Overall costs for InterContinental Hotels & Resorts run anywhere from $75,681,870 to $108,974,910. See how the costs break down and what funding options might be right for your new venture into the franchise foray.
How COVID-19 affects franchising costs
Strict sanitation and employee protection measures during the coronavirus outbreak add to the typical costs you face when opening a new franchise. Paired with the unusually heavy amount of promotions that may be required by the franchise, you may not see as much in the way of profits starting out. For more information on what support is out there, read our guide to
loans for businesses affected by the coronavirus.
Estimated initial costs
Our cost estimates are accurate as of 2019 from
https://www.franchisedirect.com and include opening fees and expenses only. Your location may result in higher or lower fees.
Equipment fees
Equipment fees total $14,659,105 for InterContinental Hotels & Resorts. This costs more than the $180,023 average for the top 200 franchises.
| Furniture, fixtures and equipment |
$10,533,230 to $17,555,380 |
| Primary identification sign, including installation, freight, foundation and wiring |
$210,000 to $420,000 |
| Equipment, software and training for both |
$124,000 to $187,000 |
| Hardware for guest internet access |
$22,500 to $49,000 |
| Key-card system |
$10,000 to $25,000 |
| Digital and wayfinding signage |
$20,000 to $90,000 |
| In-room entertainment |
$27,000 to $29,000 |
| Employee safety devices |
Initial fee of $125-$150 per room in the first year of installation plus $20.00 to $25.00 per room, per year for software and maintenance support |
| Public access computers |
$7,800 to $8,300 |
| Estimated total |
$10,954,530 to $18,363,680 |
Real estate fees
Real estate will set you back $73,603,695 for InterContinental Hotels & Resorts, which is more expensive than the average of $788,376 for the top 200 franchises.
| Property improvement plan fee |
$0 to $8,500 |
| Land |
Varies to |
| Building construction, including engineering and architectural plans |
$62,530,660 to $84,600,230 |
| Openings and renovations services and training |
$8,000 plus trainer expenses to |
| Security deposits |
$10,000 to $50,000 |
| Estimated total |
$62,548,660 to $84,658,730 |
Training fees
InterContinental Hotels & Resorts initial training costs total $20,590 — more than the nationwide average of $9,788.
| New hotel opening training materials |
$0 to $5,000 |
| Initial certification training program, plus trainer expenses |
$6,180 to $15,000 |
| Pre-opening training, plus trainer expenses |
$7,500 to $7,500 |
| Estimated total |
$13,680 to $27,500 |
Inventory costs
Initial inventory for InterContinental Hotels & Resorts shakes out to $1,575,000. This is more expensive than the nationwide average of $53,119.
| Opening inventory |
$1,050,000 to $2,100,000 |
| Estimated total |
$1,050,000 to $2,100,000 |
Marketing costs
Advertisement and marketing costs total up to $32,500 for InterContinental Hotels & Resorts, which is more than the nationwide average of $9,938.
| Market feasibility study |
$15,000 to $50,000 |
| Estimated total |
$15,000 to $50,000 |
Insurance costs
Initial insurance costs for InterContinental Hotels & Resorts run $412,500. This means you'll be paying more than the overall nationwide average of $6,311.
| Insurance |
$200,000 to $625,000 |
| Estimated total |
$200,000 to $625,000 |
Administrative fees
InterContinental Hotels & Resorts administrative fees total up to $150,000 — which comes in over the overall nationwide average of $6,761.
| Application fee |
$150,000 to $150,000 |
| Financing and closing |
Varies to |
| Estimated total |
$150,000 to $150,000 |
Other expenses
Miscellaneous expenses for InterContinental Hotels & Resorts total $1,875,000 — more than the nationwide average of $69,970.
| Professional fees |
$750,000 to $3,000,000 |
| Estimated total |
$750,000 to $3,000,000 |
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2019.
How to finance
The best way to finance InterContinental Hotels & Resorts comes down to your personal financial situation. What assets you have available will largely determine how much you need to borrow, and which option suits you best. Potential solutions include:
- Bank loan. Your personal credit plays a large role in getting a business term loan from a bank. Typically this type of funding is for larger amounts.
- Online loan. Credit requirements may be more flexible for an online loan than a bank loan, but amounts may max out at a lower amount — typically around $1 million.
- SBA loan. The good part about SBA loans is that they top out at $5 million, but your business has to meet a number of requirements.
- Credit card. Small costs that aren't fixed, such as stray inventory and supply purchases, may be better off on a business credit card. Just make sure you can pay it off quickly to avoid high APRs.
Also check if InterContinental Hotels & Resorts franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.
Compare small business lenders
How InterContinental Hotels & Resorts stacks up
Compare how InterContinental Hotels & Resorts holds up against two similarly sized franchises.
| Average Franchise fees |
$39,500 |
NA |
NA |
| Average Equipment fees |
$13,125 |
$14,659,105 |
NA |
| Average Real estate fees |
$3,000 |
$73,603,695 |
NA |
| Average Training fees |
$2,250 |
$20,590 |
NA |
| Average Inventory fees |
$3,000 |
$1,575,000 |
NA |
| Average Marketing fees |
NA |
$32,500 |
NA |
| Average Licenses and permits fees |
NA |
NA |
NA |
| Average Insurance fees |
$3,700 |
$412,500 |
NA |
| Average Admin fees |
$25,150 |
$150,000 |
NA |
| Average Personnel fees |
NA |
NA |
NA |
| Average Other fees |
$12,000 |
$1,875,000 |
NA |
Bottom line
InterContinental Hotels & Resorts franchise costs run a total of $92,328,390. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing
read our guide to franchise financing.
