Skip to main content
FranchiseVerdict
Hotel Indigo logo

Hotel Indigo Franchise Cost, Revenue & Review 2026

LodgingGAFranchising since 2004
BAbove averageAbove average58/100Editorial grade from public filings; not investment advice.
Investment
$9.8M – $44.9M
Disclosed sales
partial, no system average
SBA charge-off
Under 10 loans (2)

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-01233Data QualityExcellent81%FDD 2024 · 2yr old
Manager-run OKNo: No territory protection

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

This data is from a 2024 FDD. Current terms may differ. Always verify with the franchisor's latest disclosure document.

Hotel Indigo is IHG's upscale boutique hotel franchise, with each property themed to its local neighborhood. Franchisees own and operate the hotels, managing front desk, housekeeping, food and beverage, and brand-standard compliance.

FranchiseVerdict summary · 2026

A Hotel Indigo franchise requires a total initial investment of $9.8M – $44.9M, 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
$9.8M – $44.9M
41st pct Lodging
Avg gross sales
N/A
Incl. company outletsProjection
Royalty
5.0%
3rd pct Lodging
Units
68
40th pct Lodging
SBA charge-off
N/A

Quick verdict · Lodging · color = vs category peers

Total Investment
$9.8M – $44.9M
Median $8.9M
above median ↑, worse than category
Franchise Fee
$75K
Median $50K
above median ↑, worse than category
Liquid Capital Req'd
$200K – $1.0M
Median $312K
above median ↑, worse than category
Avg Revenue
Partial, no system average
No system average in Item 19
Royalty Rate
5.0%
Median 5.0%
near median
Ongoing Fees
25.6% of rev
Median 8.5%
above median ↑, worse than category
SBA Charge-Off Rate
Under 10 loans (2)
Insufficient SBA coverage: 2 loans, rate hidden below 10
System Size
68 units
Median 60 units
above median ↑, better than category
Turnover Rate
5.9%
Median 0.7%
above median ↑, worse than category
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Optional
Can hire a manager
Litigation
60 cases
Review carefully

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 $9.8M – $44.9M including a $75K franchise fee, 5.0% ongoing royalty.
  • RETURNSItem 19 reports RevPAR/ADR/Occupancy (not gross sales) 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 -3 franchised outlets in the latest year (1 opened, 4 closed); 21 signed but not yet open (Item 20).
  • LEGAL60 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 12 name the franchisor itself, 3 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
DE
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.

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
GA
Founded
1989
FDD year
2024
States available
25

Can you afford it, and what does the money buy?

Entry cost runs 207% above the typical lodging franchise.

Total investment (Item 7)$9.8M – $44.9MCited, not corroborated — printed on page 66 of the 2024 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$75,000Not cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Royalty5.0%Cited, not corroborated — printed on page 40 of the 2024 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund3.5%Cited, not corroborated — printed on page 52 of the 2024 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$200K – $1.0M

Source: FDD 2024 · Items 5–7

FDD Item 7 · 2024 filing

Initial investment breakdown

Hotel Indigo: Item 7 initial investment breakdown
Cost componentLowHigh
Initial franchise fee$75K$75K
Working capital (3–6 mo)$200K$1.0M
Equipment, build-out, other$9.5M$43.8M
Total initial investment$9.8M$44.9M

Source: Hotel Indigo 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$9.8M – $44.9M
Middle of category vs category
Liquid capital req'd
$200K – $1.0M
Top 40% of category vs category
Franchise fee
$75K
Middle of category vs category
Royalty
5.0%
typical 6–8%
Ad fund
3.5%
typical 3–5%
Total fee load
25.6%
vs 9–13% typical

Ongoing fees · Item 6

Hotel Indigo: Item 6 recurring fees
FeeAmount
Royalty5.0% of gross sales
Marketing / ad fund3.5% of gross sales
Technology fee$17
Training fee$4K
Transfer fee$75K
Inventory (initial)$480K – $819K
Total fee load25.6% of rev

What do units actually make?

Avg gross salesNot extracted
Median gross salesNot extracted
Item 19 typeRevPAR/ADR/Occupancy (not …
Sample size56

Source: FDD 2024 · Item 19

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

No Item 19 revenue figure for Hotel Indigo 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 Hotel Indigo unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

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.

Total invested capital · what you put in to openFDD
FDD Item 7: $9.8M–$44.9M (midpoint used)
FDD reports $200K–$1.0M

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.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$27.9M
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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
RevPAR/ADR/Occupancy (not gross sales)
Sample size
56
vs category median 98
Reporting year
2023
Fiscal year the figures cover
Source filing
FDD 2024
Disclosed in the 2024 filing, covering 2023
Transparency
4 / 10
vs category median 0 / 10 · above
Gross sales rank
No comparison data
Investment cost rank41th
Lower investment ranks lower (better)
Royalty rate rank3th
Lower royalty = lower percentile (better)
Unit count rank40th
vs Lodging peers
Risk score rank43th
Lower risk = lower percentile (better)

Compared against 175 Lodging brands

Showing the headline figures — all 137 extracted fields are in the Full FDD Report · $19 →

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 25.6% — above the Lodging median of 8.5%.

Disclosure

Item 19 reports RevPAR/ADR/Occupancy (not gross sales) rather than annual gross sales, so unit revenue is not directly comparable.

Operator retention

System expanding at 6.2% CAGR over 3 years across 68 units — operators are staying and new ones are joining.

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 Hotel Indigo Compares

Metric
Hotel Indigo
Category median
vs median
Investment
$27.3M
$8.9Mmiddle half $1.2M–$18.3M · n=96
Above median, worse than category
Revenue
N/A
$1.4Mmiddle half $1.0M–$1.8M · n=2
N/A
Unit Count
68
60middle half 6–245 · n=126
Above median, better than category

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?

Total units68Cited, not corroborated — printed on page 108 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
3-yr growth-4.2% (worth scrutinizing)
Turnover rate5.9% (favorable vs category)

Source: FDD 2024 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
68
Opened
1
Last reporting year
Closed
4
Terminated
4
Franchisor ended the franchise (per Item 20)
Non-renewed
0
Term expired, not renewed (per Item 20)
Turnover rate
5.9%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (3-yr)
-4.2%
Net unit change over 3 years
3-yr CAGR
+6.2%
Compounded over last 3 years

Last fiscal year · Item 20 exits and transfers

Terminated
4
Not renewed
0
Transferred
0
Reacquired
0
Franchisor bought back
Signed, not yet open
21
0.31 per open outlet · Item 20 Table 5
Projected new
1
Franchisor's next-year forecast
2021
64
Franchised units
2022
71+7
Franchised units
2023
68-3
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 24 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 24 states
No contacts on file

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

  • California
  • Hawaii
  • Illinois
  • Indiana
  • Maryland
  • Michigan
  • 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

63 current owners across 24 states.

  • TX 7
  • GA 6
  • NY 6
  • CA 5
  • FL 5
  • AL 3
  • PA 3
  • TN 3
  • WA 3
  • CO 2
  • LA 2
  • MI 2
  • +12 more states

Counts only, from the list the franchisor prints in Item 20; 22 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 loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.

Total loans
2
Loan volume
$6.9M
Median loan
$3.5M
average
Charge-off rate
Under 10 loans (2)
Insufficient SBA coverage: 2 loans, rate hidden below 10

Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated

Repayment rate (PIF)
Under 10 loans (2)
5-yr charge-off
Under 10 loans (2)
Loans approved 2021+
Active lenders
0
Defaults
N/A

Explore lender portfolios on Bank Reports or regional data on State Reports.

Total loans
1
Loan volume
$5.0M
Charge-off rate
N/A
Jobs created
15

Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

What could kill this investment?

SBA charge-offUnder 10 loans (2)
Verdict score58/100 (higher is better)
Litigation60 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average58Verdict score 58/100

Hotel Indigo presents moderate-to-caution risk: a contracting system with active litigation, no earnings transparency, unprotected territories, and substantial capital requirements that lack corresponding profitability disclosure.

Moderate confidence±13 pts
4571

Litigation (Item 3)

Subject: the franchisor is a named party (defendant).

Extensive litigation involving Holiday Hospitality Franchising, LLC and affiliates across multiple categories: licensee class actions alleging improper kickbacks and unreasonable requirements (5 consolidated actions), individual licensee breach of contract and franchise practices claims (Scion, Atlanta Hospitality, Astoria, Ahijit Vasani), Holiday-initiated collection suits against licensees for unpaid fees (9 suits filed in 2023), and international disputes (Italy, Brazil, Canada).

Largest disclosed settlement: $10,900,000

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · PricewaterhouseCoopers LLP

Franchisor revenue (Item 21)

Yr 1: $27.2MYr 2: $26.1MNon-royalty: $1.6M

Franchisor entity revenue (not unit-level)

Item 21 audited statements are for the franchisor, Holiday Hospitality Franchising, LLC (Exhibit G-1), audited by PricewaterhouseCoopers LLP (opinion dated 3/28/2024), in whole US dollars. Balance sheet as of 12/31/2023: total assets 918,851,818 = total liabilities 167,220,127 + member's equity 751,631,691 (reconciles). Total revenues 27,249,652 (yr1 2023) comprise franchise royalty fees 25,626,433, franchise royalty fees from affiliate 50,496, and OLCC fees 1,572,723; other_revenue (1,623,219) = the two non-core-royalty lines. Net income 54,303,422 exceeds total revenue because of large interest income from affiliate (27,815,534) plus foreign-transaction items; this is as reported in the audited statement of operations. A separate, larger consolidated balance sheet for the parent/guarantor Six Continents Hotels, Inc. ("SCH", Exhibit G-2) also appears in the FDD but was NOT used; all figures here are the franchisor (Holiday) entity only.

ⓘ 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

  1. 01MINORDeclining unit count (-4.2% YoY) indicates system contraction and potential franchisee struggles
  2. 02MINORNo average net income disclosure prevents assessment of actual profitability despite $124.05k avg revenue
  3. 03HIGHMultiple active litigation cases including class action cyber security breach raise operational and legal risks
  4. 04MINORUnprotected territory creates direct competition risk from other Hotel Indigo franchisees in same market
  5. 05MEDHigh capital investment range ($9.8M-$44.9M) combined with undisclosed net income creates opacity on ROI
  6. 06MINOR5% royalty on gross rooms revenue (not net) means fees charged regardless of profitability

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 137 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail60 matters · Item 3

Litigation cases

The franchisor

Pending (9)

  • Holiday Hospitality Franchising, LLC v. Momentum Fort Worth Investment LLC, Abdul Majid Hassanally and Shahnaz Majid Hassanally

    pending

    Brought against a franchisee · filed 2024 · State Court of DeKalb County, Georgia · Civ. Action No. 24A00417

    “Holiday filed this suit against the defendants seeking liquidated damages, unpaid franchise fees, and other amounts exceeding $1.5 million arising from defendants alleged breach of a Holiday Inn license agreement and Holiday’s subsequent termination of the license related thereto.”Page 21 of the 2024 FDD, Item 3

    Outcome:“Holiday believes its claims are meritorious, the Defendants’ counterclaims and defenses are not, and Holiday is prosecuting its case and defending against the counterclaims vigorously.” (page 22)

  • 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

    pending

    Brought 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 22 of the 2024 FDD, Item 3

    Outcome:“Appellate briefing is ongoing and the appeal remains pending.” (page 23)

  • Atlanta Hospitality Investment, LLC, a Georgia limited liability company, and Mohammad Sarower Hossain, individually v. Holiday Hospitality Franchising, LLC

    pending

    Brought 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. The amended petition seeks a declaratory judgment finding that Holiday’s license agreement is unconscionable and unenforceable, that the liquidated damages clause is an unenforceable penalty, and that the defendants are not”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.”

  • 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

    pending

    Brought 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 24 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

    pending

    Brought 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 24 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.” (page 25)

  • 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

    pending

    Brought 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 25 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 26)

  • Scion Hotels LLC vs. Holiday Hospitality Franchising, LLC

    pending

    Brought 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 23 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

    pending

    Brought 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 27 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

    pending

    Brought 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 23 of the 2024 FDD, Item 3

    Outcome:“Holiday filed an answer denying any liability, and discovery is ongoing.”

Concluded (3)

  • 110 Sunport, LLC, 786 Sunport, LLC, Gibbs Master Tenant, LLC, Tajdin Gillani, Rashida Gillani, Tushar Patel, Sangita Patel, Jayesh Patel, Nanda Patel, Ashish Patel, Yamini Patel v. Holiday Hospitality Franchising, LLC

    dismissed

    Brought by a franchisee · filed 2017-10-05 · United States District Court, District of New Mexico · Case No. 1:17-cv-01097-KBM-SCY

    “On October 5, 2017, the licensees of a Holiday Inn® Express & Suites hotel and a Staybridge Suites hotel located in Albuquerque, New Mexico and the licensee and guarantors of a former Hotel Indigo® hotel located in San Antonio, Texas filed suit against Holiday alleging tortious interference with prospective contract, misrepresentation, unfair and unconscionable trade practices, repudiation of”Page 21 of the 2024 FDD, Item 3

    Outcome:“The parties resolved this matter with no payment made by Holiday. The litigation was dismissed with prejudice on December 26, 2018.”

  • Back Bay Resorts SWF, LLC and Edmund Shamsi v. Holiday Hospitality Franchising, LLC

    dismissed

    Brought by a franchisee · filed 2014-08-14 · United States District Court, Northern District of Georgia, Atlanta Division · Civil Action No. 1:14-cv-02521-ELR

    “A current licensee and guarantor who operate a Hotel Indigo brand hotel in Ft. Myers, Florida, filed suit seeking to terminate their license agreement. Plaintiffs sought actual damages they claimed to have suffered based on Holiday’s alleged breaches of the license agreement, breach of the duty of good faith and fair dealing, and tortious interference with their contractual relationship with”Page 21 of the 2024 FDD, Item 3

    Outcome:“The parties resolved this matter with no money paid by Holiday. This matter was dismissed with prejudice on July 11, 2018.”

  • Lenexa Hotel, LP v. Holiday Hospitality Franchising, Inc.

    settled

    Brought 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 29 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

    pending

    Brought 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 23 of the 2024 FDD, Item 3

    Outcome:“On October 10, 2023 the former licensee filed an appeal which is now pending.” (page 24)

  • K.J. Harjani & Cia Ltda v. Six Continents Hotels, Inc.

    pending

    Brought 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 24 of the 2024 FDD, Item 3

    Outcome:“SCH intends to defend against this claim vigorously.”

Concluded (1)

  • Hospitality Marketing Concepts, Inc. v. Six Continents Hotels, Inc. & InterContinental Hotels Group, PLC

    settled

    Third-party plaintiff · Six Continents Hotels, Inc.; InterContinental Hotels Group, PLC · filed 2015-11-02 · United States District Court, Central District of California, Southern Division · Civil Action No. 8:15-cv-01791

    “On June 12, 2015, Hospitality Marketing Concepts, Inc. (“HMC”) filed suit against “InterContinental Hotels Group” in California Superior Court. Following an amended complaint and voluntary dismissal, HMC filed a new action in California federal court on November 2, 2015 against Six Continents Hotels, Inc. and InterContinental Hotels Group, PLC alleging breach of oral contracts, fraud, fraudulent”Page 34 of the 2024 FDD, Item 3

    Outcome:“Following a partially successful motion for summary judgment by SCH, the parties resolved this matter with SCH making a payment of $699,000 to HMC.”

This list shows 15 of the 60 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 25.6% of sales (royalty + ad fund), before rent and labor.

Initial term20 yrs
Renewal termNot extracted
TerritoryNone (caution)
Initial training503 hrs

Source: FDD 2024 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term20 years
Allowed renewalsℹ0
Territory typeNo territory protection
Protected territoryNo
Exclusive territoryℹNo
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Right of first refusalℹYes
RoFR response window30 days
Transfer requires consentYes
Termination notice30 days
Mandatory arbitrationNo
Jury trial waiverYes
Governing lawGA
Litigation count60
View Item 3 litigation summary

Extensive litigation involving Holiday Hospitality Franchising, LLC and affiliates across multiple categories: licensee class actions alleging improper kickbacks and unreasonable requirements (5 consolidated actions), individual licensee breach of contract and franchise practices claims (Scion, Atlanta Hospitality, Astoria, Ahijit Vasani), Holiday-initiated collection suits against licensees for unpaid fees (9 suits filed in 2023), and international disputes (Italy, Brazil, Canada).

Items 10, 11

Training & Operations

Classroom training
11 hrs
On-the-job training
492 hrs
Training location
Atlanta, Georgia or other designated locations; virtual options for some programs
Ongoing training
Required
Site selection
Licensee
Franchisor financing
Not offered
Item 10
POS system
Opera or Opera Xpress (Oracle America, Inc.)
Operating tech stack

Items 5 & 11

Franchisor Support

✗Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: Opera or Opera Xpress (Oracle America, Inc.)

Item 20 · call current owners

Franchisee Contacts

85 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 85 contacts · $49
Free preview
404-614-••••GA
Unlock all 85 contacts
212-285-••••FL
360-816-••••WA
724-838-••••PA
512-539-••••TN

Frequently asked questions

Frequently Asked Questions

How much does it cost to open a Hotel Indigo franchise?

The total investment to open a Hotel Indigo franchise ranges from $9.8M – $44.9M, 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 Hotel Indigo franchise owners earn?

Item 19 of the Hotel Indigo 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 Hotel Indigo?

Hotel Indigo 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 Hotel Indigo 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 Hotel Indigo FDD and qualifies whose outlets they describe.

What is Hotel Indigo's franchise failure rate?

SBA 7(a) loan charge-off data is not available for Hotel Indigo (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 Hotel Indigo franchise locations are there?

As of their most recent FDD filing, Hotel Indigo has 68 total units in the United States, including 68 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.

Is Hotel Indigo a good franchise to buy?

FranchiseVerdict rates Hotel Indigo 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.

For franchisors

Are you the franchisor?

If you represent Hotel Indigo, you can request corrections or provide updated information.

Other Lodging franchises

Compare similar franchise opportunities in the Lodging category

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.