Red Roof Inn Tip the Scales: Brand Resources That Can Maximize Your Profits

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1 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

2 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.

3 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. THAT MEANS WE FOCUS ON Every HOTEL Every CUSTOMER Every FRANCHISEE EVERY DAY

4 From humble beginnings in Columbus, OH in 1973 to over 450 properties across the United States

5 ... And Now Internationally

6 Brand Inn Growth 50 new franchise inns 396 inns at 12/31/14 59 new franchise inns 442 inns at 12/31/ inns at 12/31/ = 342

7 RED ROOF FRANCHISEES APPROVE

8 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

9 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

10 The Industry Approves Hotel Management Magazine asked readers to vote for the top economy brand...

11 RED ROOF BY THE NUMBERS

12 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.

websites and reservations by RediCard members booked directly with the Properties, year ending December 31, 2015.

13 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.

14 National Sales Dedicated national sales team driving revenue for all properties through business to business sales. Represents 31.4% of all system revenues: Sales Contribution 31.4%* COMBINED PROPERTY DIRECT 10.2% BRAND CHANNELS 21.3% 1:16 - Highest ratio of national/regional sales personnel per property of any national brand. *December 2015

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,

15 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

16 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 PROPERTIES Complete NextGen /PLUS+ Properties* NUMBER OF PROPERTIES OCC. RATE Index ADR Index REVPAR Index % 113.0% $ % $ % * 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.

17 Sample properties completing NextGen Elements SAMPLE PROPERTIES Renovated Properties NUMBER OF PROPERTIES OCC. RATE Index ADR Index REVPAR Index % 117.4% $ % $ % 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.

18 Franchisees Approve NextGen

19 FOCUS ON THE FUTURE RED ROOF PLUS+

These locations were open and operating for at least 2 full years, started renovations in 2011 or later and had completed

20 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

21 Index to Tract Scale Franchisee Quality Matters Trip Advisor Franchise Inns Tract Scale by TA Score % Difference st Quintile 2nd Quintile 3rd Quintile 4th Quintile 5th Quintile Average TripAdvisor Corporate Inns

22 Franchisee Quality Matters CS Score Average CS Score Corporate Inns

23 OUR GUESTS APPROVE

24 in Online Guest Reviews Five Years Running! (2010, 2011, 2012, 2013, 2014) Among all Economy Hotels

25 Review Metrix CSI Benchmark 2014 YTD: Red Roof Inn remains at the top of the competitive set

26 FOCUSED CONVERSIONS

27 #498 Hartford, CT Before Open 3/31/ rooms (Holiday Inn Express)

28 #498 Hartford, CT Open 3/31/ rooms (Holiday Inn Express)

29 #401 - Hershey, PA Open 6/25/ rooms (Chocolate Avenue Inn)

30 #401 - Hershey, PA Open 6/25/ rooms (Chocolate Avenue Inn)

31 Wilmington, DE After

32 LOBBY - After LOBBY - Before

33 San Diego - Before

34 San Diego - After

35 Austin - Before

36 Austin - After

37 #497 RRI Vitoria Brazil Opening: 4/20/2016 Room Count : 80 Location : Vitoria E.S. Attractions : Beaches

38 #443 Curitiba, Brazil Open 9/1/ rooms (BTG Hotels & Resorts)

39 Questions? Phil Hugh Chief Development Officer Red Roof Inn (713) Rachel Humphrey VP Franchise Relations AAHOA (404)

MID ATLANTIC REGIONAL EDUCATION SESSION

MID ATLANTIC REGIONAL MEETING MID ATLANTIC REGIONAL EDUCATION SESSION CO-HOSTED BY QUESTEX Prepared by and republished with the express permission of Questex Thank You to Our Sponsors: Disclaimer AAHOA