Red Roof Inn Beefs Up Development Amid Hotel Boom
We glean countless stories and industry trends from our exclusive Top 200+ data that’s coming out in the October issue of Franchise Times—more, in fact, than we can fit in the magazine. One of many bright spots in the hospitality category is Red Roof Inn, which has added to its franchise development team as consumers are traveling more than ever.
Without spoiling the exact numbers you’ll see as part of our Top 200+ coverage, Ohio-based Red Roof Inn grew its sales by more than 5 percent during 2017, with more than two dozen new units added to its namesake flags.
Looking for the stories behind the numbers, our editorial team contacts experts from countless brands to ask for the specifics and strategies, and what we’ll be talking about when we call next year.
Specifically accounting for the company’s healthy rise in sales, Red Roof said that its “high-touch operations team” pays close attention to the number of properties each team serves. In addition, it expanded its franchise development staff, which includes reaching out to existing franchisees—especially important for all hospitality companies that have added new flags during this many-year run of growth in the category.
Looking ahead, Red Roof said it's continuing growth in the southern and eastern United States, but will be focusing heavily on the West Coast and international markets in the coming year, including Canada.
The company added that it’s “especially bullish” about the upscale economy segment, where it touts excellent TripAdvisor ratings, as well as its efforts in the extended-stay category with its newest sub-brand, HomeTowne Studios by Red Roof. HomeTownes will be undergoing a phased launch of more than 30 properties in more than 20 markets, which adds up to nearly 4,000 rooms.
That’s a lot of space to fill and bodies to attract, but looking at the macro conditions in the hotel world, there’s an awful lot of momentum to slow down before any talk of a significant contraction.