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.