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Radisson Hotels & Resorts

Franchise

Radisson Hotels & Resorts is a globally operating hospitality franchise and subsidiary of Radisson Hotel Group. The upscale brand is geared towards busy travelers but promotes a focus on the balance between work and life. Within a highly competitive market, Radisson aims to deliver exceptional service and care to its guests by offering round the clock communication tools and assistance.

Facts & Figures

Liquid capital required
$75,000
Investment
$9,993,858 - $51,977,075
Franchise fee
$75,000
Royalty
5.0%
Units in operation
422
Founded
1962
Franchising Since
1983

Overview

Radisson Franchise Formats Offered

Radisson offers three hotel formats, organized by target customer, location and size of hotel, and size and type of rooms:

  • Resort format
  • Suite format
  • Hotel format

In addition, in some cases franchisees may be permitted to open a "RBG restaurant" alongside their Radisson hotel. RBG restaurants are bar and grill establishments serving diners throughout the day.

Radisson Franchise Opportunities - History

Curt Carlson founded Radisson Hotel & Resorts in 1962 when he purchased the existing Radisson hotel in Minneapolis, Minnesota. The original hotel was named after 17th century French explorer Pierre-Espirit Radisson, and Carlson kept it as such. Throughout the following decades, Carlson began expanding the hospitality chain and eventually began franchising it in 1983. The Radisson chain now has over 400 locations worldwide and operates alongside fellow subsidiaries such as Radisson Blue, Radisson Red and Country Inn & Suites.

Radisson Franchise Cost / Initial Investment / Radisson Franchise Income

Initial Investment

The estimated initial investment required to open a Radisson hotel of up to 200 rooms is $10 million to $52 million, excluding the cost of procuring any real estate and related costs.

Initial License Fees

Radisson requires an initial license fee that is the greater of $75,000 or $500 per hotel room, with $10,000 payable at the time of application and the remainder due upon signing of the franchise license agreement.

Ongoing Royalties and Program Contributions

Radisson franchisees must pay a 5% royalty fee on monthly gross room revenue, a marketing contribution of 2% on monthly gross room revenue, and an ongoing reservation fee of 2% on monthly gross room revenue (plus an additional $3.75 flat fee per every reservation delivered to their hotel).

Radisson Franchise System Size and Composition

There are over 400 Radisson hotel units worldwide, about half of which are franchised and some 80% of which are located in international markets. Systemwide, the Radisson hotel chain generates approximately $4 billion of revenue.

The Radisson franchise is part of the broader Radisson Hotel Group, which also owns such hospitality brands as Radisson Collection (premium lifestyle hotels uniquely customized to their host city and catering to both travelers and locals), Radisson Blu (largest upper upscale hotel chain in Europe, located in hub cities, airport gateways, and leisure destinations), Radisson RED (upscale hotels emphasizing a bold, playful aesthetic with a casual and social feel), Park Plaza (upper upscale hotels located in capital cities and emphasizing meeting spaces), Park Inn by Radisson (upper midscale hotels positioned as a cost-effective option), Country Inn & Suites by Radisson (upper midscale hotels with a community emphasis and extended stay amenities), and Prizeotel (specialized, economy, concept hotels designed by Karim Rashid).

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