What is the estimated range for building construction costs for a Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment and When Due | To Whom Payment Is to be Made |
|---|---|---|---|
| Application Fee | $125,000 | Lump sum with | H oliday |
| (Note 1) | application | ||
| Property Improvement Plan | $ 0 to $10,000 | Before you | H oliday |
| (“PIP”) fee | submit your | ||
| (Note 1) | application | ||
| Land (3 1/2 to 5 acres) | As required | 3rd parties | |
| (Note 2) | |||
| Building Construction | $9,952,000 to $ 66,419,000 | As required | 3rd parties |
| ( Note 2) (Note 3) | |||
| Furniture, Fixtures & Equipment (Note 2) | $5,414,900 to $ 8,171,000 | As required By suppliers | Suppliers |
Source: Item 7 — Estimated Initial Investment (FDD pages 51–59)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the estimated cost for building construction ranges from $9,952,000 to $66,419,000 for a 250-guestroom hotel. These costs are paid to third parties as required during the construction process.
However, the FDD also notes that building construction costs can vary significantly from state to state and region to region due to factors such as material and labor costs, soil and environmental conditions, availability of utilities, and site topography. The estimate does not account for special local requirements like earthquake regulations, impact fees, local aesthetic requirements, or any remedial work needed to bring the building into regulatory compliance with Crowne Plaza's standards.
Prospective franchisees should be aware that these figures are estimates and do not include real estate costs, contingency funds, or other items that Crowne Plaza cannot estimate. It is crucial for potential franchisees to conduct their own independent investigation and carefully review all costs with their business and legal advisors before making a decision.