Must the construction of an Even Hotels location be approved by IHG in writing before opening?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
x (6) months, but less than or equal to twelve (12) months must be accompanied by an extension fee equal to $10,000. Requests for more than a twelve (12) month extension must be accompanied by a sum equal to one half (1/2) of the then current standard minimum application fee for the proposed number of rooms for the Hotel. IHG's approval of extension requests must be delivered in writing and such approval is not automatic. Licensee will be responsible for any and all expenses that may be incurred by IHG in the processing of an extension request. Extensions beyond 12 months may require resubmittal of final plans, per IHG request.
C. OPENING OF THE HOTEL.
-
- The Hotel shall not be opened for business under the Brand System unless and until:
- (a) IHG has approved and accepted, in advance, in writing:
- (i) the construction of the Hotel in accordance with the Final Plans, the Standards, Life Safety systems, the FF&E Specs, and IHG's requirements; IHG may require Licensee to deliver an architect's certification that the Hotel has been completed in accordance with the Final Plans and a copy of the certificate of occupancy for the Hotel; and,
- (ii) the installation of all items of equipment, furniture, signs, computer terminals and related supplies and other items for opening the Hotel as a Brand System Hotel ,and all is in working order; and
- (iii) the staffing and training of such staff necessary to operate the Hotel in accordance with IHG's requirements;
- (b) no accounts of Licensee are past due to IHG or any of its Affiliates;
- (c) Licensee is in full compliance with all of the terms of this License;
- (d) Licensee has submitted to IHG all certificates of insurance (and copies of insurance policies if requested by IHG) as required under the License;
- (e) Licensee has obtained all necessary governmental approvals, licenses and permits to possess, occupy and operate all areas of the Hotel, according to IHG's requirements, including specifically without limitation, a permanent certificate of occupancy; and
- (f) Licensee has submitted to IHG a post–construction disability compliance certification signed by Licensee and an architect with professional experience applying the requirements of the ADA and the ADA Standards, in the form of Attachment "C" – ADA Certificate.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, written approval from IHG (InterContinental Hotels Group) is required before opening a hotel. Specifically, IHG must approve and accept, in writing and in advance, the construction of the hotel to ensure it aligns with the Final Plans, Standards, Life Safety systems, FF&E Specs (furniture, fixtures, and equipment specifications), and IHG's overall requirements. IHG holds the right to demand an architect's certification confirming the hotel's completion according to the Final Plans, along with a copy of the certificate of occupancy.
Furthermore, the franchisee must notify IHG in writing once all construction, furnishing, and opening requirements are met and the hotel is ready to operate under the Brand System. The franchisee also needs to have a general manager and department managers who have successfully completed IHG's training programs. Ultimately, IHG must grant written approval to open and operate the hotel as an Even Hotels branded property, establishing the official Opening Date.
Even if the Opening Date is set but additional construction, upgrades, renovations, or training are still needed, the franchisee is only authorized to use the Brand System and identify the hotel as an Even Hotels location while diligently completing this 'Additional Work'. Failure to complete this additional work on time constitutes a default under the license agreement. IHG retains the right to review any Additional Work and ensure the hotel complies with all requirements after the review.
IHG may, in its sole judgment, allow the franchisee to open and operate the hotel as an Even Hotels location even if not all terms of the license have been fully met, provided the franchisee agrees to fulfill all remaining terms by the dates IHG establishes as a condition of allowing the opening. This conditional opening underscores the importance of adhering to IHG's standards and requirements throughout the construction and opening phases.