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avid hotels Franchise Fees 2024: Royalty, Marketing and Initial Fee
avid hotels is a midscale brand from IHG. Here is what it charges to join and to stay in the system, where the numbers come from, and how they compare with similar brands.
avid hotels fees at a glance
| Initial fee | $500 per room, minimum $50,000 |
|---|---|
| Royalty | 5% |
| Marketing or program fee | 3% (Services Contribution) |
| Royalty plus marketing | 8% of rooms revenue |
| Franchisor | IHG |
| Segment | Midscale |
| Disclosure year | 2024 |
Note: Amended 2024 FDD (issued March 28, 2024, amended June 28, 2024) on file with the Minnesota Department of Commerce; IHG has not filed a newer FDD there. Also a loyalty program contribution on member stays.
Source: Read in avid hotels’s 2024 Franchise Disclosure Document (FDD). Source 1
How avid hotels compares
avid hotels’s royalty and marketing fees add up to 8% of rooms revenue. That is below the 8.6% average for the 13 midscale brands in our table with a comparable headline figure, the lowest of the 13.
| Midscale brand | Franchisor | Royalty | Marketing | Headline |
|---|---|---|---|---|
| Red Lion Hotels / Red Lion Inn & Suites | Sonesta | 5% of GRR | 3% of GRR | 8% |
| AmericInn by Wyndham | Wyndham | 5% of gross revenues | 3.25% (2% marketing plus 1.25% reservation fee) | 8.25% |
| Garner | IHG | 5.5% | 3% (Services Contribution) | 8.5% |
| Ramada by Wyndham | Wyndham | 5% | 3.5% (2% marketing plus 1.5% reservation fee) | 8.5% |
| Baymont by Wyndham | Wyndham | 5% | 3.5% (System Assessment Fee) | 8.5% |
| Sonesta Essential | Sonesta | 5% | 3.5% (Brand Promotion Fee; can rise to 4.5%) | 8.5% |
| Quality Inn | Choice Hotels | 5.25% | 3.5% (Marketing and Reservation Fee) | 8.75% |
| Clarion | Choice Hotels | 5.5% | 3.25% (Marketing and Reservation Fee) | 8.75% |
| Clarion Pointe | Choice Hotels | 5.5% | 3.25% (Marketing and Reservation Fee) | 8.75% |
| Park Inn by Radisson | Choice Hotels | 5.5% | 3.25% (Marketing and Reservation Fee) | 8.75% |
What the headline number leaves out
Royalty and marketing are only the start. Most brands also charge for reservations and distribution, loyalty-program assessments on member stays, required technology and property-management systems, training and quality assurance. Brands also negotiate: ramp-up royalty discounts, key money and conversion incentives are common. Ask IHG for its estimate of total fees as a share of rooms revenue, and read Items 5 and 6 of the current FDD before you sign. Our analysis of what owners really pay a brand puts the typical all-in bill at 10% to 13% of rooms revenue.
Other IHG brands
Holiday Inn Express · Holiday Inn · Candlewood Suites · Staybridge Suites · Crowne Plaza · Atwell Suites · Garner · voco · Hotel Indigo · EVEN Hotels · Kimpton · InterContinental · Vignette Collection · Noted Collection
Keep going
- Compare franchise fees for all 164 brands
- Price per key, cap rate and OTA cost calculators
- Hotels for sale across the U.S.
- 2026 hotel sales tracker
The Hotelier Times is a publisher, not a franchise adviser. Fees change; confirm every figure in the brand’s current Franchise Disclosure Document. Spot an error? Email nathan@hoteliertimes.com.