Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
MARKING 50 YEARS in the hotel business, Red Roof held its annual brand conference at the Broadmoor Resort in Colorado Springs, Colorado, Nov. 11 to 13. During the conference, the company announced a new partnership with software company HotelKey to install a multi-functional, cloud-based system in its more than 675 properties nationwide.
Other news from the conference included details of the company’s financial position, which George Limbert, Red Roof president, said is strong. Company officials also discussed Red Roof’s new dual brand development prototype, other partnerships and the latest charity efforts of the company’s Purpose With Heart.
“Red Roof delivered record revenue which is a testament to our resilience and ability to anticipate market trends,” Limbert said. “Our financial position is strong, travelers are back and our owners and operators are exceeding performance expectations.”
Easy to use platform covers the bases
HotelKey’s platform will “increase efficiency, optimize operations and enhance guest experience,” Red Roof said. It will provide property management, central reservations, inventory management, loyalty integration and other products.
Franchisees will be able to manage their properties from most devices, such as desktops, tablets or mobile. It improves integration with third-party OTAs. The software also integrates hotel operations, including the front desk, accounts receivable, housekeeping and maintenance, point of sale, and inventory management.
“HotelKey’s technology builds upon our legacy programs providing the most effective solutions to help franchisees streamline operations and ultimately benefit our guests,” Limbert said.
Ted Hutchins, Red Roof chief information officer, said he hopes to begin piloting the new program this summer.
“A major benefit of HotelKey’s platform is its user-friendly, self-guided training technology,” Hutchins said. “This is a game changer for front desk managers and will simplify onboarding and ongoing training.”
HotelKey was begun by Aditya Thyagarajan and Fareed Ahmad in 2015. It has established similar partnerships with G6 Hospitality and Extended Stay America. Thyagarajan said Ahmad focuses on the technology side of the company while he handles business growth and finding clients.
“We zoomed into the hospitality industry and we saw a gap in terms of what products exist in technology,” Thyagarajan said. “Our whole goal was to build something which is meaningful, using the latest technologies, and make everything seamless, easier.”
Ahmad said HotelKey’s system allows enterprise clients to build and compose new proprietary guest experiences using the company’s core platform APIs. In addition, he plans to work with the Red Roof team to build a hospitality-native loyalty system, which will become a standard offering for the company’s current and future clients.
“One of the things we have done is that we always work backwards,” Ahmad said. “We understand what the customer needs and design the software that can satisfy those needs in a flexible and configurable manner.”
In other news
Red Roof reported the following highlights of its current financial position:
Revenue for 2021 was 16 percent higher than 2019, and the company said it was one of the first to show positive revenue growth over 2019.
Revenue from January through September increased 10 percent year over year, and RevPAR is up 9 percent for the same period.
Revenue from the website, mobile app, and central reservation system is growing faster than other channels.
Revenue from the website and mobile app is 22 percent higher than 2021.
Revenue from CRS is 19 percent higher than 2021.
RediRewards enrollment increased 48.2 percent during summer months of June to September.
The company over the past year also started several other partnerships along with the agreement with HotelKey. A new digital marketing partnership with Zeta Global will drive growth and demand, the company said. Red Roof also established a new customer call center with Ibex in Jamaica, and the company’s RediResponse Program implements a brand-wide, in-house solution for reputation management.
Red Roof also touted a positive response among developers for its new dual branded prototype that combines a traditional Red Roof side and the company’s extended-stay HomeTowne Studios. The new prototype features a shared lobby and common area with joint back-of-the-house operations so a hotel can operate with maximum staff efficiency.
Red Roof now has nearly 10 dual branded properties open across the country, in high profile markets, including Texas, Florida, and Georgia.
“Our dual branded hotels provide today’s economy hotel guests with a diverse product offering that anticipates their every need, and our franchisees with a new, updated design that draws on innovative space improvements to enhance operations, keep development costs low, and profitability high,” said Matthew Hostetler, Red Roof’s chief development officer.
In April, Red Roof donated $10,000 to anti-child trafficking and exploitation organization ECPAT-USA.
Sonesta launched Americas Best Value Studios, an extended-stay version of ABVI.
The model targets owners seeking limited front desk and housekeeping.
The brand meets demand for longer-term, value-focused stays.
SONESTA INTERNATIONAL HOTELS Corp. launched Americas Best Value Studios by Sonesta, an extended-stay version of its franchised brand, Americas Best Value Inn. The model targets owners seeking limited front desk and housekeeping, optional fitness center and lobby market along with standard brand requirements.
The brand aims to address the growing demand for longer-term, value-driven accommodations, Sonesta said in a statement.
"Americas Best Value Studios by Sonesta represents a strategic evolution of our trusted Americas Best Value Inn brand," Keith Pierce, Sonesta’s executive vice president and president of franchise development, said. "We are expanding our offerings to directly address the increasing demand within the extended-stay segment, providing a practical solution for travelers seeking longer-term lodging at value. This new brand type allows our local franchised owner-operators to tap into a growing market while maintaining the community-focused experience that Americas Best Value Inn is known for."
ABVI has a majority presence in secondary and tertiary markets, the statement said.
The extended-stay brand’s operational model features a front desk, bi-weekly housekeeping, on-site laundry and pet-friendly accommodations, Sonesta said. Guests can also earn or redeem points through the Sonesta Travel Pass loyalty program.
In August, Sonesta named Stayntouch its preferred property management system after a two-year review of its ability to support the company’s franchise model. The company operates more than 1,100 properties with more than 100,000 rooms across 13 brands on three continents.
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