Ruby Hotels Franchise Cost, Revenue & Review 2026
- Investment
- $8.0M – $38.5M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (4)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Ruby Hotels is IHG's upscale lean-luxury hotel franchise offering design-forward urban properties. Franchisees own and operate the hotels, managing guest services, food and beverage, and revenue under brand standards.
FranchiseVerdict summary · 2026
A Ruby Hotels franchise requires a total initial investment of $8.0M – $38.5M, including a $75K – $100K franchise fee and an ongoing 5.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2025. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
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 scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $8.0M – $38.5M
- 38th pct Lodging
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 0
- 0th 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 $8.0M – $38.5M including a $75K franchise fee, 5.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed); 1 signed but not yet open (Item 20).
- LEGAL46 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
- Holiday Hospitality Franchising, LLC
- Parent company
- Six Continents Hotels, Inc.
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- InterContinental Hotels Group PLC
- FDD Item 1, page 6 of the 2026 FDD
- Predecessor
- Ruby Hotel Group (GEM Brand Company Limited)
- Prior franchisor entity
- CEO title
- Chief Executive Officer, InterContinental Hotels Group, PLC
- Elie W. Maalouf
- Incorporated in
- Delaware
- HQ
- Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $38.8M
- vs $39.4M prior year
Affiliated brands
- Six Continents Limited
- IHG Franchising
Other brands the franchisor or its parent operates (Item 1).
Same owner · FDD Item 1, page 6
8 other brands on this site name InterContinental Hotels Group PLC as parent or ultimate parent in their own FDD.
- Crowne PlazaB
- EVEN HotelsB
- Holiday InnB
- Hotel IndigoB
- InterContinental Hotels & ResortsB
- Kimpton® Hotels & RestaurantsB
- Vignette CollectionC
- avid hotelsB
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Elie W. Maalouf
- Headquarters
- GA
- Founded
- 1989
- FDD year
- 2026
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 161% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $250K | $1.1M |
| Equipment, build-out, other | $7.7M | $37.3M |
| Total initial investment | $8.0M | $38.5M |
Source: Ruby Hotels 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $8.0M – $38.5M
- Top 40% of category vs category
- Liquid capital req'd
- $250K – $1.1M
- Top 40% of category vs category
- Franchise fee
- $75K – $100K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 26.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $17 |
| Transfer fee | $25K |
| Inventory (initial) | $396K – $625K |
| Total fee load | 26.3% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Ruby Hotels makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. 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 Ruby Hotels 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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 26.3% — above the Lodging median of 8.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 Ruby Hotels 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
- 0
- 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)
- Company-owned
- 0
- Corporate units in the system
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 1
- Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $2.5M
- Median loan
- $618K
- average
- Charge-off rate
- Under 10 loans (4)
- Insufficient SBA coverage: 4 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (4)
- 5-yr charge-off
- Under 10 loans (4)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
Pre-opening brand (began 2025, 0 units) under strong parent IHG/Holiday: parent net worth $888.9M, net income $69.8M. The 33 disclosed litigations are Holiday/IHG franchisee disputes and class actions - very high count but normal relative to IHG's massive global system and at parent level. Primary concern is no operating history and no Item 19.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Holiday/IHG face numerous ongoing and historical franchisee disputes alleging breach of contract, wrongful termination, fraud, unreasonable renovation/PIP demands, kickbacks from suppliers, and class actions over franchise business practices (Sherman Act, state deceptive trade practices). Holiday also regularly sues terminated licensees for unpaid system fees and liquidated damages. Notable settlements include $10.9M paid to a Crowne Plaza licensee (Lenexa) and $699,000 to Hospitality Marketing Concepts. Most concluded matters resulted in no payment by Holiday or dismissal.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Figures from Exhibit F-1, the audited financial statements OF THE FRANCHISOR Holiday Hospitality Franchising, LLC (fiscal years ended Dec 31, 2025/2024/2023), stated in whole US dollars. Balance sheet reconciles: total assets 1,011,118,965 = total liabilities 122,195,307 + member's equity 888,923,658. yr1=2025 total revenues 38,788,364; yr2=2024 total revenues 39,444,877. Other revenue is OLCC fees 1,551,180 (non-royalty). A separate larger consolidated statement for the parent SCH exists in Exhibit F-2 but was NOT used. Auditor CPA firm name not printed in the extracted text (signature block redacted; opinion dated Atlanta, GA, April 2, 2026).
ⓘ 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: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 39 / 100 verdict
- 01MINORPre-opening, 0 units, no track record
- 02HIGH33 litigations but normal for IHG's massive system, parent-level
- 03MINORParent net worth $888.9M, net income $69.8M
- 04MINORNo Item 19 disclosure
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 26.3% 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 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 46 |
View Item 3 litigation summary
Holiday/IHG face numerous ongoing and historical franchisee disputes alleging breach of contract, wrongful termination, fraud, unreasonable renovation/PIP demands, kickbacks from suppliers, and class actions over franchise business practices (Sherman Act, state deceptive trade practices). Holiday also regularly sues terminated licensees for unpaid system fees and liquidated damages. Notable settlements include $10.9M paid to a Crowne Plaza licensee (Lenexa) and $699,000 to Hospitality Marketing Concepts. Most concluded matters resulted in no payment by Holiday or dismissal.
Items 10, 11
Training & Operations
- Classroom training
- 604 hrs
- On-the-job training
- 432 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Premium OPERA Cloud PMS or HotelKey Cloud PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Premium OPERA Cloud PMS or HotelKey Cloud PMS
Item 20 · call current owners
Franchisee Contacts
10 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 Ruby Hotels franchise?
The total investment to open a Ruby Hotels franchise ranges from $8.0M – $38.5M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ruby Hotels franchise owners earn?
Ruby Hotels makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Ruby Hotels?
Ruby Hotels is franchised by Holiday Hospitality Franchising, LLC. Its parent company is Six Continents Hotels, Inc.. The ultimate parent named in the FDD is InterContinental Hotels Group PLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Ruby Hotels 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 Ruby Hotels FDD and qualifies whose outlets they describe.
What is Ruby Hotels's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ruby Hotels (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.
Is Ruby Hotels a good franchise to buy?
FranchiseVerdict rates Ruby Hotels as a C-grade franchise with a verdict score of 39 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.