factual

What is the process for IHG to approve the opening of an Atwell Suites hotel and establish the Opening Date?

Atwell_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. months, but less than or equal to twelve (12) months must be accompanied by an extension fee equal to $10,000. Requests for more than a twelve (12) month extension must be accompanied by a sum equal to one half (1/2) of the then current standard minimum application fee for the proposed number of rooms for the Hotel. IHG's approval of extension requests must be delivered in writing and such approval is not automatic. Licensee will be responsible for any and all expenses that may be incurred by IHG in the processing of an extension request. Extensions beyond 12 months may require resubmittal of final plans, per IHG request.

C. OPENING OF THE HOTEL.

    1. The Hotel shall not be opened for business under the Brand System unless and until:
    • (a) IHG has approved and accepted, in advance, in writing:
      • (i) the construction of the Hotel in accordance with the Final Plans, the Standards, Life Safety systems, the FF&E Specs, and IHG's requirements; IHG may require Licensee to deliver an architect's certification that the Hotel has been completed in accordance with the Final Plans and a copy of the certificate of occupancy for the Hotel; and,
      • (ii) the installation of all items of equipment, furniture, signs, computer terminals and related supplies and other items for opening the Hotel as a Brand System Hotel ,and all is in working order; and
      • (iii) the staffing and training of such staff necessary to operate the Hotel in accordance with IHG's requirements;
    • (b) no accounts of Licensee are past due to IHG or any of its Affiliates;
    • (c) Licensee is in full compliance with all of the terms of this License;
    • (d) Licensee has submitted to IHG all certificates of insurance (and copies of insurance policies if requested by IHG) as required under the License;
    • (e) Licensee has obtained all necessary governmental approvals, licenses and permits to possess, occupy and operate all areas of the Hotel, according to IHG's requirements, including specifically without limitation, a permanent certificate of occupancy; and
    • (f) Licensee has submitted to IHG a post–construction disability compliance certification signed by Licensee and an architect with professional experience applying the requirements of the ADA and the ADA Standards, in the form of Attachment "C" – ADA Certificate. Such certification must confirm the qualifications of the architect, the architect has inspected the as-built conditions of the Hotel and building site and that the Hotel and building site have been built in compliance with Title III of the ADA and any other applicable accessibility laws, ordinances or requirements;
    • (g) Licensee has either (i) delivered a certification that verifies the Hotel complies with IHG's fire protection and life safety Standards and the fire protection and life safety systems of the Hotel are operational, or (ii) retained IHG and paid IHG the then-current testing and inspection fee to test and inspect the fire protection and life safety systems of the Hotel, and such testing and inspection verifies the Hotel complies with IHG's fire protection and life safety Standards and the fire protection and life safety systems of the Hotel are operational.

Source: Item 23 — Receipts (FDD pages 99–486)

What This Means (2025 FDD)

According to the 2025 Atwell Suites FDD, the hotel cannot be opened for business under the Brand System until IHG has provided written approval and acceptance in advance. This approval includes the construction of the hotel aligning with the Final Plans, Standards, Life Safety systems, FF&E Specs, and IHG's requirements. IHG may ask for an architect's certification confirming the hotel's completion according to the Final Plans, along with a copy of the certificate of occupancy.

IHG's approval also extends to the installation of all necessary equipment, furniture, signs, computer terminals, related supplies, and other items required for opening the hotel as an Atwell Suites hotel, ensuring everything is in working order. Additionally, the staffing and training of the staff must meet IHG's requirements to operate the hotel effectively. The franchisee must also notify IHG in writing that all construction, furnishing, and opening requirements have been met and that the hotel is ready to open as an Atwell Suites hotel.

Finally, IHG must grant written approval to open and operate the hotel as an Atwell Suites hotel and establish the Opening Date. Even if the Opening Date is set but additional construction, upgrades, renovations, or training are needed, the franchisee is authorized to use the Brand System only while diligently completing this additional work. Failure to complete this additional work on time constitutes a default under the license. IHG may also authorize the franchisee to open and operate the hotel even if not all terms of the license have been fully met, provided the franchisee agrees to fulfill all remaining terms by the dates IHG establishes.

Overall, the opening process involves rigorous oversight by IHG, ensuring that every aspect of the hotel meets their brand standards before it can operate as an Atwell Suites. This process protects the brand's reputation and ensures a consistent experience for guests. Prospective franchisees should be prepared for this detailed review process and factor in the time and resources needed to meet all of IHG's requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.