factual

What fees may be charged to a Crowne Plaza for quality defaults?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

go. These logos are created by a designated agency in accordance with logo guidelines with appropriate formats for each hotel to use to create hotel-specific collateral.

Note 23: Guest Relations Fee: One Contact Resolution is a Guest Relations process that allows for increased guest satisfaction by empowering case managers to handle calls quickly. Your Hotel is expected to resolve any guest relations issues of a service or quality nature during the guest's stay. Post stay contacts of a service or quality nature will be resolved by Guest Relations case managers on behalf of the hotel, compensating the guest with up to one night's room fee and tax. The hotel must pay a $150 case management fee per incident as well as any applicable compensation to the guest. Hotels can earn a quarterly fee waiver on service and quality cases by achieving a Guest Relations Index in the top third of the Brand System. Any non-service or quality issues are referred to the Hotel for resolution.

Note 24: IHG One Rewards Measured Standards: 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

one quarter to cure. If a Hotel that has 300 rooms or less fails to cure, it will move to assessment and will be assessed a fee of $1,000 for each standard failed.

Source: Item 6 — OTHER FEES (FDD pages 31–51)

What This Means (2025 FDD)

According to the 2025 Crowne Plaza Franchise Disclosure Document, hotels may incur fees related to guest relations and IHG One Rewards Measured Standards based on service and quality performance.

The Guest Relations Fee stipulates that if a Crowne Plaza hotel fails to resolve service or quality issues during a guest's stay, Guest Relations case managers will handle post-stay contacts, potentially compensating the guest up to one night's room fee and tax. In addition to this compensation, the hotel must pay a $150 case management fee per incident. However, a Crowne Plaza hotel can earn a waiver for these fees on service and quality cases if they achieve a Guest Relations Index in the top third of the Brand System each quarter.

The IHG One Rewards Measured Standards program assesses hotels quarterly to ensure consistent delivery of the loyalty program. Failure to meet the set standards can result in fees. The provided table indicates that the Employee Engagement Survey fee can range from $7 to $12 per employee annually, payable to a designated third-party provider. Additionally, the table outlines penalties for failing to meet standards, with fees ranging from $2,500 for a first-quarter failure to $5,000 for failing the fourth quarter, capped at $5,000 per standard per quarter.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.