Westmont Hospitality has recapitalized a portfolio of 89 Red Roof properties. Westmont will be a minority stakeholder in the new venture and will continue to operate the portfolio.
“Westmont, understanding the value of the assets and the Red Roof Brand, was determined in its desire to maintain their investment in these assets and we are looking forward to continued growth under their umbrella,” Andrew Alexander, president of Red Roof Inn, said in a statement.
Alexander says all of the 89 properties will remain Red Roof Inn or Red Roof Plus+ properties. The new partnership has also developed a multi-million dollar strategy to upgrade the current level of renovations at some of the properties to better position them for strong revenue growth. Property upgrades will include either NextGen or PLUS+ designs which include modern furniture, flat screen TVs, vessel sinks, wood-like floors, additional electrical outlets, a 100 percent smoke-free designation, rest suite beds by Serta , high-end bedding and renovated lobbies.
The Westmont purchase signifies how integral the economy lodging sector has become in the investment community, especially as competition for upscale and luxury properties heats up.