InterContinental Hotels & Resorts Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$106,798,100 - $153,088,452
Franchise Fee
$100,000
Total US Locations
23
Business Summary
InterContinental Hotels & Resorts grants licenses for the establishment and operation of full-service hotels and resorts. These properties are designed to cater to luxury business, conference, and leisure travelers, typically featuring amenities such as a Club InterContinental lounge, Concierge services, meeting spaces, a fitness center, swimming pool, various food and beverage options, and potentially a spa. InterContinental Hotels & Resorts are commonly located in major international gateway cities, important secondary cities, and resort destinations.
Corporate History
InterContinental Hotels & Resorts is part of a hospitality business that traces its operations back to approximately 1953 through its predecessors. Holiday Hospitality Franchising, LLC, the direct licensor, was formed in 1989 as 'Holiday Inns Franchising, Inc.' and later converted to a limited liability company. InterContinental Hotels & Resorts itself began offering licenses in the United States and Canada in 2003. The ultimate corporate parent of Holiday Hospitality Franchising, LLC is InterContinental Hotels Group PLC.
Financial Overview
Investment Range
$106,798,100 - $153,088,452
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$150,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$97,888,400
Equipment Costs (High)
$136,798,927
Working Capital
$1,812,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Holiday Hospitality Franchising, LLC and its direct parent, Six Continents Hotels, Inc., both have unqualified audit opinions, indicating their financial statements are presented fairly in all material respects. Holiday Hospitality Franchising, LLC operates as a wholly-owned subsidiary and its administrative and operating expenses are covered by Six Continents Hotels, Inc., suggesting strong financial backing. Six Continents Hotels, Inc. itself holds substantial assets and a $1.0 billion line of credit, with auditors noting low credit risk and no substantial doubt about its ability to continue as a going concern. These factors indicate a stable financial health for InterContinental Hotels & Resorts, with no significant financial distress or auditor concerns about its continuity.
Financing Details
InterContinental Hotels & Resorts does not offer a formal program for direct or indirect financing. However, Holiday Hospitality Franchising, LLC, its parent company Six Continents Hotels, Inc. (SCH), or an affiliate called General Innkeeping Acceptance Corporation (GIAC) may, on a case-by-case basis, furnish loans or guaranties to prospective licensees. Any decision to provide such financing would be at the sole discretion of Holiday, SCH, or GIAC, and would require approval from their Executive Committee and Board of Directors. Franchisees are ultimately responsible for securing their own adequate financing for all expenses related to developing, opening, and operating their hotel.
Performance Metrics
Total US Locations
23
Franchised Units
22
Corporate Units
1
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
42
Litigation Summary
InterContinental Hotels & Resorts has been involved in extensive litigation, with 42 cases disclosed. This includes numerous pending lawsuits as of the FDD's issuance date. Some of the ongoing disputes involve licensees alleging misrepresentation and wrongful non-renewal, as well as claims related to the Georgia RICO statute, breach of contract, and disputes over vendor 'kickbacks.' InterContinental Hotels & Resorts is also actively pursuing licensees for breach of license agreements, unpaid fees, and damages from early termination. Several class action lawsuits were filed against the franchisor regarding alleged unlawful business practices, including unreasonable product and service requirements, and alleged improper 'kickbacks' from vendors, with one such class action dismissed in December 2024 but currently under appeal by the plaintiffs. Other past litigation included claims of unauthorized access to technology systems, data security breaches, antitrust violations, tortious interference with contracts, and wrongful termination of license agreements. While many concluded cases were dismissed with no payment from InterContinental Hotels & Resorts, some significant settlements involved payments by the franchisor, including $10.9 million in one case and $699,000 in another. The franchisor consistently denies the allegations and defends against claims vigorously.
Bankruptcy History
InterContinental Hotels & Resorts has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
InterContinental Hotels & Resorts does not offer renewal or term extensions for its license agreements. If a franchisee desires to continue operating under the brand after the initial term expires, they may request a re-licensing, but this would involve signing a new contract with potentially different terms and conditions.
Training & Support Program
Franchisor Assistance
InterContinental Hotels & Resorts offers extensive support before and after a hotel's opening. Prior to opening, they conduct site inspections (without granting approval), prepare a Property Improvement Plan (PIP), review architectural plans for brand compliance, and host a kick-off meeting for consultation and coordination. Franchisees receive guidance on technology systems and a final inspection before opening. After a hotel opens, InterContinental Hotels & Resorts works to maintain high quality standards, offers mandatory and optional training programs, and provides access to reservation services. They utilize collected 'Services Contribution' funds for global marketing, reservations, training, research, and system development. Franchisees also receive ongoing communication about brand system improvements, consultation on operations, facilities, and marketing, access to lists of approved suppliers, and support through the IHG Merlin online information system and digital marketing initiatives. Holiday's employees also provide annual on-site consulting and/or training visits covering various operational and customer service areas.
Initial Training Hours
429
Training Location
Virtual or Atlanta, GA, or other designated regional locations.
Ongoing Support
After opening, InterContinental Hotels & Resorts franchisees receive comprehensive ongoing support designed to maintain high standards and enhance the brand. This includes regular on-site consulting and training visits from Holiday's employees, who cover topics like reservation systems, revenue management, service management, and marketing programs. Franchisees also get access to the IHG Merlin online information system, which provides up-to-date documentation, sales and marketing tools, operational information, quality and brand initiatives, and technology support. The franchisor manages a global loyalty program, IHG One Rewards, and utilizes a 'Services Contribution' fund for worldwide marketing, reservations, training, and development to benefit the entire brand system. Additionally, franchisees can receive consultation and advice on operational, facility, and marketing challenges, and benefit from ongoing communication about system improvements.
Franchise Requirements
Ideal Candidate Profile
InterContinental Hotels & Resorts is seeking licensees who are prepared to either directly oversee the management of the hotel's business or hire an approved management company. The franchisor relies on the business skills, financial capacity, and character of its licensees and requires that the hotel's General Manager, Food & Beverage Director/Manager, and Director of Sales each have at least two years of prior experience in their respective positions within a similar brand segment of hotels. Candidates should be ready to ensure that the hotel is staffed sufficiently to meet all operational standards and uphold the luxury branding.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
2
Operational Details
Location Type
commercial
Owner Participation
supervisory
Territory Type
non-exclusive
Staffing Notes
InterContinental Hotels & Resorts requires franchisees to employ suitable and qualified individuals sufficient to staff all hotel positions in accordance with brand standards. While the franchisee retains direct management control, personal day-to-day operation is not required. Instead, the franchisee must either supervise the hotel directly or hire a management company approved by Holiday. Specific roles such as the General Manager, Food & Beverage Director/Manager, and Director of Sales must have at least two years of prior experience in similar positions within a comparable hotel brand segment and must work exclusively for the franchisee's hotel. All new employees, including contract and temporary staff, must complete training on Employee Safety Devices within their first 14 days of employment and Brand Service Training within their first 30 days.