What are the caps on the year-over-year increase in fees for Even Hotels related to the Groups & Meetings fee?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
at the IHGBE program rate. Hotels agree to pay any GDS or Third -Party fees associated with IHGBE clients.
Groups & Meetings ("G&M") Fee: The 4% fee applies to definite room revenue sourced through MeetingBroker, even if the MeetingBroker status is not listed as "Definite". If the "Definite" consumed revenue has not been updated in MeetingBroker at the time of billing, the fee will apply to the contracted or "presumed" room revenue (i.e., the number of room nights and room rate that were agreed upon when contracted). The funds collected through the Groups & Meetings Fee are reinvested into improving G&M tools and programs. Hotels agree to pay commissions due to third-parties sourcing through MeetingBroker. There is a $15,000 cap on the year-over-year increase in fees and a $30,000
fee limit per booking. New
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, there are caps on the year-over-year increase in the Groups & Meetings (G&M) Fee. The document states that there is a $15,000 cap on the year-over-year increase in these fees. Additionally, there is a $30,000 fee limit per booking. This means that the total G&M fee for any single booking will not exceed $30,000, regardless of the revenue generated from that booking.
For a prospective Even Hotels franchisee, this is important because it provides some predictability and limitation on the potential costs associated with the G&M Fee. The $15,000 cap on the year-over-year increase means that even if the hotel's revenue from groups and meetings increases significantly from one year to the next, the increase in the G&M fees will be limited to this amount. This can help franchisees budget and manage their expenses more effectively.
New Even Hotels entering the system will have the fee cap applied after their first year of operation as an IHG hotel. This initial period without the cap might allow for some flexibility in the first year, but franchisees should be prepared for the cap to take effect in subsequent years. It's also important to note that hotels are responsible for paying commissions to third parties sourcing through MeetingBroker, in addition to the G&M TMC Fee.