Red Roof Inns Franchise

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Detailed Information

Capital Required
$3,554,500 - $4,938,500

Liquid Capital
$3,554,500

Financing Assistance
No Financing Available

Training and Support
Available

Initial Franchise Fee
$30,000

CEO Name
Andrew C. Alexander

Existing Units
534

 

Overview

Red Roof Inn stands out as one of the top economy hotel chains in the U.S., focusing on budget-friendly accommodations and smart amenity choices that maximize popularity while minimizing operating costs. Rather than providing extras such as room service or continental breakfasts, Red Roof Inn and Red Roof Inn & Suites have gained popularity due to free high-speed Wi-Fi and flat-screen TVs in every room, pets-allowed policies, excellent customer service and dedication to cleanliness. Red Roof Inn locations cater to leisure travelers, businesspeople in search of budget-friendly prices and visitors in need of emergency accommodations, which is why many operate near airports or interstate rest areas. Some Red Roof Inn & Suites hotels also offer exercise facilities, conference rooms and a pool to successfully compete with other nearby economy-segment hotel chains.

Why Choose Us?

The Red Roof Inn franchise continues to experience significant growth, increasing as much as 41 percent from 2016 to 2018. This success with franchise owners and consumers has to do with no-frills room prices and guest comfort. Red Roof Inns consistently receive top ratings for an excellent online experience and easy booking. Leisure travelers love the fact that they can take one pet with them for their stay. All Red Roof brands enjoy a high customer satisfaction rating, and Red Roof Inn generates an average revenue per available room (RevPAR) of around $40.00, average daily rate (ADR) of almost $65.00 and occupancy percentage approaching 65 percent, which are all positive numbers for the economy hotel segment. The Red Roof Inn franchise’s ties to midscale Red Roof PLUS+ and other amenity-rich offerings in the Red Roof portfolio, such as The Red Collection, has positive effects on franchise branding. Clients of any one of the associated brands have access to the unified RediCare® Preferred Member loyalty program, which entices travelers through accumulating points, free stays, faster check-in and personalized services.

Ideal Candidate

Red Roof Inn provides significant pre-launch training and ongoing instruction for hotel managers and employees. The franchise also designates a representative to offer guidance during the hotel construction or conversion phases. However, the franchisor does not handle construction oversight or acquisition of building permits. A potential franchisee will optimally have previous hotel administration experience or knowledge of local operating requirements, along with the capacity to fulfill the brand’s 20-year initial franchise term. To take advantage of the travel-oriented focus of Red Roof Inns, the ideal location should be near an airport, major highway or interstate.

History

The first Red Roof Inn opened in 1973 in Columbus, Ohio, and was owned and operated by builder James R. Trueman. In 1980, Red Roof Inn provided an 800-number for easier guest reservation. The RediCard® loyalty system was introduced a few years later, in 1982. Throughout its history, Red Roof Inn has taken steps to implement new technology that leads to better profits and increased customer satisfaction, often ahead of other economy hotel chains. Today, redroof.com’s 12 million visitors and 5 million reservations per year contribute to approximately 67 percent of total stays, and the Red Roof brand invests heavily in the success of this online empire.

Training And Support

Red Roof Inn provides hotel managers with RED Advantage training during approximately nine days. Onsite training includes instruction for front desk employees, hospitality and maintenance staff, including training in the proprietary property management system. In total, Red Roof Inn provides from 16 to 24 hours of pre-launch classroom training and four hours or more of on-the-job training, in addition to mandatory annual continuing education.

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