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High Brand Demand Fuels Red Roof® Growth

August 14, 2014 Hotel News No Comments Email Email

Red Roof Inn® announced it has signed 39 hotel agreements in 2014, with a robust number of additional properties in the pipeline. It’s an over 350% increase from the same time last year and showcases Red Roof’s immense and intense growth in the past year.

Red Roof, with its aggressive and strong network of 378 properties in 40 states, has a strong mix of franchise and corporate owned locations and is one of the most successful economy hotel chains in the country.

“The continuing evolution of the Red Roof brand has fueled our growth and propelled us to these impressive development milestones,” says Andrew Alexander, President, Red Roof.  “With the strong customer response to our service enhancements and hotel innovations, franchisees have tremendous confidence in our strategy and direction, and their demand for the brand is very high.”  In the first seven months of 2014, Red Roof executed thirty-nine agreements to open new hotels, most with franchisees new to the Red Roof system. Twenty-six of these properties have opened already and the brand anticipates a total of fifty new openings by yearend.

“We have an exceptionally strong development pipeline that will see the Red Roof brand expand to more than 400 properties by year end,” says Phil Hugh, Chief Development Officer.  “Demand for the brand is high.  With Red Roof’s recently launched and very successful brand extension, and the brand’s outstanding financial results, we are projecting continued growth next year and for the foreseeable future.”

Red Roof has reinvented the economy lodging sector by listening to customers and providing an enhanced experience at a value price. With innovations like its successful NextGen® renovation program and the Red Roof PLUS+® brand extension attracting repeat visitations, Red Roof has seen unprecedented growth in occupancy and revenue, creating a new category, upscale economy.  Alexander is obsessed with gaining insight from customers, pouring over reviews to understand evolving guest wants and needs.  Learning from those reviews led directly to many of the NextGen and PLUS+ improvements.

This consumer-centric strategy has produced superior results for Red Roof, as demonstrated by strong summer occupancy and double digit year on year growth.

“Our vision has been to unleash the value and power of the brand by providing guests with a premium experience at a value price,” adds Alexander. “The investments in additional properties are a testimony to the progress we’ve made and signal a bright and sustainable future.”

The newly added franchise properties are located in various markets throughout the Unites States including TexasGeorgia,PennsylvaniaKentuckyIllinois and North Dakota. The additional franchise properties will reflect the brand mix of both Red Roof and Red Roof PLUS+.

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