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InterContinental Paris - Le Grand Crowne Plaza Gerrards Cross Hotel Indigo York Holiday Inn Dresden - Am Zwinger Holiday Inn Express London - Park Royal Staybridge Suites London - Vauxhall Hotel Monaco Pittsburgh, a Kimpton Hotel
 

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Local Contacts: Development

Contact your local developer to explore the benefits of an IHG brand for your project.

Brice Marguet Aron Libinson Hylko Versteeg Andrew Shaw Anna Corkill René Schappner Martin Bowen Willemijn Geels Miguel Martins
Brice Marguet France
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Business Models

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Tell us about your development project, and a member of our team will contact you with expert advice.


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Hotel Development in Detail

Business Models


Most of our hotels operate under a franchise agreement or are managed by IHG on behalf of owners. All hotels are supported by our revenue delivery systems and marketing programmes, which drive business to our hotels.

 

Franchising

With more than 50 years of franchising, IHG® has mastered the model. We work with owners closely to help them uphold the highest standards of quality and service. As a franchisee, you'll be in business for yourself, but not by yourself.

 

Ownership of a franchise can bring considerable benefits: for instance, you can brand your hotel with a well-known, popular IHG hotel name, and enjoy a franchise contract that provides a powerful set of tools to drive new business.

 

A franchise contract is generally a standard one, with a typical royalty fee of 5% of room revenue.

Management Services

When IHG manages your hotel, we handle all operational issues while you continue to own the physical building.Management contract terms are negotiated and the contract consists of two fees:

 

  • A base fee
  • An incentive fee

 

The base fee is a percentage of the total revenue paid to cover management costs, while the incentive fee is a share of profits - typically gross operating profit or another agreed measure of profit. This serves to align the interests of IHG with the owner of the property, and rewards IHG for maximising hotel profitability.

 

Hotel Development Process < Previous Next > Financing

 

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IHG in Europe

 
  • 662hotels
  • 107,340rooms
  • with 134hotels in the pipeline
 
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