COLUMBUS, Ohio—Red Roof Inn is expanding, expected to open its first international destination in Brazil. Partnering with Brazil-based Nobile Hoteis, Red Roof Franchising will be working with Nobile to develop 35-40 properties—new builds and conversions—across the country over the next 25 years. The first property, a conversion of an existing hotel, will open in Brasilia in 2015.
“Red Roof’s performance and track record were the precise impetus to attract a prestigious company with the caliber of Nobile Hoteis. The company has the management skills, standards, distribution systems, and credibility to propel the Red Roof brand to the same standard of success it enjoys in the U.S.,” said Andrew Alexander, President, Red Roof.
In seven years, Nobile Hoteis has become the fourth largest hotel management company in Brazil. The Red Roof new builds and conversions are a part of a fresh branding strategy, executed with the support of BSH International. “Nobile is a young company growing at an impressive rate with properties in budget to up-scale segments. The company is now positioned to expand even faster. It’s extended stay operations are being driven by a newly formed company, Serendipity Hospitality, and the budget/economy businesses will be developed under the Red Roof brand,” says Jose Ernesto Marino Neto, president, BSH.
The timeframe for Red Roof’s infiltration of the Brazilian market couldn’t be more fortuitous as Brazil sees a significant upsurge in tourism from its recent hosting of the 2014 World Cup and its upcoming role as host city for the 2016 Summer Olympics. In addition, the country has seen a growth spurt in its economy with over 40 million Brazilians over the past decade moving into the middle class. They are seeking value and quality and are price sensitive, looking for opportunities in the upscale economy sector, which will be the segment driving future growth.
Red Roof in partnership with Nobile Hoteis expects to open between 35-40 Red Roof properties between 2015 and 2025. The exclusive master franchise agreement goes up to 2040.