2004
130
$12,000,000
$75,000
$40,000,000
No
Hotel Indigo is a premium boutique hotel franchise by InterContinental Hotels Group (IHG), designed to deliver an upscale, locally inspired lodging experience that reflects the unique personality of its neighborhood. Positioned between luxury and lifestyle segments, Hotel Indigo captures the essence of authentic hospitality with a modern, artistic, and community-driven appeal. Each property is uniquely crafted to blend into its surroundings—celebrating local art, culture, cuisine, and history—while offering guests the reliability, standards, and rewards of one of the world’s largest hotel companies, IHG Hotels & Resorts.
With over 130 Hotel Indigo locations worldwide and a rapidly growing footprint in the United States, this brand has become synonymous with experiential travel. Its ability to merge design-forward interiors, culinary innovation, and high-end guest service creates a one-of-a-kind experience for travelers seeking authenticity over uniformity. For investors, Hotel Indigo represents a rare opportunity to join a globally recognized brand with the flexibility of a boutique operation and the power of IHG’s marketing, loyalty, and distribution systems.
Investing in a Hotel Indigo franchise means joining a dynamic global brand that thrives at the intersection of luxury and local culture. Boutique and lifestyle hotels are among the fastest-growing segments in the hospitality industry, fueled by travelers who crave individuality, personalized service, and immersive local experiences. Hotel Indigo meets that demand by offering upscale accommodations that are anything but generic—each location tells a story inspired by its neighborhood.
Backed by IHG’s world-class support infrastructure, franchisees benefit from cutting-edge technology, strong brand equity, and access to over 100 million IHG One Rewards members. The franchise also provides owners with scalable operations, competitive fee structures, and industry-leading revenue management tools. Whether located in a vibrant downtown, a historic district, or an up-and-coming urban area, a Hotel Indigo property delivers exceptional occupancy rates and profitability through brand differentiation and a loyal customer base.
Hotel Indigo was founded in 2004 as part of InterContinental Hotels Group (IHG), one of the world’s largest hotel companies with more than 6,000 properties across 100+ countries. The first Hotel Indigo opened in Atlanta, Georgia, marking the beginning of a brand that would redefine boutique hospitality on a global scale.
Today, Hotel Indigo has expanded to over 130 properties open and more than 120 in development, with a strong presence in the United States, Europe, and Asia-Pacific. The brand is fully owned and operated under the IHG umbrella, alongside well-known names like InterContinental, Holiday Inn, Crowne Plaza, and Kimpton Hotels.
IHG’s deep expertise in hotel management, development, and franchise operations ensures that each Hotel Indigo maintains high operational standards while allowing creative freedom in design and storytelling. The franchise targets culturally rich, high-traffic areas—urban centers, college towns, coastal regions, and historic neighborhoods—making each property distinct yet consistently aligned with IHG’s promise of quality and service.
Hotel Indigo franchisees receive a comprehensive support package from IHG that covers every stage of the business journey—from concept development to ongoing operations.
Pre-Opening Support:
Assistance with site selection, feasibility studies, and architectural planning
Design and construction consulting to maintain the brand’s boutique aesthetic while reflecting local identity
Vendor selection, procurement, and operational setup guidance
Training & Onboarding:
Intensive training programs for franchise owners, general managers, and staff covering operations, guest experience, and brand standards
Access to IHG’s Learning and Development platform, offering ongoing education and leadership training
Marketing & Sales Support:
Inclusion in IHG’s global distribution system (GDS), brand website, and mobile app
Marketing campaigns through IHG’s global network, social media channels, and PR collaborations
Access to IHG One Rewards, the company’s powerful loyalty program with over 100 million members worldwide
Operational Support:
Dedicated franchise performance team offering ongoing consultation
Revenue management, pricing optimization, and guest satisfaction analytics tools
24/7 operational assistance and benchmarking data for improved decision-making
The ideal Hotel Indigo franchisee is an experienced hotel operator or investor with a strong understanding of the hospitality or real estate sectors. This franchise is best suited for entrepreneurs who value design, culture, and local storytelling and who wish to be part of a globally respected brand that promotes individuality and creativity.
Preferred candidate traits:
Background in hotel management, tourism, or real estate investment
Financial capacity to invest in upscale hospitality projects
Passion for design, local culture, and personalized guest experiences
Commitment to maintaining brand integrity while showcasing local flair
Ideal for developers targeting urban markets, cultural districts, college towns, or tourist destinations
Hotel Indigo appeals to both individual investors and institutional developers who recognize the growth potential in lifestyle and boutique accommodations within the U.S. market.
Investing in a Hotel Indigo franchise involves a commitment consistent with upper-upscale hospitality brands, but the return potential and brand strength justify the cost. Below is an approximate financial breakdown based on U.S. franchise disclosure data and industry averages:
| Investment Category | Estimated Cost (USD) |
|---|---|
| Total Investment Range | $12 million – $40 million |
| Minimum Liquid Capital | $2.5 million – $5 million |
| Franchise Fee | $75,000 – $85,000 |
| Royalty Fee | 5% of gross room revenue |
| Marketing/Advertising Fee | 3% of gross revenue |
| Working Capital | $500,000 – $1 million |
| Average Unit Size | 100–200 rooms |
| Break-Even Time | 3–5 years |
| ROI Potential | 10–15% annually (varies by market and occupancy) |
| Revenue Streams | Room bookings, dining, events, bar/lounge services, and local partnerships |
Hotel Indigo’s ability to blend local identity with global brand support has made it a preferred choice for developers and guests alike. With the growing demand for lifestyle hotels, the brand is strategically positioned for long-term success and high-value returns across the U.S. market.
