Red Roof Franchising

What Red Roof Franchising does

Red Roof Franchising (legal entity Red Roof Inn Franchising, LLC) is a privately held economy hotel franchising company headquartered in New Albany, Ohio, founded in 1973 by James R. Trueman in Columbus, Ohio and acquired by the Morgan Stanley Real Estate Fund in 1994. The company operates a multi-brand franchise platform comprising five hotel brands — Red Roof Inn (the 540+-property core economy brand), Red Roof PLUS+ (80+-property upscale economy extension launched in 2014), HomeTowne Studios by Red Roof (extended stay, launched 2018), The Red Collection (soft brand launched 2017) and a Dual Brand format — totaling more than 700 properties across the United States with additional international presence in Brazil, Japan and a planned 2026 entry into Canada. The platform is supported by proprietary technology including the HotelKey-integrated PMS, the REDvenue Optimizer revenue management service, the RediRewards loyalty program (5.5M+ members, 70%+ return rate), RediBill centralized billing, RediSales/RediResearch field sales support, and the RED Academy learning management system; marketing is powered by the Zeta data platform covering 225M+ US consumers.

The business generates revenue primarily through franchise fees on new signings and ongoing royalty payments from operating properties, supplemented by managed services revenue from technology platforms, training, procurement and brand support. Pricing is not publicly disclosed but is marketed as among the lowest in the economy segment. Go-to-market is delivered through a territory-based field sales force of Franchise Development Directors covering the US and Canada, supplemented by international master-developer partnerships (Richmond Airport Enterprises Ltd. in Canada, Nobile Hotéis in Brazil, Paragon Hotels Limited in Thailand, Pacrim Hospitality Services Inc.). Customer segments include hotel investors and developers (primary), women and minority entrepreneurs served through the RIDE diversity program, and extended-stay investors served through HomeTowne Studios. Distribution combines direct channels — redroof.com (12M+ annual visitors, ~25% of online revenue), the mobile app (60% revenue growth in 2023) and a 39%-converting dedicated reservation center — with GDS connectivity via Pegasus and OTA partnerships. Operating signals include 35% YoY franchise signings growth, 92% franchisee satisfaction, and President Zack Gharib's appointment in April 2024 as the company executes an international re-expansion and product-line diversification strategy.

Name

Red Roof Franchising

Legal name

Red Roof Inn Franchising, LLC

Website

https://www.redrooffranchising.com

Company type

Private

Founded year

1973

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Red Roof Franchising is a private economy hotel franchising company operating 700+ properties across five US brands — Red Roof Inn, Red Roof PLUS+, HomeTowne Studios, The Red Collection and Dual Brand — generating revenue through franchise fees, royalties, and technology/service platforms serving independent hotel investors and developers.

Ownership category

akta.pro rank

Product category

Economy Hotel Franchising

akta.pro primary industry

Budget Hotel Chains & Franchises (THAGABAM)

akta.pro secondary industry

Franchised/Chain Motels (THAGAFAM)

Keywords

• Economy hotel franchising
• Hotel franchise opportunities
• Franchise development support
• Hotel brand licensing
• Extended stay franchising

Headquarters

HQ city

New Albany

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Marketing or Sales, Technology or R&D, Operations, Infrastructure

Revenue model

1. Franchise Fees and Royalties: Red Roof generates revenue through franchise fees from new signings and ongoing royalty payments from operating properties. The company emphasizes low fees as a key differentiator for franchisees.
2. Property Management and Support Services: Additional revenue streams from technology platforms, training programs, procurement services, and brand support services provided to franchisees.

Pricing tiers

Go-to-market motion2 records

Distribution channels6 records

Marketing channels8 records

Core offering

Red Roof Franchising licenses its economy hotel brands to franchisees who build, convert, or operate Red Roof Inn, Red Roof PLUS+, HomeTowne Studios, The Red Collection, and Dual Brand properties. The company generates revenue through franchise fees and ongoing royalties, and supports franchisees with design, construction, technology (HotelKey PMS, REDvenue Optimizer), marketing, distribution, training (RED Academy), and loyalty (RediRewards) services.

Product overview

Red Roof Franchising operates a multi-brand economy hotel franchise platform comprising five distinct hotel brands: the core Red Roof Inn economy brand (540+ properties), the upscale economy Red Roof PLUS+ brand (75+ properties), the extended-stay HomeTowne Studios brand, The Red Collection soft brand for hyper-local midscale properties, and Dual Brand properties combining Red Roof Inn with HomeTowne Studios. The platform is supported by proprietary operational systems including the RediRewards loyalty program (5.5M+ members), RediBill centralized billing, RediSales field sales support, RediResearch market analysis, Redvenue Optimizer revenue management, and RED Academy training platform. The RIDE initiative supports diversity in franchise ownership. International expansion is underway with Red Roof Canada.

Differentiator

Problem solved

Functional benefit

Brands

• Red Roof Inn: Core economy hotel brand offering clean, comfortable rooms at affordable rates. Over 540 properties across the United States.
• Red Roof PLUS+
• HomeTowne Studios by Red Roof
• The Red Collection
• Dual Brand

Products and services

• Red Roof Inn Franchise Core economy hotel franchise brand offering budget-conscious travelers clean, comfortable accommodations at affordable rates. The original flagship brand with 540+ properties across the United States, known for consistent strong RevPAR and customer satisfaction. Licensed to hotel investors and developers.
• Red Roof PLUS+ Franchise Upscale economy hotel franchise offering enhanced accommodations with NextGen design elements including wood-like flooring, flat-screen TVs, high-end bedding, and spa-inspired baths. Positioned for guests seeking premium experience at value prices, with 75+ locations.
• HomeTowne Studios by Red Roof Franchise Economy extended stay hotel franchise designed for guests needing longer-term accommodations. Features functional floor plans with ample storage, FF&E designed for comfort and efficiency, and operations-centric prototype.
• The Red Collection Franchise Soft brand franchise of unique midscale, hyper-local hotels inspired by their destination's vibe and culture. Properties maintain individual names and customized enhancement plans based on consumer preferences rather than design mandates.
• Dual Brand Franchise
• Red Roof Canada Franchise International franchise expansion initiative in Canada with first property Red Roof PLUS+ Vancouver Airport, converting from Travelodge Hotel by Wyndham in partnership with Richmond Airport Enterprises Ltd.
• RediRewards Loyalty Program Points-based loyalty program with 5.5+ million members offering 10 points per dollar spent and free night redemption at the lowest systemwide points requirement in the industry. Delivers 70%+ member return rate and nearly 30% of stays from members. Provided to franchisees to support guest retention.
• REDvenue Optimizer
• RED Academy Training

Quantifiable outcome

• 92% franchisee satisfaction rate
• +7 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

Feature6 records

Partnerships

Nine partnerships are on record, tiered core, flagship and regional.

• HotelKeycoreTechnology or IntegrationHotelKey is a hospitality management platform designed to improve both franchisee and guest experience. It streamlines hotel operations by integrating property management, booking channels, revenue management, loyalty and point-of-sale systems, including front-desk assistance, housekeeping & maintenance systems, timekeeping tools and rate and revenue management support.
• ZetacoreTechnology or IntegrationOne of the world's largest data-driven agencies with analytics on over 225 million American consumers. Zeta provides insights into guests' demographics, browsing habits, shopping behaviors, travel and hotel choices for targeted marketing.
• IbexcoreTechnology or IntegrationLeading international customer service company chosen to operate Red Roof's reservation center and guest relations functions. The transition improved every aspect of guest experience with faster answer times, lower abandon rates, and higher conversion rates.
• PegasuscoreTechnology or IntegrationTechnology provider enabling highest level seamless connectivity to all four GDS channels and alternative websites. All rate and inventory changes across the property management system flow automatically to the GDS systems.
• Richmond Airport Enterprises Ltd.flagshipStrategic or Co-development PartnerExperienced developer and hotel operator partnered with Red Roof for Canada expansion. First project is Red Roof PLUS+ Vancouver Airport conversion from Travelodge Hotel by Wyndham, opening July 2026 near Vancouver International Airport.
• Nobile HotéisregionalStrategic or Co-development PartnerPartnership to open Red Roof's first international location in Brazil. Red Roof opened its first international property in Vitoria, Brazil in 2016 through this partnership.
• Pacrim Hospitality Services Inc.regionalStrategic or Co-development PartnerSigned 20-year deal in 2015 to build or brand up to 40 hotels in Canada with Glenn Squires.
• Paragon Hotels LimitedregionalStrategic or Co-development PartnerPartnership announced in 2015 to develop 30 hotels across Thailand.
• Latino Hotel AssociationcoreStrategic or Co-development PartnerStrategic partnership supporting the RIDE program's mission to advance hotel ownership for Latinas. Lynette Montoya, President & CEO of Latino Hotel Association, noted Latinas are the most entrepreneurial women in the U.S.

Scale indicators15 records

Recent moves10 records

Expansion highlights6 records

Direct peers

• G6 Hospitality (Motel 6 / Studio 6): G6 Hospitality operates the Motel 6 and Studio 6 economy lodging brands through franchising and company-owned properties, making it the closest direct comparable to Red Roof in the US budget motel segment with similar guest profile, brand positioning, and franchise-heavy business model.
• WoodSpring Suites (Choice Hotels): WoodSpring Suites is Choice Hotels' economy extended-stay brand and is the most direct competitor to HomeTowne Studios by Red Roof in the longer-stay economy segment, with comparable property prototypes and franchisee economics.
• Microtel Inn & Suites by Wyndham: Microtel is Wyndham's economy new-build prototype brand positioned similarly to Red Roof PLUS+ for value-conscious travelers and franchise investors seeking consistent room layouts and operating standards.
• Travelodge Hotels: Travelodge is a budget motel franchise brand with roadside/economy positioning similar to Red Roof Inn; notably, Red Roof's first Canadian property involves converting a Travelodge by Wyndham, underscoring the direct competitive overlap at the property level.
• Baymont Inn & Suites (Wyndham): Baymont is a Wyndham economy-to-midscale franchise brand that competes for the same small franchisee investor profile as Red Roof Inn and Red Roof PLUS+, with similar property conversion and new-build economics.
• InTown Suites / InTown Suites Extended Stay: InTown Suites operates economy extended-stay properties with a similar target guest profile and per-property economics as HomeTowne Studios by Red Roof, making it a direct competitor in the economy extended-stay sub-segment Red Roof is targeting.

Broad incumbents

• Choice Hotels International: Choice Hotels is one of the largest US franchisors with extensive economy and midscale brands (Quality Inn, Sleep Inn, Econo Lodge, Rodeway Inn, Clarion, Comfort) that directly compete with Red Roof in the budget hotel category and use a comparable franchise fee + royalty revenue model.
• Best Western Hotels & Resorts: Best Western is a membership-based hotel brand with a broad portfolio including SureStay (economy) and SureStay Plus, competing with Red Roof for value-segment franchisees and travelers, with a franchised/member-owned operating model.
• Wyndham Hotels & Resorts: Wyndham is the world's largest hotel franchisor with deep economy and midscale brands including Super 8, Days Inn, Microtel, Howard Johnson, Travelodge, and Baymont - all directly competitive with Red Roof Inn, Red Roof PLUS+, and HomeTowne Studios and operating under a similar asset-light royalty model.

Emerging players

• Extended Stay America: Extended Stay America operates a large fleet of company-owned and franchised extended-stay properties; though positioned at a slightly higher price point than HomeTowne Studios, it competes for the same extended-stay demand and franchise investment dollars.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/rrifranchising
• LinkedInlinkedin.com/company/red-roof-franchise
• Facebookfacebook.com/RedRoofFranchising

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Red Roof Franchising