- Red Roof reported operational, technology and franchise gains in 2025.
- The company plans 3,500 new rooms, with openings up 35 percent from 2024.
- OTA connectivity and a new revenue system increased franchisee savings.
RED ROOF ENDED 2025 reporting operational performance, technology development and franchise demand. It increased market share, with The Red Collection up 2 percent and Red Roof Inn up 1.1 percent, while posting a RevPAR Index of 101.4.
A new guest app drove a 65 percent increase in app-generated revenue year-on-year, Red Roof said in a statement. The company also developed a pipeline to add 3,500 rooms, with new hotel openings up 35 percent from 2024.
“2025 was a year of delivering on our promises,” said Zack Gharib, Red Roof's president. “By investing in our people, embracing technology, deepening partner relationships and concentrating on business performance and quality, we strengthened our position as the go-to brand in economy lodging. We created value for franchisees, guests, team members and communities.”
The RIDE with Red Roof program added owners from underrepresented markets and partnered with Bridge, a digital financing platform, to expand capital access for owners and developers, the statement said.
Key initiatives
Red Roof launched In Stay SMS texting with Sojern at more than 700 properties, boosting internal quality metrics and social scores, the company said. It also partnered with FreedomPay to install an integrated payment system across its U.S. portfolio, improving payments for franchisees.
Direct connectivity with OTA partners and rollout of a new revenue management system contributed to franchisee savings, Red Roof said.
The company expanded the “Purpose With Heart” program to improve team member operations. Cultural competency training reached nearly 700 team members and owners, a 210 percent increase in participation and 100 percent of team members completed human trafficking prevention training. The brand supported causes through its “Room in Your Heart” program with Canine Companions, No Kid Hungry and St. Jude Children’s Research Hospital.
Gharib launched the “Elevate Tour,” visiting more than 50 hotels and meeting owners to advance the business, guest experience and company values, Red Roof said. Quarterly virtual town halls engaged franchisees and shared industry trends, development opportunities and company initiatives.
Red Roof recently contracted Milestone Inc., an AI-native digital experience and search technology provider, to modernize its digital ecosystem. The goal is to improve search discoverability, personalize the guest journey, optimize direct distribution and increase franchisee revenue.
