Out of the many renowned hotel brands owned by IHG, we’re more interested in Holiday Inn, particularly in its franchise program.
So, are you seeking to invest any time soon? Are you wondering what its franchise program is like? We help you by providing all the details.
Holiday Inn Franchise Startup Cost, Profit & Opportunities
Holiday Inn is one of several well-known hotel brands owned by the parent company IHG Hotels and Resorts.
Other hotels owned and controlled by this brand include Six Senses, Regent, Intercontinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, and Hotel Indigo.
More hotels IHG Hotels and Resorts own include Voco, Hualuxe Hotels & Resorts, Crowne Plaza, Iberostar Beachfront Resorts, Even, and Holiday Inn Express.
Others include Holiday Inn, Avid, Atwell Suites, Staybridge Suites, Holiday Inn Club Vacations, and Candlewood Suites.
About Holiday Inn
Holiday Inn is a global restaurant brand headquartered in Atlanta, GA, that started from humble beginnings as a motel chain.
Since it was founded in 1952, the company has embarked on a rapid expansion drive to grow its presence across different locations.
Its franchise program was launched two years after its opening in 1954. Since then, the brand has drawn significant interest from investors and clients.
Today, Holiday Inn has over 4,250 units and isn’t planning on slowing down anytime soon. You can leverage this opportunity by joining its growing brand.
Why Franchise Holiday Inn?
Before joining any franchise program, you want your decisions to be justified.
In other words, you need to know that there are justifiable reasons for investing. For Holiday Inn, there are several reasons you should join its franchise program.
These reasons include a purposeful design and a globally respected brand, meeting spaces, and flexible food & beverage offerings.
i. Purposeful Design
Holiday Inn’s purposeful design involves its new modern, flexible, and efficient programming designed to meet the market’s needs.
This impact is seen in the franchisor’s top-notch services, which endeared it to many and kept them coming back.
ii. Globally Respected Brand
Undoubtedly, Holiday Inn has firmly established itself as one of the world’s most recognized mainstream brands.
With this reality, it’s easy to sell its franchise program to investors as it can leverage the brand’s power and reach to grow its operations.
iii. Meeting Spaces
At Holiday Inn, it’s easy to organize meetings and events due to its spacious construction.
It’s designed to be adaptable to varying needs, thus catering to different events like social gatherings and business meetings. This has also drawn a lot of investor attention.
iv. Flexible Food & Beverage Offerings
Guests visiting Holiday Inn for different functions are offered convenient dining choices at the restaurant and when they’re on the go.
Such flexibility has earned the Holiday Inn the respect of its franchisees and clients.
Available Franchise Formats
To take advantage of this opportunity, you must know the different franchise formats.
There are two types: Holiday Inn and Holiday Inn Express. Despite sounding almost similar, they offer varying investor experiences.
This is the midscale, full-service brand identified for its value, reliability, and comfort.
It’s the standard format we’re more interested in and is fully adaptable for development in various markets. There are three main areas of emphasis for this form of operation.
They include the arrival (centered mostly on exterior design, staff disposition, and more), guest rooms, and guest stay. The objective here is to offer guests an unforgettable experience from the moment they arrive at the hotel.
Training and Support
Whenever an investor joins Holiday Inn’s franchise program, the franchisor takes necessary measures to offer the best possible support to help launch its operations successfully.
In the case of training, two types are provided that include on-the-job and classroom training.
The franchisor determines the training period and covers different operations areas. Details on this are provided in the franchise disclosure document (FDD).
Holiday Inn offers robust support in other areas like online support, meetings & conventions, and grand opening.
Some include the toll-free line, franchisee intranet platform, online support, field operations, and security/safety procedures. More support areas include site selection and access to Holiday Inn’s proprietary software.
Holiday Inn Franchise Costs
One of the primary requirements you’ll need to meet to join Holiday Inn’s franchise program is its investment amount.
To join this franchise, you’ll need an initial franchise fee of about $50 to $75,000. The initial franchise fee is determined by experience, territory size, etc.
There’s also the initial investment that’s about $10,095,858 to $22,343,710.
You’ll need this amount to begin operations. The initial investment includes other fees like equipment supplies, franchise fees, real estate, business licenses, and working capital, among many others.
Holiday Inn franchisees must pay a royalty fee of about 5 to 6% of gross sales. Such sales may be calculated weekly, monthly, or yearly. A full breakdown of these costs is contained in Holiday Inn’s FDD.
You get to know exactly what’s needed.
Having discussed the ownership costs of Holiday Inn’s franchise program, it’s necessary to look at available financing provisions.
Does this franchisor provide any? It does, but its franchising is in the form of a third-party arrangement.
In other words, Holiday Inn has third-party financing partners who offer financing to cover critical aspects of your franchise ownership, like inventory, franchise fees, and payroll.
Others include startup costs, equipment, and accounts receivable.
To enable you to recoup your investments, Holiday Inn offers a generous franchise term. This term is for an average period of 20 years.
The best part is the franchise term is renewable. However, this franchisor might have requirements for term renewal. Again, it’s best to make inquiries or check its FDD document.
How Much Income can I earn as a Holiday Inn Franchisee?
It’s necessary for investors always to be good with the numbers.
One of the areas you might be interested in is the profit potential of this franchise offering. Now, there’s no single answer to the question of profitability, as multiple factors play a role in determining costs.
These include size, location, and the ability to streamline your operations to make them more productive and profitable.
These basics of buying a Holiday Inn franchise have touched on different areas of operation. Discuss with the franchisor for other details about its franchise offering.