Red Roof's Strategic Growth in 2025 Sets Stage for Prosperity in 2026

Red Roof®, a recognized leader in the lodging sector, has disclosed impressive advancements summarizing its performance in 2025. With multiple successful initiatives under its belt, the company is well-positioned for ongoing profitability as it embraces the opportunities that lie ahead in 2026.

A Year of Transformation

The year 2025 was pivotal for Red Roof, marked by operational excellence, technological innovations, and a marked increase in franchise demand. These facets contributed significantly to the company’s financial health and guest satisfaction levels. Notable highlights from the year include growth in market share, with The Red Collection leading with a 2 percent increase and Red Roof Inn following close behind with a 1.1 percent rise. Impressively, Red Roof achieved a RevPAR Index of 101.4 — a statistic highly valued by hotel owners and operators alike.

One key factor in their success was the launch of a new guest application, which yielded over a 65 percent increase in revenue generated through the app compared to the previous year. This shift exemplifies the company’s commitment to leveraging technology for enhanced guest experiences and increased profitability.

Expanding the Franchise Network

Additionally, the company has laid out an ambitious growth trajectory, aiming to add 3,500 new rooms to its brand portfolio. This endeavor reflects an impressive 35 percent increase in new hotel developments compared to 2024. Furthermore, the RIDE with Red Roof program successfully welcomed new ownership from diverse market backgrounds, while a new partnership with Bridge — a digital financing platform — facilitates better access to funding for potential hotel owners and developers.

Enhancing Guest Experience

Red Roof’s commitment to guest experience is also evident in its implementation of an In Stay SMS texting technology utilizing Sojern across its more than 700 properties. This upgrade has led to notable improvements in internal quality metrics and has positively impacted social scoring, showcasing the brand's dedication to enhancing customer service.

In line with its commitment to technology, the company partnered with FreedomPay to provide an integrated payment solution across its entire portfolio in the U.S. The initiative aims for increased payment efficiency while ensuring the security and reliability of transactions. Other technological advancements include the completion of direct connectivity with various Online Travel Agency (OTA) partners, coupled with the initiation of a new revenue management system rollout designed to drive savings for franchisees.

Commitment to Purpose and Community Engagement

Beyond operational successes, Red Roof has firmly embraced its Purpose With Heart program. This initiative is crafted to uplift the working environment for team members. In 2025, nearly 700 associates participated in cultural competency training, registering a staggering 210 percent increase in e-learning participation. The company also maintained consistent annual human trafficking prevention training across all properties.

The brand made strides in community outreach as well, aligning itself with charitable organizations such as Canine Companions, No Kid Hungry, and St. Jude Children's Research Hospital through its Room In Your Heart program.

Recognition and Future Outlook

Red Roof’s efforts didn’t go unnoticed; it was honored with several accolades, including being named the No. 1 Best Budget-Friendly Hotel Brand in USA TODAY’s 10Best 2025 Readers' Choice Awards, alongside a Bronze Adrian Award from HSMAI for outstanding travel marketing.

Reflecting on the past year’s accomplishments, Red Roof President Zack Gharib emphasized the company's commitment to innovation and partnership in creating value for franchisees and guests alike.

Prospective growth and strategic planning for 2026 includes expanding on these innovations while equipping franchise owners with scalable tools aimed at enhancing guest experiences. Gharib's