Hotel Indigo Franchise Cost, Revenue & Review 2026
- Investment
- $9.8M – $44.9M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (2)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
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
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.
- Crowne PlazaB
- EVEN HotelsB
- Holiday InnB
- 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
- 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.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| 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
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $17 |
| Training fee | $4K |
| Transfer fee | $75K |
| Inventory (initial) | $480K – $819K |
| Total fee load | 25.6% 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 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?
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
- 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
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 25.6% — 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
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
- 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
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).
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.
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
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.
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)
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
- 01MINORDeclining unit count (-4.2% YoY) indicates system contraction and potential franchisee struggles
- 02MINORNo average net income disclosure prevents assessment of actual profitability despite $124.05k avg revenue
- 03HIGHMultiple active litigation cases including class action cyber security breach raise operational and legal risks
- 04MINORUnprotected territory creates direct competition risk from other Hotel Indigo franchisees in same market
- 05MEDHigh capital investment range ($9.8M-$44.9M) combined with undisclosed net income creates opacity on ROI
- 06MINOR5% royalty on gross rooms revenue (not net) means fees charged regardless of profitability
Severity inferred from the FDD text · not a regulatory classification
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
pendingBrought 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
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 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
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. 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
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 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
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 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
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 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
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 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
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 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
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 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
dismissedBrought 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
dismissedBrought 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.
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 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
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 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.
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 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
settledThird-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.
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 | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 60 |
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
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
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.
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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.