Acquisitions & Hotel Openings

Red Roof Launches First Soft Brand, The Red Collection, with 2018 Opening of The St. Clair Hotel in Downtown Chicago

CHICAGO, IL. September 27, 2017 - Following comprehensive consumer research, Red Roof has launched The Red Collection, the first soft brand in the company's 44-year history, with the opening of the first property, The St. Clair Hotel™ in Downtown Chicago. Red Roof's research found that today's upscale economy travelers are not looking for hotels that are identified as "trendy" or "hip"—which they equate with expensive and fleeting. Instead travelers are looking for modern, accessible and affordable properties with enhanced amenities in the hearts of cities they love, prime locations near the things they love to do. The Red Collection is a portfolio of upscale economy to midscale unique hotels that are hyper-local, drawing inspiration from the local vibe and culture of the city centers in which they are located.

"There is already core equity in Red Roof," says Andrew Alexander, President, Red Roof. "Building on our strong brand base, this is a perfect time to grow our portfolio with our first soft brand, The Red Collection. In today's environment, soft brands allow companies to enter new channels, expand business models and meet specific demands of the new traveler. The Red Collection will give our existing guests unique, more upscale value options while enticing new guests to experience our brand in a new way in the hearts of cities they love."

Red Roof's research found that the majority of guests in the upscale economy segment are willing to pay between an extra 10 and 50 dollars per stay for enhanced amenities and loyalty incentives. Additionally, the top three drivers of hotel consideration were affordable rates, proximity to local activities and attractions and free Wi-Fi. Consumers even cared more about those attributes than free breakfast. The Red Collection, and its first property, The St. Clair Hotel, is designed to meet those needs.

"Our research was eye-opening and instructional," notes Marina MacDonald, Chief Marketing Officer, Red Roof. "Listening to guest feedback and translating those thoughts, ideas and expression into real world action is already a hallmark of Red Roof. We did the same with this research; it allowed us to parlay traveler responses into the introduction of The Red Collection. We have created a new city center hotel experience, one that is notably different from the traditional Red Roof location but still offers the value that consumers demand."

The Red Collection is also attractive to not only consumers but to franchisees as well. "The Red Collection gives existing and new franchisees an opportunity to diversify and invest in unique city hotels with the support of a strong, respected brand and management team," says Phil Hugh, Chief Development Officer, Red Roof. "Our new soft brand provides alternative business opportunities and additional avenues of growth in high demand locations."

Tentatively scheduled to open in 2018 at the corner of St. Clair and Ontario, The St. Clair Hotel is the first of many future properties in The Red Collection portfolio. On top of offering an authentic, hyper local experience in Chicago, one of the most popular travel destinations in the United States according to Red Roof's research, The St. Clair Hotel allows guests to stay in a modern hotel with décor and amenities they would expect from a major city hotel, but at an affordable rate. The vibe starts with a welcoming lobby, featuring plush high tops, outlets for multiple devices and network connectivity. Every room has silky, upgraded bedding, spa-inspired bathrooms with multi-flow showerheads and complimentary Seattle's Best Coffee.

The St. Clair Hotel will also uphold popular guest initiatives, including Fast. Free. Verified. Wi-Fi, a pet-friendly policy at no additional cost and participation in RediCard®, while offering guests an economic rate so they can save money for experiencing the shopping, dining and sightseeing of Chicago. The hotel sits just one block from the Magnificent Mile, Chicago's premier destination for shopping and dining. Guests will be just steps away from popular retailers, the historic Water Tower and the iconic Chicago River. Upcoming plans for The St. Clair Hotel include an enticing fine dining restaurant in the lobby to be announced, scheduled to open in the first quarter of 2018. Other cities being considered for The Red Collection are New York, Las Vegas, Charlotte and Austin.

About Red Roof

Red Roof is a leader in the economy lodging industry with franchised, corporate-managed, and corporate owned properties, serving millions of guests each year. With coast-to-coast locations, Red Roof has over 500 properties in the U.S. Red Roof is also expanding internationally to Brazil, Canada, Thailand and Japan. The primary goal at Red Roof is to provide customers a savings without sacrificing comfort. The brand has been investing significantly to renovate and upgrade hotels nationwide with sleek and modern NextGen® redesign elements. The Red Roof NextGen hotels feature updated, stylish and home-like interior and exterior designs that demonstrate the Red Roof dedication to providing customers with an affordable stay in a clean, comfortable and modern room. The company is rolling out Red Roof PLUS+®, an enhanced Upscale Economy® offering at a value price, committed to "Adding More Wow to Your Stay!®". Nice Place. Nice Price® is what every consumer can expect when they stay at any Red Roof location. Red Roof also offers franchisees Genuine Relationships. Real Results.™.The Red Roof loyalty program, RediCard®, is the richest in the industry rewarding members with free nights with only 7,000 points, advance notice of special offers, and complimentary bottled water each day of their stay. Traveling with your pet? Don't forget that at Red Roof 'you stay happy, pets stay free' as one well-behaved pet is welcome per room, nationwide. For more information or reservations, call 800.RED.ROOF (800.733.7663) or visit www.redroof.com.

Contact:
Harry Kroll
harry.kroll@hkstrategies.com
305-443-5454

Coming Up In The November Online Hotel Business Review




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