The InterContinental Hotels & Resorts franchise was the first international hotel brand in the world. The hotel franchise provides guests with memorable and unique experiences.
The InterContinental Hotels Group is the world's largest hotel company, including some of the strongest and most recognized hotel franchise brands in the industry: InterContinental® Hotels & Resorts, Crowne Plaza®, Hotel Indigo®, Holiday Inn®Hotels and Resorts, Holiday Inn Express®, and Staybridge Suites®. The IC Hotels Group includes more than 3,600 hotels located in nearly 100 countries.
We operate hotels in three different ways – as a franchisor, a manager and on an owned and leased basis. We focus on the mainstream, upscale and luxury segments of the hotel industry and have a targeted portfolio of brands individually tailored to meet guests’ needs and occasions.
Whether we franchise to, or manage hotels on behalf of third-party hotel owners depends largely on market maturity, owner preference and, in certain cases, the particular brand. Mature markets, such as the Americas and Europe, predominantly follow a franchise model, while a managed model is typically used in emerging markets, such as Greater China.
Due to our asset-light approach, the number of owned, leased and managed leased hotels we have has dramatically reduced from over 180 hotels 16 years ago, to just a handful today.
Franchisees want to be in business for themselves but not by themselves. Our franchisees can brand their hotel with one of our well-known and popular brands, and benefit from a powerful loyalty programme and strong reservation system. We also provide a comprehensive set of tools such as revenue management and marketing programmes to drive business and new demand.
Our franchise fee growth is driven by three levers – room growth, revenue per available room (RevPAR) and royalty fees. The franchise agreement is generally a standard contract, with some variation across the world. A sample contract would normally have a royalty fee of 5-6 per cent of rooms' revenue. However this can vary by brand and country.
Developing with us
Our global network of hotel owners is one of IHG’s greatest strengths. Our success lies in matching owners with the right brands and markets, and in working together to use our scale and resources to drive strong returns.
From meeting to discuss a new project, to planning every facet of a hotel's operations, to the opening itself, we focus on building businesses. Once open, we support owners with world class, brand specific resources that help drive hotel employee performance, improved guest satisfaction and increased revenues.
We manage a System Fund for the benefit of all hotels in the IHG® System with the objective of driving revenue. Total assessments and contributions paid by hotels into The Fund are spent on marketing, the IHG® Rewards Club loyalty programme and the guest reservation system. The System Fund is planned to operate at break even and does not result in a profit or loss for IHG.