red roof inn tip the scales: brand resources that can maximize
TRANSCRIPT
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Red Roof Inn
Tip the Scales:Brand Resources That Can
Maximize Your Profits
Prepared by and republished with the express permission of Phil Hugh, Red Roof Inns and Suites
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Disclaimer
AAHOA does not provide legal advice or representation to anyindividual persons or members. To the extent that thispresentation contains information about the law that is designedto help the recipient understand or address his or her own legalneeds, such information does not constitute legal advice orrepresentation by AAHOA. AAHOA goes to great lengths toensure the information it provides is accurate and useful, butstrongly recommends all persons and AAHOA members consultindependent counsel and obtain professional advice andrepresentation that is appropriate to their particular situations.
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OUR PHILOSOPHY
THAT MEANSWE FOCUS ON…
Red Roof is totally focused on the success of ONE BRAND, not how many different brands we can locate on one corner.
We respect your Area Of Protection.
Every HOTELEvery CUSTOMEREvery FRANCHISEEEVERY DAY
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From humble beginnings in Columbus, OH in 1973 to over 450 properties across the United States
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. . . And Now Internationally
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Brand Inn Growth
357 inns at 12/31/13
396 inns at 12/31/14
59 new franchise inns
442 inns at 12/31/15
50 new franchise inns
2008 = 342
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RED ROOF FRANCHISEES APPROVE
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Franchisees Approve Red Roof Service
Source: 2015 Franchisee Survey
are satisfied with their decision to partner with Red Roof
would consider Red Roof for an additional project
would recommend Red Roof to other hoteliers
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Franchisees rank our Regional Vice Presidents of Operations as superior to the competition
Some of the most experienced in the businessAll former GM’s; most Red Roof GMs
Average over 15 years of experience
2015 Franchise Survey
said they were superior or significantly superior to competitive operational support teams
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The Industry Approves
Hotel Management Magazine asked readers to vote for the top economy brand . . .
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RED ROOF BY THE NUMBERS
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One of the highest RevPAR Indexes in the Economy Segment*
*Quarterly RevPAR Economy Tract Index for Red Roof locations open and operating for at least 2 years and for all of 2015, Smith Travel Research. 340 properties.
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High Overall Brand Contribution*
*The Brand Contribution is the percentage of room revenue generated for the Properties, the reservations for which were generated by the Red Roof Inn website, the Red Roof call center, group booking, National Sales, Global Distribution System (“GDS”), third party websites and reservations by RediCard
members booked directly with the Properties, year ending December 31, 2015., This is calculated by dividing the total room revenue generated by the
channels referenced above for the Properties by the total room revenue generated by all occupied rooms at the Properties.
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National Sales
Dedicated national sales team driving revenue for all properties through business to business sales.
Represents 31.4% of all system revenues:
1:16 - Highest ratio of national/regional sales personnel per property of any national brand.
*December 2015
Sales Contribution
31.4%* COMBINED
PROPERTY DIRECT 10.2%
BRAND CHANNELS 21.3%
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RediBill – a game-changer for corporate accounts
2015 introduction of RediBill gave Red Roof franchisees the advantage:
A true centralized Direct Bill option to meet customer demand
One timely, accurate invoice with all Red Roof activity
Moves payment and collections from franchisees to centralized Red Roof team No more invoices or collections to handle Better cash flow for properties
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Tried and Tested Renovations We’ve done it – hundreds of timesOur owner/operator history makes us expert at researching and testing any recommended standards and renovations
Sample Properties completing 100% NextGen® renovations PLUS+ Properties
SAMPLE PROPERTIES
NUMBER OF PROPERTIES
OCC. RATE Index ADR Index REVPAR Index
Complete NextGen /PLUS+
Properties*
31 7 3.4% 113.0% $76.79 118.4% $56.37 133.8%
* Represents the average occupancy rate, average daily room rate and RevPAR for Red Roof Affiliate Managed and Affiliate Owned hotels that have implemented the NextGen® renovations standards. These locations were open and operating for at least 2 full years, started renovations in 2011 or later and had completed NextGen status for the entire period of January 1, 2015 through December 31, 2015, 31 properties. Indexed to tract scale, STR.
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Sample properties completing NextGen® Elements
SAMPLE PROPERTIES
NUMBER OF PROPERTIES
OCC. RATE Index ADR Index REVPAR Index
Renovated Properties
67 73.0% 117.4% $71.17 116.5% $51.95 136.8%
Average Occupancy Rate, Average Daily Room rate and RevPAR for Red Roof Affiliate Managed and Affiliate Owned hotels that have
implemented either the complete NextGen renovations (NextGen Properties) or specific standard design elements (“Partially Renovated
Properties”). These locations were open and operating for at least 2 full years, started renovations in 2011 or later and had completedNextGen status for the entire period of January 1, 2015 through December 31, 2015,67 properties. Indexed to tract scale, STR.
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Franchisees Approve NextGen®
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FOCUS ON THE FUTURE RED ROOF PLUS+
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Roof PLUS+ Introduced in 2013
• Represents the average occupancy rate, average daily room rate and RevPAR for Red Roof Affiliate Managed and Affiliate Owned hotels that have implemented the NextGen® renovations standards. These locations were open and operating for at least 2 full years, started renovations in 2011 or later and had completed NextGen status for the entire period of January 1, 2015 through December 31, 2015, 31 properties.
** Smith Travel Index
***Review Metrix 2010-2014
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Franchisee Quality MattersTrip Advisor
Average TripAdvisor 4.3 3.8 3.4 3.0 2.1
Corporate Inns 4.3 4.0 3.9 3.6 3.0
116113
109
107
85
70
80
90
100
110
120
1stQuintile
2ndQuintile
3rdQuintile
4thQuintile
5thQuintile
Ind
ex t
o T
ract
Sca
le
Franchise Inns Tract Scale by TA Score
31% Difference
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Franchisee Quality MattersCS Score
Average CS Score 87.2 82.5 79.5 74.5 62.8
Corporate Inns 87.4 85.0 83.0 80.9 75.7
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OUR GUESTS APPROVE
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in Online Guest ReviewsFive Years Running!(2010, 2011, 2012, 2013, 2014)
Among all Economy Hotels
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Review Metrix CSI Benchmark2014 YTD: Red Roof Inn remains at the top of the competitive set
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FOCUSED CONVERSIONS
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#498 – Hartford, CTBefore Open 3/31/2016 – 94 rooms
(Holiday Inn Express)
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#498 – Hartford, CTOpen 3/31/2016 – 94 rooms
(Holiday Inn Express)
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#401 - Hershey, PA Open 6/25/2015 – 25 rooms
(Chocolate Avenue Inn)
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#401 - Hershey, PA Open 6/25/2015 – 25 rooms
(Chocolate Avenue Inn)
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Wilmington, DEAfter
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LOBBY - After
LOBBY - Before
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San Diego - Before
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San Diego - After
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Austin - Before
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Austin - After
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#497 RRI Vitoria – Brazil
Opening: 4/20/2016Room Count : 80Location : Vitoria E.S.Attractions : Beaches
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#443 Curitiba, Brazil Open 9/1/2015 –96 rooms
(BTG Hotels & Resorts)
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Questions?
Phil Hugh
Chief Development Officer
Red Roof Inn
(713) 576-7417
Rachel Humphrey
VP Franchise Relations
AAHOA
(404) 419-8985