Crowne Plaza Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Crowne Plaza is an IHG upscale, full-service hotel franchise aimed at business and group travelers, with meeting space and dining. Franchisees own and operate individual properties, running rooms, food and beverage, and events.
FranchiseVerdict summary · 2026
A Crowne Plaza franchise does not disclose total investment in its current FDD, including a $75K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $16.7M
- 54th pct Lodging
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 85
- 45th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $16.7M including a $75K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 21 audited financial statements (Holiday Hospitality Franchising, LLC, FYE Dec 31, 2023/2022; statements of operations report franchise royalty fees, franchise royalty fees from affiliate, and OLCC fees as total revenues) were rendered in a custom/CID font that decoded to garbled cipher text with all numeric digits dropped, so exact dollar figures are unrecoverable from the extracted text.
- RISKVerdict B (Above average), verdict score 58/100 (higher is better).
- LEGAL19 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
Corporate structure & franchisor financials
- Legal entity
- Holiday Hospitality Franchising, LLC
- Parent company
- Six Continents Hotels, Inc.
- Ultimate parent
- InterContinental Hotels Group PLC
- Predecessor
- Holiday Inns Franchising, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer, InterContinental Hotels Group, PLC
- Elie W. Maalouf
- Incorporated in
- Delaware
- HQ
- Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $8.4M
- vs $26.1M prior year
Affiliated brands
- Six Continents Limited
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Elie W. Maalouf
- Headquarters
- Georgia
- Founded
- 1989
- FDD year
- 2024
- States available
- 30
Can you afford it, and what does the money buy?
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown28 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Feenot refundable | $125K | $125K | |
| Property Improvement Plan (PIP) Feenot refundable | $0 | $10K | |
| Land (3 1/2 to 5 acres)not refundable | — | — | |
| Building Constructionnot refundable | $9.5M | $63.6M | |
| Furniture, Fixtures & Equipmentnot refundable | $5.2M | $7.9M | |
| Financing and Closingnot refundable | — | — | |
| Operating Supplies & Equipmentnot refundable | $702K | $1.1M | |
| Primary Identification Signnot refundable | $40K | $80K | |
| PMS Equipment, Software, Installation & Training; IHG Concerto Equipment & Training; NGP Equipment (Premise Based)not refundable | $124K | $187K | |
| PMS Equipment, Software, Installation & Training (Hosted)not refundable | $76K | $95K | |
| Guest Internet Access - Hardware (IHG Connect)not refundable | $23K | $49K | |
| Guest Internet Access - Connect Bandwidth - Fiber Constructionnot refundable | $500 | $3K | |
| Key Card Systemnot refundable | $11K | $28K | |
| Guest In-Room Entertainment - Hardware, Maintenance, Guest Support, & Contentnot refundable | $27K | $29K | |
| Technology Systemsnot refundable | $105K | $182K | |
| Employee Safety Devicesnot refundable | $38K | $45K | |
| Openings Preopening Support Feenot refundable | $9K | $9K | |
| IHG Learning Program (annual subscription)not refundable | $6K | $6K | |
| Market Feasibility Studynot refundable | $0 | $30K | |
| Opening Date Extension Feenot refundable | $0 | $5K | |
| Total initial investment | $16.9M | $77.9M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $16.7M
- Middle of category vs category
- Liquid capital req'd
- $300K – $625K
- Top 40% of category vs category
- Franchise fee
- $75K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 25.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $17 |
| Training fee | $6K |
| Transfer fee | $25K |
| Inventory (initial) | $702K – $1.1M |
| Total fee load | 25.1% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Crowne Plaza did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Crowne Plaza unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Item 21 audited financial statements (Holiday Hospitality Franchising, LLC, FYE Dec 31, 2023/2022; statements of operations report franchise royalty fees, franchise royalty fees from affiliate, and OLCC fees as total revenues) were rendered in a custom/CID font that decoded to garbled cipher text with all numeric digits dropped, so exact dollar figures are unrecoverable from the extracted text.
Includes company-owned outlets
- Item 19 type
- occupancy, ADR and RevPAR
- Sample size
- 67
- vs category median 99
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 174 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 25.1% — above the Lodging average of 10.4%.
Disclosure
Item 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -3.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Crowne Plaza Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 85
- Opened
- 1
- Last reporting year
- Closed
- 3
- Turnover rate
- 3.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -3.4%
- Net unit change over 3 years
- 3-yr CAGR
- -3.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 2
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
- Ceased ops
- 16.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 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.
Available to sell in · Item 12
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Crowne Plaza exhibits HIGH RISK profile: massive capital requirement with undisclosed returns, shrinking franchise base, pervasive litigation including fraud and statutory violations, absent going concern status, and zero territory protection—presenting compounded legal, financial, and operational risks unsuitable for most investors.
Litigation (Item 3)
Pending matters include: (1) TJM Columbus/Syracuse v. Holiday (2022) re conversion interference and kickbacks; (2) Holiday v. Khatiwala (2020) re unpaid fees; (3) Marina di Castello v. IHG Hotels Limited (Italy, 2013) re license validity/fees; (4) Atlanta Hospitality Investment v. Holiday (2023) re unconscionable license; (5) Vasani v. Holiday (2023) re renovation scope misrepresentation; (6) Park 80 Hotels class action (2022) re data breach; (7) consolidated 5-plaintiff class action (2021-22) re kickbacks/unreasonable standards; (8) Scion Hotels v. Holiday (2021) re wrongful non-renewal; (9) Astoria Enterprises v. Holiday (Canada, 2007) re non-renewal; (10) K.J. Harjani v. SCH (Brazil, 2006) re wrongful termination. Nine suits filed by Holiday against licensees for unpaid fees in 2023.
Largest disclosed settlement: $699,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 58 / 100 verdict
- 01MEDMassive capital requirement ($16.7M+) with zero disclosed average net income creates severe ROI opacity and repayment risk
- 02MEDNegative unit growth (-2.3% YoY decline with 85 units) signals system contraction and reduced peer support network
- 03HIGHExtensive litigation across multiple jurisdictions including fraud allegations, statutory violations, data breaches, and kickback schemes demonstrates governance failures and legal exposure
- 04MINORNo going concern status (False) suggests financial instability at corporate level, threatening franchisee support and brand viability
- 05MINORUnprotected territory invites cannibalization and direct franchisor competition in revenue streams
- 06MINORItem 19 financial performance absent—no disclosure of actual unit economics, profitability, or break-even timelines
- 07MINOR5% royalty on gross rooms revenue (not net) creates fixed cost burden regardless of profitability, amplifying downside risk
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 25.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 19 |
View Item 3 litigation summary
Pending matters include: (1) TJM Columbus/Syracuse v. Holiday (2022) re conversion interference and kickbacks; (2) Holiday v. Khatiwala (2020) re unpaid fees; (3) Marina di Castello v. IHG Hotels Limited (Italy, 2013) re license validity/fees; (4) Atlanta Hospitality Investment v. Holiday (2023) re unconscionable license; (5) Vasani v. Holiday (2023) re renovation scope misrepresentation; (6) Park 80 Hotels class action (2022) re data breach; (7) consolidated 5-plaintiff class action (2021-22) re kickbacks/unreasonable standards; (8) Scion Hotels v. Holiday (2021) re wrongful non-renewal; (9) Astoria Enterprises v. Holiday (Canada, 2007) re non-renewal; (10) K.J. Harjani v. SCH (Brazil, 2006) re wrongful termination. Nine suits filed by Holiday against licensees for unpaid fees in 2023.
Items 10, 11
Training & Operations
- Classroom training
- 773 hrs
- On-the-job training
- 432 hrs
- Training location
- Your Hotel, Atlanta (Holiday headquarters), or designated regional/virtual locations
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Licensee (Holiday does not approve/deny site selection)
- Franchisor financing
- Not offered
- Item 10
- POS system
- Oracle Opera (PMS); F&B POS (approved supplier)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle Opera (PMS); F&B POS (approved supplier)
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Crowne Plaza · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
What do Crowne Plaza franchise owners earn?
Crowne Plaza 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 Item 19 in the Crowne Plaza FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Crowne Plaza FDD and qualifies whose outlets they describe.
What is Crowne Plaza's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Crowne Plaza (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 Crowne Plaza franchise locations are there?
As of their most recent FDD filing, Crowne Plaza has 85 total units in the United States, including 85 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Crowne Plaza a good franchise to buy?
FranchiseVerdict rates Crowne Plaza as a B-grade franchise with a verdict score of 58 out of 100 (higher is better), 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
Are you the franchisor?
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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.