Last year, Red Roof Inn announced plans to have more than 500 properties operating worldwide by the end of 2016. The company pushed a “a long-term strategic development plan” forward, with new openings, new deals and a view to growing globally.
Most recently, the company made its Japan debut in Osaka’s Namba neighborhood. The Red Roof Plus/Namba-Osaka (pictured above) is a renovation of the former Floral Inn, and underwent a $14.5-million refurbishment that added 26 rooms prior to the opening.
“At Red Roof our international development and expansion efforts have been extremely successful,” Phil Hugh, CDO for Red Roof, said in a statement when the Japan hotel opened. “The opening of the Red Roof Plus in Osaka is a testament to the appeal of the Red Roof brand; its attractiveness to investors and travelers and adds to our growing portfolio of properties in global locations including Brazil and Thailand. Development and growth are intrinsic to Red Roof’s DNA.”
Global Growth
Prior to the Japan debut, Red Roof Inn has kept its global focus on Brazil, Canada and Thailand.
For projects in Brazil, Red Roof partnered with Nobile Hotels to develop 35-40 properties across the country over the next 25 years, and opened its first international location in Curitiba. It opened its second location in Vitoria this past April. "There wasn't a consistent, quality brand in Brazil in the economy segment, and Nobile operates 30 hotels in the country," Hugh said. "They came to us and say 'we have some of your competitors, but we like what we are hearing about you.'"
For Canada, Red Roof signed a 20-year deal with developer Glenn Squires, CEO of Pacrim Hospitality Services (a Canadian independently owned hotel development and management company) to build and brand 40 hotels across Canada. The company broke ground on three locations this past spring. “There is a large demand for economy hotels to fill an open void,” Squires said at the time. Pacrim will be contracted to assist in the development of the hotels in the Eastern and Atlantic regions as well as a second group of Canadian properties due to open in Ontario, British Columbia and Alberta over the next few years. Squires took a 50-percent interest and has partnered with Chinese investors to form Canada China Culture Hospitality Development Inc. operating as CCC Hospitality Development. CCC has committed to fund a number of Red Roof Inns across Canada.
In Thailand, the company partnered with Paragon Hotels Limited to open a series of new-build hotels across Thailand from 2017 to 2020, focusing on securing sites in major tourist locations from Bangkok to Phuket. Hugh said the company chose Paragon Hotels as its developer in Thailand because of their long-term plans for disseminating the Red Roof brand throughout the country.
"These are not development agreements or anything in the planning stages, in our initial meetings this organization was putting a machine together," Hugh said. "We were discussing building on sites that were already secured. They don't have a dream, they have a plan."