT FOR OPENING

The day your hotel opens, we'll reward you with 1 million Hilton HHonors points to use at your leisure at any one of our Hilton Family of Hotels worldwide locations.

We appreciate your interest in Embassy Suites Hotels. With the reputation of the Hilton name combined with the Developer's Advantage Program, there has never been a better time to join the Embassy Suites Hotels brand and the Hilton Family of Hotels.

IT IS OUR VISION CONTINUE TO BE THE WORLD'S PREMIER UPSCALE ALL-SUITE HOTEL BRAND. WE PLAN TO ACHIEVE THIS IN 4 WAYS:

• Offering a high-quality, value-based lodging experience that exceeds the needs of both the business and leisure traveler in the upscale all-suite hotel segment

• Having the best people, trained and empowered to deliver excellent service to every customer, every time

• Measuring our success through performance against the upscale all-suite competitive set, guest ratings and franchisee satisfaction

• Offer developers prototype options for new development that range from 140-rooms to 250-rooms.

TOTAL TECHNOLOGY SOLUTION

Like all participating franchised Embassy Suites Hotel properties, you get the benefit of OnQ™ and the Total Solution Program, which provides leading technology at a reduced cost.

EMBASSY SUITES HOTELS OFFERS GUESTS MORE OF WHAT MATTERS MOST:

• Spacious 2-room suites allow for added comfort and room to work, meet or relax

• Complimentary cooked-to-order breakfast each morning to start the day off right

• A complimentary evening Manager's Reception† is the perfect way to end the day, or begin the evening

• In-room conveniences like a coffeemaker, mini-fridge, microwave, wet bar, 2 TVs and 2 phones with data ports and high-speed capability

• Efficient reservation access (1-800-EMBASSYor embassysuites.com)

• Simple, easy-to-understand pricing assures a good value rate for every occasion

• Over 175 locations in the Americas and Canada

Embassy Suites Hotels represents a remarkable opportunity for developers. Our innovative product, 100% Satisfaction Guarantee, performance and comprehensive support programs all point to the same conclusion. Embassy Suites Hotels is a smart choice for both guests and developers.

---

For more information on the Developer's Advantage Program, please refer to the current Uniform Franchise Offering Circular for Embassy Suites Hotels. For franchising opportunities with Embassy Suites Hotels call 1-800-286-0645 or visit embassyfranchise.com.