For Even Hotels, when does the fee cap apply to new hotels entering the IHG system?

According to Even Hotels' 2025 Franchise Disclosure Document, the fee cap for the Groups & Meetings Fee applies to new hotels entering the IHG system after their first year of operation as an IHG hotel. This fee is 4% of definite room revenue sourced through MeetingBroker.

The Groups & Meetings Fee is subject to certain limits. There is a $15,000 cap on the year-over-year increase in these fees, and a $30,000 fee limit per booking. This means that while the standard fee is 4% of revenue, the amount a franchisee pays won't increase by more than $15,000 compared to the previous year, and any single booking will not incur a fee greater than $30,000.

For a new Even Hotels franchisee, this means that in their initial year, they will pay the full 4% Groups & Meetings Fee without any cap. However, starting in their second year, the caps on year-over-year increases and per-booking fees will apply, potentially reducing their overall costs if they generate significant revenue through MeetingBroker. This delayed application of the fee cap provides some financial relief during the critical startup phase of the hotel.