HB on the Scene: Red Roof unveils blueprint to ‘elevate’ brand

At its 2024 conference, held at Mohegan Sun in Uncasville, CT, Red Roof unveiled a blueprint for continued profitable growth for more than 1,000 franchisees, team members and partners.

In his address to the Red Roof franchise community, President Zack Gharib told conference attendees, “We are an iconic American brand, and we are living the American dream.”

He outlined a plan for which he said will “drive growth and accelerate demand,” including:

  • A new prototype for Red Roof hotels, prioritizing new-build properties and high-demand products across the country and in new locations—designed to drive economies and efficiencies for franchisees
  • New and enhanced partnerships and programs to provide franchisees and the brand access to better data and analytics to improve the guest experience, streamline operations and generate increased revenue
  • A renewed and specific commitment to a deeper and enriched company culture and an obsession with consistency to drive performance

In his address, Gharib told the audience: “We will elevate this brand, this company and our business. We will do that with a better and more consistent experience for our guests.”

New prototype

Gharib called the new Red Roof prototype “a visible commitment to the elevated guest experience.” The new-build prototype is designed as an 80-room, three- or four-story property with interior corridors that is scalable. It has a modern and inviting lobby and a host of new amenities for guests. The new design has a lower cost to develop and will streamline workflow without sacrificing quality and service, according to the company.

This new prototype joins the recently updated new-build prototype for Red Roof’s extended-stay brand, HomeTowne Studios by Red Roof, and dual-branded Red Roof and HomeTowne Studios hotels, which are rapidly growing in popularity with developers and guests, the company reports. “The new Red Roof prototype is a smart investment for any franchisee looking to grow their portfolio. It is cost-effective and operationally efficient. And, most importantly, it is designed to satisfy our guests,” he said.

New partnerships

Conference attendees learned about a set of new and enhanced programs with partners to improve communication with guests, provide greater insights and use artificial intelligence to analyze data and patterns that will help franchisees deliver a better guest experience, according to the company.

One of these new partnerships is with Sojern, a guest experience platform that will provide Red Roof traveler insights and the ability to communicate with guests “at just the right moments.” The partnership will help the company and franchisees improve both growth and profitability.

The company also celebrated the integration of the HotelKey property management system and outlined new applications for HotelKey in other aspects of the business, starting with PaymentKey. PaymentKey streamlines transactions and operations, empowering hotel operators to improve business results.

New leadership additions

Gharib introduced a newly appointed CFO, Tara Henderson. She is a veteran of the United States Navy and an executive with more than 20 years’ experience in finance, operations and logistics with large and complex organizations.

He also introduced new general counsel Gerrod Bede. He is an attorney proficient in complex franchise and business law. He held a similar role with a company that manages multiple franchise portfolios.

Focus on culture and consistency

Gharib also emphasized his commitment to further elevating the company’s culture, for all stakeholders. “We have cultivated a strong culture that will elevate our brand from the inside out,” he told attendees. “We are instilling habits rooted in personal growth, accountability, mutual respect and fairness.”

He added that he wants everyone in the organization—owners, operators, hotel staff and brand team members—to thrive. “If our people are thriving, we will deliver elevated, more consistent experiences for our guests.”

Gharib underscored the work Red Roof is doing to build a future-proofed, profitable business for hotel owners and operators. He urged all attendees to implement the plans and learnings from the conference to deepen their investment and broaden engagement to drive brand consistency for continued growth and success.