Red Roof will open 50 new properties in 2023, representing 60 percent year on year growth
Demand for the Red Roof® Brand Continues to Drive Strong Profitable Growth
Red Roof®, an award-winning leader in the lodging industry, will open 50 properties — new builds and conversions — in 2023, representing 60 percent year on year growth. The company attributes this strong growth to continued demand for the brand.
As the company celebrates a half century of serving guests in 2023, it is continuing to deliver record performance by adapting to a dynamic environment where both guests and hotel operators are facing economic pressures. Red Roof delivered record revenue in 2022, which increased 6.9% percent year over year.
"Our model works, and we are seeing the outstanding results in our business. Demand for the Red Roof brand is fueling growth as we continue to listen and evolve, improving the value proposition for guests as well as hotel owners and operators," said George Limbert, Red Roof President.
With 76% brand contribution1 and 104.7% RevPAR index2, ten percent of the new properties will be Red Roof PLUS+, meeting the needs of consumers looking for enhanced amenities at a value price. While consumers continue to belt tighten, there are those guests looking for a 'PLUSed' up experience and the highest level of comfort in a modern, sleek room at an affordable price. The new Red Roof PLUS+ properties will be in cities including: Brooklyn, NY; Jamaica, NY; Virginia Beach, VA; San Antonio, TX and Belleville, MI. Five additional locations are expected to open in 2024.
"We are re-polishing the Red Roof PLUS+ brand in our portfolio, as there is high demand for this offering of increased amenities at an affordable price point, especially in this uncertain environment," said Marina MacDonald, Red Roof Chief Marketing Officer. New quality standards and added amenities will be implemented, including upgraded vending and coffee and enhanced exterior lighting.
In the last two years, Red Roof has moved aggressively in the strong and high demand extended stay category, opening eleven HomeTowne Studios properties, with ten additional openings expected in 2023. As the Red Roof brand draws closer to 700 properties systemwide, the company is also launching a new dual-branded prototype, which offers franchisees an additional Red Roof option— Red Roof Inn and HomeTowne Studios, on the same property. The dual brand provides both guests and franchise owners increased flexibility and added value.
"The dual-branded prototype, featuring 150 rooms, a centralized reservation system and shared labor provides operational efficiencies and positions the properties well for profitable growth," said Red Roof Chief Development Officer Matthew Hostetler.
About Red Roof ®
Red Roof is an award-winning leader in the lodging industry, recognized for creating the innovative Upscale Economy® segment serving millions of guests each year. With coast-to-coast locations, Red Roof, now in its 50th year, has over 60,000 rooms in more than 680 properties in the U.S. and internationally in Brazil and Japan. Whether business or leisure, short trips or extended stays, in the hearts of cities or on the road, Red Roof has a property for every traveler, delivering the best experience and value in the lodging industry. Red Roof is pet-friendly, as one well-behaved pet is welcome per room nationwide at no additional cost*. Ranging from economy to midscale, the Red Roof portfolio of brands includes Red Roof Inn® and Red Roof PLUS+®, with enhanced amenities in clean, modern, comfortable rooms; HomeTowne Studios by Red Roof®, offering guests A Brand New Way to Extended Stay®; and The Red Collection®, a hyper-local soft brand in the Hearts of Cities You Love™. Red Roof offers franchisees Genuine Relationships. Real Results.® – a unique owner-operator experience establishing common ground with franchisees. Guests can go Beyond Free Nights® with the Red Roof industry-leading loyalty program, RediRewards®. Hospitality goes beyond the hotel room through Red Roof's ESG program, Purpose with Heart— an umbrella for operating behaviors and policies, as well as Red Roof's existing legacy social responsibility program, Room in Your Heart. For reservations, visit redroof.com, call 800.RED.ROOF, or download Red Roof's free app for iOS and Android devices.
Red Roof's Vision: To provide the best experience and value in the lodging industry for our guests, owners, team members, partners, and communities.
*Pet accommodations policy may vary at some locations. To verify a hotel's pet policy, please review hotel information online at redroof.com or by contacting the hotel directly.