InterContinental Hotels Group – Franchise Review
How It All Started
InterContinental Hotels Group started functioning since 1952 and within a period of two years, it began its franchise business. Initially, the InterContinental Hotels was a part of the renowned Pan American Airlines, which sold it in the 1980s. In the year 1988, Holiday Inn International was purchased by Bass, a brewery group of UK. Later Bass Brewery started to fully get into the franchise business and gradually seven brands came under the InterContinental group. These popular hotel brands include Crowne Plaza Hotels and Resorts, Candlewood Suites, Holiday Inn, Holiday Inn Express, InterContinental Hotels and Resorts, Hotel Indigo, and Staybridge Suites. The head office of the Hotels Group is based in Atlanta, Georgia. Presently, around 1800 people are employed under the franchisor, with around 100 people directly involved in the franchise department.
Subsidiaries And Hotel Brands Of InterContinental Hotels Group
Being one of the leading franchise hotel groups in the world, the InterContinental chain is the proud franchisor of seven hotel brands which is spread across six continents. The brands are:
• Holiday Inn Express
• InterContinental Hotels and Resorts
• Crowne Plaza Hotels and Resorts
• Candlewood Suites
• Holiday Inn
• Hotel Indigo
• Staybridge Suites
All these brands mainly fall under the luxury range and offer state-of-the-art facilities and services. They are ideal for high end tourists, celebrities and corporate executives.
Cost And Operations
As of now, the total investment under the InterContinental Hotels Group is between $5,136,370 and $93,855,035. The fee of the franchise ranges from $50,000 and can go up to $150,000, depending on the terms and conditions of the agreement.
If you are willing to become a franchisee of the group, an agreement of at least 10 years has to be agreed upon. The term is renewable after the expiry of the agreement.
Who Can Become A Franchise Owner
Those who have a sound industrial and business experience in marketing and hospitality sector can easily become a franchisee of the group. According to the terms, 1 % of all franchisees have the ownership of one or more units. The scope for absentee ownership is another great benefit. 90% of the InterContinental Hotels Group’s franchises are owners or operators.
Trainings And Benefits
As a franchisee of the InterContinental Hotels, you are provided support and training through a number of marketing and industrial channels. This may be in the form of newsletters, meetings, teleconferences, advertising, and field operations and so on.
With more than 50 years of industry experience, InterContinental Hotels Group has become one of the top franchise companies. It has ranked #18 in 2010 among the fastest growing franchises in the world. This was a significant leap from the #22 in 2009, or rather #71 in 2007. Among the top global franchise companies in America, it had ranked #5 in 2009. However, in the current year, this has gone down to #22. In the Franchise 500AÃ¯Â¿Â½ sector, its rank has been #27 in 2010.