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InterContinental Hotels Group


Initial fee: $50,000 - $75,000
Royalty fee: 5-6%
Total investment: $5,143,620 - $93,855,035
Term of agreement:  10 years, renewable
Branch: Hotels

InterContinental Hotels Group /IHG/ consists of seven of the most recognized hotel brands in the world. Holiday Inn, InterContinental, Crowne Plaza and Hotel Indigo are just a few of them. InterContinental Hotels provides a wide range of lodging services to different customer classes. More than 4,500 hotels are open in over 100 countries. The seven brands of IHG together have more guest rooms than any other hotel chain. In just a day, IHG makes nearly 160 million reservations.


IHG was found in 1952 and started franchising a couple of years later. The hotels are operated either by a manager, or as a franchise, or on an owned and leased basis.  The majority of hotels /over 3,900/ are franchises.


Franchise agreements differ for the different brands. Usually, the royalty fee is between 5-6% of the sales revenue. The initial franchise fee could be in between $50,000-$75,000. The agreements could vary in different countries as well.

An Operating manual common for all franchisees contains all the operating procedures and standards that owners need to know.


Franchisees of all IHG brands can benefit from the global communication and reservation systems of the company. Reservations for all hotels could be made online, through phone calls, and a specialized booking system. Returning customers can become members of Priority Club Rewards, IHG’s worldwide loyalty program. This is the largest loyalty program in the hotel industry with the most attractive deals.   


IHG has a communication system, the Owners Association that connects all hotel owners of all IHG brands, franchisees or not. IHG brand owners work together to achieve mutual objectives and increase hotel revenues.


IHG hotel owners work as a team to optimize the performance of individual units. Together, they make up the leader in the hotel industry.


InterContinental Hotels Group /IHG/ is one of the largest hotel chains with the most renowned brands. There are 4,500 IHG hotels, most of which are franchises, in 100 countries. IHG hotel owners work together to maintain their leadership in the hotel industry.

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