Hotel Indigo Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$10,200,176 - $46,917,003
Franchise Fee
$75,000
Total US Locations
70
Business Summary
Hotel Indigo operates upper-upscale boutique hotels, typically with 100 to 200 guest rooms, where each location features a unique design and guest experience reflecting its local surroundings. Hotel Indigo offers a restaurant serving locally influenced breakfast and dinner with a full bar, a fitness center, and meeting spaces, targeting travelers who are looking for a distinctive local experience.
Corporate History
Holiday Hospitality Franchising, LLC was formed in 1989, originally as Holiday Inns Franchising, Inc., and later converted to its current limited liability company structure. The company began offering licenses for Hotel Indigo hotels in 2004, building on a history of hotel business operations and licensing that dates back to approximately 1953 through its predecessors. Holiday Hospitality Franchising, LLC operates as a subsidiary of InterContinental Hotels Group PLC, with its direct corporate parent, Six Continents Hotels, Inc., granting it the authority to license and manage a range of hotel brands, including Hotel Indigo, across the United States and Canada. Six Continents Hotels, Inc. also provides essential central marketing, reservation, and training services for these brands.
Financial Overview
Investment Range
$10,200,176 - $46,917,003
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$100,000
Royalty %
5%
Marketing %
3.5%
Equipment Costs (Low)
$3,683,751
Equipment Costs (High)
$5,267,115
Working Capital
$600,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Holiday Hospitality Franchising, LLC operates under Holiday Hospitality Franchising, LLC, which demonstrates a strong financial position, reporting consistent net income growth from $43.4 million in 2022 to $67.5 million in 2024. Its assets increased to over $1 billion by 2024, with robust member's equity. The company's financial statements have received an unqualified audit opinion, and auditors have not identified any substantial doubt regarding its ability to continue operations. Holiday Hospitality Franchising, LLC's financial health is closely intertwined with its parent company, Six Continents Hotels, Inc. (SCH), which covers most of its operating and administrative expenses and receives the majority of its royalty fees. SCH itself also shows strong financial performance with net income exceeding $733 million in 2024 and consolidated assets of $3.92 billion, without any going concern issues. The broader InterContinental Hotels Group PLC provides strong financial backing, ensuring Six Continents Hotels, Inc. can meet its liabilities.
Financing Details
Hotel Indigo does not offer any formal financing programs for its franchisees. However, Holiday Hospitality Franchising, LLC, its parent company Six Continents Hotels, Inc., or their affiliate General Innkeeping Acceptance Corporation, may consider providing loans or guaranties on a case-by-case basis. Any such decision is subject to individual negotiation and requires approval from their Executive Committee and Board of Directors. Franchisees are solely responsible for securing their own financing for all expenses related to developing, opening, and operating a Hotel Indigo hotel.
Performance Metrics
Total US Locations
70
Franchised Units
70
Corporate Units
0
Franchising Since
2004
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
35
Litigation Summary
Holiday Hospitality Franchising, LLC has been involved in 35 litigation cases. Five cases are currently pending. These include a lawsuit from October 2023 by a former Holiday Inn & Suites licensee, Atlanta Hospitality Investment, LLC, who is seeking a declaratory judgment that their license agreement and liquidated damages clause are unenforceable, to which Holiday Hospitality Franchising, LLC has counter-sued for over $2.1 million. Scion Hotels LLC, a Holiday Inn licensee, is appealing a September 2024 court ruling that dismissed its claim against Holiday Hospitality Franchising, LLC for allegedly imposing unreasonable standards and wrongfully refusing to renew its license. K.J. Harjani & Cia Ltda, a former Holiday Inn licensee in Brazil, is suing Six Continents Hotels, Inc. for alleged wrongful termination from 2006. TJM Columbus, LLC and TJM Syracuse, LLC, former Crowne Plaza licensees, sued Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. in May 2022, alleging breach of contract for interfering with a hotel sale and violations related to mandatory vendors and alleged "kickbacks." Additionally, Holiday Hospitality Franchising, LLC is involved in a lawsuit filed in December 2020 against Niranjan Khatiwala and others for unpaid fees and liquidated damages, with counterclaims alleging unreasonable renovation requirements. Holiday Hospitality Franchising, LLC is also involved in a consolidated class action lawsuit, originally consisting of five separate lawsuits filed in 2021 by Park 80 Hotels, LLC and others, alleging unlawful franchise practices, including imposing unreasonable requirements and receiving improper "kickbacks" from vendors; this case is currently under appeal as of January 2025 after a summary judgment in favor of Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. In the last fiscal year (2024), Holiday Hospitality Franchising, LLC commenced three new lawsuits against licensees for unpaid fees and damages. The company has also concluded 26 other litigation cases. Notable concluded cases include a confidential settlement in August 2024 with Coquihalla Motor Inn Ltd. and the dismissal in July 2024 of a class action related to unauthorized access to IHG's systems in 2022. Several cases for unpaid fees against licensees were dismissed in December 2022 after settlements resulting in payments to Holiday Hospitality Franchising, LLC. A recent case filed in August 2024 by Ahijit Vasani et al. against Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. regarding alleged misrepresentations about renovation costs was dismissed in March 2025.
Bankruptcy History
Hotel Indigo has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Conditions
Hotel Indigo does not provide for renewal or extensions of the license term. If Holiday Hospitality Franchising, LLC agrees to re-license a hotel, the franchisee may be required to sign a new contract with terms and conditions that are substantially different from their original agreement.
Training & Support Program
Franchisor Assistance
Holiday Hospitality Franchising, LLC provides extensive support to Hotel Indigo franchisees, beginning before the hotel opens. This pre-opening assistance includes reviewing proposed sites for brand alignment, approving construction plans for new developments or conversions, and conducting inspections to ensure compliance with brand standards before opening. Franchisees gain access to IHG Merlin, an online portal offering essential documents, sales and marketing tools, operational information, quality initiatives, and training resources. For training, Hotel Indigo requires initial programs like RAMP UP for General Managers and other key staff, focusing on the reservation system and revenue management. IHG University offers core certification training for various management roles, and General Managers and Hotel Experience Champions must complete "Leading the Brand Training for New Hotels." After opening, Hotel Indigo continuously strives to uphold high standards across all hotels, enhance brand image, and boost demand for its services. Franchisees receive ongoing training programs, access to reservation services, and consultation on operations, facilities, and marketing. The brand actively manages and distributes marketing, reservation, and training funds to strengthen the brand. Holiday Hospitality Franchising, LLC also maintains a digital presence for its portfolio of brands and conducts annual on-site consulting visits to help with market analysis, revenue planning, sales strategies, and service management.
Initial Training Hours
40
Training Location
Corporate headquarters in Atlanta, GA; franchisee's location; or virtual
Ongoing Support
After opening, Hotel Indigo franchisees receive continuous support from Holiday Hospitality Franchising, LLC. This includes ongoing training programs, maintaining access to the central reservation system, and consultation services covering operations, facilities, and marketing. Funds from the Services Contribution are allocated to various initiatives aimed at strengthening the Hotel Indigo brand, including advertising, marketing, and reservation programs. Holiday Hospitality Franchising, LLC also communicates system improvements and conducts annual on-site consulting visits. During these visits, a Holiday Hospitality Franchising, LLC employee assists the General Manager and department heads in developing strategies for market analysis, revenue planning, sales planning, and service management. Franchisees are required to participate in these visits, with mandatory attendance from key hotel staff.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
Yes
Min Years Experience
2
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Hotel Indigo licenses are granted for a specific site only, allowing the operation of one hotel at that location. The license does not provide for a defined territory size based on geographic radius, population, or square mileage. While Holiday Hospitality Franchising, LLC may, in specific situations, grant protected areas where another Hotel Indigo hotel will not be licensed, the license itself remains site-specific.
Staffing Notes
Hotel Indigo franchisees are responsible for employing suitable and qualified individuals in sufficient numbers to staff all hotel positions in accordance with brand standards. The General Manager and Director of Sales must work exclusively for their assigned Hotel Indigo hotel, and a separate, qualified General Manager is required for each hotel owned by a franchisee. Key personnel, including General Managers, Front Office Managers, Directors of Sales, Executive Housekeepers, and Food & Beverage Directors or Managers, must complete initial certification training and annual retraining as designated by Holiday Hospitality Franchising, LLC. Additionally, all new employees, including contract and temporary staff, must complete Brand Service Training within 14-30 days of employment, with the Hotel Experience Champion ensuring Brand Experience Training is completed for new hires. Holiday Hospitality Franchising, LLC does not participate in hiring or control employment policies; the franchisee or their designated management company is considered the sole employer.