What are Even Hotels required to allocate for reward night redemption by members of the Loyalty Program?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels are required to allocate a certain percentage of their rooms inventory for reward night redemption by members of the Loyalty Program. The reimbursement amounts that Hotels will receive when members redeem their points for rewards stays is specified by the Loyalty Program. SCH reserves the right to modify the Loyalty Program at any time, including, without limitation, the costs, the reward night redemption reimbursement amounts and the calculation factors.
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels's 2025 Franchise Disclosure Document, hotels are required to allocate a certain percentage of their rooms inventory for reward night redemption by members of the Loyalty Program. The reimbursement amounts that hotels will receive when members redeem their points for rewards stays is specified by the Loyalty Program. SCH reserves the right to modify the Loyalty Program at any time, including, without limitation, the costs, the reward night redemption reimbursement amounts and the calculation factors.
This means that as an Even Hotels franchisee, you must set aside a portion of your available rooms for guests who wish to use their loyalty points for free stays. The exact percentage of rooms to be allocated is not specified in this document, but it is a requirement of participating in the IHG One Rewards program. The amount Even Hotels will be reimbursed for these reward stays is determined by the Loyalty Program, and is subject to change at the discretion of SCH.
This requirement ensures that loyalty program members can actually use their points, which is crucial for the program's success. However, it also means that Even Hotels franchisees may have to forgo potential revenue from paying guests to accommodate reward night redemptions. Franchisees should inquire about the specific percentage of rooms required for allocation, the current reimbursement rates, and any potential changes to the program that could affect their revenue.