If an Atwell Suites hotel fails a quality evaluation, what are the potential consequences?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ove will be assessed for any granted extensions, as well as for any subsequent re-inspections until the renovation work is completed to our satisfaction.
Holiday may charge you for all quality assurance visits, re-evaluations, and re-inspections at your Hotel that result from:
- (a) Hotel's failure of any quality evaluation;
- (b) Hotel's failure under the then-current guest satisfaction measurement system;
- (c) failure to complete PIP requirements by the specified milestone dates;
- (d) failure to complete "The Operator's View" ("TOV") as mandated;
- (e)failure to cure non-compliance through the submission of Certificates of Compliance ("COC"); or
- (f) failure to complete the Corrective Action Plan ("CAP") required following a quality evaluation.
You must pay an escalating assessment of up to $7,500 for each Quality re-evaluation and reinspection. In addition, you are responsible for the room and board of the Quality Department Representative(s) during all quality evaluations, re-evaluations, action planning visits, and any other quality-related visits. You must pay for the room and board of Holiday's inspector(s) on all TOV-related visits.
Completion of the TOV survey is mandatory when assigned. Failure to do so in any assigned month will result in an escalating assessment of up to $2,500 per occurrence and may result in a visit from a Quality Department Representative.
You must complete all items in the CAP created during quality evaluation(s), action plan visits, reevaluations or re-inspections at your Hotel. Failure to do so within the timeline specified in the CAP will result in an escalating assessment of up to $7,500 and may result in a visit from a Quality Department Representative.
Hotels that fall into any guest satisfaction measurement (currently known as "Guest Love") that is at or below the "Reputable" threshold for more than six months may be placed in the Performance Compliance Program. Hotels in this Program must pay up to $13,500 for each 3-month period that the Hotel remains in such Program. Participation in the Program will also require a Mandatory Improvement Plan, which may include ongoing quality evaluations, required capital improvements, and other actions as may be necessary to improve guest satisfaction.
Note 19: Promotions; Advertising Materials: To participate in certain other marketing programs and to comply with the Standards, you may be required to buy advertising materials, products, services,
equipment or supplies or other proprietary materials, and you may have to offer promotions or services to guests that may result in expenses or costs to you. Sometimes, these advertising and proprietary materials are available for purchase through Holiday or its affiliates.
Source: Item 6 — OTHER FEES (FDD pages 30–56)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, a hotel's failure to meet quality standards can lead to several financial and operational consequences. Atwell Suites may charge the franchisee for all quality assurance visits, re-evaluations, and re-inspections resulting from the failure. These charges can escalate up to $7,500 for each re-evaluation and re-inspection. Additionally, the franchisee is responsible for covering the room and board expenses for the Quality Department Representative(s) during these visits.
If an Atwell Suites hotel doesn't complete items in the Corrective Action Plan (CAP) within the specified timeline, the franchisee may face an escalating assessment of up to $7,500 and potentially another visit from a Quality Department Representative. Furthermore, Atwell Suites hotels falling into a guest satisfaction measurement (Guest Love) at or below the "Reputable" threshold for more than six months may be placed in the Performance Compliance Program, incurring a fee of up to $13,500 for each 3-month period in the program. This program also mandates an Improvement Plan, potentially involving ongoing quality evaluations and required capital improvements.
Moreover, failure to meet IHG One Rewards Measured Standards can result in financial penalties. For hotels with 300 rooms or less, the initial assessment is $1,000 for each standard failed. If the hotel fails to cure the issue and fails in consecutive quarters, the assessment escalates to $2,000 for a failed third quarter and $3,000 for a failed fourth quarter, capped at $3,000 per quarter per Standard. For hotels with more than 300 rooms, the assessment starts at $1,000 per standard failed, escalating to $2,500 for a failed third quarter and $5,000 for a failed fourth quarter, with a cap of $5,000 per quarter per Standard. These fees highlight the importance of maintaining Atwell Suites' quality and guest satisfaction standards to avoid financial penalties and increased scrutiny.