Must the construction of a Crowne Plaza Hotel be approved by IHG in writing before opening?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
ater than six (6) 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.
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- 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 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the hotel cannot be opened for business under the Brand System unless IHG has approved and accepted, in advance and in writing, the construction of the hotel. This approval confirms that the construction aligns with the Final Plans, Standards, Life Safety systems, FF&E Specs, and IHG's specific requirements. IHG retains the right to request an architect's certification confirming the hotel's completion according to the Final Plans, along with a copy of the certificate of occupancy.
This requirement ensures that all Crowne Plaza hotels meet IHG's standards before they begin operations. For a prospective franchisee, this means that opening the hotel hinges on receiving written approval from IHG after they have inspected the construction. This process includes verifying that the hotel adheres to the approved Final Plans, Standards, Life Safety systems, and FF&E Specs. The franchisee must also ensure that all equipment, furniture, signs, and computer terminals are installed and in working order, and that the staff is adequately trained according to IHG's requirements.
Furthermore, the franchisee must notify IHG in writing once all construction, furnishing, and opening requirements have been met and the hotel is ready to operate as a Brand System Hotel. IHG will then grant written approval to open and operate the hotel, establishing the Opening Date. This comprehensive approval process underscores IHG's commitment to maintaining brand consistency and quality across all Crowne Plaza hotels. IHG may authorize a franchisee to open and operate the hotel even if not all terms of the license are met, provided the franchisee agrees to fulfill all remaining terms by the dates established by IHG.