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InterContinental Hotels & Resorts Franchise Cost, Revenue & Review 2026

LodgingGeorgiaFranchising since 2003
BAbove averageAbove average54/100Editorial grade from public filings; not investment advice.
Investment
$102.8M – $147.8M
Disclosed sales
partial, no system average
SBA charge-off
Not SBA-matched

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

FV-01301Data QualityExcellent81%FDD 2024 · 2yr old
Manager-run OKNo: No territory protection

Data from FDD filing

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.

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 requires a total initial investment of $102.8M – $147.8M, including a $100K franchise fee and an ongoing 6.0% 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 scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.

Overview

Investment
$102.8M – $147.8M
72nd pct Lodging
Avg gross sales
N/A
Incl. company outletsProjection
Royalty
6.0%
53rd pct Lodging
Units
21
30th pct Lodging
SBA charge-off
N/A

Quick verdict · Lodging · color = vs category peers

Total Investment
$102.8M – $147.8M
Median $8.9M
above median ↑, worse than category
Franchise Fee
$100K
Median $50K
above median ↑, worse than category
Liquid Capital Req'd
N/A
Median $312K
Avg Revenue
Partial, no system average
No system average in Item 19
Royalty Rate
6.0%
Median 5.0%
above median ↑, worse than category
Ongoing Fees
26.1% of rev
Median 8.5%
above median ↑, worse than category
SBA Charge-Off Rate
Not SBA-matched
Not matched to SBA 7(a) loans
System Size
21 units
Median 60 units
below median ↓, worse than category
Turnover Rate
N/A
Median 0.7%
below median ↓, better 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 $102.8M – $147.8M including a $100K franchise fee, 6.0% ongoing royalty.
  • RETURNSItem 19 reports other rather than annual gross sales, so unit revenue is not directly comparable.
  • RISKVerdict B (Above average), verdict score 54/100 (higher is better).
  • GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
  • LEGAL60 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
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.

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
5

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

Entry cost runs 1309% above the typical lodging franchise.

Total investment (Item 7)$102.8M – $147.8MCited, not corroborated — printed on page 67 of the 2024 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$100,000Not cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Royalty6.0%Cited, not corroborated — printed on page 41 of the 2024 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund3.0%Not cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Working capitalNot extracted

Source: FDD 2024 · Items 5–7

FDD Item 7 · 2024 filing

Initial investment breakdown

InterContinental Hotels & Resorts: Item 7 initial investment breakdown
Cost componentLowHigh
Initial franchise fee$100K$100K
Equipment, build-out, other$102.7M$147.7M
Total initial investment$102.8M$147.8M

Source: InterContinental Hotels & Resorts 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
$102.8M – $147.8M
Bottom third — review vs category
Liquid capital req'd
N/A
Cash you must have on hand
Franchise fee
$100K
Middle of category vs category
Royalty
6.0%
Set by a formula · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
26.1%
vs 9–13% typical

Ongoing fees · Item 6

InterContinental Hotels & Resorts: Item 6 recurring fees
FeeAmount
Royalty6.0%
Marketing / ad fund3.0% of gross sales
Technology fee$17
Transfer fee$25K
Inventory (initial)$3.3M – $4.8M
Total fee load26.1% of rev

What do units actually make?

Avg gross salesNot extracted
Median gross salesNot extracted
Item 19 typeother
Sample size18

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 InterContinental Hotels & Resorts 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 InterContinental Hotels & Resorts 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: $102.8M–$147.8M (midpoint used)
Item 7 didn't break this out. Enter your pre-opening cash burn

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, other operating costs and working capital, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
—
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
other
Sample size
18
vs category median 98 · small
Source filing
FDD 2024
The FDD edition these figures were read from
Gross sales rank
No comparison data
Investment cost rank72th
Lower investment ranks lower (better)
Royalty rate rank53th
Lower royalty = lower percentile (better)
Unit count rank30th
vs Lodging peers
Risk score rank52th
Lower risk = lower percentile (better)

Compared against 175 Lodging brands

Showing the headline figures — all 95 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 26.1% — above the Lodging median of 8.5%.

Disclosure

Item 19 reports other rather than annual gross sales, so unit revenue is not directly comparable.

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 medians

How InterContinental Hotels & Resorts Compares

Metric
InterContinental Hotels & Resorts
Category median
vs median
Investment
$125.3M
$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
21
60middle half 6–245 · n=126
Below median, worse 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 units21Cited, not corroborated — printed on page 110 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
3-yr growth+0.0%

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
N/A
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

Last fiscal year · Item 20 exits and transfers

Transferred
1
Termination rate
5.0%
Franchisor-initiated terminations
2021
20
Franchised units
2022
20±0
Franchised units
2023
20±0
Franchised units

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

Item 20 · 9 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 · 9 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

17 current owners across 9 states.

  • CA 5
  • DC 2
  • FL 2
  • MN 2
  • NY 2
  • GA 1
  • LA 1
  • MO 1
  • OH 1

Counts only, from the list the franchisor prints in Item 20; 20 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?

SBA charge-offNot SBA-matched
Verdict score54/100 (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 average54Verdict score 54/100
Low confidence±15 pts
3969

Litigation (Item 3)

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

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)

Yr 1: $27.2MYr 2: $26.1MTotal: $8.4M

Franchisor entity revenue (not unit-level)

ⓘ 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 54 / 100 verdict

  1. 01HIGHExtensive litigation history including breach of contract, unpaid franchise fees, and class actions suggests systemic franchisor-franchisee relationship problems
  2. 02MINOROnly 21 units with unknown growth trajectory suggests system contraction or stagnation in a major hotel brand
  3. 03MINOR20-year term lock-in with no territorial protection creates long-term exposure to system cannibalization
  4. 04HIGHTrademark disputes mentioned in litigation history raises questions about brand integrity and legal standing

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 95 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.”

  • 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”Page 21 of the 2024 FDD, Item 3

    Outcome:“Appellate briefing is ongoing and the appeal remains pending.” (page 22)

  • 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 21 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 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

    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.”

  • 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 24 of the 2024 FDD, Item 3
  • 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 22 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 26 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 22 of the 2024 FDD, Item 3

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

Concluded (2)

  • Allied Hotels Limited v. Holiday Hospitality Franchising, LLC f/k/a Holiday Hospitality Franchising, Inc., and Six Continents Hotels, Inc.

    settled

    Brought 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 29 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.

    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 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

    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”Page 22 of the 2024 FDD, Item 3

    Outcome:“On October 10, 2023 the former licensee filed an appeal which is now pending.” (page 23)

  • 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 23 of the 2024 FDD, Item 3

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

Concluded (2)

  • Eric Washington v. Six Continents Hotels, Inc.

    dismissed

    Third-party plaintiff · Six Continents Hotels, Inc. · filed 2016-05-27 · United States District Court, Central District of California, Western Division · Civil Action No. 2:16-cv-03719

    “On May 27, 2016, Washington filed suit against Six Continents Hotels, Inc., (“SCH”), alleging that SCH sent him hundreds of text messages without his consent, in violation of the Telephone Consumer Protection Act (TCPA). The TCPA prohibits companies from using an automatic telephone dialing system (ATDS) to send text messages and prohibits certain text messages absent written consent.”Page 32 of the 2024 FDD, Item 3

    Outcome:“The parties agreed to resolve this matter with a payment made by SCH of $175,000.” (page 33)

  • 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 successfully 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 26.1% of sales (royalty + ad fund), before rent and labor.

Initial term20 yrs
Renewal term0 yrs
TerritoryNone (caution)
Initial training525 hrs

Source: FDD 2024 · Items 11, 12, 17

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

Contract & Territory Detail

Initial term20 years
Renewal term0 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
Curable defaultsℹ1
Mandatory arbitrationNo
Jury trial waiverNo
Governing lawGeorgia
Litigation count60
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

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

Technology: Oracle Opera Property Management System (PMS)

Item 20 · call current owners

Franchisee Contacts

37 owners to call

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

Unlock 37 contacts · $49
Free preview
202-303-••••DC
Unlock all 37 contacts
(605) 773-••••
(360) 902-••••
612-600-••••MN
858-480-••••LA

Frequently asked questions

Frequently Asked Questions

How much does it cost to open a InterContinental Hotels & Resorts franchise?

The total investment to open a InterContinental Hotels & Resorts franchise ranges from $102.8M – $147.8M, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).

What do InterContinental Hotels & Resorts franchise owners earn?

Item 19 of the InterContinental Hotels & Resorts 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 InterContinental Hotels & Resorts?

InterContinental Hotels & Resorts 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 InterContinental Hotels & Resorts 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 InterContinental Hotels & Resorts FDD and qualifies whose outlets they describe.

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 54 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

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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.