Complete investment analysis based on official FDD data
Total Investment
$955,700 – $1,181,200
Franchise Fee
$50,000
Royalty Rate
6.0%
The total initial investment to open a Holiday Inn / Holiday Inn Express franchise ranges from $955,700 to $1,181,200, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $50,000.
Midpoint estimate: $1,068,450
$50,000
One-time initial fee
The Holiday Inn / Holiday Inn Express franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Holiday Inn / Holiday Inn Express brand and is included in the total initial investment range above.
Royalty Fee
6.0%
of gross revenue
Ad/Marketing Fund
3.0%
of gross revenue
Total Ongoing Fee Burden: 9.0% of gross revenue
Combined royalty and advertising fund contributions before any other fees.
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty | 5.0 | PCT | 5% for Holiday Inn brand group and Holiday Inn Resort hotels; 6% for Holiday Inn Express brand group hotels. Due on the 15th of the following month. |
| Royalty | 6.0 | PCT | 6% for Holiday Inn Express brand group hotels. Due on the 15th of the following month. |
| Services Contribution | 3.0 | PCT | Used for marketing, reservations and other related activities. Can be increased up to 1% by Holiday for 12 months on 30 days notice. |
| Initial Marketing Contribution for the Loyalty Program | 10.0 | FIXED | One-time charge at same time as 1st Royalty Payment. Payable to SCH. |
| Loyalty Program Contribution | 4.7555 | PCT | 4.7555% of Qualifying Full Folio Revenue plus 1.425365% of Qualifying Room and Meeting Revenue. Same due date as Royalty. Payable to SCH. |
| Loyalty Program Contribution | 1.425365 | PCT | Additional component of Loyalty Program Contribution. IHG Business Rewards points capped at 60,000 per event. |
| IHG Americas Investors and Leadership Conference | 1999.0 | FIXED | Invoiced at time of registration. Payable to SCH. |
| Technology Services Fee | 17.06 | FIXED | Payable to SCH. |
| Capital Reserve | 5.0 | PCT | Up to 5% of Gross Revenue. If Required by Holiday. |
| Revenue Management System: IHG Concerto™-Yielding & Price Optimization or Revenue Analytics' N2Pricing | 75.0 | VARIABLE | $30 to $120 per month for competitive rate insight shopping. May be waived for RevenueStrategy360 subscribers. Payable to SCH. |
| PMS Software Maintenance: Opera - Premise Based | 17.6 | FIXED | Multiple components with varying rates. Maintenance fees may increase up to 5% per year. Payable to Oracle America, Inc. |
| PMS Software Maintenance: Opera Xpress - Premise Based | 11.88 | FIXED | Multiple components with varying rates. Payable to Oracle America, Inc. |
| PMS Software Maintenance: Opera - Hosted | 3.75 | FIXED | Multiple components with varying rates. Payable to Oracle America, Inc. |
| PMS Software Maintenance: Opera Xpress - Hosted | 2.25 | FIXED | Multiple components with varying rates. Payable to Oracle America, Inc. |
| FastConnect SD-WAN And Access Control Manager | 234.0 | VARIABLE | $168-$300 for 6 devices and 10 users; plus $22 per additional device and $1.25 per additional user. Payable to AT&T. |
| NextGen Payments (NGP) Program Fee | 325.5 | VARIABLE | Includes support, installation and hardware. $251-$400. |
| Guest Internet Access - Bandwidth Service Subscription (IHG Connect) | 1900.0 | VARIABLE | $1,000 to $2,800. Pricing varies based on regional service providers. Payable to SCH. |
| Guest Internet Access (GIA) - Hardware Maintenance & Guest Support (IHG Connect) | 1.5 | FIXED | $1.50 per guest room plus $25 per meeting/conference room, plus $20 per 2,000 sq. ft. of meeting space, up to max $500. Payable to SCH approved Integrator. |
| Guest In-Room Entertainment - Hardware, Maintenance, Guest Support & Content | 13.2 | VARIABLE | $4.75 per room for software/maintenance/support, $7.20 per room for content, $1.25 per room for HBO (where required). Payable to SCH or approved Integrator. |
| Employee Safety Devices | 137.5 | VARIABLE | Initial fee of $125-$150 per room in first year plus $20-$25 per room, per year for software and maintenance. Payable to SCH approved Supplier. |
| Security Software for Public Access Computers (Business Centers) | 510.0 | VARIABLE | $495-$525 per workstation per year for software/maintenance/support. $315-$399 per printer per year for optional mobile printing. Payable to SCH or approved Supplier. |
| IHG Learning Program: Core Subscription/Value-Add and Specialist Training | 3000.0 | VARIABLE | $3,500/yr for Holiday Inn brand group and Resort, $2,500/yr for Holiday Inn Express. Prorated based on month hotel opens. Value-add courses: Managers $650, Supervisors $450, Frontline $250. Payable to SCH. |
| Subsequent Training Materials | 2500.0 | VARIABLE | $0 - $5,000 per Hotel for all trainees combined. As incurred. Payable to Holiday/SCH. |
| Travel Agent Commissions (IHG Commission Services) | 10.0 | PCT | Minimum 10% commission on GRR or other commission designated by Holiday. Payable to SCH. |
| IHG Ignite Digital Marketing Fees | 2.7525 | PCT | Commission on all consumed Direct Digital Revenue. Payable to SCH or intermediary. |
| TMC (formerly known as BTA) Revenue Program | 2.25 | PCT | Override fee of 2.25% on qualifying consumed room nights only, with maximum annual payment of $20,000 USD. Payable to SCH. |
| IHG Business Edge Program Booking Fees | 4.0 | PCT | Payable to SCH. |
| Groups & Meetings Fee | 4.0 | PCT | Payable to SCH. |
| Groups & Meetings TMC Fee | 2.0 | PCT | 2% globally for BCD M&E, CWT M&E and AMEX GBT. Pay-for-performance marketing programs. Payable to SCH. |
| IHG Voice Reservation Service | 6.63 | FIXED | $6.63 per net booking, may be changed once annually. Non-participating Hotels may be charged 10% commission for Cross Sells. Payable to SCH. |
| Local Marketing Programs | N/A | VARIABLE | Varies depending on actual cost. Payable to Holiday or 3rd party engaged by Licensee. |
| Tax on Sales/Gross Receipts | N/A | VARIABLE | Upon notice from Holiday. |
| New Development or Conversion Hotels: Extensions greater than 6 but less than or equal to 12 months | 10000.0 | FIXED | With extension request. Payable to Holiday. |
| New Development or Conversion Hotels: Extensions greater than 12 months | N/A | VARIABLE | With extension request. Payable to Holiday. |
| Standard Application Fee for Room/Suite Additions | 500.0 | FIXED | With room/suite addition application. Payable to Holiday. |
| Room/Suite Additions: 6-month extension | N/A | VARIABLE | With extension request. Payable to Holiday. |
| Public Offering or Private Placement Processing Fee | 25000.0 | FIXED | $25,000 plus additional costs incurred by Holiday. When you or any owners submit request for approval. Payable to Holiday. |
| Audit/Interest | 3000.0 | FIXED | Amount of deficiency, interest and $3,000 audit fee. Audit fee may be increased on a Brand System-wide basis. Upon notice from Holiday. |
| Re-licensing or Change of Ownership Application Fees | 500.0 | FIXED | $500 per guest room but not less than $50,000 for Holiday Inn and Holiday Inn Resort, not less than $75,000 for Holiday Inn Express. Payable to Holiday. |
| Realignment/name change; brand conversion processing fee | 5000.0 | FIXED | Due upon realignment or name change, if approved. Payable to Holiday. |
| Indemnification | N/A | VARIABLE | Upon demand. |
| PIP/Soft Goods or Case Goods Renovation inspection/preparation fee | 10000.0 | FIXED | Up to $10,000 for a PIP or $5,000 for a re-inspection. Before application or upon request for a PIP. Payable to Holiday. |
| Plan and/or FF&E Extensions and Defaults | 5000.0 | FIXED | Up to $5,000. Upon request due to extension and/or default. Payable to Holiday. |
| Custom Design Review | 25000.0 | FIXED | Up to $25,000. Upon request. Payable to Holiday. |
| Non-Compliance with Soft Goods and Case Goods Renovation Requirements | 10000.0 | FIXED | Up to $10,000. Upon request due to extension and/or default. Payable to Holiday. |
| Quality Programs for failure, default, non-compliance or termination status | 7500.0 | FIXED | Escalating assessment of up to $7,500. Before follow up inspection and/or special inspection. Payable to Holiday. |
| Bi-monthly "The Operator's View" (TOV) | 2500.0 | FIXED | Escalating assessment of up to $2,500 for each occurrence. Upon notice of assignment. Payable to Holiday. |
| Corrective Action Plan (CAP), for Hotels that fall below the Reputable guest satisfaction threshold | 13500.0 | FIXED | Escalating assessment of up to $13,500. Upon notice. Payable to Holiday. |
| Holiday Inn Brand Group and Holiday Inn Resort F&B Programs materials, merchandising, and/or services | 2700.0 | VARIABLE | $1,200 + shipping for breakfast program and $1,500 + shipping for dinner and bar program. May be invoiced annually or quarterly. Payable to SCH Suppliers or SCH. |
| Holiday Inn Brand Group and Holiday Inn Resort Branded F&B Concepts | 7500.0 | VARIABLE | Up to $7,500 per year plus approximately $45/workstation/month for POS solution. Upon demand. Payable to SCH Suppliers or SCH. |
| Promotions; required and optional advertising materials | N/A | VARIABLE | On request. Payable to Holiday. |
| IHG Revenue Services and IHG Commercial Services (formerly Revenue Management for Hire) | 2475.0 | VARIABLE | $1,550 – $3,400 per month depending on room count, location type and occupancy. Plus one time $800 registration fee and $2,000-$5,000 initial investment in IHG BOOST!. Plus travel expenses. Fees apply until 12/31/2024 and modifiable with 90 days notice. Payable to SCH. |
| Guest Relations Fees | 150.0 | FIXED | $150 case management fee per incident, plus compensation amount of no greater than one night's room fee and tax. Also applies to non-Service and Quality cases not resolved within 48 hours. Upon notice. Payable to Holiday. |
| IHG One Rewards Measured Standards | 3000.0 | VARIABLE | Hotels with 300 rooms or less: escalating $1,000-$3,000 per quarter (capped at $3,000). Hotels with more than 300 rooms: escalating $1,000-$5,000 per quarter (capped at $5,000). Quarterly assessment. Payable to SCH. |
| Employee Engagement Survey | 9.5 | VARIABLE | $7 to $12 per employee each year. Payable to designated third party provider. |
| Liquidated Damages Payment on premature termination before Holiday authorizes use | N/A | VARIABLE | Promptly upon termination. Includes termination from failure to perform construction/upgrading/renovation. Payable to Holiday. |
Category
Lodging
System Size
2,847 units
Franchise Score
out of 100
Holiday Inn and Holiday Inn Express provide hotel accommodations ranging from full-service to select-service properties for business and leisure guests. The brands deliver reliable hospitality experiences with comprehensive amenities and loyalty program benefits across global markets.
Avg. Annual Closure Rate
0.8%
Low risk — below industry average
Net Unit Growth
+2846 units
From Next Fiscal Year to 2023
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| Next Fiscal Year | — | +47 | — | — | — |
| 2021 | 2811 | +75 | -43 | — | 2786 |
| 2022 | 2786 | +54 | -18 | — | 2822 |
| 2023 | 2822 | +49 | -9 | — | 2846 |
Based on the FDD data, here is a data-driven snapshot of the Holiday Inn / Holiday Inn Express franchise opportunity:
Overall Score
71/100
Strong opportunity
Est. Payback Period
N/A
Insufficient data
Risk Level
Low
0.8% annual closure rate
Holiday Inn / Holiday Inn Express scores well across our evaluation criteria, indicating a strong franchise system. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full Holiday Inn / Holiday Inn Express franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
View Full Holiday Inn / Holiday Inn Express Report →Units: 1,294
View cost breakdown →
Investment: $21,933,881 – $32,375,601
Royalty: 5.5%
Units: 747
View cost breakdown →
Investment: $93,910,590 – $168,938,990
Royalty: 6.0%
View cost breakdown →
Investment: $1,017,703 – $11,805,961
Royalty: 5.0%
View cost breakdown →
View cost breakdown →
Investment: $7,607,385 – $9,406,499
Royalty: 5.5%
Median Revenue: $50
View cost breakdown →