Renaissance Hotels Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$102,148,840 - $166,210,240
Franchise Fee
$100,000
Total US Locations
88
Business Summary
Renaissance Hotels offers franchises to establish and operate full-service hotels, resorts, or hotel and conference centers. These hotels are designed to cater to discriminating business and leisure travelers, typically ranging from 100 to over 1,000 guestrooms. Renaissance Hotels provide a variety of food and beverage options, including restaurants, lounges, room service, catering, and banquet services. Many locations also feature ballrooms, meeting rooms, business centers, and recreational facilities. Each Renaissance Hotel is uniquely designed to reflect its local environment, while Renaissance Resorts are primarily situated in vacation destinations. Renaissance Hotels and Conference Centers offer similar amenities but with extensive meeting spaces that meet specific conference center standards.
Corporate History
Renaissance Hotels is franchised by MIF, L.L.C., a Delaware limited liability company established in 2012, which is a subsidiary of Marriott International, Inc. The business of Renaissance Hotels, including its management and franchising operations, was originally acquired by the franchisor in 1997. As of December 31, 2024, Renaissance Hotels and its affiliates operated 67 Renaissance Hotels in the United States and Canada. In recent years, the parent company, Marriott International, Inc., has expanded its lodging portfolio significantly. In 2023, it formed a strategic licensing agreement with MGM Resorts International. In 2024, it further expanded into outdoor-focused lodging by acquiring the Getaway Outposts brand, which was re-launched as Postcard Cabins, and also entered into licensing agreements with Trailborn Brand LLC and Sonder Holdings, Inc. to create new brand collections.
Financial Overview
Investment Range
$102,148,840 - $166,210,240
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$150,000
Royalty %
5%
Marketing %
1.5%
Equipment Costs (Low)
$14,489,100
Equipment Costs (High)
$19,605,500
Working Capital
$1,725,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Renaissance Hotels' franchisor, MIF, L.L.C., demonstrates sound financial health, as evidenced by an unqualified opinion from its independent auditors, Ernst & Young LLP, for the fiscal years ending December 31, 2024, 2023, and 2022. The company has shown consistent financial growth, with total assets increasing to $477,080 thousand in 2024 from $409,712 thousand in 2023, while maintaining relatively low total liabilities of $10,756 thousand in 2024. MIF, L.L.C. reported strong net incomes of $63,830 thousand in 2024 and $64,157 thousand in 2023. A key characteristic of MIF, L.L.C.'s financial operations is its heavy reliance on transactions with its parent company, Marriott International, Inc. The company does not maintain a direct cash balance, with most financial activities recorded through related party receivables and payables. This includes a $20,000 note receivable from the parent. In 2024, the company's deferred income increased, primarily due to a deferred termination fee.
Financing Details
Renaissance Hotels generally does not offer direct or indirect financing for its franchised hotels or provide guarantees for franchisee loans. However, under specific, limited circumstances and at its sole discretion, Renaissance Hotels may offer credit support, such as a contingent guaranty for a portion of a loan provided by a third-party lender, or it may extend a mezzanine loan. The decision to offer such financial assistance depends on various factors, including market penetration opportunities, the hotel's size and location, prevailing economic and financial conditions, the cost for the franchisee to develop or convert the hotel, whether the support would aid in successful development, the franchisee's commitment to growing the system, and if the franchisee meets current criteria. The specific terms for any contingent guaranty, including the amount (e.g., a percentage of the loan principal or hotel development costs), repayment obligations, fees, interest, collateral, and requirements for a personal guaranty, will vary. Similarly, the terms of any mezzanine loan, such as the amount, annual percentage rate, loan term, payment schedule, and security requirements, are determined on a case-by-case basis due to the unique financial considerations of each hotel project. Franchisees may be required to sign specific documents like a Credit Enhancement Commitment Letter or an Equity Pledge in connection with such arrangements.
Performance Metrics
Total US Locations
88
Franchised Units
67
Corporate Units
20
Avg Square Footage
218,500
Franchising Since
1997
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
19
Litigation Summary
Renaissance Hotels has a comprehensive history of litigation and regulatory investigations, with many cases being recent or currently ongoing. A significant portion of this legal activity stems from a major data security incident in November 2018 involving the Starwood reservations database. This led to numerous class action lawsuits and individual actions in US federal and state courts, alleging negligence, privacy violations, and deceptive practices. A large multidistrict litigation (MDL) case, In re Marriott International Customer Data Security Breach Litigation, is currently ongoing with appeals regarding class certification. The City of Chicago also filed a separate lawsuit related to this incident, which is pending trial in November 2025. Following the 2018 data breach and a subsequent incident in February 2020, regulatory authorities in the US, Canada, Australia, Turkey, and the UK launched investigations. Renaissance Hotels reached resolutions with US Attorneys General and the Federal Trade Commission in October 2024, involving a $52 million payment. The UK's ICO imposed an £18.4 million penalty in 2020, and an appeal is ongoing for a Turkish fine from 2019. Canadian and Australian investigations concluded with agreements for internal assessments and undertakings. Renaissance Hotels is also involved in an industry-wide investigation by US Attorneys General concerning "resort fees." The District of Columbia's lawsuit on this matter is pending trial in November 2025. In 2023-2024, Renaissance Hotels initiated several arbitrations and lawsuits against franchisees for unpaid fees and liquidated damages, with cases in Arkansas, Ohio, and New York concluding in its favor or settling. Additionally, Renaissance Hotels is a defendant in two putative class action lawsuits filed in early 2024 (Portillo v. CoSTAR Group, Inc. and Segal v. Amadeus IT Group, S.A.) alleging antitrust violations through information sharing and price-fixing at luxury hotels; motions to dismiss are pending. Another pending action is Hall v. Marriott, a negligence claim filed in North Carolina in January 2022, which resulted in a $16 million verdict against Renaissance Hotels (and others) in October 2024, now under appeal. Concluded actions include a class action related to a 2020 property system incident (Rahman et al. v. Marriott International, Inc.) that was dismissed and settled, and a 2020 arbitration (HPT CY TRS, Inc. and HPT TRS MRP, Inc. v. Marriott International, et al.) with a decision in January 2022. Two Puerto Rico resort fee class actions (Rivera v. Marriott International, Inc. and Puleo v. Marriott International, Inc.) were filed in 2019 and settled individually. A 2019 class action (Todd Hall v. Marriott, International, Inc.) regarding resort fees was settled in July 2024.
Bankruptcy History
Renaissance Hotels' franchisor, MIF, L.L.C., has no bankruptcy history to report in its disclosure document.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Renaissance Hotels does not offer renewal rights for its franchise agreements. Franchisees should not expect to be granted any right to operate a Renaissance Hotel under the brand after the initial term expires.
Training & Support Program
Franchisor Assistance
Renaissance Hotels provides extensive support to its franchisees both before and after a hotel opens. Before opening, Renaissance Hotels offers design and construction criteria, along with specifications for furniture, fixtures, equipment, and supplies. It reviews construction plans for compliance, assesses construction progress, and provides guidance for procuring necessary items. Franchisees also receive comprehensive training for general managers and management teams, as well as on-site training and tools for hotel staff to prepare for opening. Renaissance Hotels also makes its manuals and operational procedures available and reviews any residential or condominium component documents. After the hotel opens, Renaissance Hotels offers ongoing consultation through its representatives. It provides access to mandatory electronic systems, including a reservation system, property management system, and yield management system, along with continuous support and necessary updates for these technologies. For marketing, Renaissance Hotels manages a Marketing Fund, funded by franchisee contributions (1.5% of gross room sales), which supports various promotional activities. Franchisees also receive guidance on local advertising campaigns and are required to provide professional hotel photographs. Renaissance Hotels operates various sales organizations, including a mandatory Global Sales Organization, to help drive business. Ongoing training is covered by a 'Learning & Development Bundle' fee, which includes required programs. Brand advocates offer optional 1-2 day on-site visits annually (franchisee covers travel/lodging). General Managers are required to attend regional conferences in certain years. Additionally, optional advanced training programs are available for a fee. Franchisees who participate in specific introductory programs (FITM, FOND, FITM-R, API) are required to participate in ongoing Revenue Management Advisory Services, Customer Engagement Center Property Support Services, Digital Marketing, and specified sales programs for two years. For hotels with a residential or condominium component, specialized training and a learning and development bundle are provided for these units.
Initial Training Hours
112
Training Location
Initial on-site training along with virtual support is provided, with immersion and orientation training programs, including FITM, offered at a location designated by Renaissance Hotels. Other specific training programs may be web-based or online.
Ongoing Support
Renaissance Hotels provides comprehensive ongoing support after a hotel opens. This includes consultation services from representatives available at designated offices or on-site at the hotel. Franchisees have access to and support for mandatory electronic systems such as the reservation system, property management system, and yield management system, with continuous updates. Renaissance Hotels works to protect its proprietary marks and makes its operating standards readily available. For marketing, Renaissance Hotels directs activities for a Marketing Fund, to which franchisees contribute monthly, and provides access to sales organizations, with mandatory participation in the Global Sales Organization. Ongoing training is supported by a 'Learning & Development Bundle' fee, covering required programs. Brand advocates offer optional 1-2 day on-site visits annually (franchisee covers travel and lodging). General Managers are required to attend regional conferences in certain years, and optional advanced training programs are available for a fee. Franchisees who undergo specific introductory programs (FITM, FOND, FITM-R, API) are also required to participate in ongoing Revenue Management Advisory Services, Customer Engagement Center Property Support Services, Digital Marketing, and specified sales programs for two years. For hotels with residential or condominium components, a dedicated learning and development bundle is provided for those units.
Franchise Requirements
Ideal Candidate Profile
Renaissance Hotels looks for franchisees who are capable of directly operating a full-service hotel or willing to retain an approved management company. The franchisor assesses a candidate's managerial and operational experience, skills, capacity, and philosophy to ensure alignment with Marriott's standards. Franchisees new to the Marriott system may be required to complete specific training programs such as the Franchisee Introduction to Marriott (FITM) or Franchisee OnBoarding for New Development (FOND). General managers and other key management personnel are expected to dedicate full-time effort to the hotel's operations and successfully complete all mandatory training. Financial qualifications are also evaluated, with a focus on the net worth and liquidity of any proposed guarantors and the overall debt structure of the hotel project.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Renaissance Hotels franchisees do not receive an exclusive territory and may not be granted a territory at all. If a non-exclusive territory is granted, it is typically for a Renaissance Hotel or Renaissance Resort and lasts for five years or less. The exact size and geographic boundaries of such a territory (e.g., a mile radius or defined by specific streets or highways) depend on the particular market where the hotel is located. This non-exclusive territory does not grant the franchisee any rights to develop additional hotels within that area or to expand their existing hotel. It explicitly excludes any hotels that are already existing or under development, certain hotels acquired through chain acquisitions, or residential/condominium components associated with the hotel project. For renewals or changes of ownership, a restricted territory is generally not applicable.
Staffing Notes
Renaissance Hotels requires that franchisees or their approved management company employ suitable and qualified individuals to adequately staff the hotel. Key management personnel, including the general manager, must dedicate their full time to the hotel's management and operations. All employment decisions, such as hiring, are made solely by the franchisee or their management company, without direction or control from Renaissance Hotels. Franchisees are required to inform Renaissance Hotels whenever a general manager is hired. The employees at the hotel are considered solely employees of the franchisee or the management company, not of Renaissance Hotels.