Red Roof says it's set to open 50 hotel properties—both new builds and conversions—in 2023, which would be 60 percent year-over-year growth, reports Hotel Management. Red Roof reported record revenue in 2022, which increased 6.9 percent percent year over year.
“Our model works, and we are seeing the outstanding results in our business. Demand for the Red Roof brand is fueling growth as we continue to listen and evolve, improving the value proposition for guests as well as hotel owners and operators,” George Limbert, Red Roof president, said in a statement.
The company says 10 percent of the new properties will be Red Roof PLUS+, slated for Brooklyn, N.Y.; Jamaica, N.Y.; Virginia Beach, Va.; San Antonio, Texas; and Belleville, Mich., with five additional locations expected to open in 2024.
In the past two years, Red Roof has opened 11 HomeTowne Studios properties, with 10 additional openings expected in 2023. As the Red Roof brand draws closer to 700 properties systemwide, the company is also launching a new dual-branded prototype, which offers franchisees an additional Red Roof option—Red Roof Inn and HomeTowne Studios, on the same property, reports Hotel Management. The dual brand provides both guests and franchise owners increased flexibility and added value.
“The dual-branded prototype, featuring 150 rooms, a centralized reservation system and shared labor provides operational efficiencies and positions the properties well for profitable growth,” said Red Roof Chief Development Officer Matthew Hostetler.