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Hotel Indigo Franchise Fees 2024: Royalty, Marketing and Initial Fee
Hotel Indigo is a lifestyle 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.
Hotel Indigo fees at a glance
| Initial fee | $500 per room, minimum $75,000 |
|---|---|
| Royalty | 5% |
| Marketing or program fee | 3.5% (Services Contribution) |
| Royalty plus marketing | 8.5% of rooms revenue |
| Franchisor | IHG |
| Segment | Lifestyle |
| 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 Hotel Indigo’s 2024 Franchise Disclosure Document (FDD). Source 1
How Hotel Indigo compares
Hotel Indigo’s royalty and marketing fees add up to 8.5% of rooms revenue. That is right at the 8.5% average for the 10 lifestyle brands in our table with a comparable headline figure, the 4th-lowest of the 10.
| Lifestyle brand | Franchisor | Royalty | Marketing | Headline |
|---|---|---|---|---|
| Motto by Hilton | Hilton | 5% | 3% | 8% |
| Unscripted by Hyatt | Hyatt | 5% | 3% (Commercial Services Fee; 3.5% with more than 5,000 sq ft of meeting space) | 8% |
| TRYP by Wyndham | Wyndham | 5% | 3% (Marketing and Reservation Fee) | 8% |
| Caption by Hyatt | Hyatt | 5% | 3.5% (Commercial Services Fee) | 8.5% |
| The StandardX | Hyatt | 5% | 3.5% (Commercial Services Fee) | 8.5% |
| The James Hotels | Sonesta | 5% | 3.5% (Brand Promotion Fee; can rise to 4.5%) | 8.5% |
| Canopy by Hilton | Hilton | 5% | 4% | 9% |
| Tempo by Hilton | Hilton | 5% | 4% | 9% |
| Graduate by Hilton | Hilton | 5% | 4% | 9% |
| AC Hotels | Marriott | 6% | 2.5% | — |
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.
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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.