Red Roof is celebrating 2025 as a year of “operational excellence, tech innovation and expanded franchise demand.”
Over the year, the company:
- Increased market share with The Red Collection portfolio leading the way at a 2 percent gain and Red Roof Inn gaining 1.1 percent. The company earned a revenue per available room index of 101.4 for the year. The company also launched a new guest app, resulting in a 65+ percent increase in app-generated revenue year-on-year.
- Developed a pipeline to add 3,500 new rooms to the brand. New hotel executions increased 35 percent from 2024. The RIDE with Red Roof program welcomed new owners from underrepresented markets and the company launched a partnership with Bridge, a digital-financing platform, to improve access to capital for hotel owners and developers.
- Launched new In Stay SMS texting technology with Sojern across all of its more than 700 properties, which contributed to an improvement in internal quality metrics as well as an increase in social scores.
- Partnered with FreedomPay to install a fully integrated payment solutions system across its portfolio throughout the United States. The new technology aims to improve the payment experience for franchisees. The company also completed direct connectivity with several OTA partners and kicked off a new revenue management system rollout, both of which are contributing to increased savings for franchisees.
- Strengthened the Red Roof Purpose With Heart program, a long-term commitment to improve the way team members work at Red Roof. Completed advanced cultural competency training for nearly 700 Red Roof team members and owners (a 210 percent increase in e-learning participation in the competency training) and maintained 100 percent annual human trafficking prevention training across all properties and team members. The brand also supported key causes via its Room In Your Heart purpose-driven program with partners like Canine Companions, No Kid Hungry and St. Jude Children’s Research Hospital.
“2025 was a year of delivering on our promises,” Red Roof President Zack Gharib said in a statement. “By investing in our people, embracing innovative technology, deepening relationships with our partners and concentrating on business performance and quality, we strengthened our position as the go-to brand in economy lodging while creating value for franchisees, guests, team members and communities.”
Gharib kicked off his “Elevate Tour” in 2025, which involved visiting more than 50 hotels and meeting with owners. The company also held quarterly virtual owner town hall meetings in which leaders engaged with franchisees and shared industry and consumer trends, development opportunities and company initiatives.