About Crowne Plaza Franchise
Crowne Plaza is an upscale full service hotel brand under parent company InterContinental Hotels Group PLC, offering franchise opportunities since 1990.
Each property is designed for business travelers and event planners, featuring modern guest rooms, full service restaurants, state of the art meeting facilities, and wellness amenities.
The brand positions itself as a premium choice for professionals on the road.
Crowne Plaza Franchise Cost & Fees
Minimum Investment
$36.6M
Average Investment
$49.4M
Maximum Investment
$62.2M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Rooms Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of GRR | National brand fund |
| Total Investment Range | $36,603,050 – $62,171,300 | Includes build-out, inventory, working capital |
The investment range of $36.6M–$62.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Rooms Revenue) and marketing fee (3% of GRR) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Application Fee | $150,000 | $150,000 |
| Property Improvement Plan (“PIP”) fee | $0 | $7,500 |
| Land (3 1/2 to 5 acres) | N/A | N/A |
| Building Construction | $29,986,000 | $50,187,000 |
| Furniture, Fixtures & Equipment | $4,550,000 | $8,342,000 |
| Financing and Closing | N/A | N/A |
| Operating Supplies & Equipment | $284,000 | $340,000 |
| Primary Identification Sign (including installation, freight, foundation and wiring) | $105,000 | $168,000 |
| PMS Equipment; Software; Installation& Training; IHG Concerto™ Equipment & Training; NGP/Payments Equipment; Software; Installation & Training | $124,000 | $187,000 |
| Guest Internet Access – Hardware (IHG Connect) | $22,750 | $49,000 |
| Key Card System | $10,000 | $25,000 |
| In Room Entertainment (IHG Studio) | $27,000 | $29,000 |
| Employee Safety Devices | $38,000 | $45,000 |
| Openings and Renovations Preopening Support Fee; to be invoiced within 60 days of license execution by Holiday | $8,000 | $8,000 |
| IHG Learning Program (annual subscription) | $5,500 | $5,500 |
| Public Access Computers (Business Center) | $7,800 | $8,300 |
| Market Feasibility Study | $15,000 | $30,000 |
| Opening Date Extension Fee | $0 | $5,000 |
| Crowne Plaza R&B Concept Development | $0 | $125,000 |
| Crowne Plaza R&B Brand Identity Services & Market Research Study | $15,000 | $40,000 |
| License and Permits | N/A | N/A |
| Professional Fees | $750,000 | $1,500,000 |
| Security Deposits | $2,500 | $25,000 |
| Insurance | $187,500 | $250,000 |
| Hotel Photography | $15,000 | $20,000 |
| Additional Funds and Prepaid Expenses during the initial phase (first 3 months after opening) | $300,000 | $625,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $500 per guest room but not less than $75,000 |
| Renewal Fee | $500 per guest room but not less than $75,000 |
| Technology Fee | $16.40 per room, per month |
| Audit Fee | $3,000 |
| Initial Marketing Contribution for the Loyalty Program | $10.00 per approved guest room |
| Special Marketing Contribution for the Loyalty Program | 4.75% of Qualifying Full Folio Revenue from Loyalty Program members; 1.425% of Qualifying Room and Meeting Revenue from Loyalty Program members |
| Capital Reserve | Up to 5% of Gross Revenue |
| IHG Concerto™, Yield & Price Optimization | $30 to $120 per month |
| PMS Software Maintenance (Opera – Premise Based) | $17.60 per room, per year for Opera V5 Software Support; $2.86 per room, per year for Oracle Technology Foundation Support; $9.24 per interface, per year, within bundle for IFC8 Interfaces Annual Support; $440.00 per interface, per year, out of bundle for IFC8 Interfaces Annual Support; $0.09 per interface, per year for OXI 2-Way – IHG Concerto™ Support; $0.00 per room, per year for: Opera Commission Handling Support; $0.03 each, for Opera Back Office Interface Support; $0.02 each, for Opera Export Files Support; $1.65 per room, per year for Opera Web Services Support (OWS); $110.00 per interface, per year for EFT Interface Support (NGP); $0.09 per interface, per year for OXI – IHGWS – LARs Functionality Support |
| PMS Software Maintenance (Opera– Hosted) | $2.88 per room, per month for: Opera V5 Software Services & Support; $0.36 per room, per month, per interface for IFC8 Interface Services & Support; $72.00 per month, per interface for IFC8 Interface Services & Support (200+ Rooms); $1.00 per room, per month for OXI 2-Way – IHG Concerto™ Services & Support; $200.00 per month, per interface for OXI 2-Way – IHG Concerto™ Services & Support (200+ Rooms); $0.50 per room, per month for Opera Commission Handling Services & Support; $0.50 per room, per month for Opera Back Office Interface Services & Support; $0.50 per room, per month for Opera Export Files Services & Support; $0.63 per room, per month for Opera Web Services & Support (OWS); $0.50 per room, per month for Credit Card Interface Services & Support; $100.00 per month, per interface for Credit Card Interface Services & Support (200+ Rooms); $1.00 per room, per year for OXI – IHGWS – LARs Functionality Services & Support; $200.00 per month, per interface for OXI – IHGWS – LARs Functionality Services & Support (200+ Rooms) |
| FastConnect Plus And Access Control Manager | $167.32 Monthly |
| Secure Payment Solution (“SPS”) Maintenance & Support | $156.25 Monthly |
| NextGen Payments (“NGP” Maintenance & Support | $140.00 Monthly |
| Guest Internet Access (“GIA”) – Bandwidth Service Subscription (IHG Connect) | $1,000 to $2,800 Monthly |
| Guest Internet Access – Hardware Maintenance & Guest Support (IHG Connect) | $1.50 per guest room; $25.00 per meeting/conference room, plus $20.00 per 2000 sq. ft. of total meeting space, maximum of $500.00 |
| Guest In-Room Entertainment– Hardware, Maintenance, Guest Support, & Content (IHG Studio) | $4.75 per room, per month for software, maintenance, and guest support; $7.20 per room, per month for content; $1.25 per room, per month for HBO (where required) |
| Employee Safety Devices (software and maintenance support) | $20.00 to $25.00 per room, per year |
| Security Software for Public Access Computers (Business Center) | $495.00 to $525.00 per workstation, per year for software, maintenance, and guest support; $315.00 to $399.00 per printer, per year for the “optional” mobile printing feature |
| Ongoing Management Training (IHG Learning Program: Core Subscription/Value-Add and Specialist Training) | $5,500/yr for Crowne Plaza® Hotels & Resorts |
| Subsequent Training Materials | $0 - $5,000 per hotel for all trainees combined |
| Owner and/or GM Conference-Lifestyle Brands | Up to $2,500 per attendee |
| Travel Agent Commissions (IHG Commission Services) | 10% (minimum) commission on GRR |
| Third Party Distribution Connection Fees | $6.40 per GDS reservation; $1.75 per Direct Connect reservation; $5.00 per TMC Direct Connect reservation; $2.00 per commissionable transaction (if not using Onyx) |
| IHG Ignite Digital Marketing Fees | 2.75% commission on all consumed direct digital revenue booked |
| TMC (formerly known as BTA) Revenue Program | 2.25% override fee (in addition to standard travel agency commission) on non-negotiated corporate contracted rates for consumed room nights, to a maximum of $20,000 per year |
| IHG Business Edge Program Booking Fees | 4% of consumed transient revenue booked through the IHG Business Edge Program |
| Groups & Meetings Fee | 4% of consumed or agreed room revenue for leads sent to hotels via IHG MeetingBroker |
| Groups & Meetings TMC Fee | 2% globally for BCD M&E, CWT M&E and AMEX GBT |
| Crowne Plaza Hotel Marketing Association (“CP-HMA”) | $3.00 per room per month |
| Tax on Sales/Gross Receipts | Holiday’s actual cost |
| Standard Fee for Room Additions | $500 for each new approved guest room or suite |
| Fees for Extensions of Construction Commencement (“CC”) Deadlines (New Development or Conversions (>6 but <=12 months)) | $10,000 |
| Fees for Extensions of Construction Commencement (“CC”) Deadlines (New Development or Conversions (>12 months)) | ½ of Application Fee |
| Room Additions (6 month extension) | 1/2 of original room addition Application Fee |
| Public Offering or Private Placement Processing Fee | $25,000 plus additional costs incurred by Holiday |
| PIP/Soft Goods or Case Goods Renovation inspection/preparation fee | Up to $7,500 for a PIP and $5,000 for a re-inspection |
| Plan and/or FF&E Extensions and Defaults | Up to $5,000 |
| PIP Extensions and Defaults Travel | Up to $5,000 |
| Custom Design Review | Up to $25,000 |
| Non-Compliance with Soft Goods and Case Goods Renovation Requirements | Up to $5,000 |
| Quality Evaluation Assessments for Standards Evaluation failures | Up to $7,500 per consecutive failure |
| Guest Love Performance Compliance Program for Hotels that fall below the At Risk guest satisfaction threshold | Up to $13,500 |
| Liquidated Damages payment on premature termination before Holiday authorizes you to use the System at the hotel | A lump sum equal to the monthly average of all the amounts that would have been payable to Holiday under paragraphs 3.B(1), (3) and (4) of the assuming the Hotel had collected GRR based on the average daily revenue per available room for all “mature hotels” in the System in the United States for the previous 12 months, multiplied by the greater of (a) 6 or (b) the number of full and partial months from the Term Commencement Date to the termination date of the License. |
| Liquidated Damages payment on premature termination by Holiday after Holiday authorizes you to use the System at the hotel | An amount equal to the total amounts required under License Paragraphs 3.B(1), (3) and (4) during the 60 calendar months of operation preceding the termination or during the preceding number of months equal to the unexpired License Term at the time of termination (if less than 60 months); or if the Hotel has not been in operation in the system for 60 months, an amount equal to the greater of (1) 60 times the monthly average of these amounts for the period during which the Hotel has been in operation in the System, or (2) 60 times these amounts as are due for the one month preceding the termination. |
| Royalty in case of Casualty | 2% of GRR based on average GRR for preceding 12 months |
| Promotions; required and optional advertising materials | Upon request |
| Revenue Management for Hire Program | $2,199 – $3,350 per month |
| Completion of the appropriate level of IHG® Revenue Management certification | $350 - $1,000 |
| Guest Relations Fees | $150 per incident, plus the compensation amount of no greater than one night’s room fee and tax |
| IHG® Rewards Measured Standards | Hotels with 300 rooms or less: Fail second quarter = Assess $1,000, Fail third quarter = Assess $2,000, Fail fourth quarter = Assess $3,000 (Capped at $3,000 per quarter). Hotels with more than 300 rooms: Fail second quarter = Assess $1,000, Fail third quarter = Assess $2,500, Fail fourth quarter = Assess $5,000 (Capped at $5,000 per quarter) |
| Employee Engagement Survey | $7 to $12 per employee each year |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies by program, from 2 hours to 28 days |
| Classroom Training | New Hotel Opening: On site; RAMP UP: Up to 9 hours; Property Mgmt System Training: Opera 12-28 days; Guest Internet Access (GIA) Hardware (IHG Connect): Up to 4 hours; In-Room Entertainment (IHG Studio): Up to 4 hours; Employee Safety Devices: Up to 2 hours; Public Access Computers: Up to 2 hours; General Manager Program: 5 days; Front Office Manager Program: 4 days; Director of Sales Orientation & Solution Selling training: 4 days; IHG® Way of Clean 5S Cleaning Program Leadership Certification For Executive Housekeeper: 1 day or 3 Virtual sessions each 1.5 hours; Chief Maintenance Engineer: 1 day or 3 Virtual sessions each 1.5 hours; On-site property consultations: 1-3 days; Regional Work Shops: 1-5 days; Designated Trainer – Influencing Learning and Development: 2 days; Crowne Plaza Meetings Director: 3 days; Leading the Brand Training for new hotels: Class lengths vary |
| On-the-Job Training | New Hotel Opening: 24 hours; Property Mgmt System Training: Opera 12-28 days |
| Training Location | Your Hotel, Virtually or Atlanta, Atlanta or other designated regional location, Regional location |
| Additional Training | Every General Manager must complete the IHG® General Manager Program Onboarding Level and attend annual retraining seminars. Directors of Sales, Sales Managers, Front Office Managers, Executive Housekeepers, Directors of Engineering, and Food and Beverage Directors or Managers must complete appropriate training/certification. All General Managers, Department Heads, and employees must complete Brand Service Training Program within 30 days of employment. Hotels should allocate annual pre-determined amounts per full-time employee for optional value-add and specialist courses: Managers/Department Heads - $650; Assistant Managers/Supervisors - $450; Frontline colleagues - $250. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Holiday does not typically grant exclusive areas or territories. The license is for a specific site only, and you may face competition from other franchisees, company-owned hotels, or other distribution channels controlled by Holiday or its affiliates. Holiday and its affiliates are not restricted from establishing new franchised, company-owned, or company-managed hotels under any of Holiday’s brands in or near your area. While Holiday may grant exclusive or protected areas in special circumstances, the license remains site-specific. There is no mechanism for resolving conflicts that may arise between your hotel and other IHG-branded hotels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years from date Hotel opens in the System (new development); 10 years from date Hotel opens in the System (conversion); 10 years from Term Commencement Date (change of ownership or re-licensing) |
| Renewal Term | The License does not provide for renewal or term extensions. |
| Renewal Conditions | The License does not provide for renewal or term extensions. If we agree to re-license, you may be asked to sign a contract with materially different terms and conditions than your original contract. |
| Transfer Fee | $500 per guest room but not less than $75,000 |
| Transfer Conditions | Holiday has the right to approve all transfers. The prospective new owner must submit an application and fees, and Holiday will evaluate them based on current procedures and criteria (e.g., credit, operational abilities, market feasibility). Approved new owners must sign a new license agreement (then-current form) and a Guaranty, and may be required to upgrade the hotel. |
| Termination for Cause | Holiday may terminate with cause. Defaults include failure to remedy breaches within notice period (30 days, or 10 days for repeat violations, or immediate for 2+ violations in 12 months), bankruptcy, non-dismissed judgments exceeding $50,000, trademark misuse, loss of possession, dissolution, failure to identify as Holiday brand, violation of proprietary rights, unapproved transfers, felony conviction, false books, failure to comply with safety/security/privacy/reputation standards, condemnation/casualty (if not reopened), unauthorized use of Marks, refusal to allow inspection/audit. Liquidated damages are payable upon premature termination. |
| Non-Compete Period | during the term of the franchise |
| Non-Compete Details | No part of the Hotel may be used to promote a competing business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Holiday requires franchisees to retain and exercise direct management control over the Hotel's business, though personal participation in direct operation is not mandated. Holiday may require hiring an acceptable management company or a qualified General Manager, Director of Sales, and/or Food & Beverage Director with at least two years of prior experience in an upscale hotel brand. The General Manager and Director of Sales must work exclusively for the franchisee's hotel, and separate General Managers are required for each hotel if multiple are owned. Holiday's consent is required for any lease or management agreement for hotel operations. If Holiday deems a franchisee unqualified, it may require retaining a management company. Franchisees and guarantors remain liable under the License even if a management company is hired. |
| Required Suppliers | You must purchase mattresses and pillows through approved suppliers. Crowne Plaza bath amenities must be purchased from the specified vendor. Fitness center equipment purchases must go through one of three approved vendors. A minimum of one Uniguest UConnect Business Center workstation is required. Architects and interior design firms must be approved by Holiday. PMS equipment, software, and maintenance are described in the Master Technology Services Agreement, and you must enter a Joinder Agreement with Hewlett-Packard Inc. (HP) for PMS hardware, software, and credit card solution deployment. Oracle America, Inc. is the sole supplier for Opera PMS software licenses and support services. For NextGen Payments (NGP), franchisees must enter a merchant processing agreement with Fiserv and a participation agreement with FreedomPay and SCH. Guest Internet Access (GIA) Bandwidth requires an approved SCH-certified provider (e.g., AT&T, Verizon). GIA Hardware requires SCH-approved Wi-Fi equipment and an SCH-approved integrator (e.g., Hospitality Wi-Fi, Single Digits). Crowne Plaza hotels must utilize an approved Keycard System. In-Room Entertainment (IHG Studio) requires approved TV sets/STBs and an SCH-certified integrator. Employee Safety Devices must be procured and installed by an approved supplier. Public Access Computers must utilize SCH-approved Uniguest Secured Advantage protection software and the Uniguest U-Connect solution. Hotels must adhere to the IHG Global Cabling & Infrastructure Standards Basis of Design (BOD). You are required to serve Coca-Cola carbonated beverage brands exclusively and sign a Participation Agreement with an authorized bottler of The Coca-Cola Company. Participation in the IHG World Class Beverage Program is required. Primary signage must be purchased from a Holiday approved sign vendor. |
| Supply Restrictions | You must build, design, furnish, equip, decorate, and supply the hotel subject to Holiday’s approval of your plans, ensuring products meet Standards and specifications. Holiday estimates these apply to 90% to 95% of purchases and leases. You may not serve or sell carbonated or juice beverages that compete with Coca-Cola beverages. |
| Franchisor Revenue from Suppliers | In 2021, SCH and its subsidiaries' net revenue from information technology program purchases (PMS, Reservation System equipment, software, training, and support services) was $1,600,000, with over 95% paid directly to vendors. Prices for goods and services through the IHG Procurement Program may include up to a 6% cost recovery fee. Allowances and rebates from suppliers to the IHG Procurement Program or properties generally range from 1% to 5% of the invoice price. TCCC provides funding based on Coca-Cola product sales, some of which SCH utilizes for the System's benefit. Groups360 LLC collects commissions from participating hotels, and while Holiday did not receive distributions or additional equity interests from Groups360 in 2021, IHG recorded its pro-rata share of Groups360’s losses. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Holiday, SCH, or its affiliate, General Innkeeping Acceptance Corporation (GIAC), may furnish loans or guaranties to franchisees. These are considered on a case-by-case basis, with terms and conditions negotiated individually. Any decision to provide financing is solely at the judgment of Holiday, SCH, or GIAC, and is conditioned upon approval of their Executive Committee and Board of Directors. Franchisees are solely responsible for obtaining adequate financing for all development, opening, and operational expenses. |
Crowne Plaza Franchise Earnings — Item 19
Average Revenue
$52.24
Median Revenue
$49.86
Revenue Range
$3 – $306.9
Sample Size
83 units
Past financial performance does not guarantee future results. Individual results will vary.
Crowne Plaza Litigation & Risk Flags
10 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Crowne Plaza System Growth
Total Units
88
Franchised
88
Company-Owned
0
Crowne Plaza currently operates 88 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 8 | 119 |
| 2020 | 2 | 15 | 106 |
| 2021 | 2 | 20 | 88 |
Transfers: 6 | Closures: 20
Crowne Plaza Franchise — FAQ
The total investment to open a Crowne Plaza franchise ranges from $36,603,050 to $62,171,300, per their Franchise Disclosure Document. This includes the initial franchise fee of $75,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Crowne Plaza charges a royalty fee of 5% of Gross Rooms Revenue of gross sales, plus a 3% of GRR contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Crowne Plaza Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Crowne Plaza to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Crowne Plaza franchise owners report average revenue of $52.24 and median revenue of $49.86. This is based on a sample of 83 units. Past performance does not guarantee future results.
Crowne Plaza has been franchising since 1990. The FDD shows an investment range of $36,603,050-$62,171,300, a 5% of Gross Rooms Revenue royalty, and includes an Item 19 earnings disclosure. There are 10 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $75,000 and the total investment ranges from $36,603,050 to $62,171,300 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Crowne Plaza and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Crowne Plaza or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com