avid hotel Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$10,360,251 - $15,714,550
Franchise Fee
$50,000
Total US Locations
71
Business Summary
avid hotels operates high-quality midscale hotels designed for the everyday traveler. The brand focuses on delivering essential hospitality services exceptionally well, including rooms designed for sound sleep, complimentary breakfast, and a modern lobby. avid hotels are part of a unique system that provides guests with a distinctive experience while respecting their budget.
Corporate History
Holiday Hospitality Franchising, LLC, which operates avid hotels, was formed on November 3, 1989, initially as Holiday Inns Franchising, Inc. The company has a long history in the hotel industry, with its predecessors operating hotel businesses and offering licenses for various brands starting around 1953. Holiday Hospitality Franchising, LLC began offering licenses for its avid® hotels brand in September 2017. The company is a subsidiary of Six Continents Hotels, Inc. (SCH), which is ultimately owned by InterContinental Hotels Group PLC (UK). Holiday Hospitality Franchising, LLC also licenses other hotel brands such as Holiday Inn, Crowne Plaza, Candlewood Suites, Hotel Indigo, Staybridge Suites, EVEN® hotels, InterContinental Hotels & Resorts, Atwell Suites®, voco® hotels, Vignette Collection™ hotels, and Garner hotels. While Holiday Hospitality Franchising, LLC itself does not own or manage hotels, its affiliates operate various branded properties and US Army lodging facilities.
Financial Overview
Investment Range
$10,360,251 - $15,714,550
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$149,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$9,766,151
Equipment Costs (High)
$14,517,850
Working Capital
$137,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Holiday Hospitality Franchising, LLC benefits from the financial strength of its parent company, Six Continents Hotels, Inc. This parent entity covers Holiday Hospitality Franchising, LLC's operating and administrative expenses and provides a significant line of credit facility, valued at $1.0 billion. The company's credit risk is considered low due to the substantial funds available within the broader InterContinental Hotels Group. Auditors have assessed Holiday Hospitality Franchising, LLC's financial position and found no substantial doubt regarding its ability to continue as a going concern.
Financing Details
avid hotels does not offer a formal program for direct or indirect financing. However, Holiday Hospitality Franchising, LLC or its affiliates, Six Continents Hotels, Inc. (SCH) or General Innkeeping Acceptance Corporation (GIAC), may provide loans or guarantees to franchisees. Any such financing would be considered on a case-by-case basis, with terms negotiated individually and subject to approval by the Executive Committee and Board of Directors. Franchisees are solely responsible for obtaining adequate financing for all expenses related to developing, opening, and operating their avid hotels location.
Performance Metrics
Total US Locations
71
Franchised Units
71
Corporate Units
0
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
43
Litigation Summary
Holiday Hospitality Franchising, LLC, which operates avid hotels, has been involved in several lawsuits, many of which involve disputes with franchisees. Currently, avid hotels is facing pending litigation concerning alleged misrepresentations, wrongful non-renewal, and breaches of license agreements, including a class action lawsuit alleging unlawful franchise business practices, such as unreasonable product requirements and improper kickbacks from vendors. Another ongoing case involves claims for breach of contract and counterclaims for unreasonable renovation requirements. Many past cases have been resolved through settlements or dismissals. These concluded disputes included allegations of wrongful termination, data security breaches affecting guests, claims of fraudulent inducement, and disagreements over unpaid fees and renovation obligations. For example, a class action regarding a data security breach at Kimpton Hotels resulted in a payment to plaintiffs, and Holiday Hospitality Franchising, LLC also made a significant payment in a fraudulent inducement case involving a Crowne Plaza licensee. The class action lawsuit alleging improper franchise practices was dismissed in favor of Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc.
Bankruptcy History
Holiday Hospitality Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
The avid hotels License does not provide for renewal or term extensions. If Holiday Hospitality Franchising, LLC agrees to re-license the hotel, franchisees may be required to sign a new contract with terms and conditions that are materially different from their original agreement.
Training & Support Program
Franchisor Assistance
Before opening, Holiday Hospitality Franchising, LLC provides franchisees with prototype architectural plans that must be adapted by an approved architect. The franchisor reviews construction plans for compliance with its standards. It also offers pre-opening support and training through its 'Openings program', which includes Key Programs Training, pre- and post-opening support, and consultations for a Preopening Support Fee of $6,500. A Construction Consultation is also offered. After opening, Holiday Hospitality Franchising, LLC works to maintain high quality and service standards for all avid hotels to enhance the brand's image. Franchisees receive access to reservation services, provided they comply with their license. The franchisor uses a 'Services Contribution' fund to support marketing, reservations, and other brand-strengthening activities. It also provides updates on the Brand System's developments in marketing, operations, and technology, and offers consultation and advice on operational, facility, and marketing issues. Additionally, Holiday Hospitality Franchising, LLC provides on-site consulting and/or training visits to avid hotels annually, covering topics like Reservation and channel Systems, Revenue Management, Service Management, and Marketing Programs.
Initial Training Hours
105
Training Location
Virtual, Atlanta or other designated regional location, or on-site at the franchisee's hotel
Ongoing Support
After opening, avid hotels' franchisor, Holiday Hospitality Franchising, LLC, actively works to maintain high standards of quality, cleanliness, appearance, and service across all avid hotels, while promoting and enhancing the brand's public image. Franchisees are provided with ongoing required and optional training programs in various formats and locations. They also receive access to reservation services, contingent on their compliance with the license agreement. A 'Services Contribution' fund is utilized by the franchisor for marketing, reservations, and other related activities aimed at strengthening the brand. Holiday Hospitality Franchising, LLC also communicates system improvements and developments in areas such as reservation services, marketing, operations, and administrative functions. Franchisees can access consultation and advice regarding operational, facility, and marketing challenges. Furthermore, Holiday Hospitality Franchising, LLC provides annual on-site consulting and/or training visits to avid hotels, covering topics like Reservations and channel Systems, Revenue Management, Service Management, Marketing Programs/Promotions, and the IHG Concerto™ system. During these visits, the General Manager, department heads, and designated staff are required to participate in developing various planning strategies and action plans.
Franchise Requirements
Ideal Candidate Profile
avid hotels seeks franchisees who are capable of either directly managing the hotel with strong oversight or hiring a qualified management company to operate it. If a management company or key personnel, such as a General Manager and/or Director of Sales, are appointed, they must possess at least two years of prior experience in similar hotel roles within Holiday Hospitality Franchising, LLC's brands or a comparable hotel segment, as defined by Smith Travel Research, Inc. Franchisees are ultimately expected to maintain and exercise direct management control over the hotel's business operations.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
Yes
Min Years Experience
2
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Staffing Notes
avid hotels requires franchisees to hire suitable and qualified staff in numbers sufficient to cover all hotel positions in accordance with its standards. This may involve hiring a qualified management company or a General Manager and/or Director of Sales with at least two years of prior experience in similar roles within Holiday Hospitality Franchising, LLC's brands or comparable hotel segments. If required, these individuals must work exclusively for their assigned hotel, and separate qualified General Managers are needed for each hotel owned by the franchisee. Franchisees can hire their own staff without Holiday Hospitality Franchising, LLC's advance approval, though specific experience levels may be mandated for certain positions. All new employees, including General Managers and Department Heads, must complete a Brand Service Training Program within their first 30 days of employment. The Hotel Experience Champion or designated Training Manager is responsible for implementing and ensuring the completion of Brand Experience Training for new hires within the same timeframe.