Red Roof is set to open 50 properties—both new builds and conversions—in 2023, representing 60 percent year-over-year growth. The company reported record revenue in 2022, which increased 6.9 percent 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,” George Limbert, Red Roof president, said in a statement.
With 76 percent brand contribution and 104.7 percent revenue-per-available-room index, 10 percent of the new properties will be Red Roof PLUS+. The new Red Roof PLUS+ properties are slated for Brooklyn, N.Y.; Jamaica, N.Y.; Virginia Beach, Va.; San Antonio, Texas; and Belleville, Mich. Five additional locations are expected to open in 2024.
“We are repolishing 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 Red Roof Chief Marketing Officer Marina MacDonald. New quality standards and added amenities will be implemented, including upgraded vending and coffee and enhanced exterior lighting.
In the past two years, Red Roof has moved aggressively in the strong and high-demand extended-stay category, opening 11 HomeTowne Studios properties, with 10 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.