What is included in the 'Enterprise Contribution' calculation for a Crowne Plaza hotel?

According to Crowne Plaza's 2025 Franchise Disclosure Document, the 'Enterprise Contribution' for its hotels includes reservations processed through various Holiday-managed channels and sources. These channels are (i) IHG.com, including all international iterations of this site and Holiday's mobile apps ("Web"), (ii) Holiday's worldwide toll-free reservations phone numbers and hotel call-divert programs ("Voice"), (iii) global distribution systems that permit traditional travel agencies, as well as many third-party online travel websites, to reserve guestrooms ("GDS"), (iv) online travel agencies, such as Expedia, with which we have distribution agreements ("OTA"), (v) Global Sales Office business that books directly at a Hotel (GSO), (vi) IHG One Rewards members that book directly at a hotel ("Loyalty Direct"), and (vii) distribution partners that are directly connected to our Reservation System that are not included in the previous sources ("Direct Connect").

For a prospective franchisee, understanding the components of the 'Enterprise Contribution' is crucial because it reflects the effectiveness of Crowne Plaza's central reservation systems and marketing efforts in driving business to individual hotels. A higher 'Enterprise Contribution' percentage suggests that a significant portion of a hotel's revenue is generated through these channels, which can reduce the franchisee's reliance on local marketing and direct sales efforts. The 2024 average Enterprise Contribution was 79.8% for mature hotels.

However, the FDD also cautions that these figures represent historic performance and may not be indicative of future results. Factors such as competition, local economic conditions, and the franchisee's management skills can significantly impact a hotel's actual performance. It is important for potential franchisees to carefully consider these factors and conduct their own due diligence before investing in a Crowne Plaza franchise. The FDD states that 63.2% of mature hotels exceeded the Average Enterprise Contribution of 79.8% with the median Enterprise Contribution being 82.5%.

Furthermore, the FDD emphasizes that Crowne Plaza has not independently verified the data submitted by licensed and managed hotels. While the franchisor will make available the methodologies, databases, and assumptions used to arrive at the information, franchisees should be aware of the inherent limitations and potential inaccuracies in the data. Prospective franchisees should request written substantiation for the financial performance representation and carefully review the assumptions and methodologies used to compile the data.