What is the definition of 'New Development' in the context of a Crowne Plaza hotel?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The license agreement you sign will specify the type of arrangement applicable to your situation, whether it involves new development, conversion, change of ownership, re-licensing, or adaptive reuse.
New Development means the construction of a new building to operate a Hotel in the Brand System.
Conversion means renovating an existing building to meet our Standards, allowing it to function as a Hotel in the Brand System.
Change of Ownership means the transfer of ownership or control of the Hotel to a new owner.
Re-Licensing means granting a new license agreement, at Holiday's discretion, after the expiration of a previous license for the same hotel.
Adaptive Reuse means a specific type of conversion that involves repurposing an existing structure for use as a Hotel in the Brand System.
Source: Item 1 — THE LICENSOR, ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–15)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, 'New Development' refers to the construction of a new building specifically for the purpose of operating a Crowne Plaza hotel within the Brand System. This means that a franchisee pursuing a new development option would be building a hotel from the ground up, adhering to Crowne Plaza's standards and specifications for construction, furnishings, operation, appearance, and service.
This is distinct from other types of arrangements such as 'Conversion,' which involves renovating an existing building to meet Crowne Plaza's standards, or 'Adaptive Reuse,' which is a specific type of conversion repurposing an existing structure. A 'Change of Ownership' involves the transfer of an existing hotel to a new owner, and 'Re-Licensing' is the renewal of a license agreement for an existing hotel.
For a prospective Crowne Plaza franchisee, understanding these definitions is crucial as it dictates the scope and nature of their investment. New development projects typically involve higher upfront costs and longer timelines due to the construction phase, but they also offer the advantage of building a hotel precisely to Crowne Plaza's specifications, potentially optimizing operational efficiency and brand consistency. Franchisees should carefully consider their resources, risk tolerance, and market conditions when deciding between new development and other available options.