Red Roof commits to Canada with 40-hotel deal

Red Roof Inn, having already signed a deal earlier this year to expand outside U.S. borders into Brazil, now has its sights set on Canada. It reportedly has signed a 20-year deal with developer Glenn Squires to build and brand 40 hotels across Canada, with the support of Pacrim Hospitality Services. The first four hotels will be open by 2016. These will be new builds, not conversions, with most built as Red Roof PLUS+® properties, Red Roof’s enhanced and upgraded offering. The first 4 hotels will be slated to the Eastern and Atlantic regions opening in Grand Falls and Bay Roberts in Newfoundland & Labrador and Wolfville and Antigonish in Nova Scotia.

“This agreement signals Red Roof’s strong growth internationally and the demand for our upscale economy product. The key to our success is our ability to find partners with deep local knowledge,” said Andrew Alexander, president, Red Roof. “Canada is a perfect market for us. Canadian consumers are ready for a true economy hotel brand; a new value proposition.”

Developer Glenn Squires is CEO of Pacrim Hospitality Services, a Canadian independently owned hotel development and management company.

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“There is a large demand for economy hotels to fill an open void,” says Squires. “This is a natural fit for Red Roof and especially the Canadian consumer who is eager for more choices and low costs paired with comfortable, amenity-filled rooms. Red Roof is the ideal brand for the hotel guest who wants it all without sacrificing their savings.” 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 has taken a 50-percent interest and has partnered with Chinese investors to form Canada China Culture Hospitality Development Inc. operating as CCC Hospitality Development (CCC). CCC has committed to fund a number of Red Roof Inns across Canada.

“Red Roof and Mr. Squires have entered into an excellent partnership that not only extends the Red Roof brand into Canada but will benefit the Canadian traveler who will have an additional hotel category from which to choose,” said Phil Hugh, CDO, Red Roof. “We couldn’t have asked for a better development partner to ease our entry into the Canadian market.” Late last year, Red Roof® announced that it was partnering with respected Brazil-based Nobile Hotels to develop 35-40 properties – new builds and conversions - across the country over the next twenty five years. The first property, a conversion of an existing hotel, will open in Brasilia in 2015.