Red Roof® Upscale Economy Offering Fuels Continued Profitable Growth
Actively listening to guests and franchisees and responding quickly to marketplace trends has propelled Red Roof® to the top of the economy lodging segment as the company continues to grow profitably and expand into new geographies and markets. Understanding that today’s traveler desires enhanced experiences at a value price, Red Roof has perfected the formula, reinventing the economy lodging experience and successfully changing the landscape of the segment with its unique Upscale Economy® offering. Fueled by increasing demand for the brand and staying in tune with consumer needs and wants, Red Roof has grown more than 41% over the past three years reaching a total of 504 locations which includes 51 Red Roof PLUS+® properties in the U.S. More than a dozen additional PLUS+ properties are planned by the end of 2017. With a widened domestic network and a strong development pipeline to expand its global footprint, Red Roof is well positioned to become one of the most globally recognized lodging brands.
“At Red Roof, we commit to listening to and learning from our customers and franchisees and then implementing their feedback quickly to evolve and grow the brand profitably. From launching Red Roof PLUS+, entering international markets to quickly offering consumers what they want like fast and free WiFi, we’ve experienced consistent and impressive growth from our ‘listening and responding’ business model,” says Andrew Alexander, President, Red Roof. “As we look to the future, with strong brand equity, we will explore additional branding opportunities.”
Red Roof brought to market a new and unique Upscale Economy offering, creating a new segment, in 2013 by rolling out Red Roof PLUS+. Driven by guests’ feedback and research results, Red Roof’s renovation and upgrades are designed to redefine guest experience and change the perception of the economy segment. Aside from clean and comfortable rooms at an affordable price, Red Roof PLUS+ delivers additional electrical outlets, wood-like flooring and spa-inspired bathrooms that travelers want. Through market research travelers have also responded that WiFi is more important to them than complimentary breakfast and a hotel’s location when considering booking a hotel stay. The findings were operationalized with the launch of a Fast. Free. Verified. WiFi program in 2016. By the end of 2017, Red Roof will have approximately 120 properties hosting Fast. Free. Verified. WiFi, a brand standard for all PLUS+ properties.
“Our continued development growth indicates the high demand for the brand and proves Red Roof has truly become a major draw for guests and franchisees,” says Phil Hugh, Chief Development Officer, Red Roof. “Red Roof provides enhanced experiences not just to consumers but also to our franchise community. Maintaining a genuine relationship with our franchisees and providing them ongoing diligent support has been one of our top priorities. Red Roof delivers real results indicated by a brand contribution of 66% which is a key driver of success. We are proud to be a company that stands by our franchisees.”
In addition to dynamic domestic growth, Red Roof is expanding its reach, entering new geographies with long-term strategic development plans to create brand consistency and loyalty internationally. The healthy expansion progress is a testament to the global appeal of Red Roof.
- Brazil: Red Roof partnered with Nobile Hotels to develop 35-40 properties across the country over the next two decades; opened three locations in the region, including Curitiba, Natal and Vitória
- Canada: Red Roof is committed to the market through a dedicated Frachise Development Director position. Neil Scott has a long history with the brand and is an expert resource for new franchisees, providing support throughout the entire process.
- Japan: Red Roof opened the first PLUS+ location in the Namba area of Osaka in July, 2016, and the second location, Red Roof Inn Kamata in March, 2017
- Thailand: Red Roof partnered with Paragon Hotels Limited to open a series of new-build hotels across Thailand between 2017-2020
Red Roof will continue its development momentum and aggressive growth plans by strengthening its network in the U.S., entering new geographies, identifying new venues and exploring new branding opportunities.
About Red Roof®
Red Roof is a leader in the economy lodging industry with franchised, corporate-managed, and corporate-owned properties, serving millions of guests each year. With coast-to-coast locations, Red Roof has over 500 properties in the U.S. Red Roof is also expanding internationally to Brazil, Canada, Thailand and Japan. The primary goal at Red Roof is to provide customers a savings without sacrificing comfort. The brand has been investing significantly to renovate and upgrade hotels nationwide with sleek and modern NextGen® redesign elements. The Red Roof NextGen hotels feature updated, stylish and home-like interior and exterior designs that demonstrate the Red Roof dedication to providing customers with an affordable stay in a clean, comfortable and modern room. The company is rolling out Red Roof PLUS+®, an enhanced Upscale Economy® offering at a value price, committed to “Adding More Wow to Your Stay!®”. Nice Place. Nice Price® is what every consumer can expect when they stay at any Red Roof location. Red Roof also offers franchisees Genuine Relationships. Real Results.™. The Red Roof loyalty program, RediCard®, is the richest in the industry rewarding members with free nights with only 7,000 points, advance notice of special offers, and complimentary bottled water each day of their stay. Traveling with your pet? Don’t forget that at Red Roof ‘you stay happy, pets stay free’ as one well-behaved pet is welcome per room, nationwide. For more information or reservations, call 800.RED.ROOF (800.733.7663) or visit www.redroof.com.
Hill + Knowlton Strategies