This paper describes a new form of radial flux type hysteresis motor having large output, high efficiency, and high power factor. The rotor has a copper-sprayed surface layer on the rotor ring, which is made of Fe-Cr-Co magnet steel and has magnetic anisotropy and slits. The new configuration has two features. First, it is designed to give a combined hysteresis and reluctance-motor action effectively, particularly at a synchronous speed. Second, it is designed to give a combined hysteresis torque and large torque due to eddy current in asynchronous conditions, particularly at starting. To analyze motor performance at synchronous and asynchronous operations, the finite-element method is used. In this paper, magnetic hysteresis is considered by using complex permeability. The agreement between predicted and measured values of motor performance characteristics is good.