InterContinental Hotels & Resorts Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
InterContinental Hotels & Resorts is IHG's luxury, full-service hotel franchise for upscale global travelers. Franchisees own and operate the hotels, managing guest services, food and beverage, and brand standards.
FranchiseVerdict summary · 2026
A InterContinental Hotels & Resorts franchise does not disclose total investment in its current FDD, including a $100K – $150K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $102.8M
- 59th pct Lodging
- Avg gross sales
- N/A
- 1st pct Lodging
- Royalty
- 6.0%
- 40th pct Lodging
- Units
- 21
- 25th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $102.8M including a $100K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "other" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict B (Above average), verdict score 55/100 (higher is better).
- 40 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Holiday Hospitality Franchising, LLC
- Parent company
- Six Continents Hotels, Inc.
- Ultimate parent
- InterContinental Hotels Group PLC
- Incorporated in
- Delaware
- 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
- CEO
- Elie W. Maalouf
- Headquarters
- Georgia
- Founded
- 1989
- FDD year
- 2024
- States available
- 5
Can you afford it, and what does the money buy?
Source: FDD 2024 · Items 5–7
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $102.8M
- Middle of category vs category
- Liquid capital req'd
- N/A
- Middle of category vs category
- Franchise fee
- $100K – $150K
- Middle of category vs category
- Royalty
- 6.0%
- formula · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 26.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $17 |
| Transfer fee | $25K |
| Inventory (initial) | $3.3M – $4.8M |
| Total fee load | 26.1% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
Financial Performance
This brand's FDD disclosed "other" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
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 26.1% — above the Lodging average of 10.3%.
Disclosure
Item 19 reports "other" rather than annual gross sales. Not directly comparable across brands.
Operator retention
System roughly stable (0.0% 3-year CAGR) with 21 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How InterContinental Hotels & Resorts Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 21
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 5.0%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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).
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
This is a HIGH RISK franchise opportunity featuring a severely contracted hotel system (21 units) plagued by litigation, going concern warnings, and complete financial opacity, making it unsuitable for most investors.
Litigation (Item 3)
Extensive Item 3 disclosure (none relating solely to the InterContinental brand). Pending matters include licensee collection/liquidated-damages suits and licensee counterclaims, a putative class action over a 2022 systems-access incident, and five consolidated class actions (CT, LA, OH, TX, NM) alleging improper franchise practices/kickbacks. Numerous concluded matters, including data-breach class actions and the Lenexa Hotel matter (Holiday paid $10.9M). Most relate to the broader Holiday/IHG system rather than the InterContinental brand specifically.
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)
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 55 / 100 verdict
- 01HIGHGoing concern status is FALSE — indicates potential solvency or operational viability issues at corporate level
- 02HIGHExtensive litigation history including breach of contract, unpaid franchise fees, and class actions suggests systemic franchisor-franchisee relationship problems
- 03MINOROnly 21 units with unknown growth trajectory suggests system contraction or stagnation in a major hotel brand
- 04MINORNo financial disclosure (avg revenue, net income, Item 19) prevents validation of ROI claims and franchisee profitability
- 05MINORUnprotected territory combined with high royalty burden (6% rooms + 2% F&B) creates direct competition risk within same system
- 06MINOR20-year term lock-in with no territorial protection creates long-term exposure to system cannibalization
- 07HIGHTrademark disputes mentioned in litigation history raises questions about brand integrity and legal standing
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 26.1% 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 |
|---|---|
| Renewal term | 0 years |
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | Georgia |
| Litigation count | 40 |
View Item 3 litigation summary
Extensive Item 3 disclosure (none relating solely to the InterContinental brand). Pending matters include licensee collection/liquidated-damages suits and licensee counterclaims, a putative class action over a 2022 systems-access incident, and five consolidated class actions (CT, LA, OH, TX, NM) alleging improper franchise practices/kickbacks. Numerous concluded matters, including data-breach class actions and the Lenexa Hotel matter (Holiday paid $10.9M). Most relate to the broader Holiday/IHG system rather than the InterContinental brand specifically.
Items 10, 11
Training & Operations
- Classroom training
- 93 hrs
- On-the-job training
- 432 hrs
- Training location
- Virtual, Atlanta, Georgia, or other designated regional location / on-site at the Hotel
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Oracle Opera Property Management System (PMS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle Opera Property Management System (PMS)
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
InterContinental Hotels & Resorts · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
What do InterContinental Hotels & Resorts franchise owners earn?
InterContinental Hotels & Resorts 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 InterContinental Hotels & Resorts's franchise failure rate?
SBA 7(a) loan charge-off data is not available for InterContinental Hotels & Resorts (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 InterContinental Hotels & Resorts franchise locations are there?
As of their most recent FDD filing, InterContinental Hotels & Resorts has 21 total units in the United States, including 20 franchised units and 1 company-owned units.
Is InterContinental Hotels & Resorts a good franchise to buy?
FranchiseVerdict rates InterContinental Hotels & Resorts as a B-grade franchise with a verdict score of 55 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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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.