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Kimpton Franchise Fees 2024: Royalty, Marketing and Initial Fee
Kimpton is a luxury 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.
Kimpton fees at a glance
| Initial fee | $500 per room, minimum $100,000 |
|---|---|
| Royalty | 6% plus 1% of food and beverage sales |
| Marketing or program fee | 3% (Services Contribution) |
| Royalty plus marketing | Not shown as a single figure (see note) |
| Franchisor | IHG |
| Segment | Luxury |
| 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 Kimpton’s 2024 Franchise Disclosure Document (FDD). Source 1
How Kimpton compares
We don’t show a single headline percentage for Kimpton, because its fees aren’t two simple percentages of rooms revenue; see the note above. Compare the royalty and marketing lines directly with the luxury brands below.
| Luxury brand | Franchisor | Royalty | Marketing | Headline |
|---|---|---|---|---|
| Registry Collection Hotels | Wyndham | 5% (membership fee) | 3% (marketing fee) | 8% |
| LXR Hotels & Resorts | Hilton | 5% | 4% | 9% |
| JW Marriott | Marriott | 6% of gross room sales plus 3% of gross F&B sales | 1% | — |
| The Luxury Collection | Marriott | Not found | Not found | — |
| InterContinental | IHG | 6% plus 2% of food and beverage sales | 3% (Sales and Marketing Services Contribution) | — |
| Thompson Hotels | Hyatt | 5% plus 2% of food and beverage revenue | 3.5% (Commercial Services Fee) | — |
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.