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IHG InterContinental Hotels Group

Franchise

InterContinental Hotels & Resorts is the namesake and flagship franchise brand of parent IHG (InterContinental Hotels Group). As the world’s original international luxury hotel franchise, InterContinental Hotels & Resorts provides an upper upscale experience with premium touches like Michelin star dining, locally authentic properties, and superior service across nearly 500 hotels and 150,000 rooms operational or in development worldwide. InterContinental’s parent company IHG is a global, UK-based hospitality company that owns a portfolio of recognized hotel brands in the luxury and mid-tier categories. The company franchises, leases, manages or owns over 5,600 hotels and 836,000 guest rooms in over 100 countries, with more than 1,800 hotels in its development pipeline. IHG’s most well-known brands include the eponymous InterContinental Hotels and Resorts, the Holiday Inn family, Crowne Plaza, Indigo, Kimpton, voco, Regent Hotels, and Six Senses Hotels Resorts.

Facts & Figures

Liquid capital required
$1,000
Investment
$70,436,315 - $102,938,610
Franchise fee
$75,000
Royalty
5.0%
Units in operation
196
Founded
1946
Franchising Since
1946

Overview

IHG InterContinental Hotels Group Franchise Opportunities - History

InterContinental Hotels was founded in 1946 as a subsidiary of Pan Am Airways, in a bid to marry the glamour of mid-20th century air travel with correspondingly luxurious accommodations in major destination cities.

Founder Juan Trippe sold the hotel chain in the early 1980's to Grand Metropolitan, which later sold it to Saison Group, a Japanese-based company, in 1988. IHG eventually became an independent global hospitality company with its headquarters located in Buckinghamshire, England.

The power of the InterContinental brand and the quality of the locations gives the chain the ability to command lofty reservation prices despite a relatively low cost to run. And awards like World’s Leading Hotel Brand, which InterContinental has been named for close to a decade consecutively, continue to bolster the brand. And adding to the franchise’s mystique are iconic InterContinental Hotels & Resorts properties like the InterContinental London Park Lane, the InterContinental Porto (an 18th-century palace), and Washington, D.C.’s Willard InterContinental. 

Today, the InterContinental Hotels & Resorts footprint and development pipeline spans some 500 hotels and 150,000 rooms across over 60 countries (inclusive of InterContinental Hotels & Resorts locations only and not including locations of brands in the broader IHG InterContinental Hotels umbrella).

InterContinental Hotels & Resorts Franchise Cost / Initial Investment / InterContinental Hotels & Resorts Franchise Income

Initial Investment

The investment required to open an InterContinental Hotels & Resorts location ranges from $70,436,315 to $102,938,610, including a $75,000 upfront fee.

Ongoing Royalties

InterContinental franchisees must pay a monthly 5% royalty fee on gross room revenue. There are additional ongoing fees for brand marketing programs, technology, and other items.

InterContinental Hotels & Resorts Franchise System Size and Composition

As of year-end 2018, there were approximately 196 active locations of InterContinental Hotels & Resorts. Of those, around 6 were company owned, 19 were U.S.-based franchised hotels, and approximately 171 were franchised internationally. Including hotels in the brand's development pipeline increases that unit footprint to approximately 500 hotels worldwide. Altogether, these locations generate an estimated $3.1 billion in annual sales.

IHG InterContinental Hotels Group Franchise System Size and Composition

The parent company, IHG InterContinental Hotels Group, franchises, leases, manages, or owns over 5,600 hotels (accounting for some 836,000 guest rooms) across over 100 countries, with an additional 1,000 hotels in development. IHG InterContinental continues to grow through a combination of organic expansion as well as through very active acquisition of complementary hotel chains. Recent IHG acquisitions have included Regent Hotels & Resorts, Kimpton Hotel & Restaurants, and Six Senses Hotels Resorts Spas. 

The brands that make up IHG's portfolio include:

IHG InterContinental Hotels Group - Other Information

When teaming with IHG: InterContinental Hotels Group, franchisees select a specific hotel brand that IHG owns to open and work with.

IHG touts its rewards program, IHG Rewards Club, as the world’s first and largest global hotel loyalty program, boasting more than 100 million members worldwide.

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