What is the definition of Qualifying Room and Meeting Revenue for the Loyalty Program Contribution for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
ent block where the individual guest pays their own charges (room and incidentals) will qualify for points.
Qualifying Room and Meeting Revenue includes Hotel revenue from accommodation (room only booked on behalf of others via the IHG Business Rewards) and/or Hotel revenue from rental of guest rooms, meetings, social, or catered events to include revenue from meeting room hire, food and beverage, and/or other revenue associated with the meeting or event at the hotel's discretion (formerly known as IHG® Meeting Rewards). IHG® Business Rewards points are capped at 60,000 per meeting or event, while the Hotel has sole discretion to award more than 60,000 points for any such meeting or event. At three points per dollar payable at 1.365%, the amount contributed to the Loyalty Program is capped at $273 per event; however, the Ho
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, Qualifying Room and Meeting Revenue is a component used to calculate the Loyalty Program Contribution fee. This revenue includes income the hotel generates from accommodations booked through IHG Business Rewards, specifically for others. It also encompasses revenue from renting guest rooms for meetings, social gatherings, or catered events. This includes revenue derived from meeting room rentals, food and beverage sales, and any other revenue the hotel associates with the meeting or event, at its discretion. This was previously known as IHG® Meeting Rewards.
IHG Business Rewards points are capped at 60,000 per meeting or event, but the hotel has the flexibility to award more points. The Loyalty Program Contribution is calculated at 1.365% of Gross Rooms Revenue (GRR) on Qualifying Room and Meeting Revenue from Loyalty Program members. At three points per dollar payable at 1.365%, the amount contributed to the Loyalty Program is capped at $273 per event; however, the Hotel has discretion to award more than 60,000 points at the same 1.365% assessment rate ($0.00455 per point).
For a Crowne Plaza franchisee, understanding this definition is crucial because it directly impacts the fees owed to SCH (the parent company) for the Loyalty Program. By understanding what constitutes Qualifying Room and Meeting Revenue, franchisees can accurately calculate and remit the correct Loyalty Program Contribution. Additionally, the hotel's discretion in awarding points and associating revenue with events provides some flexibility in managing the Loyalty Program's impact on their overall revenue.
It's important to note that SCH can change the percentages used to calculate the Loyalty Program Contribution in its sole judgment. Franchisees should stay informed about any changes to these percentages to accurately budget for this ongoing fee. The Loyalty Program Contribution is paid on the same date as the Royalty fee.