Overview
Company Name: Red Roof Inns Inc.
Industry: Hospitality
Headquarters: 7815 Walton Parkway, New Albany, Ohio, U.S.
Founded: 1973
Red Roof Inns Inc. is a reputable American economy hotel chain with over 600 properties globally, predominantly located in the Midwest, Southern, and Eastern regions of the United States. The company is recognized for its pet-friendly accommodations and has carved a niche in the industry with its "Upscale Economy" segment. Red Roof operates several brands, including Red Roof Inn, Red Roof PLUS+, HomeTowne Studios by Red Roof, and The Red Collection.
Company Structure and Leadership
Ownership: Red Roof Inns Inc. is a subsidiary of WRRH Investments LP.
Key Person: Zack Gharib, President.
Employee Size: 5,001-10,000 employees.
Parent Organization: WRRH Investments LP.
Subsidiaries: Red Roof Franchising, LLC.
Historical Milestones
- 1973: The company was founded by Jim Trueman in Columbus, Ohio.
- 1994-1999: Initially acquired by Morgan Stanley Real Estate Fund and later sold to Accor, a French hospitality company, for $1.115 billion.
- 2007: Sold to Citigroup Global Special Situations Group and Westbridge Hospitality Fund LP.
- 2013: Initiated a $150 million renovation project for its NextGen room design.
- 2018: Introduced The Red Collection, concentrating on urban, midscale hotels.
Brand Expansion and International Reach
Red Roof PLUS+: Developed to provide a higher-tier experience with premium amenities at select properties.
The Red Collection: Tailored for urban areas, emphasizing modern decor inspired by local culture.
HomeTowne Studios by Red Roof: Launched in 2018 for extended-stay guests, with over 30 properties in diverse markets.
International Expansion: Entered markets in Brazil and Japan through partnerships, with future expansion plans in Canada and Thailand through strategic alliances.
Current Activities and Initiatives
Red Roof Inns Inc. emphasizes growth and innovation within the hospitality sector, participating in industry events like the ALIS Conference. It actively engages in partnerships to improve service delivery and operations and is committed to fighting human trafficking through training and awareness programs, prioritizing guest safety and satisfaction.
Challenges and Legal Issues
The company has faced legal challenges regarding negligence in sex trafficking states, with several lawsuits filed. Red Roof is committed to resolving these issues by working with law enforcement and has settled some cases, reflecting ongoing legal scrutiny yet demonstrating a dedication to addressing these concerns.
Strategic Vision
Red Roof Inns Inc.'s strategic vision focuses on delivering unparalleled guest experiences and value in the lodging industry, aiming to innovate continuously and expand its reach domestically and internationally.
Competitor Profiling for Red Roof Inns Inc.
Primary Competitors
- Choice Hotels International: A leading player with nearly 7,500 hotels across 45 countries. It operates under 22 different brands, covering upscale to extended stay market segments. In 2023, reported revenues of $1.5 billion marked a 10% growth year-over-year.
- La Quinta Inns & Suites by Wyndham: Positioned in the midscale segment, offering amenities like free breakfast and pet-friendly rooms. La Quinta provides a loyalty rewards program with attractive rates and benefits.
- Motel 6: A budget motel chain owned by Oyo Rooms since 2024, with properties in the U.S. and Canada. Known for affordability, it undertook extensive renovations starting in 2008. Acquired by Oyo for $525 million, it represents strategic investment in budget lodging.
- Drury Hotels: A family-owned chain with over 150 locations in 27 states, emphasizing customer satisfaction with free amenities like breakfast, Wi-Fi, and evening snacks. Consistently recognized for quality service.
- Sleep Inn (by Choice Hotels): Targets the midscale segment with over 400 properties. Promotes upgraded guest experiences through modern designs and wellness-oriented prototypes, maintaining competitive operational efficiency.
Red Roof Inns Inc. competes in a challenging sector dominated by significant entities like Choice Hotels, La Quinta, Motel 6, Drury Hotels, and Sleep Inn. Each competitor offers unique strengths, such as international presence, loyalty incentives, or strategic property modernization, crucial for Red Roof Inns to consider in maintaining its position within the hotel industry.
