For Even Hotels, what is the 'Services Contribution' used for, according to Holiday?

administrative expenses, and 2% on services from corporate allocations such as Information Technology Data Warehouse, and the Service Center.

The audited Statement of Revenues and Expenses will be prepared each year; however, it is not generally available for review by licensees, and Holiday does not provide periodic accounting reports.

Holiday pools Services Contributions from Brand System hotels together with the Services Contributions from hotels operating under one or more of Holiday's and its affiliates' current and/or future portfolio of brands (see Item 1) ("IHG Portfolio Brands"). The Services Contributions will be distributed for marketing, reservations, IHG System Fund Activities (defined below), and other related activities which, in Holiday's and its affiliates' sole business judgment, support marketing, reservations and other related functions and/or purposes on a local, regional, national, continental or international basis for all, or a group of, IHG Portfolio Brands. "IHG System Fund Activities" means various activities and arrangements organized and operated by Holiday and its affiliates to provide loyalty marketing services, distribution marketing services, brand marketing services and other marketing and related programs and services for Brand System Hotels and the IHG Portfolio Brand Hotels. Holiday has no obligation to spend any amounts on advertising in the vicinity of your Hotel nor does it have any obligation to expend any amounts for marketing or reservation services greater than the amounts it receives from licensees using the Brand System and the funds it contributes. Services Contributions are not intended to benefit any specific market or hotel. Holiday and its affiliates have no obligation to spend from Services Contributions, or otherwise, any amount fixed or proportionate to the amount of Services Contributions you pay, nor does Holiday or any of its affiliates have any obligation to ensure that you, your hotel, the EVEN brand or any other particular IHG Portfolio Brand or group of IHG Portfolio Brands benefit directly or proportionately from Services Contributions paid or expenditures made from collected Services Contributions. Holiday anticipates that all Services Contributions will be expended during the taxable year within which the contributions are made. Any year-end surplus or deficit sums are carried over to the following year. Holiday does not use any Services Contribution monies to promote the sale of licenses.

Hotels that SCH or its affiliates own and manage and all Brand System licensees must make the required Services Contribution in the amounts described in Item 6 (and paragraph 3.B of the License) as applicable to the particular Hotel brand group. In the fiscal year ended December 31, 2024, 49% of the marketing funds went for media, advertising, promotions and marketing programs, 16% for sales, 6% for hotel performance support, 5% for administration (e.g., corporate functions) and 24% for other costs. Unless you participate in any optional marketing programs that Holiday may offer, neither Holiday nor its affiliates will receive payment from additional marketing contributions other than those mentioned in paragraph 3 of the License and Items 6 and 8 of this disclosure document.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 70–82)