HB Exclusive: Red Roof reports record year in 2021

Red Roof has surpassed 60,000 guestrooms across the U.S., and its growth in 2021 outperformed 2019 results, which was the best performance in the company’s 49-year history.

The 2021 numbers reflect a record year for the company, in the face of one of the most difficult years the industry has endured.

“Our 2021 results paint the picture of a brand on the move—agile, innovative and responsive to the needs of our guests and franchisees,” George Limbert, president, Red Roof, told Hotel Business. “As industry-wide recovery continues, Red Roof is poised for continued and accelerated growth.”

The results span key industry metrics:

  • Increased ADR
    • Room revenue across all brands increased 15% over 2019
    • Leading the way were Hometowne Studios by Red Roof  at +22.6% and Red Roof Inns at +19% over 2019, both bolstered by healthy ADR gains of 8.6% for HomeTowne Studios and 10.4% for Red Roof Inns.
  • Increased RevPAR
    • For the 12 months ending November 2021, the core Red Roof Inn and Red Roof PLUS+ brands posted a RevPAR index of 103.2%, 3.3% over 2019. Red Roof PLUS+ hotels lead the way with a 105.8% index.
  • Increased Revenue
    • Among the properties in the Red Roof system (all brands) for a minimum of 12 months, 71% outperformed revenues for 2019.

In addition to these milestones, the brand launched a new prototype for Red Roof’s extended-stay offering, HomeTowne Studios, and executed a significant increase in new franchise agreements.

“In a year of unique challenges for the hotel industry, Red Roof leveraged its strengths, identified new markets and capitalized on opportunities to outperform in key industry metrics significantly,” added Limbert. “Red Roof is well positioned for sustained profitable growth.”