Crowne PlazaFranchise Cost, Revenue & Review 2026
Data from FDD filing
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). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $16.7M
- 46th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 85
- 34th pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1990. Systems this mature have refined operations and brand recognition.
Franchised units fell from 88 to 85 over 3 years. Investigate why operators are leaving.
62 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $16.7M including a $75K franchise fee, 5.0% ongoing royalty.
- Item 19 discloses "Average Occupancy, ADR, and RevPAR; Enterprise Contribution; and Loyalty Program Contribution" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict D (Below Average) with a risk score of 75/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- HOLIDAY HOSPITALITY FRANCHISING, LLC
- Parent company
- InterContinental Hotels Group PLC
- Incorporated in
- DE
- HQ
- Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $20.5M
- vs $26.1M prior year
Affiliated brands
- Six Continents Limited
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate upscale hotel properties under the Crowne Plaza brand, managing daily guest services, housekeeping, food & beverage, and front-office operations. Revenue derives primarily from room bookings; franchisees pay 5% of gross room revenue as royalty plus marketing and other fees. Franchisees assume full operational, staffing, and capital maintenance responsibility while the franchisor provides brand licensing, reservation systems, and marketing support.
- CEO
- Elie W. Maalouf
- Headquarters
- GA
- Founded
- 1989
- FDD year
- 2024
- States available
- 30
FDD Item 7 · 2024 filing · 28 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
- Near category avg vs category
- Liquid capital req'd
- $300K – $625K
- Better than avg vs category
- Franchise fee
- $75K – $125K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Rooms Revenue · 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 |
| Transfer fee | $25K |
| Inventory (initial) | $702K – $1.1M |
| Total fee load | 25.1% of rev |
Financial Performance
This brand's FDD disclosed "Average Occupancy, ADR, and RevPAR; Enterprise Contribution; and Loyalty Program Contribution" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Crowne Plaza Compares
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 (yr3)
- -2.3%
- Net unit change last year
- 3-yr CAGR
- -3.4%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 1
- Terminated (3yr)
- 18
- Non-renewed (3yr)
- 1
- 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 · 30 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
0 case reference(s): 2 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 75 / 100 rating
- 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
- 04HIGHNo 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 62 |
View Item 3 litigation summary
0 case reference(s): 2 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 773 hrs
- On-the-job training
- 432 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Oracle America, Inc. Opera solution
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle America, Inc. Opera solution
Item 20 · call current owners
Franchisee Contacts
83 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 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 88 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 D-grade franchise with a risk score of 75 out of 100, 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
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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.