Who is responsible for obtaining adequate financing for a Crowne Plaza hotel's development, opening, and operation?

According to Crowne Plaza's 2025 Franchise Disclosure Document, the franchisee bears the sole responsibility for securing sufficient funding for all expenses associated with the hotel's development, opening, and ongoing operations. While Holiday, SCH, or its affiliate, General Innkeeping Acceptance Corporation (GIAC), may potentially offer loans or guaranties to franchisees, this is not a formal program and is evaluated on a case-by-case basis. Any decision to provide financing is at the discretion of Holiday, SCH, or GIAC, subject to approval by their Executive Committee and Board of Directors.

This means that prospective Crowne Plaza franchisees should not rely on the franchisor for financing. Instead, they must independently explore and secure funding options from third-party sources such as banks, private investors, or other lending institutions. Franchisees should develop a comprehensive financial plan that accounts for all anticipated costs, including real estate, construction, furniture, fixtures, equipment, operating supplies, initial fees, and ongoing expenses.

Given the significant investment required to develop and operate a Crowne Plaza hotel, it is crucial for franchisees to have a solid financial foundation and a well-prepared financing strategy. The FDD's Item 7 provides estimated initial investment costs ranging from $17,378,326 to $80,742,850 for a 250-room hotel, excluding real estate costs, contingency funds, and other items that Holiday cannot estimate. Therefore, franchisees should conduct thorough due diligence, consult with financial advisors, and explore all available financing options to ensure they have adequate capital to launch and sustain their Crowne Plaza business.