Ruby HotelsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Ruby Hotels franchise requires a total initial investment of $8.0M – $38.5M, including a $75K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $8.0M – $38.5M
- 36th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 0
- 0th pct Lodging
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
46 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $8.0M – $38.5M including a $75K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 85/100.
- 46 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
- Legal entity
- Holiday Hospitality Franchising, LLC
- Parent company
- InterContinental Hotels Group PLC
- Predecessor
- Ruby Hotel Group
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $39.4M
- vs $38.8M prior year
Affiliated brands
- Six Continents Limited
- IHG Franchising
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Ruby Hotels franchisees operate upscale boutique hotel properties under the Ruby Hotels brand within IHG's portfolio. Day-to-day operations involve guest services, housekeeping, food & beverage management, revenue optimization, and adherence to brand standards while remitting 5% of gross rooms revenue to the franchisor.
- CEO
- Elie W. Maalouf
- Headquarters
- GA
- Founded
- 1989
- FDD year
- 2026
- States available
- 0
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
- Better than avg vs category
- Liquid capital req'd
- $250K – $1.1M
- Better than avg vs category
- Franchise fee
- $75K – $100K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Rooms Revenue · 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 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Ruby Hotels Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Ruby Hotels presents extreme risk due to going concern status, zero operating units, extensive franchisor litigation, missing financial disclosures, and massive capital requirements without documented returns.
Litigation (Item 3)
9 case reference(s): 1 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 85 / 100 rating
- 01HIGHGoing Concern warning indicates potential financial viability crisis at franchisor level
- 02MEDZero disclosed operating units with unknown growth trajectory suggests system collapse or pre-launch stage
- 03HIGHExtensive litigation pattern across IHG brands including breach of contract, trademark disputes, and fee collection actions signals systemic franchisor-franchisee relationship problems
- 04MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation on $8-38M investment range
- 05MINORUnprotected territory creates direct competition risk with other franchisees in same market
- 06MEDHigh initial investment ($8M-$38M) combined with 5% royalty on undisclosed revenue creates severe cash flow uncertainty
- 07HIGHClass action litigation on data security and procurement suggests operational mismanagement and potential liability exposure for franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 46 |
View Item 3 litigation summary
9 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 604 hrs
- On-the-job training
- 432 hrs
- Training location
- On-site and off-site
- 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
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ruby Hotels · FDD (2026) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 F-grade franchise with a risk score of 85 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.