IHG launched franchise sales efforts for its newest brand, Atwell Suites, in the United States. The company expects the upper-midscale brand’s first locations to begin construction in early 2020 and open in 2021.
The company’s current offer includes:
- Target build cost between $105,000 – $115,000 per key (excluding land costs), with estimated site size of 2 acres
- 5 percent royalty fee
- 4.75 percent loyalty rate
- A 2 percent royalty fee discount in year one for license agreements that are signed before March 2021 and a 1 percent royalty fee discount in year two if all opening milestones are achieved.
Atwell Suites’ initial development is focused in the U.S. market and will predominantly consist of new-builds, following a prototypical design, with conversions being considered on a case-by-case basis. In August, IHG said it had received more than 50 expressions of interest from owners interested in developing the Atwell Suites brand since it first launched in May.
“We used extensive consumer research and insights, as well as close collaboration with our existing owners, to create Atwell Suites as a unique brand that is both efficient for owners and inspiring for guests,” Jennifer Gribble, VP for Atwell Suites, said in a statement. “We’re excited to bring a new brand to the marketplace that creates an environment where guests can be at their most inspired, most productive and most rested.”