About Hotel Indigo Franchise
Hotel Indigo is a boutique lifestyle hotel brand within the IHG Hotels & Resorts family, designed to reflect the unique character of each property's surrounding neighborhood.
Every Hotel Indigo location features locally inspired design, artwork, and food and beverage offerings that create a distinctive guest experience unlike traditional chain hotels.
The initial franchise fee is $75,000.
Hotel Indigo Franchise Cost & Fees
Minimum Investment
$19K
Average Investment
$17.2M
Maximum Investment
$34.3M
| 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 |
| Total Investment Range | $18,838 – $34,311,500 | Includes build-out, inventory, working capital |
The investment range of $19K–$34.3M reflects variability in build-out costs, store size, lease terms, and market. The ongoing royalty fee is 5% of Gross Rooms Revenue of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Application Fee (Note 1) | $75,000 | $75,000 |
| Property Improvement Plan (“PIP”) fee (Note 1) | $0 | $8,500 |
| Building Construction (Note 3) | $109,367 | $34,311,500 |
| Furniture, Fixtures & Equipment (Note 2) | $18,838 | $3,787,100 |
| PMS Equipment: Software; Installation & Training; IHG Concerto™ Access & Training; NGP/Payments Equi | $83,000 | $96,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $6.63 per net booking, which may be changed once annually. All hotels must sign |
| Renewal Fee | $2,000 |
| Technology Fee | $16.40 |
| Audit Fee | $3,000 |
| Services Contribution | 3.5% of GRR (combined marketing, reservations & training fee). |
| Initial Marketing Contribution to Loyalty Program | $10.00 |
| Special Marketing Contribution for the Loyalty Program | 4.75% of Qualifying Full Folio Revenue from Loyalty Program members. |
| IHG Learning Program: Core Subscription/Value-Add and Specialist Training | $3,500 |
| Subsequent Training Materials | $0 |
| Owner and/or GM Conference | $2,500 |
| Opera – Premise Based | $17.60 |
| Opera Xpress – Premised Based | $11.88 |
| Opera – Hosted | $2.88 |
| Opera Xpress – Hosted | $2.25 |
| FastConnect Plus And Access Control Manager | $167.32 |
| Secure Payment Solution (“SPS”) Maintenance & Support | $156.25 |
| NextGen Payments (“NGP” Maintenance & Support | $140.00 |
| Guest Internet Access (“GIA”) – Bandwidth Service Subscription (IHG Connect) | $1,000 |
| Guest Internet Access – Hardware Maintenance & Guest Support (IHG Connect) | $1.50 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | The License does not provide for renewal or term extensions. |
| Termination for Cause | Holiday may terminate with cause. You pay liquidated damages if Holiday terminates under Paragraphs 12.B, 12.C or 14.I. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
Hotel Indigo Franchise Earnings — Item 19
Hotel Indigo does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Hotel Indigo does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Hotel Indigo Litigation & Risk Flags
3 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.
Hotel Indigo System Growth
Total Units
62
Franchised
62
Company-Owned
0
Hotel Indigo currently operates 62 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 | 62 | ||
| 2020 | 65 | ||
| 2021 | 64 |
Hotel Indigo Franchise — FAQ
The total investment to open a Hotel Indigo franchise ranges from $18,838 to $34,311,500, 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.
Hotel Indigo charges a royalty fee of 5% of Gross Rooms Revenue of gross sales. These fees are paid on an ongoing basis.
You can download the Hotel Indigo 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 Hotel Indigo to ensure you have the most up-to-date version.
Hotel Indigo does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Hotel Indigo has been offering franchise opportunities. The FDD shows an investment range of $18,838-$34,311,500, a 5% of Gross Rooms Revenue royalty, and includes an Item 19 earnings disclosure. There are 3 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 $18,838 to $34,311,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Hospitality & Travel Franchises
Interested in Hotel Indigo?
Get free info on this franchise. We will send you a detailed FDD report by email.
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 Hotel Indigo and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Hotel Indigo or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com