Risk Score
Pending analysis
Investment Range
$12,847,351 - $19,461,100
Franchise Fee
$138,500
Total US Locations
2,324
Business Summary
Holiday Hospitality Franchising, LLC grants licenses for the establishment and operation of hotels under the Holiday Inn Express or Holiday Inn Express & Suites brands. It provides a proprietary system designed to offer distinctive, high-quality hotel service. This system includes trademarks, a reservation system with loyalty programs, global marketing and advertising services, training programs and materials, and operational standards for construction, furnishing, appearance, and guest service. Holiday Inn Express Hotels offer value-driven guests a consistent experience, modern design, and complimentary breakfast. Holiday Inn Express & Suites combines standard guest rooms with a minimum number of suites within a single property.
Corporate History
Holiday Hospitality Franchising, LLC was formed on November 3, 1989, as a Delaware limited liability company, initially under the name 'Holiday Inns Franchising, Inc.', which later changed its name and converted to a limited liability company. The company has offered licenses for the Holiday Inn and Holiday Inn Express brand groups in the United States and Canada since February 1990, building on a history of hotel business and licensing that its predecessors engaged in starting around 1953. Holiday Hospitality Franchising, LLC's ultimate corporate parent is InterContinental Hotels Group PLC, based in the United Kingdom, and its direct parent is Six Continents Hotels, Inc.
Financial Overview
Investment Range
$12,847,351 - $19,461,100
Franchise Fee (Low)
$138,500
Franchise Fee (High)
$174,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$1,468,351
Equipment Costs (High)
$1,985,900
Working Capital
$137,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Holiday Hospitality Franchising, LLC's financial statements are audited and show a trend of increasing net income, from $43.4 million in 2022 to $67.5 million in 2024. The company maintains significant accounts receivable and substantial contract assets, which are amounts paid to hotel owners to secure franchise agreements. Its operations are supported by a large line of credit from its affiliate, Six Continents Hotels, Inc., with the receivable balance growing from $702.1 million in 2023 to $770.5 million in 2024. The credit risk associated with this line of credit is considered low due to the broader financial strength of the parent group. The auditors have not raised any concerns about Holiday Hospitality Franchising, LLC's ability to continue as a going concern. The immediate parent company, Six Continents Hotels, Inc., also exhibits strong financial health with increasing net income, reporting $733.1 million in 2024. It has substantial revenues from fee-based businesses and system fund activities, robust cash and cash equivalents, and no going concern qualifications from its auditors. This indicates a stable financial environment supporting Holiday Hospitality Franchising, LLC.
Financing Details
Holiday Hospitality Franchising, LLC does not offer any formal programs for direct or indirect financing to its franchisees. While Holiday, its parent Six Continents Hotels, Inc. (SCH), or its affiliate General Innkeeping Acceptance Corporation (GIAC) may, at their sole discretion, consider providing loans or guaranties, these are determined on a case-by-case basis. Any such decisions are subject to approval by their Executive Committee and Board of Directors. Franchisees are therefore solely responsible for obtaining their own financing for all expenses related to the development, opening, and operation of their hotel.
Performance Metrics
Total US Locations
2,324
Franchised Units
2,324
Corporate Units
0
Franchising Since
1990
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
41
Litigation Summary
Holiday Hospitality Franchising, LLC is currently involved in several lawsuits. One pending case, filed in October 2023, involves a former Holiday Inn & Suites licensee seeking a declaratory judgment that their license agreement is unconscionable and unenforceable, claiming Holiday made misrepresentations. Holiday has counter-sued for over $2.1 million in liquidated damages and other unpaid amounts. Another pending case, on appeal since September 2024, involves a Holiday Inn licensee alleging wrongful non-renewal, constructive termination, and unreasonable performance standards, seeking at least $10 million in damages. A lawsuit from 2006 in Brazil regarding an alleged wrongful termination of a Holiday Inn license agreement is also still pending against Six Continents Hotels, Inc., Holiday's direct corporate parent. Additionally, a lawsuit filed in May 2022 by Crowne Plaza licensees alleges breach of contract, fraud, and deceptive trade practices related to a proposed hotel sale and alleged improper 'kickbacks' from vendors, with Holiday and its parent vigorously defending. Holiday is also defending a lawsuit filed in December 2020 against a former Crowne Plaza licensee for unpaid fees, where the licensees counter-sued alleging unreasonable renovation requirements and misrepresentation. Holiday Hospitality Franchising, LLC has also initiated three lawsuits in 2024 against licensees and/or guarantors for unpaid license fees and other damages. A lawsuit filed in 2023 by former Holiday Inn Express owners alleging they were misled about renovation costs was dismissed in March 2025. In the past, Holiday Hospitality Franchising, LLC and its affiliates have been involved in numerous other cases which are now concluded. These include a confidential settlement in August 2024 with a Holiday licensee, a settlement in October 2023 with a Holiday Inn licensee for liquidated damages (payments made to Holiday), and a settlement in January 2019 with a Crowne Plaza licensee that resulted in Holiday making a $10.9 million payment. A class action lawsuit related to an unauthorized access to IHG's systems by third-party bad actors, filed in 2022, was dismissed with prejudice in July 2024. Another class action related to a data security breach affecting Kimpton Hotels, filed in 2019, was settled in May 2023 with Kimpton Hotels making payments to plaintiffs. Other concluded cases involved various disputes such as alleged wrongful termination, breach of contract, fraud, and misrepresentation, with some resulting in payments being made to Holiday and others involving no payment by Holiday.
Bankruptcy History
Holiday Hospitality Franchising, LLC has no bankruptcy history that is required to be disclosed.
Agreement Terms
Renewal Conditions
Holiday Hospitality Franchising, LLC's license agreement does not offer renewal or term extensions. If Holiday agrees to re-license a hotel, the franchisee may be required to sign a new contract with terms and conditions that could be significantly different from their original agreement.
Training & Support Program
Franchisor Assistance
Holiday Hospitality Franchising, LLC provides extensive assistance to its Holiday Inn Express franchisees. Before a hotel opens, the franchisor reviews construction plans for compliance with brand standards and provides prototype architectural plans that an approved architect must adapt. Franchisees must attend a pre-construction kick-off meeting for consultation and coordination, covering business plans, target markets, and building plans. The franchisor also inspects and approves the hotel before opening to ensure all requirements are met. For ongoing operations, Holiday Hospitality Franchising, LLC maintains high quality, cleanliness, and service standards, and offers required and optional training programs in various formats and locations. It provides franchisees with access to reservation services, including the IHG Concerto platform, and revenue management systems. The franchisor also offers consultation and advice on operational issues, facilities, and marketing, and communicates improvements and developments in the Brand System. Marketing funds collected from licensees are used for global and regional advertising, sales, and loyalty programs to strengthen the brand. Franchisees also have access to the IHG Merlin online system, which is a primary communication tool and electronic information library, providing up-to-date brand standards, sales and marketing tools, operational information, and training resources.
Initial Training Hours
135
Training Location
Virtual, Atlanta, GA, other designated regional locations, or at the franchisee's hotel.
Ongoing Support
Holiday Hospitality Franchising, LLC provides ongoing support to its Holiday Inn Express franchisees by maintaining high standards for quality, cleanliness, appearance, and service at all hotels within the Brand System. The franchisor offers required and optional training programs in various locations and formats, and ensures franchisees have access to reservation services. It utilizes the 'Services Contribution' funds for marketing, reservations, and other activities that strengthen the brand. Holiday Hospitality Franchising, LLC also communicates improvements and developments within the Brand System, including updates in reservation services, marketing, operations, and administrative and technical support functions. Franchisees can also receive consultation and advice regarding operational problems, facilities, and marketing. Furthermore, franchisees have access to the IHG Merlin online system and its messaging tool, 'Hotel Bulletin,' which serve as primary communication channels for important information, standards, sales and marketing tools, and operational guidance.
Franchise Requirements
Ideal Candidate Profile
Holiday Hospitality Franchising, LLC seeks franchisees who are capable of retaining and exercising direct management control over their hotel's business. While personal, direct operation of the hotel is not strictly required, the franchisee must ensure that the hotel is managed effectively. This may involve hiring a duly qualified and experienced management company or key personnel such as a General Manager, Director of Sales, and/or Food & Beverage Director. These hired managers are expected to have at least two years of prior experience in similar hotel positions or within a comparable brand segment. Candidates are evaluated based on their business skill, financial capacity, and personal character, as evidenced through the application process which requires resumes and financial statements. Franchisees must be committed to operating the hotel in accordance with Holiday Hospitality Franchising, LLC's high standards and complying with all brand requirements.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Holiday Hospitality Franchising, LLC typically does not grant exclusive areas or territories. The Holiday Inn Express license is for a specific site only, for the operation of one hotel. Franchisees will not receive an exclusive territory and may encounter competition from other Holiday Inn Express hotels, hotels owned by Holiday or its affiliates, or other distribution channels and competitive brands controlled by Holiday or its affiliates. While Holiday may, in special circumstances, grant exclusive or protected areas where another Holiday Inn Express brand group hotel will not be licensed, the license would still be limited to that specific site for a single hotel.
Staffing Notes
Holiday Hospitality Franchising, LLC requires franchisees to employ a sufficient number of suitable and qualified individuals to staff all hotel positions in accordance with the brand's Standards. The franchisee must always maintain and exercise direct management control over the hotel. If the franchisor requires the franchisee to hire a management company or specific roles like a General Manager, Director of Sales, or Food & Beverage Director, these individuals must possess at least two years of prior experience in a similar hotel position or brand segment. These key personnel, along with Front Office Managers, Executive Housekeepers, and Hotel Experience Champions, are mandated to complete initial certification training and specialized training programs offered by Holiday Hospitality Franchising, LLC, including the IHG General Manager Program Onboarding Level, Sales Learning Pathway, Solution Selling, and Brand Service Training. All General Managers and designated department heads are also required to attend annual retraining. Additionally, hotels are expected to allocate annual budgets for optional value-add and specialist courses to support the professional development of their employees.