Hotel Indigo

Hotel Indigo

Hotels
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2022 Franchise 500 Rank
N/R Not ranked last year
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Initial investment
$18.6M - $40.1M
Units as of 2021
128 43.8% over 3 years

Here’s what you need to know if you’re interested in opening a Hotel Indigo franchise.

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.

Find Your Perfect Franchise

Company Overview

About Hotel Indigo

Industry
Lodging
Related Categories
Hotels & Motels
Founded
2004
Parent Company
IHG Hotels & Resorts
Leadership
Elie Maalouf, CEO, Americas

Franchising Overview

Franchising Since
2004 (18 years)
# of employees at HQ
1,400
Where seeking

This company is seeking new franchisees throughout the US.

This company is seeking new franchisees worldwide.

# of Units
128 (as of 2021)

Franchisor Information

Corporate Address
Three Ravinia Dr., #100
Atlanta, GA 30346

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
$75,000
Initial Investment
$18,640,450 - $40,064,575
Royalty Fee
5%
Term of Agreement
20 years (average)
Is franchise term renewable?
Yes
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Financing Options

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
Varies
Classroom Training
Varies
Ongoing Support
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
Marketing Support
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?
No
Can this franchise be run from home/mobile unit?
No
Can this franchise be run part time?
No
Are exclusive territories available?
No
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Stock History for Hotel Indigo

Ticker Symbol for Hotel Indigo: IHG

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise by Entrepreneur Media. Our franchise listings and rankings are solely research tools you can use to compare franchise operations. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise. That should include reviewing the franchisor's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees.
Updated: February 8th, 2021