To whom is the Revenue Management System fee payable 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 the 2025 Crowne Plaza FDD, the Revenue Management System fee is payable to SCH. This fee covers the costs associated with competitive rate insight shopping, which can range from $30 to $120 per month.
Notably, the FDD specifies that if a Crowne Plaza hotel is currently subscribing to RevenueStrategy360, these monthly costs may be waived. This waiver could represent a potential cost-saving for franchisees who already utilize this particular revenue management service.
Revenue management systems are crucial for optimizing pricing and maximizing revenue in the hotel industry. By paying this fee to SCH, Crowne Plaza franchisees gain access to tools and insights designed to help them stay competitive in their local market. Understanding the specific revenue management system offered and whether a waiver applies is an important consideration for prospective franchisees.