InterContinental Hotels & Resorts Franchise Costs, Fees & FDD

Year Business Began: 1946

Franchising Since: 1956

U.S. Headquarters: Atlanta, Georgia

Country of Origin: England

Estimated Number of Units: 230 (6,800 est. across all InterContinental Hotels Group brands)

Franchise Description: The franchisor is Holiday Hospitality Franchising, LLC (HHFL). HHFL’s ultimate corporate parent is InterContinental Hotels Group PLC. The franchisor offers and grants franchises under the terms of a License Agreement. The license provides for the establishment and operation of an InterContinental Hotel. InterContinental Hotels are typically located in major markets, important secondary cities and resort destinations. InterContinental Hotels are full service facilities targeted to luxury business, conference and leisure travelers. Other brands under the InterContinental umbrella include Atwell Suites, Avid Hotels, Candlewood Suites, Crowne Plaza Hotels and Resorts, Even Hotels, Garner, Holiday Inn Hotels and Resorts, Holiday Inn Express, Hotel Indigo, Klimpton Hotels & Restaurants, Regent Hotels & Resorts, Ruby Hotels, Six Senses Resorts, Staybridge Suites, Vignette Collection, and Voco Hotels.
Training Overview: The franchisor does not assist in the hiring of employees, but it will train certain hotel employees either at the franchisee’s hotel, at its headquarters in Atlanta, Georgia, or at various other major metropolitan locations which it may designate. Franchisees must pay any travel and living expenses of their trainees, and the franchisor may charge franchisees a fee to attend training workshops. Every general manager must satisfactorily complete the IHG® General Manager Program Onboarding Level within the dates required per the franchisor’s standards. HHFL also recommends that the General Manager obtains the Certified Hotel Administrator (CHA) designation from the American Hotel & Lodging Educational Institute (AHLEI). The persons holding certain positions in the hotel including directors of sales, sales managers, front office managers, executive housekeepers, directors of engineering, and food and beverage directors or managers must also satisfactorily complete the appropriate training and/or certification at HHFL’s corporate office or another location that HHFL designates, within the date limits specified in the franchisor’s standards of assuming their respective positions. The franchisor will provide on-site consulting and/or training visit(s) to the hotel each year.

Territory Granted: The franchisor does not typically grant franchises for exclusive areas or territories. The license will be for a specific site only and for the licensing of one hotel. The license applies to the location specified in the license and to no other location. Franchisees will not receive an exclusive territory. Franchisees may face competition from other licensees, from hotels that the franchisor or its affiliates own, or from other channels of distribution or competitive brands that the franchisor or its affiliates control. In special circumstances, when in the franchisor’s sole judgment, special considerations warrant, HHFL may grant exclusive or protected areas in which another InterContinental Hotel will not be licensed; however, in such cases the license would still be for a specific site only and for the licensing of one hotel only.

Obligations and Restrictions: Whether franchisees are an individual, corporation, partnership or other entity, the franchisor requires them to retain and exercise direct management control over the hotel's business at all times unless otherwise approved by the franchisor. However, the franchisor does not require that franchisees participate personally in the direct operation of the hotel. The franchisor may include conditions in the license requiring franchisees to hire a duly qualified and experienced (i) management company acceptable to HHFL or (ii) general manager, director of food & beverage or director of sales with at least two years prior experience in such position at a hotel operated under any of HHFL’s brands or at a hotel in a similar brand segment as the hotel, as defined by Smith Travel Research, Inc. The franchisor requires franchisees with management experience who will supervise the hotel on the premises or hire a management company it approves. A general manager who has successfully completed the franchisor’s training program must directly supervise the business on the premises. Franchisees must provide the hotel services described in the license and must ensure that no part of the hotel or the system is used to facilitate or promote a competing business. There are no restrictions as to the customers to whom franchisees may sell guest rooms or other goods or services that are related to the hotel business.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years from the date the hotel opens in the system for a new development; 10 years from the date the hotel opens in the system for a conversion; and 10 years from the term commencement date for a change of ownership or re-licensing. The license does not provide for renewal or term extensions. If the franchisor agrees to re-license, franchisees may be asked to sign a contract with materially different terms and conditions than the original contract.

Financial Assistance: The franchisor does not offer any formal program for direct or indirect financing. HHFL, SCH or its affiliate, General Innkeeping Acceptance Corporation (GIAC), may furnish loans or guaranties. HHFL, SCH and GIAC consider making loans or guaranties under terms and conditions that would be negotiated on a case by case basis with the prospective franchisee and any decision to make a loan or provide a guaranty would be made in the judgment of HHFL, SCH or GIAC alone, and conditioned upon approval of the Executive Committee and Board of Directors. It is the franchisee’s responsibility alone to obtain adequate financing for all expenses related to the development, opening and operation of the hotel.

Estimated Initial Investment
300-room InterContinental Hotel

Name of Fee	Low	High
Application Fee	$150,000	$150,000
Property Improvement Plan (PIP) Fee	$0	$12,000
Land	Varies
Building Construction	$97,919,000	$173,002,000
Furniture, Fixtures & Equipment	$12,695,000	$23,424,000
Operating Supplies & Equipment	$1,519,000	$3,798,000
PMS Equipment	$34,000	$78,000
Guest Internet Access (IHG Connect) – Hardware	$24,000	$49,000
Guest Internet Access (IHG Connect) – Bandwith	$450	$1,800
Entertainment, Security System and Other Technology Systems Equipment and Fees	$418,476	$583,451
NextGen Payment Solution	$223	$794
Training Expenses (plus $7,500 additional pre-opening training)	$6,000	$6,00
Back of House Program	$550	$10,000
Opening Date Extension Fee (plus trainer expenses)	$0	$5,000
Market Feasibility Study	$0	$50,000
License and Permits	Varies
Professional Fees	$4,827,000	$10,644,000
Security Deposits	$10,000	$50,000
Insurance	$60,000	$400,000
Hotel Photography	$45,000	$80,000
Primary Identification Sign	$55,000	$185,000
Pre-Opening Support Fee	$20,000	$35,000
Commercial Services	$3,300	$11,000
Design & Brand Concept Development Support Fee	$75,000	$150,000
Restaurant & Bar Concept Development Fee	$75,000	$150,000
Restaurant & Bar Brand Identity Services (per branded venue)	$25,000	$50,000
Additional Funds and Prepaid Expenses During the Initial Phase (first 3 months after opening)	$1,050,000	$2,675,000
ESTIMATED TOTAL (These estimates do not include real estate related costs or other items that HHFL cannot estimate.)	$119,011,999	$215,612,545

Other Fees

Type of Fee	Amount
Royalty Fees
Royalty	6% of gross rooms revenue (GRR) plus 2% of gross food and beverage sales.
Royalty on Food & Beverage Sales	2% of gross sales.
Royalty In Case of Casualty	2% of GRR based on average GRR for preceding 12 months.
Sales and Marketing Fees (including Third-Party Distribution Connection Fees)
Services Contribution	3% of GRR.
Initial Marketing Contribution for the Loyalty Program	$10.00 per approved guest room.
Loyalty Program Contribution	4.55% of qualifying full folio revenue from frequency program members. 1.365% of qualifying room and meeting revenue from frequency program members.
Local Marketing Programs	Varies depending on actual cost.
Promotions; Required and Optional Advertising Materials	Expenses incurred.
IHG Commission Services (ICS) (Travel Agent Commissions)	10% (minimum) commission on GRR.
IHG Ignite Digital Marketing Fees	2.25% commission on all consumed direct digital revenue booked.
IHG Business Edge Program Booking Fees	4% of consumed transient revenue booked through the IHG Business Edge Program.
TMC Revenue Program	Hotels pay an override fee of 2.25% on qualifying consumed room nights only, with a maximum annual payment of $25,000 USD (or equivalent local currency).
Global Distribution System (GDS) Fee	$6.40 per reservation.
Groups & Meetings Fee	4% of consumed or agreed room revenue for leads sent to hotels via IHG MeetingBroker.
Groups & Meetings TMC Fee	2% globally for BCD M&E, CWT M&E and AMEX GBT. G&M TMC Revenue Programs are pay-for-performance marketing programs designed by SCH.
TMC Direct Connect Fee	$5.00 per reservation.
Direct Connect Fee	$1.35 per reservation.
Concur Triplink	$1.75 per consumed booking.
IHG Voice Reservation Service	$7.65 per net booking, which may be changed annually.
IHG Revenue Services and IHG Commercial Services (formerly Revenue Management for Hire)	$3,300 to $11,000 per month depending on total room count, location type and annual occupancy; subject to change.
Technology Fees
Technology Services Fee	$17.75 per room, per month.
Revenue Management System; Revenue Analytics’ N2 Pricing	Costs of between $30 to $120 per month may apply for competitive rate insight shopping for up to 12 competitors.
PMS Software Maintenance	Varies. Maintenance and/or hosting fees may be increased up to 5% per year. Costs will vary according to the franchisee’s technology needs.
IHG Groups & Events Platform and 2Way Interface	$1,100 to $2,118 per user per year.
IHG Edge Interface	One time cost of $250 to $2,000. Annual Maintenance Cost of $10 to $440.
Property Management Fees: Opera – Premise Based	Varies.
IHG Connect Bandwidth Service Subscription	Varies; can range from $450 to $1,800.
IHG Connect Hardware Software License Renewal	Varies; can range from $1,000 to $200,000.
IHG Connect Hardware Maintenance and Guest Support	Varies.
Backoffice IT Network Connectivity	$250 to $1,250.
FastConnect SD-WAN and Active Directory Support	$180 per month for base solution plus $17.75 per month.
NextGen Payments Program Fee (includes support, installation and hardware)	$223 to $794.
Guest In-Room Entertainment – Hardware, Maintenance, Guest Support, & Content	$3.75 per room, per month for software, maintenance, and $1.00 per room, per month guest support. $7.20 per room, per month for content. $1.25 per room, per month for HBO (where required).
Employee Safety Devices	Initial fee of $125 to $150 per room in the first year of installation plus $20.00 to $25.00 per room, per year for software and maintenance support.
Security Software for Public Access Computers (Business Centers)	$4,900 to $11,900 depending on the number of workstations and printers.
SMS Guest Messaging	Varies.
Music Program	$899 per zone startup and $150 per month for music service PMS interface.
F&B POS Support	$22.50 to $66.50 depending on the supplier used.
Restaurant Website Maintenance and Search Engine Marketing	Domain renewal: $100/year; Website maintenance retainer: $150 per month; Search engine marketing: $1,500 per year.
IHG Door Lock System Maintenance	$12 per room per month.
Ongoing Training
IHG University	$6,000 for annual subscription.
Pre-Opening Training Plan - Executive Briefing (Consulting & Support)	$500 per day.
Pre-Opening Training Plan - Manager Orientation and Department Training Planning	$1,500 a day per trainer.
Pre-Opening Training Part II - Hotel Orientation Center Of Excellence Opening Support	$640 to $1,500 per day per trainer/task force member .
Hotel Service Culture Implementation and Sustainment	$5000
Subsequent Training Materials	$0 to $5,000 for all trainees combined.
IHG® Americas Investors and Leadership Conference	$2,500 per attendee, plus expenses.
Miscellaneous
Tax on Sales/Gross Receipts	HHFL’s actual cost.
Public Offering or Private Placement Processing Fee	$25,000 plus additional costs incurred by the franchisor.
Audit/Interest	Amount of deficiency, interest and $3,000 (audit fee may be increased on brand system-wide basis).
Realignment/Name Change; Brand Conversion Processing Fee	$5,000 for licensee name change, ownership realignment or brand conversion.
Indemnification	Varies.
Liquidated Damages Payment on Premature Termination	Varies, based on a formula.
Comfort Letter Processing Fee	$2,500 for the preparation and processing of any mezzanine, replacement or subsequent comfort letters after the initial senior lender letter.
For rest of other fees chart, including fees for extensions of construction commencement, operations fees, and pre-opening and consultation fees, please see FDD.

The above information has been compiled from the FDD of InterContinental Hotels & Resorts. Year of FDD: 2026.
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