Crowne Plaza Franchise Cost, Revenue & Review 2026
- Investment
- $16.7M – $77.8M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
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 requires a total initial investment of $16.7M – $77.8M, including a $75K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $16.7M – $77.8M
- 53rd pct Lodging
- Avg gross sales
- N/A
- Incl. company outletsProjection
- 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 median · 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 – $77.8M including a $75K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 58/100 (higher is better).
- GROWTHNegative: net -2 franchised outlets in the latest year (1 opened, 3 closed); 6 signed but not yet open (Item 20).
- LEGAL59 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 11 name the franchisor itself, 4 its parent, affiliates or predecessor. Pending claims are allegations, not findings.
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
- $27.2M
- vs $26.1M prior year
Affiliated brands
- Six Continents Limited
Other brands the franchisor or its parent operates (Item 1).
Same owner · FDD Item 1
8 other brands on this site name InterContinental Hotels Group PLC as parent or ultimate parent in their own FDD.
- EVEN HotelsB
- Holiday InnB
- Hotel IndigoB
- InterContinental Hotels & ResortsB
- Kimpton® Hotels & RestaurantsB
- Ruby HotelsC
- Vignette CollectionC
- avid hotelsB
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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?
Entry cost runs 431% above the typical lodging franchise.
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 – $77.8M
- 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%
- 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
No Item 19 revenue figure for Crowne Plaza is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Crowne Plaza unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
Includes company-owned outlets
An occupancy metric, not unit revenue
- Item 19 type
- occupancy, ADR and RevPAR
- Sample size
- 67
- vs category median 98
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
Compared against 175 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 median of 8.5%.
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 medians
How Crowne Plaza Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 6
- 0.07 per open outlet · Item 20 Table 5
- Projected new
- 3
- Franchisor's next-year forecast
- 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).
Where the owners are · Item 20 owner list
72 current owners across 29 states.
- NY 7
- TX 7
- CA 6
- FL 6
- NJ 4
- GA 3
- IL 3
- SC 3
- VA 3
- AZ 2
- LA 2
- MD 2
- +17 more states
Counts only, from the list the franchisor prints in Item 20; 28 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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: $10,900,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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.
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
- 04MINORUnprotected territory invites cannibalization and direct franchisor competition in revenue streams
- 05MINOR5% 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
Litigation case detail59 matters · Item 3
Litigation cases
The franchisor
Pending (8)
Ahijit Vasani a/k/a Andy Vasani, Bhavna Vasani a/k/a Becky Vasani, Innvite Hospitality Group, LLC v. Holiday Hospitality Franchising, LLC, Surati Investment, LLC, Raiyan Rab, Numarix Real Estate Services, LLC, Mark Wolfe, Equity Central Realty, LLC
pendingBrought by a franchisee · filed 2023-07-17 · Court of Common Pleas, Lucas County, Ohio · Case No. G-4801-CI-0202303085-000
“Plaintiffs claim that, in connection with the sale process related to the Hotel, they were misled into believing the scope of work required by the change of ownership license agreement for the hotel would be lighter in scope and less expensive than what it turned out to be.”Page 23 of the 2024 FDD, Item 3
Outcome:“Appellate briefing is ongoing and the appeal remains pending.”
Atlanta Hospitality Investment, LLC, a Georgia limited liability company, and Mohammad Sarower Hossain, individually v. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · filed 2023-10-31 · DeKalb County, Georgia Superior Court · Civ. Action No. 23-CV-9509
“The amended petition alleges that Holiday made certain misrepresentations to plaintiffs in advance of the execution of the license agreement but asserted no claim for damages.”Page 22 of the 2024 FDD, Item 3
Outcome:“Holiday believes the plaintiff’s summary judgment motion has no merit and will file its own summary judgment motion at the appropriate time.” (page 23)
Park 80 Hotels, LLC, PL Hotels, LLC, Mayur Patel, JSK Exton LLC, Jay Z. Kuber Hospitality, Inc., Parmattma Corporation and Synergy Hotels, LLC, individually and on behalf of all others similarly situated v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental H
pendingBrought by a franchisee · filed 2022 · N.D.Ga. · Case 1:22-cv-03709-LMM
“The putative class action lawsuit brought on behalf of putative classes of Holiday licensees relates to an unauthorized access to certain of IHG’s systems by third party bad actors that resulted in a temporary disruption of certain services which plaintiffs allege had a negative impact on their businesses.”Page 23 of the 2024 FDD, Item 3
Outcome:“Holiday, SCH and IHG Technology Solutions, LLC believe the allegations to be meritless and are defending vigorously.”
TJM Columbus, LLC d/b/a Crowne Plaza-Columbus North and TJM Syracuse, LLC d/b/a Crowne Plaza Syracuse v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental Hotels Group
pendingBrought by a franchisee · filed 2022-05-23 · DeKalb County, Georgia Superior Court (removed twice to N.D. Ga., 1:22-cv-2541-VMC and 1:24-cv-00055-VMC; remanded) · Civ. Action No. 22-cv-5181
“Plaintiffs are Crowne Plaza® licensees (for the Crowne Plaza® Columbus North – Worthington and the Crowne Plaza® Syracuse, respectively). Plaintiffs assert a breach of contract claim against Holiday and SCH related to a proposed sale of the subject hotels to a developer that intended to convert the subject hotels out of the Crowne Plaza® system.”Page 21 of the 2024 FDD, Item 3
Outcome:“Holiday and SCH filed a renewed motion for summary judgment on all claims on May 23, 2024, which remains pending.”
Park 80 Hotels LLC, a Louisiana limited liability company, PL Hotels, LLC, a Louisiana limited liability company, individually, and on behalf of a class of similarly situated individuals and entities v. Holiday Hospitality Franchising, LLC, Six Continents Hotels, Inc. D/b/a Intercontinental Hotels G
pendingBrought by a franchisee · filed 2021-05-19 · United States District Court, Northern District of Georgia (consolidated; lead case filed in E.D. La.) · Civil Action No. 1:21-cv-04650-ELR (consolidated)
“Each of the lawsuits allege that Holiday and SCH engages in unlawful and otherwise improper franchise business practices, including, imposing unreasonable products, services and requirements and receiving improper kickbacks from required purchases.”Page 24 of the 2024 FDD, Item 3
Outcome:“On March 13, 2024, Holiday and SCH filed their opposition to class certification and a motion to exclude Plaintiffs’ expert, and Plaintiffs filed a response to Holiday and SCH’s summary judgment motion. Both motions remain pending.” (page 25)
Scion Hotels LLC vs. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · filed 2021-02-18 · D.N.J · Case No. 2:21-cv-02276-MCA-MAH
“Scion Hotels LLC (“Scion”), a New Jersey licensee of a Holiday Inn hotel, filed a civil complaint against Holiday to obtain damages for violation of the New Jersey Franchise Practices Act in allegedly wrongfully imposing unreasonable standards of performance upon Scion and then wrongfully refusing to renew its license agreement.”Page 25 of the 2024 FDD, Item 3
Outcome:“The parties have completed fact and expert discovery, and Holiday filed a motion for summary judgment on all claims on April 28, 2023, which has been fully briefed, and the parties are awaiting the Court’s ruling.”
Holiday Hospitality Franchising, LLC v. Niranjan Khatiwala, Nimesh D. Vesuwala and Mayur N. Khatiwala
pendingBrought against a franchisee · filed 2020-12-11 · State Court of Dekalb County, Georgia (transferred to Superior Court of DeKalb County, Civil Action No. 22CV4560) · Civil Action File No. 20A83898
“On December 11, 2020, Holiday filed a lawsuit against the defendants seeking liquidated damages and unpaid system fees owed under a Crowne Plaza® license agreement that Holiday terminated as a result of the licensee’s failure to pay amounts owed to Holiday under the agreement.”Page 22 of the 2024 FDD, Item 3
Outcome:“The case is currently pending in the Superior Court of DeKalb County, Georgia under Civil Action No. 22CV4560.”
Astoria Enterprises Ltd. v. Holiday Hospitality Franchising, Inc. and InterContinental Hotels Group PLC
pendingBrought by a franchisee · filed 2007-12-21 · The Queen’s Bench Winnipeg Centre · File No. CI-07-01-54936
“On December 21, 2007, Astoria Enterprises (“Astoria”), a former Licensee, filed suit against Holiday demanding $541,000 in damages for failing to renew or extend an existing license beyond its original termination date and for loss of reputation. According to Astoria, Holiday’s refusal to renew the License was wrongful and commercially unreasonable.”Page 25 of the 2024 FDD, Item 3
Outcome:“Holiday filed an answer denying any liability, and discovery is ongoing.”
Concluded (3)
Holiday Hospitality Franchising, LLC, f/k/a Holiday Hospitality Franchising, Inc. v. RD Secaucus, LP, RosDev Hospitality US, LLC, and Michael Rosenberg
settledBrought against a franchisee · filed 2018-09-11 · State Court of DeKalb County, GA · Civil Action File No. 18A71055-7
“On September 11, 2018, Holiday filed a lawsuit against the defendants seeking unpaid system fees and liquidated damages related to the termination of a Crowne Plaza® hotel license agreement. On November 27, 2018, defendants filed a counterclaim alleging breach of contract, failure to provide consultation and advice, and misrepresentation.”Page 27 of the 2024 FDD, Item 3
Outcome:“The parties resolved the matter via a settlement that resulted in payments being made to Holiday and no payment made by Holiday. The litigation was dismissed on December 12, 2022.”
Allied Hotels Limited v. Holiday Hospitality Franchising, LLC f/k/a Holiday Hospitality Franchising, Inc., and Six Continents Hotels, Inc.
settledBrought by a franchisee · filed 2012-09-04 · United States District Court, Northern District of Georgia, Atlanta Division · Case No. 1:12-cv-03086-rlv
“On September 4, 2012, Allied Hotels Limited (“Allied”), a former Crowne Plaza licensee of Six Continents Hotels, Inc. (“SCH”), filed suit against SCH and Holiday Hospitality Franchising LLC, alleging breach of the License Agreement and breach of the implied covenant of good faith and fair dealing based upon SCH’s termination of its License Agreement with Allied.”Page 28 of the 2024 FDD, Item 3
Outcome:“The parties resolved this matter with SCH and Holiday making a payment of $180,000 payment to Allied.”
Lenexa Hotel, LP v. Holiday Hospitality Franchising, Inc.
settledBrought by a franchisee · filed 2012 · United States District Court, District of Kansas, Kansas City Division, KS · Case No. 12CV2775; Case No. 15-9196
“A lawsuit was filed by a Crowne Plaza® licensee in Lenexa, Kansas, initially on December 10, 2012 and later amended on January 17, 2013, alleging breach of contract, breach of the covenant of good faith and fair dealing and seeking declaratory relief as result of Holiday’s alleged failure to meet its contractual obligations concerning the reservation system.”Page 28 of the 2024 FDD, Item 3
Outcome:“Following a mediation, the parties resolved this matter with no admission of liability by either party and Holiday making a payment to Plaintiff of $10.9M.”
Parent, affiliates and predecessor
Pending (2)
Marina di Castello SpA v. IHG Hotels Limited
pendingBrought by a franchisee · IHG Hotels Limited · filed 2013-11-22 · Court of Santa Maria Capua Vetere, Italy · Docket No. 4307/27
“The former licensee of the Holiday Inn Resort Naples - Castel Volturno hotel and the Crowne Plaza Caserta hotel issued a claim against IHG Hotels Limited (“IHGHL”), brought in the Court of Santa Maria Capua Vetere, seeking to have the Court: 1) declare that the arbitration provisions in the license agreements are invalid; 2) determine whether or not IHGHL's conduct has resulted in damages to the”Page 22 of the 2024 FDD, Item 3
Outcome:“On October 10, 2023 the former licensee filed an appeal which is now pending.”
K.J. Harjani & Cia Ltda v. Six Continents Hotels, Inc.
pendingBrought by a franchisee · Six Continents Hotels, Inc. · filed 2006-07-05 · 3rd Civil Court of Manaus, Brazil · Case No. 0022145-55.2006.8.04.0001
“K.J. Harjani & Cia Ltda v. Six Continents Hotels, Inc., 3rd Civil Court of Manaus, Brazil, Case No. 0022145-55.2006.8.04.0001 (July 5, 2006). The former licensee of the Holiday Inn® hotel in Manaus, Brazil filed a lawsuit seeking damages for alleged wrongful termination of the license agreement. The license agreement was terminated due to non-compliance with brand standards in 2002.”Page 26 of the 2024 FDD, Item 3
Outcome:“SCH intends to defend against this claim vigorously.”
Concluded (2)
Tsemex Global Enterprise PLC & Tsemex Hotels and Business PLC (“Tsemex”) v. IHG Hotels Limited and InterContinental Hotels Group, PLC (“IHG”)
judgmentThird-party plaintiff · IHG Hotels Limited; InterContinental Hotels Group, PLC · filed 2020-03-13 · International Chamber of Commerce
“Claimant, owner of a proposed non-licensed hotel development project in Addis Abbaba, Ethiopia, filed a Statement of Claim with the International Chamber of Commerce alleging that IHG misrepresented its rights to license a Crowne Plaza in Ethiopia, causing damages. The Claimant’s memorial and witness statements were received on March 23, 2020. IHG served its responsive memorial on July 17, 2020.”Page 26 of the 2024 FDD, Item 3
Outcome:“A partial award was issued on December 2, 2022 awarding damages to Claimant. The amount is confidential pursuant to requirements of the London Court of International Arbitration.” (page 27)
Kensington Close Hotel Limited (“KCH”) v. IHG Hotels Limited (“IHG Hotels”)
settledBrought by a franchisee · IHG Hotels Limited · filed 2019-12-23 · London Court of International Arbitration
“The licensee owner of the Holiday Inn London Kensington High Street hotel issued a Statement of Claim in the London Court of International Arbitration on December 23, 2019. Owners claim that they sustained losses due to the operation of a neighboring IHG branded hotel. IHG Hotels submitted its response in opposition on February 12, 2020 and a merits hearing was set for November 30, 2020.”Page 27 of the 2024 FDD, Item 3
Outcome:“On November 27, 2020 the parties finalized a settlement agreement in respect of the dispute resulting in IHG Hotels making payment to KCH.”
This list shows 15 of the 59 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
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 | No territory protection |
| 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 | 59 |
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
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Crowne Plaza franchise?
The total investment to open a Crowne Plaza franchise ranges from $16.7M – $77.8M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Crowne Plaza franchise owners earn?
Item 19 of the Crowne Plaza FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Crowne Plaza?
Crowne Plaza is franchised by Holiday Hospitality Franchising, LLC. Its parent company is Six Continents Hotels, Inc.. The ultimate parent named in the FDD is InterContinental Hotels Group PLC. Source: FDD Item 1, 2024 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
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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.