Crowne Plaza Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$17,378,326 - $80,742,850
Franchise Fee
$75,000
Min Cash Required
$300,000
Total US Locations
83
Business Summary
Crowne Plaza operates a brand group of upscale hotels, resorts, and suites, providing high-quality hospitality services to business, conference, and leisure travelers. The Crowne Plaza brand system includes intellectual property, construction and operating standards, technology systems, loyalty programs, central reservations, global marketing, and training programs to ensure a consistent guest experience across its various hotel types.
Corporate History
Crowne Plaza, operated by Holiday Hospitality Franchising, LLC, has a rich corporate history that dates back to its formation on November 3, 1989, initially as "Holiday Inns Franchising, Inc." The brand has been offering licenses for its upscale Crowne Plaza hotels, resorts, and suites in the United States and Canada since 1990. The company's predecessors, however, have been involved in operating and licensing hotel businesses much earlier, beginning around 1953. Holiday Hospitality Franchising, LLC is ultimately a part of the larger InterContinental Hotels Group PLC and offers licenses for a diverse portfolio of hotel brands.
Financial Overview
Investment Range
$17,378,326 - $80,742,850
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$125,000
Minimum Cash Required
$300,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$15,891,051
Equipment Costs (High)
$75,232,400
Working Capital
$462,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Crowne Plaza, through Holiday Hospitality Franchising, LLC and its direct parent Six Continents Hotels, Inc., demonstrates a strong financial position. Holiday Hospitality Franchising, LLC receives significant support from its parent, which covers its operating and administrative expenses, and benefits from a substantial and recoverable line of credit exceeding $770 million. The parent company, Six Continents Hotels, Inc., has consistently shown strong profitability, with net incomes of $733 million in 2024 and $760 million in 2023. Both entities received unqualified audit opinions on their financial statements, and auditors did not raise any concerns about their ability to continue as going concerns.
Financing Details
Crowne Plaza does not offer a formal program for direct or indirect financing to its franchisees. However, Holiday Hospitality Franchising, LLC or its affiliate, Six Continents Hotels, Inc. (SCH), or General Innkeeping Acceptance Corporation (GIAC) may, on a case-by-case basis, furnish loans or guaranties. Any such decision would be subject to negotiation, the sole judgment of Holiday, SCH or GIAC, and approval from their Executive Committee and Board of Directors. Franchisees are ultimately responsible for securing their own financing for the development, opening, and operation of their Crowne Plaza hotels.
Performance Metrics
Total US Locations
83
Franchised Units
83
Corporate Units
0
Franchising Since
1990
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
43
Litigation Summary
Crowne Plaza, through Holiday Hospitality Franchising, LLC and its affiliate Six Continents Hotels, Inc., is involved in a substantial number of legal disputes. There are five pending individual lawsuits against Crowne Plaza, primarily concerning alleged misrepresentations, breach of contract claims by licensees regarding fees and renovation requirements, and counterclaims from the franchisor for unpaid fees and liquidated damages. A major class-action lawsuit, initiated in 2021 and appealed in January 2025, alleges unlawful franchise practices, including unreasonable requirements and improper payments from vendors. Additionally, Crowne Plaza has concluded many other litigations, including settlements related to alleged wrongful terminations, data security breaches, and a notable $10.9 million payment to a former licensee in 2019 to resolve claims of breach of contract and fraudulent inducement. The ongoing and recent concluded litigation indicate an active legal environment for the Crowne Plaza brand.
Bankruptcy History
Crowne Plaza has no bankruptcy history to disclose.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Crowne Plaza does not offer renewal or term extensions for its licenses. Franchisees acknowledge they have no rights to license renewal following the expiration of the initial license term.
Training & Support Program
Franchisor Assistance
Crowne Plaza provides extensive assistance to its franchisees, starting before the hotel even opens. This pre-opening support includes approval of construction and conversion plans, providing detailed product specifications through a Property Improvement Plan (PIP), and hosting kick-off meetings to coordinate business and building plans with various Crowne Plaza teams. The brand also conducts pre-opening inspections to ensure compliance with standards. For training, Crowne Plaza offers the "RAMP UP" program for reservation and revenue management systems, web-based IHG Concerto training, and an annual subscription to the IHG Learning Program (IHG University) for general managers and key departmental staff. After opening, Crowne Plaza maintains high quality and service standards, provides ongoing access to reservation services, and offers consultation and advice on operations, facilities, and marketing. It communicates brand system improvements and conducts annual on-site consulting visits to help with revenue management, service management, and marketing. Franchisees are required to participate in the Crowne Plaza Hotel Marketing Association (CP-HMA) and the IHG One Rewards loyalty program, and Crowne Plaza also manages digital marketing efforts for its hotels.
Initial Training Hours
1117
Training Location
Your Hotel, virtually, or at Holiday's headquarters in Atlanta, Georgia, or other designated regional locations.
Ongoing Support
After opening, Crowne Plaza provides ongoing support by maintaining high quality and service standards, promoting and enhancing the brand image. It offers ongoing access to reservation services, consultation, and advice on operations, facilities, and marketing, and updates on brand system improvements. All Crowne Plaza hotels are required to participate in the Crowne Plaza Hotel Marketing Association (CP-HMA) and the IHG One Rewards loyalty program. Additionally, Holiday Hospitality Franchising, LLC employees conduct annual on-site consulting visits focusing on areas such as reservation and channel systems, revenue management, service management, and marketing programs, with mandatory attendance from the general manager and department heads.
Franchise Requirements
Ideal Candidate Profile
Crowne Plaza seeks franchisees or management companies with strong business skills, financial capacity, and good character. While the franchisor does not require personal day-to-day participation from the owner, it mandates that the hotel be operated under direct management control and requires a duly qualified and experienced management company or General Manager, Director of Sales, and/or Food & Beverage Director. These key roles require at least two years of prior experience in similar positions at an upscale hotel brand or a comparable hotel segment. The General Manager and Director of Sales are expected to work exclusively for the Crowne Plaza hotel, with a separate General Manager required for each hotel if a franchisee owns more than one.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Crowne Plaza does not typically grant licenses for exclusive areas or territories. The license is granted for a specific hotel site only and applies to that location, not to any other. Crowne Plaza franchisees will not receive an exclusive territory and may encounter competition from other franchisees, hotels owned by Holiday or its affiliates, or other distribution channels or competitive brands controlled by Holiday or its affiliates. While Holiday may, in special circumstances and at its sole judgment, grant exclusive or protected areas where another Crowne Plaza branded hotel will not be licensed, such instances are exceptions and the license remains specific to a single site. There are no general territory size requirements, such as a specified radius or population count, outlined for Crowne Plaza franchises.
Staffing Notes
Crowne Plaza franchisees must employ suitable and qualified individuals in sufficient numbers to staff all hotel positions according to the brand's standards. The franchisee or its management company acts as the sole employer, responsible for all employment decisions, as Crowne Plaza does not control hiring, discipline, or termination. Key personnel, including the General Manager, Front Office Manager, Director of Sales, Executive Housekeeper, Director of Engineering, and Food and Beverage Director or Manager, are required to complete initial and ongoing certification training programs. All general managers, department heads, and employees must also complete a Brand Service Training Program within their first 30 days of employment. If a management company is used, its agreement with the franchisee must comply with specific provisions set by Crowne Plaza, ensuring adherence to brand standards and the primacy of the license agreement.