What action is a Crowne Plaza hotel prohibited from taking regarding existing bandwidth contracts?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels with existing contracts with bandwidth providers must allow such contracts to expire or terminate by their own terms and not allow them to renew, by giving appropriate notice as soon as the terms of those contracts permit. If the contract term will extend more than one year after the effective date of the respective Standard, and the Hotel has a right to terminate for convenience (without cause) and without payment of any fees, then the Hotel must exercise that right so that the contract terminates within that year. If a Hotel leaves the IHG Brand System while its IHG Connect Participation Agreement is still in effect, the licensee shall be liable for payments to IHG of an early termination fee equal to (X) the number of months remaining on the term of the IHG Connect Participation Agreement multiplied by (Y) the monthly fees due under the IHG Connect Participation Agreement. Such payment is due within 30 days following the termination date and all equipment must be returned to the vendor within 30 days of circuit disconnection or the hotel will be subject to hardware costs.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, hotels with existing contracts with bandwidth providers for Guest Internet Access (GIA) are restricted from renewing these contracts. The hotel must allow these contracts to expire or terminate based on their current terms, providing appropriate notice as the contract terms allow.
If a contract extends more than one year past the effective date of the relevant standard, and the hotel has the option to terminate the contract for convenience without incurring fees, it is obligated to exercise this right. This ensures the contract ends within that one-year timeframe.
If a Crowne Plaza hotel leaves the IHG Brand System while its IHG Connect Participation Agreement is active, the licensee is responsible for an early termination fee. This fee is calculated by multiplying the number of months remaining on the agreement by the monthly fees due under the IHG Connect Participation Agreement. Payment is due within 30 days of termination, and all equipment must be returned to the vendor within 30 days of circuit disconnection to avoid hardware costs.