Hotel Indigo franchise
2024 filing · March 28, 2024Shares sales figures
Hotel Indigo at a glance
An IHG boutique hotel brand whose design reflects each hotel's neighborhood. At the end of 2023 there were 68 Hotel Indigo locations in the US, all franchised.
The business
- Industry
- Hotel
- Franchisor
- Holiday Hospitality Franchising, LLC
- The company that sells the franchises
What you pay
- Cost to open
- $9.77M–$44.9M
- Typical 150-room hotel, excluding land
- Franchise fee
- $75,000
- $500 per guest room, at least $75,000.
- Royalty
- 5%
- 5% of gross rooms revenue, paid monthly
- Agreement length
- 20 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- Some financing offered
Where it is
- US locations, 2023
- 68
- Franchised and company-owned
- Franchised
- 68
- Company-owned
- 0
- States
- 25
- Most in Georgia, Texas and New York
From Holiday Hospitality Franchising, LLC’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Hotel Indigo among all franchises with the same figure.
| Figure | Hotel Indigo | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $27,341,875 | Costs more than 99% of franchises |
| Franchise feePaid once, when you sign | $75,000 | Higher than 95% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 68 | More than 70% of franchises |
How much a Hotel Indigo franchise costs
Opening typical 150-room hotel, excluding land costs an estimated $9,766,300 to $44,917,450. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are building construction ($5,127,700 to $35,708,800) and furniture, fixtures & equipment ($3,211,100 to $4,600,500). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Application Fee | $75,000 | ||
| Property Improvement Plan (“PIP”) fee | $0 | $10,000 | |
| Building Construction | $5,127,700 | $35,708,800 | |
| Furniture, Fixtures & Equipment | $3,211,100 | $4,600,500 | |
| Operating Supplies & Equipment & Opening Inventory | $480,300 | $818,900 | |
| PMS Equipment: Software; Installation & Training; IHG Concerto™ Access & Training; NGP/Payments Equipment; Software; Installation & Training | $97,000 | $130,000 | |
| Guest Internet Access – Hardware (IHG Connect) | $30,000 | $50,000 | |
| Guest Internet Access – Bandwidth (IHG Connect) | $500 | $3,000 | |
| Key Card System | $11,000 | $22,000 | |
| Guest In Room Entertainment – Hardware, Maintenance, Guest Support & Content | $19,000 | $21,000 | |
| Employee Safety Devices | $25,000 | $30,000 | |
| Technology Systems | $95,150 | $159,150 | |
| Primary Identification Sign (including installation, freight, foundation and wiring) | $16,000 | $40,000 | |
| Openings Preopening Support Fee; to be invoiced within 60 days of license execution by Holiday | $8,500 | ||
| IHG Learning Program: Core Subscription | $3,500 | ||
| Opening Date Extension Fee | $5,000 | ||
| Market Feasibility Study | $0 | $30,000 | |
| Hotel Indigo Property -Specific Logo Creation | $300 | $500 | |
| Hotel Indigo R&B Concept Development | $0 | $80,000 | |
| Hotel Indigo R&B Brand Identity Services & Market Research Study | $15,000 | $75,000 | |
| Professional Fees | $331,000 | $1,814,100 | |
| Security Deposits | $2,500 | $25,000 | |
| Insurance | $43,750 | $187,500 | |
| Hotel Photography | $15,000 | $20,000 | |
| Additional Funds and Prepaid Expenses during the initial phase (first 3 months after opening) | $200,000 | $1,000,000 | |
| Total | $9,766,300 | $44,917,450 | |
Source: Holiday Hospitality Franchising, LLC, 2024 filing, page 64
Hotel Indigo franchise fee
The franchise fee is $75,000, $500 per guest room, at least $75,000.. You pay it when you sign the franchise agreement.
Source: Holiday Hospitality Franchising, LLC, 2024 filing, page 37
Royalty and ongoing fees
| Royalty | 5% of gross rooms revenue, paid monthly. |
|---|---|
| Technology Services Fee | $17.06 per room, per month. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Holiday Hospitality Franchising, LLC, 2024 filing, page 40
Other fees as filed, from page 41. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Hotel Indigo publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Holiday Hospitality Franchising, LLC, 2024 filing, page 104
SBA loans to Hotel Indigo franchisees
Lenders approved one SBA 504 loan for a Hotel Indigo franchisee in 2022, for $5M. It hasn’t been paid off or charged off yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How Hotel Indigo compares
Of the 116 hotel franchises on this site, Hotel Indigo is the 61st cheapest to open and the 50th largest by number of locations.
| Figure | Hotel Indigo | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $9.77M | $9.44M | $222K |
| Cost to open, high end | $44.9M | $21.3M | $477K |
| Franchise fee | $75K | $54K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 68 | 37 | 21 |
| Change in franchised locations, 0 yrs | +4.6% | +9.2% | – |
| Shares earnings figures | Yes | 71 of 116 | 2,147 of 3,352 |
Typical is the median across the 116 brands in hotel franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned |
|---|---|---|
| 2021 | 64 (−1) | 0 |
| 2022 | 71 (+7) | 0 |
| 2023 | 68 (−3) | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: hotel franchise costs and franchise failure rates.
Source: Holiday Hospitality Franchising, LLC, 2024 filing, page 108
Where Hotel Indigo locations are
At the end of 2023, Hotel Indigo had franchised locations in 25 states. The most are in Georgia, Texas and New York.
- Georgia7
- Texas7
- New York6
- California5
- Florida5
- Alabama3
| State | Franchised |
|---|---|
| Georgia | 7 |
| Texas | 7 |
| New York | 6 |
| California | 5 |
| Florida | 5 |
| Alabama | 3 |
| Missouri | 3 |
| Pennsylvania | 3 |
| Tennessee | 3 |
| Washington | 3 |
All 25 states
| Colorado | 2 |
|---|---|
| Illinois | 2 |
| Louisiana | 2 |
| Michigan | 2 |
| Minnesota | 2 |
| North Carolina | 2 |
| Ohio | 2 |
| Indiana | 1 |
| Maryland | 1 |
| Massachusetts | 1 |
| Nebraska | 1 |
| Oklahoma | 1 |
| South Carolina | 1 |
| Virginia | 1 |
| Wisconsin | 1 |
Source: Holiday Hospitality Franchising, LLC, 2024 filing, page 109
Who owns Hotel Indigo?
Hotel Indigo franchises are sold by Holiday Hospitality Franchising, LLC.
From Holiday Hospitality Franchising, LLC’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 21–37. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Holiday Hospitality Franchising, LLC, 2024 filing, litigation on pages 21–37, bankruptcy on page 37
Hotel Indigo filings
The figures on this page come from Holiday Hospitality Franchising, LLC’s 2024 filing, issued March 28, 2024, on record with the Minnesota Department of Commerce.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | March 28, 2024 | Minnesota | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
