How Much Does a Radisson Franchise Cost?

A prospective U.S. franchisee should begin with the $9,490,495 to $55,271,100 Estimated Initial Investment disclosed for a 180-room Radisson Hotel. The 2026 Franchise Disclosure Document uses the low end to represent a favorable conversion of an existing hotel and the high end to represent new construction. Real estate, real estate taxes, land acquisition, and the purchase price of an existing hotel are not included.

Capital snapshot

The range spans two materially different development conditions. The $6,697,600 low-end Property Improvements estimate assumes a conversion hotel already in good condition, with no acquisition cost, structural work, repaving, roof repair, or major plumbing, heating, ventilation, or air-conditioning work. The $48,076,900 high-end estimate assumes new construction and includes building construction plus furniture, fixtures, and equipment, but still excludes utilities, exterior lighting, parking, landscaping, land, and real estate taxes.

Item 7 includes the affiliation fee, development and design work, property improvements, signs, launch expenses, required technology, food-and-beverage setup, insurance, styling, opening inventory, and three months of Additional Funds. It does not provide a complete real-estate or site-development budget.

Premises, design, and construction

Source: 2026 Radisson FDD, Item 7, pp. 40–42. Item 8 requires designated or qualified vendors for specified signs, FF&E, bedding, computer hardware and software, food-and-beverage products, and other brand-standard items.

Opening systems and launch services

Source: 2026 Radisson FDD, Items 5 and 7, pp. 24–25 and 40–43.

Pre-opening cash and the first three months

Source: 2026 Radisson FDD, Item 7, pp. 40–43. Both Opening Inventory and Additional Funds already sit inside the official total; neither should be added to the total a second time.

Radisson does not require the entire Item 7 amount in one payment. Cash leaves the project in stages: the affiliation fee around application and signing, professional and construction invoices during development, launch and training fees before or near opening, and working capital during the first three operating months.

1. 1

   Application and Franchise Agreement

   Item 7 lists the Affiliation Fee as due upon application, while Item 5 says the entire fee is due no later than signing the Franchise Agreement. It becomes nonrefundable after Choice signs, unless Choice does not grant the franchise or does not countersign. Confirm the exact invoice milestone in writing.

2. 2

   Design, approvals, and construction

   Architects, engineers, contractors, suppliers, qualified vendors, insurers, and government authorities are generally paid as billed or as costs are incurred. Item 11 requires preliminary drawings within three months after signing, final plans within six months, and construction to begin within 12 months, subject to the agreement.

3. 3

   Pre-opening systems, training, and support

   Training enrollment, ORACLE Opera Cloud PMS, IDeaS G3 setup, food-and-beverage opening support, signage, photography, inventory, and other pre-opening services are paid as billed or incurred. Travel, lodging, and meals for required in-person training are separate.

4. 4

   Opening and the first three months

   The $1,000,000 to $1,800,000 Additional Funds allowance is used as expenses arise during the first three months after opening. Monthly Royalty, Marketing and Reservation, technology, revenue-management, loyalty, distribution, and other applicable Item 6 fees also begin according to their stated triggers.

Sources: 2026 Radisson FDD, Items 5, 7, and 11, pp. 23–25, 39–43, and 52–54. Under the FTC Franchise Rule, a prospective franchisee generally must receive the disclosure document at least 14 calendar days before signing a binding agreement or paying the franchisor or an affiliate. See the FTC Consumer’s Guide to Buying a Franchise and the FTC Franchise Rule page.

The two broad monthly fees are a 6% Royalty Fee and a 3% Marketing and Reservation Fee, each based on the preceding month’s Gross Room Revenues. They are not the full ongoing fee burden. Loyalty participation, booking channels, property technology, revenue management, training, conventions, insurance, reserve funding, and event-triggered charges can add separate obligations.

Recurring system and property charges

Source: 2026 Radisson FDD, Item 6, pp. 25–39. Unless otherwise stated, Item 6 fees are imposed by Choice, paid to Choice, nonrefundable, and subject to change except for the Royalty Fee and liquidated damages.

Reservation, loyalty, and distribution charges vary with the booking

• Rewards Programs Fee:

  5% of gross room revenue and gross food-and-beverage revenue generated by rewards-program members. Item 6 also describes a possible performance-based loyalty structure of 4.5% to 5.5% on the same member-generated revenue basis.

• Choice Accelerate:

  3% of gross room revenue from qualifying direct online consumed stays; certain international paid and metasearch efforts can be charged up to 10% instead of the 3% charge.

• Third Party Distribution and GDS:

  $3.75 per consumed reservation through specified directly connected channels and currently $7.70 per reservation through an applicable Global Distribution System.

• Travel Agent Commissions:

  Standard commissions are currently 10% to 15%, with a $0.48 processing fee for commissionable transactions handled through the centralized Onyx program.

• Other program bases:

  Item 6 lists up to 15% for specified third-party platform marketing, 2.7% for Global Sales Pay for Performance, 2.25% for FedRooms/DoD consumed stays, and $2.50 per preferred room night or up to a 10% commission for the Leisure Affinity Promotional Program.

Replacement reserve and required suppliers

Item 8 requires the franchisee to establish a cash reserve fund for replacing soft goods, case goods, signage, fixtures, and equipment. Deposits range from 1.5% to 5% of Gross Room Revenues, depending on how long the hotel has operated. The money is not paid to Choice, but it must be held at an acceptable bank and used as Choice directs. Item 8 also requires selected purchases from Qualified Vendors and states that items subject to vendor or brand requirements are estimated at less than 10% of initial investment for a conversion or new-construction facility. 2026 FDD, Item 8, pp. 43–47.

No numeric Liquid Capital, Net Worth, or Non-Borrowed Funds threshold is stated in the 2026 FDD. The $1,000,000 to $1,800,000 Additional Funds range is a three-month Item 7 operating allowance, not a disclosed liquidity qualification. A lender’s equity requirement, collateral requirement, or personal guarantee is also not the same as a franchisor-issued liquid-capital threshold.

• Ask for the current underwriting criteria.

  Obtain written definitions for cash, marketable securities, net worth, leverage, guarantor support, and any hotel-ownership experience requirement.

• Separate project equity from working capital.

  Confirm how much equity must fund land, acquisition, renovation, construction, FF&E, closing costs, and the three-month Additional Funds allowance.

• Confirm personal guarantees.

  Item 10 states that owners may or will be required to sign certain Choice, incentive, Ascentium, or PMC financing obligations personally.

• Reconcile the project format.

  A favorable conversion, heavy conversion, acquisition-plus-renovation, and ground-up hotel do not have the same cash requirement even though Item 7 publishes one combined range.

Item 10 discloses several possible financing paths, but none is guaranteed. Choice may finance the Affiliation Fee, may provide selected capital support, and offers an incentive program to qualifying owners. It also identifies third-party financing relationships with Ascentium Capital LLC and PMC Commercial Trust.

• Affiliation Fee Promissory Note:

  At Choice’s discretion and subject to credit approval, the Affiliation Fee may be financed without interest and generally becomes due in one lump sum within three months. A defaulted amount bears 18% annual interest, subject to applicable law.

• Selected Capital Support:

  Choice may provide strategic projects with capital support after opening. The principal and terms depend on creditworthiness and other factors; forgiveness generally amortizes over the Franchise Agreement term if specified defaults do not occur.

• Incentive Program:

  Qualifying Radisson projects may receive $3,000 per room, capped at $300,000, through a 10-year forgivable note funded after opening. A five-year option uses 50% of that amount and is capped at $150,000. Default can make the unforgiven balance and interest immediately due.

• Re-Licensing Incentive:

  A qualifying buyer of an existing Choice-system Radisson hotel may receive a 50% discount on the then-current Affiliation Fee, but is not eligible to combine that incentive with another incentive program.

• Ascentium Capital LLC:

  Item 10 states that qualifying borrowers may seek $5,000 to $500,000 for specified franchise, brand-standard, remodeling, equipment, fixture, or continuing costs, generally for 12 to 72 months. The lender may require collateral and a personal guarantee. The lender’s public hospitality financing information is supplemental; the FDD terms control the disclosed Choice relationship.

• PMC Commercial Trust:

  Item 10 describes conventional and SBA financing of $500,000 to $5,000,000, generally up to 70% to 85% of collateral value and up to 25 years, with liens and a required personal guarantee. Approval and final terms remain lender decisions.

Source: 2026 Radisson FDD, Item 10, pp. 48–52. Financing is subject to underwriting, documentation, collateral, guaranty, default, and program-eligibility terms. Choice’s official upscale development overview provides current brand-development context but does not replace Item 10.

Several potentially material charges are not part of a normal monthly fee schedule. They are triggered by delays, ownership changes, noncompliance, insurance failures, audit findings, default, termination, or post-termination trademark use.

• Construction or renovation extension:

  $5,000 for each additional three-month extension approved by Choice.

• Opening-date rescheduling:

  $2,500 plus Choice’s travel expenses when the committed opening date changes within the stated window or the temporary certificate of occupancy is late; the fee can be charged multiple times.

• Ownership changes and transfer:

  Item 6 lists a $7,500 Assumption Fee for certain transfers below 50%, a $3,000 Change of Ownership fee for transfers below 50%, a $3,000 Property Improvement Plan Fee for transfers of at least 50%, and a Transfer Fee equal to the then-current Affiliation Fee or $75,000, whichever is greater, for a transfer of at least 50%. The transaction documents should identify which charges apply together.

• Insurance failure:

  $500 to $100,000 as incurred if required coverage is not procured or documented; Item 6 warns the amount may fall outside that range with market conditions.

• Audit deficiency:

  Choice anticipates $1,000 to $6,000 per inspection or audit when a deficiency is found, plus deficient amounts and possible 1.5% interest under the stated conditions.

• Noncompliance and reinstatement:

  $100 to $10,000 per noncompliance instance, specified training noncompliance penalties, and $5,000 before reservation-system reinstatement after a default-related suspension.

• Termination and post-termination use:

  Liquidated damages use the room-count, monthly, Royalty Fee, and historical-GRR formulas stated in Item 6. Continued use of Choice intellectual property after expiration or termination is listed at $2,500 per day.

Source: 2026 Radisson FDD, Items 5, 6, and 17, pp. 23–39 and 67–69. State law can alter transfer, termination, liquidated-damages, and other agreement provisions.

The standard Franchise Agreement term is 20 years from the Opening Date, and Item 17 states that there is no renewal provision after that term. During the relationship, the franchisee must fund repairs, renovations, upgrades, replacement assets, reserve deposits, and brand-standard changes. A controlling transfer requires the incoming owner to meet then-current qualifications, bring the hotel to then-current standards, sign the then-current agreement, and pay the applicable re-licensing or transfer charges.

Choice’s official brand portfolio page distinguishes Radisson from the company’s other brands, but only the current Radisson Franchise Agreement and FDD define these cost obligations for a U.S. franchise transaction.

The official range is a starting boundary, not a complete project budget. The decisive work is to map the actual hotel, transaction structure, lender terms, and brand-improvement plan to each Item 7 and Item 6 obligation without blending a favorable conversion assumption with a new-build scope.

• Obtain a property-specific Property Improvement Plan.

  Identify structural, roof, paving, mechanical, room, public-space, food-and-beverage, signage, technology, and life-safety work that falls outside the favorable conversion assumptions.

• Reconcile the Affiliation Fee and Item 7 total.

  Confirm the room count, per-room rate, minimum, payment date, discount, incentive, and the $15,000 arithmetic discrepancy in the 180-room model.

• Separate excluded real-estate and site costs.

  Budget acquisition, land, taxes, utilities, parking, landscaping, exterior lighting, lender costs, and transaction costs outside the published total.

• Model every recurring fee by its own basis.

  Do not apply one blended percentage to all revenue. Separate GRR, rewards-member revenue, food-and-beverage revenue, consumed reservations, room nights, points, room count, and fixed fees.

• Confirm current vendor quotes and exclusions.

  Check freight, installation, cabling, installer accommodations, annual upgrades, consultant fees, warehousing, travel, insurance market pricing, and taxes.

• Request the most recent FDD and quarterly updates before signing.

  The FTC explains that prospective franchisees may request the most recent disclosure and updates before the transaction closes.

The verified 2026 answer is $9,490,495 to $55,271,100 for a 180-room Radisson Hotel, excluding real estate. The range already includes $1,000,000 to $1,800,000 of Additional Funds for three months after opening. The largest variable is Property Improvements: the FDD’s low end assumes a favorable existing-hotel conversion, while the high end reflects new construction without several land and site costs.

After opening, the recurring base is 6% of Gross Room Revenues for the Royalty Fee plus 3% of Gross Room Revenues for the Marketing and Reservation Fee, before loyalty, distribution, technology, revenue-management, reserve-fund, convention, training, and conditional charges. The FDD does not state a numeric liquid-capital or net-worth threshold, so the buyer must obtain current underwriting criteria and build a property-specific capital schedule rather than treating the Item 7 low end as a universal cash requirement.