factual

Under what conditions can construction begin for a Crowne Plaza hotel?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

Construction shall not begin unless and until IHG has approved the Final Plans and IHG has received the properly executed pre-construction ADA Certificate from Licensee.

Thereafter, no change shall be made to the Final Plans without the prior written consent of IHG.

Source: Item 23 — Receipts (FDD pages 100–424)

What This Means (2025 FDD)

According to Crowne Plaza's 2025 Franchise Disclosure Document, construction on a new hotel cannot commence until certain conditions are met. IHG (InterContinental Hotels Group) must first approve the Final Plans for the hotel. Additionally, IHG must receive a properly executed pre-construction ADA (Americans with Disabilities Act) Certificate from the licensee (the franchisee). These two conditions—approval of the Final Plans and receipt of the ADA certificate—are prerequisites for beginning construction.

Before construction even begins, the franchisee must also fulfill several other requirements. They must submit evidence of required insurance to IHG, as well as documentation proving their entitlement to possess the premises where the hotel will be built; these documents are subject to IHG's approval. The franchisee is also responsible for obtaining all necessary approvals, permits, and licenses required for construction to proceed, including submitting a copy of the general building permit to IHG once acquired. Furthermore, the franchisee needs to provide IHG with the proposed construction schedule, detailing critical path milestones and trade subdivisions in a standard industry format.

Finally, the franchisee must submit "Preliminary Plans" to IHG for review and approval before starting construction. These plans, prepared by a qualified, licensed architect, should include site plans, building floor plans for all levels, enlarged guest room plans for all room types, and exterior elevations with color renderings. These plans must adequately describe the design of the hotel, including spatial relationships and the quality of building systems, elements, products, and materials. Meeting all these requirements ensures that the Crowne Plaza hotel is built according to IHG's standards and complies with all applicable regulations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.