NEWS
Red Roof reports strong 2025 performance and growth momentum
Red Roof says it closed 2025 in a strong position for continued profitable growth, supported by gains in market share, technology upgrades, and rising franchise interest. The company highlighted a 3,500-room development pipeline and a 35 percent increase in new hotel executions compared with 2024. It also pointed to stronger guest engagement, improved owner support, and expanded operational tools across the system. The update presents 2025 as a year in which Red Roof focused on strengthening both business performance and long-term brand competitiveness.
According to the company, one of the strongest 2025 indicators was its commercial performance. The Red Collection portfolio gained 2 percent in market share, while Red Roof Inn posted a 1.1 percent increase. The company also reported a RevPAR Index of 101.4, a result positioned as particularly relevant for owners and operators. On the digital side, a new guest app helped drive more than a 65 percent year-on-year increase in app-generated revenue, showing how mobile engagement is becoming a more meaningful part of the brand’s revenue mix.
Franchise growth was another major focus during the year. Red Roof said it built a pipeline that will add 3,500 new rooms to the system and increased new hotel executions by 35 percent over the previous year. The company also continued to expand its RIDE with Red Roof programme, which supports owners from underrepresented markets, and launched a partnership with Bridge, a digital financing platform designed to improve access to capital for hotel owners and developers. These steps were presented as part of a broader strategy to widen ownership opportunities while supporting future expansion.
The company also stressed progress in the guest experience and operational technology. An In Stay SMS texting platform developed with Sojern was rolled out across more than 700 properties, contributing to stronger internal quality metrics and improved social scores. At the same time, Red Roof partnered with FreedomPay to install an integrated payment solution across its U.S. portfolio, with the goal of improving speed, security, and flexibility for franchisees. The company added that direct connectivity with several online travel agency partners and the rollout of a new revenue management system are helping create additional savings for owners.
Beyond commercial and technology performance, Red Roof also emphasized its people and purpose-driven initiatives. Through its Purpose With Heart programme, the company completed advanced cultural competency training for nearly 700 team members and owners, with e-learning participation in that training increasing by 210 percent. It also maintained 100 percent annual human trafficking prevention training across all properties and team members. In addition, the brand said it supported charitable causes through its Room In Your Heart platform, including partnerships with Canine Companions, No Kid Hungry, and St. Jude Children’s Research Hospital.
The company also received several forms of external recognition in 2025. Red Roof Inn was named the No. 1 Best Budget-Friendly Hotel Brand in USA TODAY’s 10Best 2025 Readers’ Choice Awards, and Red Roof received a 2025 Bronze Adrian Award from HSMAI for travel marketing. The release also highlighted the role of Zack Gharib, who led an Elevate Tour involving visits to more than 50 hotels and direct engagement with owners across the network. With those results in place, Red Roof said it is entering 2026 focused on scalable tools, continued expansion, and further improvements to both the franchisee and guest experience.
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