factual

To whom are the Even Hotels IHG Business Edge Program Booking Fees payable?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

TYPE OF FEE AMOUNT DUE DATE REMARKS
Royalty
Royalty 5% of Gross Rooms Revenue (“GRR”). Monthly, on the 15th of the following month (Payable to Holiday) Note 1
Casualty Royalty 2% of GRR based on average GRR for preceding 12 months Monthly, on the 15th of the following month (payable to Holiday) Note 1
Sales and Marketing
Services Contribution 3.5% of GRR (combined marketing, reservations & training fee). Same as Royalty Note 2
Initial Marketing Contribution to Loyalty Program $10.00 per approved guest room. At same time as 1st Royalty Payment (one- time charge) (Payable to SCH) Note 3
Loyalty Program Contribution 4.55% of Qualifying Full Folio Revenue from Loyalty Program members. 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members. Same date as Royalty (Payable to SCH) Note 3
Local Marketing Programs Varies depending on actual cost Varies (Payable to Holiday or 3rd party engaged by Licensee) Note 4
Promotions Required & Optional Advertising Materials On request (payable to Holiday) Note 4
Third Party Distribution Connection Fees
Travel Agent Commissions (IHG Commission Services) 10% (minimum) commission on GRR (or other commission that Holiday designates). Monthly (Payable to SCH) Note 5
IHG Ignite Digital Marketing Fees 2.25% commission on all consumed direct digital revenue booked. Monthly (Payable to SCH or intermediary) Note 5
TMC (formerly known as BTA) Revenue Program Hotels pay an override fee of 2.25% on qualifying consumed room nights only, with a maximum annual payment of $20,000 USD (or equivalent local currency). Monthly (Payable to SCH) Note 5
GDS Fees $6.40 per reservation Monthly (Payable to service provider) Note 5
IHG Business Edge Program Booking Fees 4% of consumed transient revenue booked through the IHG Business Edge Program. IHG One Rewards Measured Standards are Monthly (Payable to SCH) Note 5

Source: Item 6 — OTHER FEES (FDD pages 30–52)

What This Means (2025 FDD)

According to Even Hotels's 2025 Franchise Disclosure Document, the IHG Business Edge Program Booking Fees are payable to SCH (presumably Six Continents Hotels, Inc. or a related entity). This fee is equal to 4% of the consumed transient revenue booked through the IHG Business Edge Program.

The IHG Business Edge Program is designed to generate incremental revenue from mid-market and local accounts for IHG hotels by developing new accounts. As part of the program, Even Hotels franchisees agree to honor discount percentages attached to these accounts, which range from 4.0% to 14.5% off the Best Flexible Rate (BFR), subject to change.

Franchisees should be aware that these fees are collected monthly. Additionally, Even Hotels franchisees also agree to pay any GDS or Third-Party fees associated with IHGBE clients. All hotels are automatically enrolled in the IHG Business Edge Program, but hotels can opt-out; however, if they opt out, they will not receive any bookings from the IHGBE program.

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.