Atwell Suites Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$15,712,500 - $23,636,500
Franchise Fee
$50,000
Total US Locations
6
Business Summary
Atwell Suites hotels operate as part of a distinctive, high-quality hotel brand system designed for 'opportunity seekers' – guests looking for a flexible environment for working, resting, and socializing. These hotels typically feature studio suites equipped with wet bars (including a sink, microwave, and fridge) and offer a lobby with versatile public and private meeting areas. Atwell Suites also provides guests with a complimentary hot breakfast and an evening bar with a focused menu.
Corporate History
Holiday Hospitality Franchising, LLC, referred to as Holiday, was initially formed as Holiday Inns Franchising, Inc. on November 3, 1989, and later converted into a limited liability company. Its predecessors have been involved in operating hotel businesses and offering licenses for various hotel brands since approximately 1953. Holiday began offering licenses specifically for the Atwell Suites® brand in September 2019. The company is a key part of the larger InterContinental Hotels Group PLC, which is its ultimate corporate parent based in the United Kingdom. Holiday's direct corporate parent is Six Continents Hotels, Inc. (SCH), which grants Holiday the right to license and operate numerous IHG hotel brands, including Atwell Suites®, in the United States and Canada.
Financial Overview
Investment Range
$15,712,500 - $23,636,500
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$58,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$15,712,500
Equipment Costs (High)
$23,636,500
Working Capital
$137,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Holiday Hospitality Franchising, LLC, the company that licenses the Atwell Suites brand, reports negative working capital, with current liabilities exceeding current assets by over $109 million in 2024 and $69 million in 2023. However, the company is profitable, with net incomes of over $67 million in 2024 and $54 million in 2023. A significant factor in Holiday Hospitality Franchising, LLC's financial position is a large line of credit, exceeding $770 million in 2024, due from its affiliate, Six Continents Hotels, Inc. The independent auditors have issued an unqualified opinion, indicating that the financial statements are presented fairly and they have not identified any substantial doubt about Holiday Hospitality Franchising, LLC's ability to continue as a going concern. This suggests that despite the negative working capital, the company's financial stability is robust due to its profitability and strong financial backing from its parent company. Six Continents Hotels, Inc., the direct parent, also shows negative working capital but is highly profitable and has strong operating cash flows, further supporting the overall financial health of the group.
Financing Details
Atwell Suites does not offer a formal program for direct or indirect financing to its franchisees. However, Holiday Hospitality Franchising, LLC, or its affiliates such as Six Continents Hotels, Inc. (SCH) or General Innkeeping Acceptance Corporation (GIAC), may, on a case-by-case basis, consider furnishing loans or guaranties to licensees. Any decision to provide such financing would be made in their sole judgment and would require approval from their Executive Committee and Board of Directors. Franchisees are solely responsible for obtaining adequate financing for all expenses related to the development, opening, and operation of their hotel.
Performance Metrics
Total US Locations
6
Franchised Units
6
Corporate Units
0
Franchising Since
1990
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
42
Litigation Summary
Holiday Hospitality Franchising, LLC (Holiday) and its affiliates frequently engage in legal disputes, both as defendants in lawsuits brought by current and former licensees, and as plaintiffs pursuing claims against licensees. The litigation disclosed includes 42 separate cases that are either ongoing or were recently concluded. Many of these cases were filed or had significant activity within the last three years (since April 2022), indicating an active legal landscape for Holiday Hospitality Franchising, LLC. The types of disputes frequently involve allegations of breach of contract, often related to compliance with brand standards, fees, and termination clauses. Licensees have also raised claims concerning alleged fraudulent misrepresentation, unconscionable agreements, wrongful non-renewal, constructive termination, and unreasonable performance standards. Several lawsuits accuse Holiday Hospitality Franchising, LLC and its affiliates of engaging in unlawful business practices, including imposing unreasonable product and service requirements and receiving alleged improper 'kickbacks' from mandated vendors. Multiple class-action lawsuits, originally filed in 2021 and consolidated, allege widespread unlawful practices, breach of contract, and Sherman Act violations. While a summary judgment was granted in favor of Holiday and Six Continents Hotels, Inc. (SCH) in one such consolidated class action in December 2024, the plaintiffs filed an appeal in January 2025, meaning this significant litigation remains active. Holiday Hospitality Franchising, LLC also initiates lawsuits against its licensees and guarantors, typically seeking unpaid system fees and liquidated damages following the termination of license agreements due to non-compliance or early cessation of business. Many of these actions have resulted in settlements where payments were made to Holiday, with no payments made by Holiday to the licensees. However, there have been exceptions; for instance, a 2019 case (Lenexa Hotel, LP v. Holiday) concluded with Holiday making a $10.9 million payment to a plaintiff licensee, and an international arbitration in 2022 (Tsemex Global Enterprise PLC v. IHG Hotels Limited) resulted in an undisclosed damage award against an IHG affiliate. A case filed in 2023 alleging misrepresentation during a hotel sale process was dismissed in March 2025. Other cases involve alleged data security breaches (one from 2022 was dismissed in 2024), tortious interference, and antitrust claims.
Bankruptcy History
Holiday Hospitality Franchising, LLC has no bankruptcy history to disclose in this Franchise Disclosure Document.
Agreement Terms
Training & Support Program
Franchisor Assistance
Holiday Hospitality Franchising, LLC provides extensive assistance to Atwell Suites franchisees, both before and after the hotel opens. Before Opening: Atwell Suites helps with site review to align with brand image and strategic objectives. Franchisees receive prototype architectural plans and guidance on adapting them with an approved architect. The franchisor reviews construction drawings and provides a Property Improvement Plan (PIP) outlining required renovations and construction timelines. A kick-off meeting is held for consultation on business plans, target markets, and building plans with various team members, including operations, sales, marketing, and IT. Atwell Suites inspects the hotel before opening to ensure all requirements are met, with fees potentially assessed for failed inspections or reschedules. Franchisees gain access to IHG Merlin, an online portal offering documentation, sales tools, marketing materials, operational information, and technology support. Training: Comprehensive initial training is provided for the General Manager and other key management and supervisory staff (including Front Office Manager, Director of Sales, Executive Housekeeper, F&B colleagues, and Hotel Experience Champion). This training covers systems like IHG Concerto, reservation processes, revenue management (RAMP UP Program), and brand-specific programs like "Leading the Brand Training for New Hotels," "IHG Way of Clean," and "IHG Way of Preventative Maintenance." Training can be virtual, at Holiday's Atlanta headquarters, or other regional locations, with some costs included in the IHG University annual subscription, but franchisees are responsible for trainees' travel expenses. Ongoing Support: After opening, Holiday aims to maintain high standards of quality, cleanliness, and service across all Atwell Suites hotels to enhance brand image and increase demand. Franchisees receive access to reservation services and ongoing required and optional training programs. A "Services Contribution" is collected and pooled with other IHG brands to fund marketing, reservations, and broader IHG System Fund Activities, including loyalty and distribution marketing, which benefits the overall IHG portfolio of brands. Holiday communicates ongoing improvements and developments in the Brand System related to reservation services, marketing, operations, and administrative and technical support functions. Consultations and advice are available for operational, facility, and marketing challenges. The franchisor also operates and maintains official websites for IHG Portfolio Brand Hotels, including Atwell Suites, and provides access to computerized property management systems (PMS) and revenue management systems (RMS), requiring franchisees to use specific IHG-approved technology and vendors.
Initial Training Hours
653
Training Location
Virtual, Atlanta, Georgia, other designated regional locations, and on-site at the franchisee's hotel.
Ongoing Support
After opening, Atwell Suites franchisees receive continuous support to ensure the hotel operates successfully and maintains brand standards. Holiday Hospitality Franchising, LLC strives to maintain high quality, cleanliness, appearance, and service standards across all hotels to promote the Atwell Suites brand image. Franchisees have access to required and optional training programs and reservation services, provided they remain compliant with their license agreement. A "Services Contribution" is used to fund pooled marketing, reservations, and other IHG System Fund Activities, including loyalty and distribution marketing, which benefits the overall IHG portfolio of brands. The franchisor communicates ongoing improvements and developments in the Brand System related to reservation services, marketing, operations, and administrative and technical support functions. Consultations and advice are available on operational, facility, and marketing matters. Annually, Holiday employees conduct on-site property consultations as part of the "Focus consulting process," covering topics such as reservation and channel systems, revenue management, service management, and marketing programs. During these visits, the General Manager, department heads, and designated staff work on developing strategies and action plans. Franchisees are expected to provide food, lodging, meeting rooms, and equipment for the visiting Holiday personnel. Additionally, franchisees have access to IHG Merlin, an internet-based information library and messaging tool ("Hotel Bulletin"), which provides up-to-the-minute information, brand standards, sales and marketing tools, operational guidance, and technology support. Holiday also operates and maintains official websites for IHG Portfolio Brand Hotels, which include basic information about the franchisee's hotel.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Territory Size Requirements
Atwell Suites® does not typically grant licenses for exclusive areas or territories. Instead, each license is granted for a specific site only, allowing for the establishment and operation of one Atwell Suites® hotel at that defined location. Franchisees will not receive an exclusive territory and may face competition from other Atwell Suites® licensees, hotels owned by Holiday Hospitality Franchising, LLC or its affiliates, or other distribution channels and competitive brands controlled by the franchisor. In specific situations where Holiday Hospitality Franchising, LLC deems special considerations necessary, it may grant exclusive or protected areas where another Atwell Suites® hotel will not be licensed, but even in such cases, the license remains site-specific for a single hotel.
Staffing Notes
Holiday Hospitality Franchising, LLC requires Atwell Suites® franchisees to maintain direct management control over the hotel's business at all times, though personal participation in daily operations is not mandatory for the franchisee. The franchisor may require the franchisee to hire a management company or specific key personnel. This includes requiring a General Manager and/or Director of Sales with at least two years of prior experience in a similar hotel role within an IHG brand or a comparable brand segment. For franchisees owning multiple Atwell Suites® hotels, a separate, qualified General Manager must be hired for each location. While franchisees can hire staff of their own choice without prior approval, the franchisor may specify required experience levels for key individuals. All General Managers, Front Office Managers, Directors of Sales, Executive Housekeepers, F&B colleagues, and Hotel Experience Champions must complete initial certification training, which is covered by the annual IHG University subscription. Additionally, General Managers and Hotel Experience Champions must complete 'Leading the Brand Training for New Hotels' before the hotel opens. The franchisor suggests allocating annual budgets for optional 'value-add' and 'specialist' courses for various employee levels, capping these at 2% of the hotel's total salaries and wages budget. Holiday Hospitality Franchising, LLC does not dictate employment policies, discipline, recruitment, or termination, leaving these responsibilities solely with the franchisee or their management company.