Red Roof reports that it finished 2025 “well-positioned for profitable growth.” The company reported that the “transformative” year was marked by “operational excellence, tech innovation and expanded franchise demand.”
The company continued its momentum in 2025 with strong key indicators of the health of the business, enhanced guest satisfaction and strategic partnerships. Key highlights from the year include:
- Business performance: Increased market share with The Red Collection portfolio leading the way at a 2% gain and Red Roof Inn gaining 1.1%. The company earned a RevPAR Index of 101.4 for the year, a particular value to hotel owners and operators. Additionally, a new guest app was launched, resulting in a more than 65% increase in app-generated revenue year-on-year.
- Franchise and ownership growth: Developed a pipeline to add 3,500 new rooms to the brand. New hotel executions increased 35% from 2024. The RIDE with Red Roof program welcomed new owners from underrepresented markets, and launched a partnership with Bridge, a digital financing platform, to improve access to capital for hotel owners and developers.
- Guest experience and performance gains: 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.
- Trusted technology: Partnered with FreedomPay to install a fully integrated payment solutions system across its portfolio throughout the U.S. The new technology is focused on speed, security and flexibility. It improves 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.
- Purpose With Heart progress: 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% increase in e-learning participation in the competency training) and maintained 100% 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,” said Zack Gharib, president, Red Roof. “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, where he visited more than 50 hotels and met with owners to move the business forward, enhance the guest experience and champion the company’s core values—HABITS—across teams nationwide. Quarterly virtual owner town hall meetings were executed where the company engaged with franchisees and shared industry and consumer trends, development opportunities and company initiatives.
