Hotel Indigo logo

Hotel Indigo

Hotels

Investment

$10,200,176

Initial Franchise Fee

$75,000

Units

174

Growth Rate

+29.9%

Overview About Investment Territories Support Operations Ranking History

Overview

Industry Lodging
Founded 2004
Franchising Since 2004
Parent Company IHG Hotels & Resorts
Leadership Jolyon Bulley, CEO, Americas
# of Employees at HQ 1711

Units and Growth Chart

About Hotel Indigo

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.

Investment Details

Initial Franchise Fee $75,000
Initial Investment $10,200,176 - $46,917,003
Net Worth Requirement
Cash Requirement
Royalty Fee 5%
Ad Royalty Fee 0
Technology Fee $17/room/mo.
Term of Agreement 20 years (average)
Is Franchise Term Renewable? Yes
Financing Third Party
Veterans Incentive N/A

Available Territories

Franchising opportunities available in the following regions

United States International

Training & Support Programs

Comprehensive training and ongoing support to help you succeed

Training

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

Ad Templates
National Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations & Requirements

Key operational details and requirements for 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
# of employees required to run N/A
Are exclusive territories available? No

Ranking History

Hotel Indigo performance in the Franchise rankings over recent years

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022