Does Crowne Plaza provide economic projections, either orally or in writing, to potential licensees?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
To begin with, it is vital that you understand that the information in this Item 19 is not meant in any fashion to constitute projections of your performance. To the contrary, we do not furnish - - or authorize any of our or our affiliates' officers, employees or salespersons to furnish - - any oral or written economic projections for any licensed hotel, and you are specifically warned that should you nevertheless be furnished with any such projections, you must not rely on them in any fashion in determining whether to become our licensee. The information above conveys only historic performance information for Mature Hotels for the 2024 fiscal year.
Source: Item 19 — Financial Performance Representations (FDD pages 91–95)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, Crowne Plaza does not provide any economic projections, either orally or in writing, to potential franchisees. The FDD explicitly states that no officer, employee, or salesperson of Crowne Plaza or its affiliates is authorized to furnish any oral or written economic projections for any licensed hotel. Prospective franchisees are specifically warned not to rely on any such projections if they are provided. The document emphasizes that the historic performance information provided for Mature Hotels for the 2024 fiscal year should not be considered projections of future performance. Mature Hotels are defined as those open for at least two full years as of December 31, 2024, and in compliance with their license or management agreement obligations. As of December 31, 2024, 76 of the 83 Crowne Plaza hotels in the United States qualified as Mature Hotels.
Crowne Plaza only furnishes historic performance information, specifically for Mature Hotels, and may provide supplemental financial performance representations directed to a particular location or circumstance. This information is derived from data submitted by licensed and managed hotels, which Crowne Plaza has not independently verified or audited. The FDD includes average occupancy rate, average daily room rate (ADR), and average revenue per available room (RevPAR) for these Mature Hotels. For the year ended December 31, 2024, the average ADR was $155.19, the average RevPAR was $91.63, and the average occupancy rate was 59.0%.
Prospective franchisees should understand that their individual results may differ significantly from the historic averages presented in the FDD. Numerous factors can influence a new licensee's financial results, including competition, the age and customer base of competitive hotels, the facilities and amenities offered, local economic conditions, and the franchisee's management skills. Crowne Plaza explicitly states that it cannot guarantee that a new licensee will achieve similar financial results. If a prospective franchisee receives any unauthorized financial projections, they are advised to report it to Crowne Plaza's Financial Performance Representation Administrator.