USA, Columbus, Ohio. November 16, 2022

Colorado Springs, CO - November 16, 2022 - Red Roof®, the leader in economy lodging, at its 2022 Brand Conference with more than 1,000 franchise owners, general managers, team members, and partners, celebrated record revenue and performance. The company is positioned for long-term growth through state-of-the-art technology, strategic partnerships, new prototypes, and its ESG program Purpose with Heart, ultimately enhancing the guest and owner experience. The brand announced a major collaboration with technology innovator HotelKey and introduced a new dual brand development prototype. Kicking off its 50th Anniversary, Red Roof underscored its vision, to provide the best experience and value in the lodging industry for guests, owners, team members, partners and communities.

"Red Roof delivered record revenue which is a testament to our resilience and ability to anticipate market trends," said President George Limbert. "Our financial position is strong, travelers are back and our owners and operators are exceeding performance expectations."

Performance Highlights

· Revenue for 2021 was 16% higher than 2019, one of the first brands to show positive revenue growth over 2019.

· Revenue for the Red Roof brand from January through September 2022 increased 10% year over year, and RevPAR is up 9% for the same period.

· Revenue from the Website, Mobile App, and Central Reservation System (CRS) is growing faster than other channels.

· Revenue from the Website and Mobile App is 22% higher than 2021.

· Revenue from CRS is 19% higher than 2021.

· RediRewards enrollment increased 48.2% during summer months of June to September.

Strategic Partnerships

· Innovative partnership with HotelKey: Optimizes operations and enhances guest experience through an advanced enterprise hospitality platform. The platform encompasses an advanced Property Management System, CRS, inventory management, loyalty integration, and a rich suite of other products.

· A new digital marketing partnership with Zeta Global: Positions Red Roof to drive growth and demand. Zeta's data-powered marketing unifies identity, intelligence, and activation across all channels to deliver better experiences for consumers.

· A new partnership with ibex: Utilizes innovative call center technology and resources that increase loyalty, and boost revenue with a robust expert talent pool.

· A new Red Roof RediResponse Program: Implements a brand-wide, in-house solution for reputation management. RediResponse provides operational efficiency through timely responses to all major online guest reviews and completed surveys, enhancing their online profile and reputation.

Innovative Prototype

· A new dual branded prototype: Offers franchisees an additional Red Roof option, Red Roof and HomeTowne Studios, as the brand draws closer to 700 properties systemwide across the U.S. and internationally. The new prototype combines the efficiencies of a shared lobby and common area with streamlined back-of-the-house operations, enabling a hotel to operate with maximum staff efficiency. For guests, the prototype brings together the design advantages of modern Red Roof hotel rooms with efficient, extended stay rooms including kitchenettes and additional storage for extended stay guests. Red Roof is approaching ten dual branded properties open across the country, in high profile markets, including Texas, Florida, and Georgia.

Matthew Hostetler, Red Roof's Chief Development Officer said, "Our dual branded hotels provide today's economy hotel guests with a diverse product offering that anticipates their every need, and our franchisees with a new, updated design that draws on innovative space improvements to enhance operations, keep development costs low, and profitability high."

Purpose Program

· Purpose With Heart: Represents a further enhancement of Red Roof's corporate social responsibility program, building on its rich history of giving. Purpose With Heart, the overarching ESG program encompasses Heart for the Planet - which refers to Red Roof's impact on the environment and responsible stewardship of natural resources, Room in Your Heart - its social and societal programs and Lead with Heart - Red Roof's governance initiatives, referring to transparency, leadership and management.