InterContinental Hotels & Resorts: Litigation & Risk

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.

1. 01HIGHGoing concern status is FALSE — indicates potential solvency or operational viability issues at corporate level
2. 02HIGHExtensive litigation history including breach of contract, unpaid franchise fees, and class actions suggests systemic franchisor-franchisee relationship problems
3. 03MINOROnly 21 units with unknown growth trajectory suggests system contraction or stagnation in a major hotel brand
4. 04MINORNo financial disclosure (avg revenue, net income, Item 19) prevents validation of ROI claims and franchisee profitability
5. 05MINORUnprotected territory combined with high royalty burden (6% rooms + 2% F&B) creates direct competition risk within same system
6. 06MINOR20-year term lock-in with no territorial protection creates long-term exposure to system cannibalization
7. 07HIGHTrademark disputes mentioned in litigation history raises questions about brand integrity and legal standing

Severity inferred from FDD text. Not a regulatory or legal classification