InterContinental Hotels Group vs GUESTHOUSE Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of InterContinental Hotels Group vs GUESTHOUSE including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
InterContinental Hotels Group Franchise
GUESTHOUSE Franchise
Investment $70,494,125 - $103,087,610$118,000 - $1,918,500
Franchise Fee $75,000$15,000
Royalty Fee 5%3%year1, 3.5%thereafter
Advertising Fee -1.5%
Year Founded 19521987
Year Franchised 19541987
Term Of Agreement Varies; avg. 10 years10 years, 5 years thereafter
Term Of Agreement Varies; avg. 10 years10 years, 5 years thereafter
Renewal Fee Varies-


Business Experience Requirements

 
InterContinental Hotels Group Franchise
GUESTHOUSE Franchise
Experience --

Financing Options

 
InterContinental Hotels Group Franchise
GUESTHOUSE Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/Yes-/-
Start-up Costs No/Yes-/-
Equipment No/Yes-/-
Inventory No/Yes-/-
Receivables No/Yes-/-
Payroll No/Yes-/-

Training & Support

 
InterContinental Hotels Group Franchise
GUESTHOUSE Franchise
Training On-The-Job Training Classroom Training -
Support Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform -
Marketing Co-op advertising, Ad slicks, National media, Regional advertising-
Operations 1% of all franchisees own more than one unit

Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators)

-

Expansion Plans

 
InterContinental Hotels Group Franchise
GUESTHOUSE Franchise
US Expansion Yes-
Canada Expansion NoNo
International Expansion YesNo

Company Overviews

About InterContinental Hotels Group

InterContinental Hotels Group is a leading global hospitality group, with more than 3,500 hotels and 534,000 guest rooms across nearly 100 countries and territories. Every year more than 120 million people find a welcome at one of our lodging brands.

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"Entrepreneur
#483 in Franchise 500 for 2020.


About GUESTHOUSE

GuestHouse International Inns Hotels and Suites evolved from the first GuestHouse Inn & Suites in Little Rock AR in 1987 to become a leading mid-market brand with 70+ properties across America and China. GuestHouse International's most popular standard amenities include complimentary continental breakfast, freshly baked Belgian waffles, 25" remote-controlled TV's with free sports, movie and all news channels, data ports, In-room coffeemakers, free parking, and high speed internet access. The GuestHouse International franchise support system is one of the best in the industry. Franchise Service Managers provide support from initial opening to front desk training to outside sales assistance. Our Brand Assurance team helps property managers maintain the highest possible standards to ensure guest satisfaction and increase success. InnLink Central Reservation Systems (located in GuestHouse Int'l corporate headquarters) delivers GDS, voice and branded reservation services at www.guesthouseintl.com. Guest House International franchise agreements reward success and a true working relationship between owner and franchisor. In December 2006, GuestHouse International was purchased by Settle Inn LLC. In 2005 Settle Inn LLC, working with the AAFD, developed a franchise agreement that has been awarded the most franchise friendly contract in the lodging industry. As with Settle Inn LLC, GuestHouse International is committed to delivering exceptional service to our franchisees.

The total investment necessary to convert an existing hotel into a 70-room GuestHouse Extended Stay Hotel is $118,000 to $1,918,500. This estimate includes $21,000 to $22,000 that must be paid to the franchisor.
The total investment necessary for a newly constructed 70-room GuestHouse Extended Stay Hotel is $3,765,500 to $7,369,000, excluding the cost of purchasing or leasing land or any real estate taxes. This estimate includes $21,000 that must be paid to the franchisor.