voco

voco

Information based on 2024 FDD

Lodging & Hospitality · Hotels, Resorts

Investment min
$6M
Total: $6M–$43M
Avg gross revenue
N/A
Unit-level, 2024
Franchise fee
$75K
Per current disclosure
Royalty
5%
of gross revenue
Locations
9
Franchising since 220

Description

What is voco?

voco, part of the InterContinental Hotels Group (IHG) family, represents a fresh and dynamic approach to upscale hospitality. Launched in 2018, this innovative hotel brand combines the reliability of a global hospitality leader with a distinctive, locally-inspired character that sets it apart in the premium accommodation sector.

The name 'voco' is derived from Latin, meaning 'to invite' or 'to come together,' reflecting the brand's core philosophy of providing a welcoming, personalized experience for every guest. Each voco property offers a unique blend of familiar comforts and unexpected local touches, creating memorable stays that go beyond traditional hotel experiences.

What sets voco apart is its commitment to sustainable practices while maintaining premium quality. The brand is known for its eco-conscious initiatives, including high-quality bedding made from recycled materials and thoughtful amenities that minimize environmental impact without compromising on luxury.

voco hotels are designed to be more than just places to stay; they're social hubs that celebrate their local surroundings. From the architecture to the dining experiences, each property reflects its location's distinct character and culture. The brand's signature hosting style combines professional service with an informal warmth that makes guests feel instantly at home.

For business travelers and leisure guests alike, voco offers modern amenities, versatile meeting spaces, and comfortable rooms that blend contemporary design with practical functionality. The brand's rapid growth since its inception demonstrates its strong appeal in the upscale hospitality market, particularly among discerning travelers seeking authentic, sustainable, and memorable hotel experiences.
  • Lower entry investment than sub-sector average ($5.57M vs $8.45M)
  • IHG Hotels & Resorts upscale brand launched in 2018
  • Premium positioning targeting upscale business and leisure travelers
  • Established franchisor operational support and reservation systems
  • Early-stage growth opportunities with only 9 active units
  • Access to IHG's comprehensive hospitality infrastructure and expertise

Location Analysis

Where voco wins

voco, established in 2018, is an upscale hotel brand with an emerging global presence, currently in early stages of its U.S. market development. As a relatively new entrant in the premium hospitality segment, the brand is in its initial expansion phase, particularly regarding its North American operations. While specific ratings and reviews are still developing in our current data, voco positions itself in the premium hospitality market segment, targeting strategic urban and destination markets. The brand's expansion strategy typically involves converting existing properties in high-value locations rather than new construction, enabling faster market penetration while maintaining upscale positioning. Ideal prospective locations for voco properties include major metropolitan areas, business districts, and tourism destinations with sustained year-round demand. Success factors for potential locations include proximity to corporate offices, entertainment venues, and transportation hubs, with properties typically requiring substantial room inventory to support full-service amenities. Market opportunities exist primarily in underserved premium hotel markets, particularly in growing secondary cities with strong corporate presence and tourism infrastructure. For prospective franchisees, target markets should demonstrate strong RevPAR metrics, established business travel patterns, and robust tourism fundamentals. Given the brand's recent establishment and current development stage, significant expansion potential exists, particularly in markets experiencing population growth and increased business development.
Total US locations
9
Franchise units
9
Corporate locations
0
Avg. sq. footage
N/A
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Financial Analysis

The numbers behind voco

Avg gross revenueN/A
Investment range$5,573,500 – $43,039,700
Investment midpoint$24,306,600
Brand fund$10/approved guest room
Royalty5%
Franchise fee$75,000
Min. net worth
Min. liquid capital
voco represents a **premium hotel investment opportunity** within IHG Hotels & Resorts' upscale portfolio, requiring substantial capital commitment starting at **$5.57 million** with an unknown maximum investment range. This entry point falls **34% below** the sub-sector average minimum of **$8.45 million**, potentially offering more accessible entry into upscale hospitality compared to the 109 total franchises in the hotels and resorts segment.

The lodging industry benefits from recovering travel demand and corporate accommodation needs, with upscale brands like voco targeting business travelers and leisure guests seeking elevated experiences. Revenue data is not currently available for comparison against the sub-sector average of **$1,502**.

The **limited 9-unit system** reflects voco's 2018 launch as a relatively new brand, representing both opportunity and risk for early adopters entering an emerging franchise with significant growth potential. As an **IHG brand launched in 2018**, voco leverages the franchisor's extensive hospitality infrastructure, reservation systems, and operational expertise while establishing its unique market position.

Ideal investors require **substantial liquid capital** and hospitality experience, given the operational complexity of upscale hotel management. The investment suits experienced hotel operators seeking to enter the growing upscale segment, with multi-unit development opportunities available given the system's early development stage.

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$6M–$43M
Most common
$5,573,500
Minimum
$24,306,600
Midpoint
$43,039,700
Maximum

Per FDD Item 7, total initial investment ranges from $5,573,500 to $43,039,700. The midpoint $24,306,600 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

Growth over time

Franchise footprint

+29% YoY
1086420
2018
2019
2020
2021
2022
2023
2024
9 units open as of 2024 FDD+2 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for voco's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a voco franchise typically ranges between $5,573,500.00 and $43,039,700.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

voco
voco
N/A avg revenue · 9+ US franchises

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