The profitability of a Holiday Inn franchise owner varies widely based on location, property size, and the specific brand tier (e.g., Holiday Inn Express vs. full-service Holiday Inn). On average, a successful Holiday Inn Express—which is the more common and often more profitable model due to lower overhead—can generate an annual net operating income (NOI) between $600,000 and $1.2 million. While gross revenues for a 100-room property might hover around $2.5 million to $4 million, owners must contend with significant expenses. These include a 6% royalty fee on gross room revenue paid to IHG (InterContinental Hotels Group), a 3% to 4% marketing/loyalty fee, and high operational costs for labor, utilities, and property taxes. The initial investment to open a Holiday Inn is substantial, typically ranging from $8 million to $30 million, meaning owners often spend the first 7 to 10 years of operation servicing debt before seeing significant personal take-home pay. Profit margins usually sit between 15% and 30% of gross revenue for well-managed properties in 2026's competitive hospitality market.