Regarding capital reinvestment and renovation cycles for an Atwell Suites hotel, where can further specifications be found?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
In such event, Licensee must establish a Capital Reserve account funded monthly in a bank selected by Licensee.
Licensee shall make expenditures from such account for the purposes hereinbefore specified in accordance with IHG's requirements.
Licensee acknowledges that the Capital Reserve may not be sufficient to maintain the Hotel as a first-class facility in accordance with the Standards, and Licensee shall promptly provide any necessary additional funds to meet IHG's product quality and consumer quality requirements; as well as Licensee's renovation obligations specified herein.
- (2) Throughout the License Term, regardless of whether IHG has required Licensee to establish a Capital Reserve, Licensee must complete significant renovations of the Hotel, including, but not limited to, the public areas, guest rooms, and guest room corridors in order to maintain the Hotel as a first-class facility.
These mandatory renovations include: (a) replacing Soft Goods at least every seven (7) years after such Soft Goods were installed and (b) replacing Case Goods at least every fourteen (14) years after such Case Goods were installed; and, if necessary replacing such Soft Goods and Case Goods more frequently in order to (i) maintain compliance with the Standards or IHG's quality and guest satisfaction programs; (ii) remove risk of injury to persons or property; or (iii) ensure compliance with all applicable laws.
(3) Licensee must fund all ordinary and extraordinary maintenance and repair, capital improvements and renovations of the Hotel.
(4) For purposes of this paragraph 13.O. the following definitions apply:
(a) "Gross Revenue" means all revenues and income of any nature derived directly or indirectly from the Hotel or from the use or operation thereof, including without limitation room sales; food and beverage sales; telephone, fax and internet revenues; rental or other payments from lessees, subleases, concessionaires and others occupying or using space or rendering services at the Hotel (but not the gross receipts of such lessees, subleases or concessionaires); and the actual cash proceeds of business interruption, use, occupancy or similar insurance.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, franchisees are required to reinvest in their hotels to maintain brand standards. The FDD specifies that throughout the license term, franchisees must complete significant renovations to maintain the hotel as a first-class facility, including public areas, guest rooms, and guest room corridors. These renovations include replacing soft goods, such as wall and floor coverings and window treatments, at least every seven years after installation. Case goods must be replaced at least every fourteen years after installation.
Atwell Suites franchisees must also fund all ordinary and extraordinary maintenance and repair, capital improvements, and renovations of the hotel. The franchisee is expected to establish a Capital Reserve account funded monthly to cover these costs. However, the FDD also states that the Capital Reserve may not be sufficient to maintain the Hotel as a first-class facility, and the franchisee is responsible for providing any necessary additional funds to meet IHG's product quality and consumer quality requirements, as well as the franchisee's renovation obligations.
The FDD also indicates that IHG (InterContinental Hotels Group) can modify or revise the standards for the Brand System hotels, including limited exceptions based on local conditions, type of hotel, or special circumstances. These standards and any modifications can be delivered to the franchisee in hard copy or, at IHG's option, in digital, electronic, or other computerized form. If communicated digitally, the franchisee must pay any costs to retrieve, review, use, or access the standards. The standards are confidential and remain the property of IHG.