Red Roof Inn
Tip the Scales:
Brand Resources That Can
Maximize Your Profits
Prepared by and republished with the express
permission of Phil Hugh, Red Roof Inns and Suites
Disclaimer
AAHOA does not provide legal advice or representation to any
individual persons or members. To the extent that this
presentation contains information about the law that is designed
to help the recipient understand or address his or her own legal
needs, such information does not constitute legal advice or
representation by AAHOA. AAHOA goes to great lengths to
ensure the information it provides is accurate and useful, but
strongly recommends all persons and AAHOA members consult
independent counsel and obtain professional advice and
representation that is appropriate to their particular situations.
OUR PHILOSOPHY
Red Roof is totally focused on the
success of ONE BRAND, not how many
different brands we can locate on one
corner.
We respect your Area Of Protection.
Every HOTEL
THAT MEANS
Every CUSTOMER
WE FOCUS ON… Every FRANCHISEE
EVERY DAY
From humble beginnings in
Columbus, OH in 1973 to over 450
properties across the United States
. . . And Now Internationally
Brand Inn Growth
59 new
franchise inns
50 new
franchise inns
396 inns
at 12/31/14
357 inns
at 12/31/13
2008 = 342
442 inns
at 12/31/15
RED ROOF
FRANCHISEES APPROVE
Franchisees Approve Red Roof
Service
are satisfied with their decision
to partner with Red Roof
would consider Red Roof
for an additional project
would recommend Red
Roof to other hoteliers
Source: 2015 Franchisee
Survey
Franchisees rank our Regional
Vice Presidents of Operations
as superior to the competition
said they were superior or
significantly superior to
competitive operational
support teams
Some of the most experienced in the business
All former GM’s; most Red Roof GMs
Average over 15 years of experience
2015 Franchise Survey
The Industry Approves
Hotel Management
Magazine asked
readers to vote for the
top economy brand . . .
RED ROOF BY THE
NUMBERS
One of the highest RevPAR Indexes
in the Economy Segment*
*Quarterly RevPAR Economy Tract Index for Red Roof locations open and operating for at least 2 years and for all of 2015, Smith Travel Research. 340
properties.
High Overall Brand Contribution*
*The Brand Contribution is the percentage of room revenue generated for the Properties, the reservations for which were generated by the Red Roof Inn
website, the Red Roof call center, group booking, National Sales, Global Distribution System (“GDS”), third party websites and reservations by RediCard
members booked directly with the Properties, year ending December 31, 2015., This is calculated by dividing the total room revenue generated by the
channels referenced above for the Properties by the total room revenue generated by all occupied rooms at the Properties.
National Sales
Dedicated national sales
team driving revenue
for all properties
through business to
business sales.
Represents 31.4% of all
system revenues:
1:16 - Highest ratio of
national/regional
sales personnel per
property of any
national brand.
*December 2015
Sales Contribution
31.4%* COMBINED
PROPERTY
DIRECT
10.2%
BRAND
CHANNELS
21.3%
RediBill – a game-changer for
corporate accounts
2015 introduction of RediBill gave
Red Roof franchisees the advantage:
 A true centralized Direct Bill
option to meet customer
demand
 One timely, accurate invoice
with all Red Roof activity

Moves payment and collections from
franchisees to centralized Red Roof team
 No more invoices or collections to handle
 Better cash flow for properties
Tried and Tested Renovations
We’ve done it – hundreds of times
Our owner/operator history makes us expert at researching and testing
any recommended standards and renovations
Sample Properties completing 100% NextGen® renovations
PLUS+ Properties
SAMPLE NUMBER OF
PROPERTIES PROPERTIES
Complete
NextGen
/PLUS+
Properties*
31
OCC.
RATE
Index
ADR
Index REVPAR
Index
7 3.4% 113.0% $76.79 118.4% $56.37 133.8%
* Represents the average occupancy rate, average daily room rate and RevPAR for Red Roof Affiliate Managed and Affiliate Owned hotels that
have implemented the NextGen® renovations standards. These locations were open and operating for at least 2 full years, started renovations
in 2011 or later and had completed NextGen status for the entire period of January 1, 2015 through December 31, 2015, 31 properties.
Indexed to tract scale, STR.
Sample properties completing
NextGen® Elements
SAMPLE NUMBER OF
PROPERTIES PROPERTIES
Renovated
Properties
67
OCC.
RATE
Index
ADR
Index
REVPAR
Index
73.0% 117.4% $71.17 116.5% $51.95 136.8%
Average Occupancy Rate, Average Daily Room rate and RevPAR for Red Roof Affiliate Managed and Affiliate Owned hotels that have
implemented either the complete NextGen renovations (NextGen Properties) or specific standard design elements (“Partially Renovated
Properties”). These locations were open and operating for at least 2 full years, started renovations in 2011 or later and had completed
NextGen status for the entire period of January 1, 2015 through December 31, 2015,67 properties. Indexed to tract scale, STR.
Franchisees Approve NextGen®
FOCUS ON THE FUTURE
RED ROOF PLUS+
Roof PLUS+ Introduced in 2013
•
Represents the average occupancy rate, average daily room rate and RevPAR for Red Roof Affiliate Managed
and Affiliate Owned hotels that have implemented the NextGen® renovations standards. These locations were
open and operating for at least 2 full years, started renovations in 2011 or later and had completed NextGen status
for the entire period of January 1, 2015 through December 31, 2015, 31 properties.
** Smith Travel Index
***Review Metrix 2010-2014
Franchisee Quality Matters
Trip Advisor
Franchise Inns Tract Scale by TA Score
Index to Tract Scale
120
116
113
110
109
107
100
31% Difference
90
85
80
70
1st
Quintile
2nd
Quintile
3rd
Quintile
4th
Quintile
5th
Quintile
Average TripAdvisor
4.3
3.8
3.4
3.0
2.1
Corporate Inns
4.3
4.0
3.9
3.6
3.0
Franchisee Quality Matters
CS Score
Average CS Score
87.2
82.5
79.5
74.5
62.8
Corporate Inns
87.4
85.0
83.0
80.9
75.7
OUR GUESTS APPROVE
in Online Guest Reviews
Five Years Running!
(2010, 2011, 2012, 2013, 2014)
Among all Economy Hotels
Review Metrix CSI Benchmark
2014 YTD: Red Roof Inn remains
at the top of the competitive set
FOCUSED
CONVERSIONS
#498 – Hartford, CT
Before Open 3/31/2016 – 94 rooms
(Holiday Inn Express)
#498 – Hartford, CT
Open 3/31/2016 – 94 rooms
(Holiday Inn Express)
#401 - Hershey, PA
Open 6/25/2015 – 25 rooms
(Chocolate Avenue Inn)
#401 - Hershey, PA
Open 6/25/2015 – 25 rooms
(Chocolate Avenue Inn)
Wilmington, DE
After
LOBBY - Before
LOBBY - After
San Diego - Before
San Diego - After
Austin - Before
Austin - After
#497 RRI Vitoria – Brazil
Opening: 4/20/2016
Room Count : 80
Location : Vitoria E.S.
Attractions : Beaches
#443 Curitiba, Brazil
Open 9/1/2015 –96 rooms
(BTG Hotels & Resorts)
Questions?
Phil Hugh
Rachel Humphrey
Chief Development Officer
VP Franchise Relations
Red Roof Inn
AAHOA
[email protected]
[email protected]
(713) 576-7417
(404) 419-8985