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- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$19.4M - $41.6M
- Units as of 2022
134 22.9% over 3 years
Hotel Indigo is a hotel chain owned by InterContinental Hotels Group. Since InterContinental Hotels Group purchased Hotel Indigo in 2004, they've opened over 115 units across the world. Over 60 of their franchises are located in the United States, potentially making Hotel Indigo an intriguing business venture for those looking to own a franchise in the United States and abroad alike.
Hotel Indigo prides itself on being one of the first branded boutique hotels. It aims to provide its guests with an affordable and luxurious hotel stay that connects them with the local culture and community. All their beddings, murals, menus, and décor are locally sourced to benefit the immediate community. This means that each location is unique, but on par with their stringent standards.
Why You May Want to Open a Hotel Indigo Franchise
Hotel Indigo is one of the few branded boutique hotels in the hospitality industry, potentially giving you a unique advantage in attracting clients. Besides the free marketing that comes with the brand name, you may receive unlimited marketing support from the franchisor, be it location referral or placing ads.
Opening a Hotel Indigo franchise may give you a chance to become a hotel owner without the hustle of building a hotel from scratch. But this doesn't mean you won't be able to enjoy the creative process behind hotel design. Because each location is unique to the locale, you can likely design your hotel according to your preference.
The franchisor takes it upon themselves to ensure you have constant support in running your business. Having prior hotel industry experience will help your chances of becoming a franchisee, but it's not mandatory. Every franchisee must attend a training course on how to operate their new Hotel Indigo location.
What Might Make a Hotel Indigo Franchise a Good Choice?
To open a Hotel Indigo franchise, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. Additionally, you should prepare yourself for ongoing fees that will include royalty fees and potential renewal fees.
How To Open a Hotel Indigo Franchise
Opening a Hotel Indigo franchise may be easier than you may think. First things first, you should submit an inquiry form. A representative may get back to you and take you through everything you may need to know about the franchising process. If both sides are still interested, the representative will set up a face-to-face appointment to move forward with an official application, background checks, and other necessary paperwork.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. Speak to existing franchisees and ask the Hotel Indigo team questions. If the Hotel Indigo team likes you and you pass the financial background check, you may qualify to open a Hotel Indigo franchise. In that case, you can get started with an initial investment and all relevant training.
It may be a good idea to speak with an attorney or financial advisor in order to ensure that you possess the necessary funds to own and operate a Hotel Indigo location.
About Hotel Indigo
- Franchising Since
- 2004 (19 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees worldwide.
- # of Units
- 134 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Hotel Indigo franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $19,431,600 - $41,599,200
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Term of Agreement
- 20 years (average)
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Hotel Indigo has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- Classroom Training
- Ongoing Support
Meetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesNational MediaSEOWebsite DevelopmentLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Hotel Indigo? Request a free consultation with a Franchise Advisor now.
Curious to know where Hotel Indigo ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Hotel Indigo.
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