What is the estimated range for Furniture, Fixtures & Equipment costs for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | |||
|---|---|---|---|
| Royalty | 5% of Gross Rooms Revenue (“GRR”) | Monthly, on the 15th of the following month (Payable to Holiday) | Note 1 |
| Services Contribution | 3% of GRR | Same as Royalty | Note 2 |
| Initial Marketing Contribution for the Loyalty Program | $10.00 per approved guest room. | At same time as 1st Royalty Payment (one-time charge) (Payable to SCH) | Note 3 |
| Loyalty Program Contribution | 4.55% of Qualifying Full Folio Revenue from Loyalty Program members 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members | Same date as Royalty (Payable to SCH) | Note 3 |
| Capital Reserve | Up to 5% of Gross Revenue (see Paragraph 13.O of License). | Monthly if required by Holiday | Note 4 |
| Technology Services Fee | $17.40 per room, per month. | Monthly (Payable to SCH) | Note 5 |
| Revenue Management System: IHG Concerto™, Yielding & Price Optimization; or Revenue Analytics’ N2 Pricing | Costs of between $30 and $120 per month may apply for competitive rate insight shopping. For hotels currently subscribing to RevenueStrategy360, these costs may be waived. | Monthly (Payable to SCH) | Note 6 & Item 11 |
| TYPE OF FEE | |||
| AMOUNT $2,500 /standard • Fail fourth quarter = Assess $5,000/standard • Capped at $5,000 per quarter | DUE DATE | REMARKS | |
| Employee Engagement Survey | $7 to $12 per employee each year | Annually (Payable to designated third party provider) | Note 25 |
| F&B POS Support | $45.00 per workstation per month | Monthly (Payable to an approved supplier) | Note 7 |
| Comfort Letter Processing Fee | $2,500 for the preparation and processing of any mezzanine, replacement or subsequent comfort letters after the initial senior lender letter. | Upon Demand (Payable to Holiday) | IHG may waive this fee in its sole discretion. |
| 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. | IHG One Rewards Measured Standards are | ||
| measured and enforced by the Loyalty Program to ensure consistency in the delivery of the program | |||
| to its members. Standards are based on calendar quarter thresholds. Hotels are measured at the end | |||
| of each calendar quarter for compliance. If a Hotel fails to meet the threshold for a quarter, it will have | |||
| ESTIMATE FOR A 250-ROOM CROWNE PLAZA OR CROWNE PLAZA SUITES HOTEL: | |||
| 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 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the estimated cost for Furniture, Fixtures & Equipment ranges from $5,414,900 to $8,171,000 for a 250-room Crowne Plaza or Crowne Plaza Suites Hotel. This substantial investment is a critical component of the overall cost of establishing a new Crowne Plaza franchise. These costs are paid to suppliers as required.
Furniture, fixtures, and equipment (FF&E) encompass all the movable items that are not permanently attached to the structure but are essential for the hotel's operation and guest experience. This includes beds, chairs, desks, lighting, décor, and other furnishings in guest rooms, as well as equipment for the lobby, dining areas, and other common spaces. The high cost reflects the brand standards and quality expectations associated with the Crowne Plaza name.
Prospective franchisees should carefully consider this significant expenditure when evaluating the financial feasibility of opening a Crowne Plaza franchise. It is important to obtain detailed quotes from approved suppliers to refine this estimate based on the specific design and requirements of the hotel. Additionally, franchisees should factor in potential fluctuations in material costs and shipping expenses, which can impact the final FF&E investment. Understanding these costs is crucial for accurate budgeting and financial planning.
Given the magnitude of the FF&E investment, Crowne Plaza franchisees may explore financing options to manage this expense. It is advisable to consult with financial advisors experienced in the hospitality industry to determine the most suitable financing strategy. Furthermore, franchisees should ensure they have a clear understanding of the replacement and maintenance schedule for FF&E items to plan for future capital expenditures.