Is VOCO a good franchise to buy?

VOCO shows several positive indicators: transparent financial performance data (Item 19). However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

VOCO

Holiday Hospitality Franchising, LLC offers franchises for voco® hotels, upscale properties that combine the informality and charm of independent hotels with the quality and reassurance of a global brand. Franchisees operate hotels typically with 100-200 guest rooms, providing distinctive accommodations and services featuring playful, memorable touches on a sustainable platform. The business model targets upscale travelers seeking reliable yet unique stays, with licensees accessing brand standards, reservation systems, loyalty programs, marketing, and training from the franchisor.

$5589K–$43040K

Investment

Since 2020

Franchising

Hospitality & LodgingAtlanta, GAInterContinental Hotels Group PLCdevelopment.ihg.comDisclaimer

Franchise Costs

Franchise Fee

$214,000

Item 5 of FDD

Initial Investment Range

$5,588,500 – $43,039,700

Low: $5,588,500High: $43,039,700

Item 7 of FDD

Royalty Rate

N/A

Brand Fund

N/A

Item 6 of FDD

Financial Performance

Item 19 Financial Performance

Data Based On: 5 voco branded Mature Hotels operating in the United States for the 2023 fiscal year, including licensed or owned/managed units.

* The document provides Average RevPAR ($174.13), Average Daily Room Rate (ADR, $233.79), and Average Occupancy Rate (74.5%) for 'Mature Hotels' for the year ended December 31, 2023. These are per-room or percentage metrics, not total 'gross revenue per franchise unit' as defined in the instructions, which should be a dollar amount typically in the range of $100K - $10M per unit. Without the total number of available rooms or other unit-level revenue data, the average total gross revenue per unit cannot be derived. Therefore, average_gross_revenue and related quartile/median fields are set to null. No explicit net income, net profit, or EBITDA figures or sufficient expense data for estimation are provided. The sample of 5 Mature Hotels includes units that were 'licensed or, alternatively, owned and/or managed' and does not provide a breakdown of franchised vs. company-owned units.

Extracted Item 19 Section

How VOCO Compares

Franchise	Investment	Fee	Royalty	Locations
VOCO Current	$5.6M – $43.0M	$214K	N/A	N/A
QUALITY INN	$317K – $2.0M	$45K	5.3%	1,621
SUPER 8	$4.7M – $6.9M	$25K	5.5%	1,375
DAYS INN, DAYS HOTEL AND DAYS INN & SUITES	$7.6M – $9.4M	$35K	5.5%	1,235
LA QUINTA INN & SUITES	$12.8M – $17.2M	$55K	5.5%	884
RED ROOF PLUS AND SUITES	$7.3M – $8.9M	$27K	5.0%	584
Hotels Average 34 franchises	$7.8M – $18.0M	$46K	5.2%	–

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 34 Hotels franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2023)

Outlets by state across the United States

Top States

1NY

2FL

4IL

5LA

Due Diligence

Litigation (Item 3)

Franchisee Cases31

Primarily fee collection, liquidated damages, and termination disputes initiated by franchisor against franchisees; multiple putative class actions alleging improper vendor requirements, kickbacks, and franchise practices violations; individual disputes involving breach of contract, misrepresentation in renovations or change of ownership, non-renewal, de-identification, sale interference, and system disruptions.