Red Roof Inn
Logo used since 2014 | |
| Company type | Private |
|---|---|
| Industry | Hospitality |
| Founded | 1 January 1973 in Columbus, Ohio, United States |
| Founder | Jim Trueman |
| Headquarters | New Albany, Ohio , United States |
Area served | United States, Brazil, Japan, Canada |
| Products | Hotel and motel services |
| Parent | Red Roof Franchising, LLC (since 2021) |
| Website | www |
Red Roof Inn is a U.S.-based budget hotel chain headquartered in New Albany, Ohio, operating more than 600 locations primarily throughout the Midwest, Southern, and Eastern regions of the United States. The brand is recognized for its pet-friendly accommodations.
Origins and Initial Development
Established in 1973 in Columbus, Ohio by entrepreneur and motorsports team owner Jim Trueman, the company stayed within the Trueman family until 1994. That year marked the acquisition of Red Roof Inn by The Morgan Stanley Real Estate Fund, which initiated franchising three years later, beginning with a site in Branson, Missouri.
In 1999, the French hospitality giant Accor acquired Red Roof Inn for $1.115 billion, encompassing 324 properties and 37,208 guest rooms. This purchase elevated Accor to the position of the third largest hotel operator worldwide by room count. Accor’s portfolio also included brands such as Motel 6.
Accor divested Red Roof Inn in April 2007, selling it to Citigroup Global Special Situations Group and Westbridge Hospitality Fund LP for $1.3 billion. Post-sale, several locations were rebranded as Motel 6 as Accor concentrated on that particular brand within North America.
In 2013, Red Roof Inn embarked on a $150 million renovation initiative across its network, unveiling the NextGen room concept featuring wood-style flooring, enhanced bedding, complimentary wireless internet, flat-panel televisions, granite countertops, and vessel sinks. To celebrate its 40th anniversary and promote these enhancements, a semi-trailer displaying the new room design toured nationally.
Following its separation from Accor, Red Roof Franchising, LLC was formed in 2021 as an independent entity responsible for overseeing franchise operations.
Spin-Off of Corporate Property Management
From its inception, Red Roof Inn has maintained direct ownership and management of many of its hotels. After acquiring the brand from Accor, numerous properties were sold to investment firms such as Five Mile Capital Partners, LLC., while Red Roof continued managing certain locations through 2021.
By September 2020, the number of managed properties had decreased to 67. These were subsequently transferred from Red Roof Inn Inc. to a newly established company named RRI West Management, LLC. Administrative duties were divided between offices in New Albany, Ohio and El Cajon, California. RRI West emerged as the largest franchisee operating under the Red Roof brand.
Global Market Entry
Red Roof opened its inaugural international hotel in Curitiba, Brazil in September 2015, followed by another property in Vitoria in April 2016 through collaboration with Brazilian firm Nobile Hotels. Together, Red Roof Franchising, LLC and Nobile aim to develop between 35 and 40 hotels throughout Brazil over a quarter-century.
In July 2016, Red Roof expanded into Japan by launching a hotel in Osaka’s Namba district. Although there were announcements regarding new hotel developments in Thailand in partnership with Paragon Hotels, those plans did not come to fruition.
Through an alliance with FANS International Hospitality Group, Red Roof entered the Canadian market beginning with a location in Calgary, Alberta. This marks the first of multiple planned hotel conversions across Canada over a five-year period.
Brands
Red Roof Inn
The original Red Roof Inn debuted in Columbus, Ohio in 1973 with nightly rates starting at $8.50.
Red Roof PLUS+
Introduced in early 2014 as an upscale extension of Red Roof Inn’s economy segment, Red Roof PLUS+ is positioned as "Upscale Economy." It incorporates the "NextGen" design concept and Premium Rooms featuring upgraded linens and towels, Seattle’s Best coffee served in-room, and snack boxes. The brand is visually identified by a vivid red illuminated canopy at its lobby entrance.
The Red Collection
Launched in 2018 as Red Roof’s initial soft brand offering, The Red Collection focuses on midscale hotels situated in urban downtown locations with contemporary interiors inspired by local culture. Its flagship property is The St. Clair Hotel - Magnificent Mile located in Downtown Chicago. The brand has since expanded to include State House Inn in Springfield, Illinois and Lord & Moris Times Square Hotel in New York City. In June 2020, State House Inn left The Red Collection to join Trademark By Wyndham.
HomeTowne Studios by Red Roof
Also introduced in 2018, HomeTowne Studios caters to extended-stay travelers. Previously known as Crossland Economy Studios and later Home Towne Suites, this brand underwent gradual growth across over 20 markets totaling nearly 4,000 rooms. As of 2021, it comprises 54 locations.
Lawsuits Alleging Negligence in Sex Trafficking Cases
Red Roof Inn is currently subject to numerous federal legal actions accusing the company of negligence concerning sex trafficking incidents occurring within its properties. By July 2024, a total of 42 lawsuits assert that the corporation "ignored and benefited from [sex trafficker's] exploitation over an extended period." Additionally, a related case addressing events from 2009 through 2018 reached a settlement in June 2024.