When is the Revenue Management System fee due 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 |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the Revenue Management System fee is due monthly and payable to SCH. The fee covers costs that may range from $30 to $120 per month for competitive rate insight shopping. However, these costs may be waived for hotels currently subscribing to RevenueStrategy360.
This fee is important for Crowne Plaza franchisees as it covers the costs associated with tools used to optimize pricing and revenue. The Revenue Management System includes IHG Concerto™, Yielding & Price Optimization, or Revenue Analytics’ N2 Pricing. These systems help franchisees stay competitive by providing insights into market rates.
It is important to note that the fee amount can vary, and franchisees should confirm whether they qualify for a waiver based on their existing subscriptions. Understanding the specific Revenue Management System used and its associated costs is crucial for budgeting and financial planning as a Crowne Plaza franchisee.