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Lodging

Red Roof Inn Launches Higher-Tier Brand Following Renovations

By Michael B. Baker / March 04, 2014 / Contact Reporter
Business Travel News on X

Economy hotel brand Red Roof Inn is shifting some of its properties into a new brand, Red Roof Plus, featuring higher-quality furnishings, amenities and services, the company announced Monday.

Red Roof Inn during the next month and a half plans to move 31 recently renovated properties into the Red Roof Plus brand, Red Roof president Andrew Alexander said. Nine franchise locations plan to move to the new brand by the end of the year, he added.

Coming at a slightly higher price point than the standard Red Roof Inn, Red Roof Plus property features include additional outlets, better bedding and wood-like vinyl flooring, which Alexander said is easier to keep clean than the carpet used in traditional Red Roof properties. The hotels also have flat-screen television sets, and during the next few months will be adding high-definition television service, as well as investment in better Wi-Fi performance.

The new brand sprang from renovations that began at Red Roof's downtown Columbus, Ohio, property a few years ago, Alexander said. That work evolved into the new hotel design, which in turn evolved into the new brand. Other hotels switching to the Plus brand include properties in Raleigh, San Antonio, Austin, Atlanta and airport properties in Baltimore, Philadelphia and Pittsburgh.

"We spent a lot of time looking at TripAdvisor reviews, which is unfiltered feedback from the customers," Alexander said. "Franchisees tend to move [hotels] down the scale, but this gives them a chance to move up and become an upscale economy product."

The hotels also offer a 24-hour service line carrying the promise of immediate problem resolution as well as special premium rooms for a higher rate, Alexander said. Premium rooms are in "prime locations at the property" and have a few added amenities, including snack boxes, mini-fridges and microwaves. All Plus hotels are smoke-free, a feature that is "unheard of" in the economy tier, he said.

Alexander said a major driver in the renovations was a need for greater differentiation between economy hotel products.

"It's a very competitive industry, especially in the economy segment, and it felt like a couple of years ago that everything was almost like a commodity," he said. "Travelers come to the corner, see four different choices and view them all the same, just asking which one has the lowest price point. How do we change that?"

He expects the new brand also will boost demand among corporate customers. Red Roof in the past has had a larger mix of corporate travel business than the average economy brand, according to Alexander. Corporate sales through regional and national efforts make up about a quarter of Red Roof's sales, and the business/leisure mix tends to run about 50-50 rather than the 30-70 mix more commonly seen across the segment.

The Plus brand, however, could open Red Roof up for even more corporate business, he said.

"There are some pretty discerning companies that only want to stay at the highest level of properties," Alexander said. "Some of those now can choose Red Roof, since they know which ones are Plus and can accommodate their needs."

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