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
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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
From humble beginnings in Columbus, OH in 1973 to over 450 properties across the United States
... And Now Internationally
Brand Inn Growth 50 new franchise inns 396 inns at 12/31/14 59 new franchise inns 442 inns at 12/31/15 357 inns at 12/31/13 2008 = 342
RED ROOF FRANCHISEES APPROVE
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
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
The Industry Approves Hotel Management Magazine asked readers to vote for the top economy brand...
RED ROOF BY THE NUMBERS
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.
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.
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, 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
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 31 7 3.4% 113.0% $76.79 118.4% $56.37 133.8% * 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.
Sample properties completing NextGen Elements SAMPLE PROPERTIES Renovated Properties NUMBER OF PROPERTIES OCC. RATE Index ADR Index REVPAR Index 67 73.0% 117.4% $71.17 116.5% $51.95 136.8% 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.
Franchisees Approve NextGen
FOCUS ON THE FUTURE RED ROOF PLUS+
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 2010-2014
Index to Tract Scale Franchisee Quality Matters Trip Advisor Franchise Inns Tract Scale by TA Score 120 110 116 113 109 107 100 31% Difference 90 80 85 70 1st Quintile 2nd Quintile 3rd Quintile 4th Quintile 5th Quintile Average TripAdvisor 4.3 3.8 3.4 3.0 2.1 Corporate Inns 4.3 4.0 3.9 3.6 3.0
Franchisee Quality Matters CS Score Average CS Score 87.2 82.5 79.5 74.5 62.8 Corporate Inns 87.4 85.0 83.0 80.9 75.7
OUR GUESTS APPROVE
in Online Guest Reviews Five Years Running! (2010, 2011, 2012, 2013, 2014) Among all Economy Hotels
Review Metrix CSI Benchmark 2014 YTD: Red Roof Inn remains at the top of the competitive set
FOCUSED CONVERSIONS
#498 Hartford, CT Before Open 3/31/2016 94 rooms (Holiday Inn Express)
#498 Hartford, CT Open 3/31/2016 94 rooms (Holiday Inn Express)
#401 - Hershey, PA Open 6/25/2015 25 rooms (Chocolate Avenue Inn)
#401 - Hershey, PA Open 6/25/2015 25 rooms (Chocolate Avenue Inn)
Wilmington, DE After
LOBBY - After LOBBY - Before
San Diego - Before
San Diego - After
Austin - Before
Austin - After
#497 RRI Vitoria Brazil Opening: 4/20/2016 Room Count : 80 Location : Vitoria E.S. Attractions : Beaches
#443 Curitiba, Brazil Open 9/1/2015 96 rooms (BTG Hotels & Resorts)
Questions? Phil Hugh Chief Development Officer Red Roof Inn Phugh@redroof.com (713) 576-7417 Rachel Humphrey VP Franchise Relations AAHOA rachel@aahoa.com (404) 419-8985