What is the dependency for a Crowne Plaza to use an approved SCH-certified provider for Guest Internet Access?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
For Guest Internet Access ("GIA") Bandwidth (IHG Connect), a Hotel will be required to utilize an approved SCH-certified provider and enter into a participation agreement with an approved provider (see Item 8 and the form of agreement attached as Exhibit G-5 to this disclosure document). Monthly service fees will vary based on regional telecommunication or cable company sources. 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. It is recommended that all Participation Agreement are renewed on or before the expiration of the Participation Agreement to avoid any disruption in service or unexpected price increases. Price increases are determined by the provider. All vendor equipment must be returned to the vendor within 30 days of the circuit disconnection or the Hotel will be subject to fees covering the cost of such hardware (i.e., Managed Router, NIDS, etc.).
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a hotel is required to use an approved SCH-certified provider for Guest Internet Access (GIA). This requirement includes entering into a participation agreement with an approved provider. The monthly service fees for GIA bandwidth (IHG Connect) will vary based on regional telecommunication or cable company sources.
Crowne Plaza hotels with existing contracts with bandwidth providers must allow these contracts to expire or terminate by their own terms, and they cannot be renewed. If a contract's term extends more than one year after the effective date of the respective Standard, and the hotel has the right to terminate it for convenience without incurring fees, the hotel must exercise that right to terminate the contract within that year.
If a Crowne Plaza hotel leaves the IHG Brand System while its IHG Connect Participation Agreement is still in effect, the licensee will be liable 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 agreement. The 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 to avoid hardware costs. It is recommended that all Participation Agreements are renewed on or before the expiration of the Participation Agreement to avoid any disruption in service or unexpected price increases.
For GIA Hardware (IHG Connect), a hotel will be required to install approved Wi-Fi related equipment and use an approved SCH-certified integrator to install the equipment, and enter into a participation agreement with an approved integrator. Monthly service fees will include a base per-room fee for guest support and a variable fee for meeting room support based on the number of meeting rooms and the amount of meeting space that exceeds 2,000 square feet. Additional installation and maintenance costs may also be incurred for wireless access points if a meeting space has a capacity in excess of 100. Hotels will need to renew software licensing for Wi-Fi hardware within five years of the original purchase claim date, on a specified date and then every five years thereafter. Software license renewal costs vary greatly and could range from $3,000 to $200,000. Hotels will be required to purchase new hardware equipment (MXs, Switch and APS) and any other auxiliary equipment) generally at the of the eighth year from the original purchased claim date. Hardware refresh costs vary greatly and could range from $110 to $96,000.