Radisson Blu Franchise Cost, Revenue & Review 2026
- Investment
- $25.3M – $156.6M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Radisson Blu is an upscale hotel franchise offering full-service, design-forward properties. Franchisees own and operate the hotels, managing guest services, food and beverage, and revenue under brand standards.
FranchiseVerdict summary · 2026
A Radisson Blu franchise requires a total initial investment of $25.3M – $156.6M, including a $100K – $150K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $25.3M – $156.6M
- 63rd pct Lodging
- Avg gross sales
- N/A
- Incl. company outletsProjection
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 3
- 14th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $25.3M – $156.6M including a $100K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports Average performance of franchised and managed hotels rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict C (Average), verdict score 41/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- LEGAL141 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Choice Hotels International, Inc.
- Predecessor
- Radisson Hotels International, Inc. (franchised RADISSON BLU brand 2015-2023); Radisson Hospitality, LLC (acquired by Choice August 11, 2022)
- Prior franchisor entity
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- Delaware
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.6B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1939
- FDD year
- 2026
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 923% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Feenot refundable | $100K | $100K | |
| Construction-Related Extension Fee per 3 month extensionnot refundable | $0 | $5K | |
| Opening Date Rescheduling Fee per each reschedulingnot refundable | $0 | $3K | |
| Real Estate | — | — | |
| Property Improvementsnot refundable | $19.5M | $140.8M | |
| Permits, Licenses and Government Feesnot refundable | — | — | |
| Professional Design Servicesnot refundable | $1.1M | $3.0M | |
| Mandatory On-Premises Signs (including freight and installation, plus maintenance and insurance)not refundable | $60K | $240K | |
| Miscellaneous Pre-Opening Costsnot refundable | $1.3M | $2.7M | |
| Opening Inventory of Suppliesnot refundable | $865K | $5.9M | |
| ORACLE Opera Cloud PMS Initial Investmentnot refundable | $14K | $40K | |
| Onboarding, Sales and Hospitality Leadership Certification Feesnot refundable | $8K | $8K | |
| Food and Beverage Opening Support Fee and Restaurant Concept Creationnot refundable | $36K | $58K | |
| Food and Beverage Sales Systemnot refundable | $6K | $25K | |
| Pre-Opening Photographynot refundable | $4K | $10K | |
| IDeaS Feesnot refundable | $5K | $5K | |
| Insurancenot refundable | $125K | $350K | |
| Styling & Accessorizingnot refundable | $20K | $40K | |
| Additional Funds - 3 Monthsnot refundable | $2.2M | $3.3M | |
| Total initial investment | $25.3M | $156.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $25.3M – $156.6M
- Middle of category vs category
- Liquid capital req'd
- $2.2M – $3.3M
- Bottom third — review vs category
- Franchise fee
- $100K – $150K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $1K |
| Training fee | $8K |
| Transfer fee | $100K |
| Renewal fee | $100K |
| Inventory (initial) | $800K – $5.5M |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Radisson Blu is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Radisson Blu unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Includes company-owned outlets
An occupancy metric, not unit revenue
- Item 19 type
- occupancy metrics
- Sample size
- 3
- vs category median 98 · small
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 175 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Lodging median).
Disclosure
Item 19 reports Average performance of franchised and managed hotels rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
Net unit growth roughly flat at 0.0%.
Multi-unit rate
27% of franchisees own multiple units, a moderate multi-unit rate.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How Radisson Blu Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
- Multi-unit owners
- 26.7%
- Net growth (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- TX 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
6 pending matters listed against parent Choice (Canadian class action on destination fees, RICO/antitrust suit by ~90 owners), but these are parent/system-level suits routine for a large hotel franchisor with strong financials (net worth $181,229,000, net income $369,946,000). This specific brand is only 3 units. Litigation is parent-level and modest relative to system scale.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Three pending cases: (1) Norma Knuth v. Radisson Hotels International, Inc. et al. - Class action in Saskatchewan alleging wrongful collection of undisclosed destination marketing fees (DMF) from hotel guests; class not yet certified; plaintiff demanded $403M in restitution; parties anticipate dismissal imminently. (2) Jai Sai Baba, LLC et al. v. Choice Hotels International, Inc. et al. - Approximately 90 current and former franchise owners alleging discriminatory, anti-competitive practices and violations of RICO, Sherman Act, Civil Rights Act, and franchise laws; case stayed pending arbitration as of March 2021; monthly status updates provided. (3) T&T Management, Inc. v. Choice Hotels International, Inc. and Country Inn & Suites by Radisson, Inc. - Licensee alleging breach of License Agreement, breach of implied covenant of good faith and fair dealing regarding hotel construction and guest data disclosure, and misappropriation of guest data under Defend Trade Secrets Act; Motion to Dismiss filed November 6, 2023.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 41 / 100 verdict
- 01MINOR6 parent-level (Choice) suits - routine for large hotel system
- 02MINORVery strong parent financials: net worth $181M, net income $370M
- 03MEDNo bankruptcy, no going-concern, audited, Item 19 disclosed
- 04MINORTiny brand footprint (3 units)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | site |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 90 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 141 |
View Item 3 litigation summary
Three pending cases: (1) Norma Knuth v. Radisson Hotels International, Inc. et al. - Class action in Saskatchewan alleging wrongful collection of undisclosed destination marketing fees (DMF) from hotel guests; class not yet certified; plaintiff demanded $403M in restitution; parties anticipate dismissal imminently. (2) Jai Sai Baba, LLC et al. v. Choice Hotels International, Inc. et al. - Approximately 90 current and former franchise owners alleging discriminatory, anti-competitive practices and violations of RICO, Sherman Act, Civil Rights Act, and franchise laws; case stayed pending arbitration as of March 2021; monthly status updates provided. (3) T&T Management, Inc. v. Choice Hotels International, Inc. and Country Inn & Suites by Radisson, Inc. - Licensee alleging breach of License Agreement, breach of implied covenant of good faith and fair dealing regarding hotel construction and guest data disclosure, and misappropriation of guest data under Defend Trade Secrets Act; Motion to Dismiss filed November 6, 2023.
Items 10, 11
Training & Operations
- Classroom training
- 51 hrs
- On-the-job training
- 0 hrs
- Training location
- Choice Headquarters, Pike & Rose
- Ongoing training
- Required
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 21 mo
- From signing to launch
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Radisson Blu franchise?
The total investment to open a Radisson Blu franchise ranges from $25.3M – $156.6M, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Radisson Blu franchise owners earn?
Item 19 of the Radisson Blu FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Radisson Blu?
Radisson Blu is franchised by Choice Hotels International, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Radisson Blu FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Radisson Blu FDD and qualifies whose outlets they describe.
What is Radisson Blu's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Radisson Blu (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Radisson Blu franchise locations are there?
As of their most recent FDD filing, Radisson Blu has 3 total units in the United States, including 1 franchised units and 2 company-owned units.
Is Radisson Blu a good franchise to buy?
FranchiseVerdict rates Radisson Blu as a C-grade franchise with a verdict score of 41 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.