InterContinental Hotels Group in fight for franchise fees

11 May 2006
InterContinental Hotels Group in fight for franchise fees

InterContinental Hotels Group (IHG) has taken a German company to court in a £4m legal battle over franchise fees.

The case, brought against the Event hotel group, relates to seven Holiday Inn hotels in Germany.

IHG, which began its franchise deal with Event in 1995, ended the agreement in October 2004, alleging it had not received payments.

IHG claims alleged unpaid fees of £859,441, damages of £2.5m and interest. The interest is expected to bring the total claim to more than £4m.

The case is due to end next week, when the judge is expected to reserve her judgment to give a written decision.

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