A 24/7 economy hotel chain, Red Roof Inn grows rapidly thanks to popular amenities, solid customer ratings, traveler-friendly locations and value.
Travel & Lodging
About Red Roof Inns
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.
1996 (29 years)
35
$1,099,891
Franchise Fees
$30,000
$17,000 Veteran's Fee
5.0%
Gross Room Revenues
4.0%
Gross Room Revenues
Why Red Roof Inns?
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.
$3,554,500 - $4,938,500
$3,554,500
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