What is the basis for the variation in monthly service fees for Guest Internet Access for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
service. The exact amount of the fee will be defined on the quote received prior to installation.
Guest Internet Access: For Guest Internet Access ("GIA") Bandwidth (IHG Connect), a Hotel will be required to utilize a certified SCH approved provider ("Integrator") and enter into a participation agreement with an approved provider (see the form agreement attached as Exhibit G-6 to this disclosure document and Item 8). Monthly service fees will vary based on regional telecommunication or cable company sources. Hotels with existing contracts with bandwidth providers must allow such contracts to expire or terminate by their own terms and not allow them to renew, by giving appropriate notice as soon as the terms of those contracts permit. If the contract term will extend more than one year after the effective date of the respective Standard, and the Hotel has a right to terminate for convenience (without cause) and without payment of any fees, then the Hotel must exercise that right so that the contract terminates within that year. If a Hotel leaves the Brand System while its IHG Connect Participation Agreement is still in effect, the licensee shall be liable for payment to IHG of an early termination fee equal to (X) the number of months remaining in the term of the term of the Participation Agreement multiplied by (Y) the monthly fees due under the Participation Agreement. Such payment is due within 30 days following the termination date.
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the monthly service fees for Guest Internet Access (GIA) can vary based on several factors. For GIA Bandwidth (IHG Connect), the fees depend on regional telecommunication or cable company sources. For GIA Hardware (IHG Connect), the fees include a base per-room charge for guest support, and a variable fee for meeting room support. This variable fee is determined by the number of meeting rooms and the amount of meeting space exceeding 2,000 square feet.
Additional installation and maintenance costs may arise for wireless access points if a meeting space has a capacity exceeding 100. The FDD states that the estimated cost of 4 access points is $1,452 per 100 Guest Conference Space Capacity, which is a one-time charge. If serviceability is a factor for any Hotels, the Out-of-Footprint Pricing will require approval from Licensee prior to proceeding with an order and special non-negotiated pricing may be needed to service the Hotel.
Software license renewal costs can also vary significantly, ranging from $3,000 to $200,000, depending on whether the existing equipment remains active at the time of renewal. Similarly, hardware refresh costs can range from $110 to $96,000, also dependent on the status of the existing equipment. These costs are incurred generally at the eighth year from the original purchased claim date. All equipment which has reached their end-of-life are required to be replaced immediately.
In summary, the monthly service fees for Guest Internet Access at Even Hotels are influenced by the choice of regional providers, the size and number of meeting rooms, the need for additional hardware or maintenance, and the costs associated with software and hardware renewals or replacements. Prospective franchisees should carefully consider these factors and discuss them with the franchisor to understand the potential range of these fees for their specific location and business needs.