Staybridge Suites Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$19,796,651 - $29,883,100
Franchise Fee
$75,000
Total US Locations
286
Business Summary
Staybridge Suites offers licenses for establishing and operating high-quality, extended-stay hotels under the Staybridge Suites brand. These hotels are designed for upscale guests, including business travelers, those relocating, and vacationers, providing all-suite accommodations with full kitchens. Staybridge Suites Hotels feature amenities such as a complimentary daily breakfast buffet, 'The Social' evening reception several nights a week, an on-site convenience store, complimentary laundry facilities, a 24-hour Business Center, free high-speed internet, and recreational facilities like an outdoor lounge, BBQ grills, a fitness room, and an optional pool.
Corporate History
Holiday Hospitality Franchising, LLC, referred to as Holiday, was initially formed as a Delaware limited liability company on November 3, 1989, under the name Holiday Inns Franchising, Inc. The company's name later changed to Holiday Hospitality Franchising, Inc., and it eventually converted from a corporation to a limited liability company. Holiday has been offering licenses for Staybridge Suites hotels in the United States and Canada since November 1997, building on a history where its predecessors operated hotel businesses and offered licenses since approximately 1953. Holiday is part of a larger corporate structure, with its ultimate parent being InterContinental Hotels Group PLC and its direct corporate parent being Six Continents Hotels, Inc. Through these affiliations, Holiday licenses various hotel brands across the United States and Canada.
Financial Overview
Investment Range
$19,796,651 - $29,883,100
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$75,000
Royalty %
5.5%
Marketing %
2.5%
Equipment Costs (Low)
$19,055,900
Equipment Costs (High)
$28,204,000
Working Capital
$175,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Holiday Hospitality Franchising, LLC's financial health, as disclosed in Item 21, shows consistent net income, with $67.5 million in 2024, $54.3 million in 2023, and $43.4 million in 2022. However, Holiday Hospitality Franchising, LLC itself maintains very low cash and cash equivalents, often near zero. This is largely due to its operational structure, where its direct parent, Six Continents Hotels, Inc., provides all operating and administrative expenses and bears the credit risk for royalty fees. Holiday Hospitality Franchising, LLC has significant payables to affiliates ($213.1 million in 2024) and also a large line of credit due from Six Continents Hotels, Inc. ($770.6 million in 2024), indicating a highly integrated financial relationship within the larger InterContinental Hotels Group. The auditors have issued an unqualified opinion, and no concerns about Holiday Hospitality Franchising, LLC's ability to continue as a going concern have been raised. Six Continents Hotels, Inc., the direct parent, also demonstrates strong financial health with net incomes of $733.1 million in 2024, $760.7 million in 2023, and $450.5 million in 2022, and its financial statements also received an unqualified opinion. This suggests that while Holiday Hospitality Franchising, LLC's standalone cash position appears minimal, it operates within a financially robust parent company that provides necessary support and manages credit risks.
Financing Details
Holiday Hospitality Franchising, LLC does not offer any formal programs for direct or indirect financing to 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 guarantees on a case-by-case basis. Any decision to offer financing is solely at their discretion and requires approval from their Executive Committee and Board of Directors. Franchisees are solely responsible for obtaining adequate financing for all expenses related to developing, opening, and operating their Staybridge Suites Hotel.
Performance Metrics
Total US Locations
286
Franchised Units
286
Corporate Units
0
Franchising Since
1997
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
42
Litigation Summary
Holiday Hospitality Franchising, LLC and its affiliates have a substantial litigation history, with 42 cases disclosed. This includes numerous ongoing cases, many of which were filed within the last three years (since April 2022, given the FDD's April 2025 issuance date). The pending litigation involves disputes such as a former Holiday Inn licensee alleging misrepresentations and challenging the enforceability of the license agreement, with Holiday Hospitality Franchising, LLC counterclaiming for over $2.1 million. Another pending appeal by a former Holiday Inn licensee alleges wrongful non-renewal and seeks $10 million in damages. There is also a lawsuit by Crowne Plaza licensees accusing Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. of breach of contract, fraud, and unlawful trade practices related to hotel sales and vendor kickbacks. Holiday Hospitality Franchising, LLC is also actively pursuing several licensees for unpaid fees and damages from terminated agreements, all initiated in 2024. Concluded litigation, some resolved since April 2022, includes cases involving data security breaches (dismissed), alleged wrongful terminations of license agreements, and contract disputes, many of which resulted in settlements. For instance, Holiday Hospitality Franchising, LLC resolved multiple lawsuits with licensees for unpaid fees, often with payments made to Holiday Hospitality Franchising, LLC. However, Six Continents Hotels, Inc. made a $10.9 million payment in a 2019 settlement with a Crowne Plaza licensee, and $699,000 in a 2017 settlement with a marketing company. IHG Hotels Limited (an affiliate not operating in the US) was also ordered to pay damages in a 2020 arbitration. Overall, Holiday Hospitality Franchising, LLC and its affiliates are frequently involved in disputes with licensees over contract terms, fees, and brand standards, as well as class action suits related to broader business practices.
Bankruptcy History
Holiday Hospitality Franchising, LLC states that no bankruptcy information is required to be disclosed in Item 4 of this FDD document. This indicates that Holiday Hospitality Franchising, LLC, its predecessors, parents, or any of their executive officers have not been involved in any bankruptcy proceedings that would require disclosure under federal franchise law.
Agreement Terms
Renewal Conditions
The Staybridge Suites License does not include provisions for renewal or term extensions. If Holiday Hospitality Franchising, LLC agrees to re-license a hotel after its initial term expires, the franchisee may be required to sign a new contract with terms and conditions that are materially different from their original agreement. This means that a franchisee does not have an automatic right to continue operating their Staybridge Suites Hotel beyond the initial license term.
Training & Support Program
Franchisor Assistance
Holiday Hospitality Franchising, LLC provides extensive support to Staybridge Suites franchisees both before and after their hotel opens. Before opening, this includes inspecting the proposed site, approving construction plans (for new developments or conversions), providing prototype architectural plans for adaptation by an approved architect, and supplying written specifications for products and materials through a Property Improvement Plan (PIP). Franchisees must attend a pre-construction kick-off meeting for consultation and coordination with various Holiday Hospitality Franchising, LLC teams (operations, sales/marketing, purchasing, IT). Ongoing support during operation includes maintaining high quality standards for all Staybridge Suites Hotels, offering required and optional training programs, and providing access to reservation services via the IHG Concerto™ platform, which integrates with the Global Distribution System (GDS) and a Property Management System (PMS). Holiday Hospitality Franchising, LLC uses collected Services Contributions for brand-wide marketing, reservations, and loyalty programs (IHG System Fund Activities). Franchisees receive consultation and advice on operations, facilities, and marketing. Communication is primarily facilitated through the online IHG Merlin system and Hotel Bulletin messaging tool, which provides an electronic library of information, sales and marketing tools, and operational guidance. Holiday Hospitality Franchising, LLC also operates brand websites, social media accounts, and digital marketing efforts. Additionally, specific commercial services and revenue management advisory services (IHG Commercial Services and IHG Revenue Services) are mandatory for certain new owner-operators for at least the first year, including on-site consulting visits covering various operational and customer service areas. Holiday Hospitality Franchising, LLC facilitates access to a computerized payment card processing program (NextGen Payments).
Initial Training Hours
421
Training Location
Atlanta, GA, virtually, or at the franchisee's hotel
Ongoing Support
After a Staybridge Suites Hotel opens, Holiday Hospitality Franchising, LLC provides continuous support designed to maintain high brand standards and drive business. This includes ongoing training programs and access to reservation services through the IHG Concerto™ platform, which integrates with the Global Distribution System (GDS). The franchisor utilizes Service Contributions for comprehensive marketing, reservations, and loyalty programs, including global advertising and digital marketing efforts. Franchisees receive consultation and advice on daily operations, facility management, and marketing strategies. This support often involves annual on-site consulting visits from Holiday Hospitality Franchising, LLC employees to address areas such as revenue management, service management, and marketing promotions. The General Manager, department heads, and designated staff are required to participate in these visits, with franchisees covering associated expenses. Franchisees also have access to the IHG Merlin online system and Hotel Bulletin, which serve as primary communication channels and provide a library of information, sales tools, and technology support.
Franchise 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 does not typically grant exclusive areas or territories for Staybridge Suites hotels. The license is specifically for a single, defined location and does not include any broader territorial protections. Franchisees may face competition from other Staybridge Suites licensees, from hotels owned or managed by Holiday or its affiliates, or from other distribution channels or competitive brands controlled by Holiday or its affiliates. In rare, special circumstances, Holiday may, at its sole discretion, grant exclusive or protected areas where it will not license another Staybridge Suites hotel, but even in these cases, the license remains for one specific hotel site only. The Staybridge Suites brand does not define territories using specific geographic measurements, population counts, or other measurable criteria.
Staffing Notes
Staybridge Suites franchisees are required to employ suitable and qualified individuals sufficient to staff all hotel positions in accordance with brand standards. While Holiday Hospitality Franchising, LLC does not directly control employment policies or hiring, the franchisee, or their appointed management company, is the sole employer and responsible for all employment decisions. However, Holiday Hospitality Franchising, LLC may require the franchisee to hire a qualified management company or a General Manager and/or Director of Sales with at least two years of prior experience in similar hotel positions. If a franchisee owns multiple Staybridge Suites Hotels, each hotel must have a separate, qualified General Manager and Director of Sales. Key personnel, including the General Manager, Front Office Manager, Director of Sales, Executive Housekeeper, F&B Director, and Hotel Experience Champion, must complete initial certification training programs provided by Holiday Hospitality Franchising, LLC. The General Manager and designated system experts are also required to attend the 'RAMP UP' training program covering reservation processes and revenue management. Holiday Hospitality Franchising, LLC personnel provide annual on-site consulting visits where the General Manager, department heads, and designated staff participate in developing market, revenue, sales, and service strategies.