COLUMBUS, Ohio—Red Roof highlighted its growth in 2025, as the year was marked by expanded franchise demand. The company continued its momentum in 2025 with strong indicators of the health of the business, along with strategic partnerships.
Performance Highlights
Key highlights from the year include:
- Business performance: 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 RevPAR Index of 101.4 for the year. Additionally, a new guest app was launched, resulting in an over 65 percent 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 percent from 2024. The RIDE with Red Roof program welcomed new owners from underrepresented markets and launched a partnership with Bridge 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.
- Technology Partnerships: Partnered with FreedomPay to install a fully integrated payment solutions system across its portfolio throughout the United States. The new technology 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 commitment to improve the way team members work at Red Roof. The company 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,” said Red Roof President Zack Gharib. “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.”
