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FRANCHISE RESALES

Buy a Red Roof Inns Franchise

Red Roof is one of the larger economy lodging franchises in the United States, operating a portfolio of budget and extended-stay hotel brands. Founded in the early 1970s and franchising since 1996, the company has grown to more than 700 US locations and recently expanded into Canada.

The portfolio spans several tiers: the core Red Roof Inn brand, the upper-economy Red Roof PLUS+, the design-led Red Collection and the extended-stay HomeTowne Studios. Together they serve budget-conscious business and leisure travelers, plus longer-stay guests such as relocating and construction-housing customers. Franchisees can build new properties to brand prototypes or convert an existing independent or competing hotel to Red Roof standards.

The system is supported by central reservations through redroof.com, a contact center, the RediRewards loyalty program and brand-wide revenue management. Led by president Zack Gharib, Red Roof positions itself on value, consistent quality and franchisee support across the economy segment.

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Why buy a Red Roof Inns Franchise?

Buying a Red Roof franchise gives an owner affiliation with one of the most recognized names in US economy lodging, backed by a national reservation system, brand marketing and a guest loyalty base an independent motel would struggle to match. The brand reports that a high share of room revenue is driven through its own channels, reducing a property’s reliance on third-party booking sites.

The model is flexible: properties can be new builds or conversions, and the portfolio’s range lets owners match a brand tier to their market and budget. Central procurement, revenue management and a long-tenured operations team give single-property owners access to systems and buying power usually reserved for larger groups. Red Roof has also been an active promoter of women ownership in hospitality.

Red Roof Inns Franchise Costs & Information

  • Minimum Qualifications

    • Initial Franchise Fee

      $30,000

    • Initial Investment

      $259,000 – $14,643,155

  • Royalty

    • Royalty Fee

      5%

  • Training & Support

    • 9 hours on the job training

    • 24 hours classroom training

    • Ongoing support

    • Marketing support

Red Roof Inns – Additional  Information

  1. Training & Support

    Incoming owners receive initial training of roughly 24 hours of classroom instruction and 9 hours on the job, with up to around 85 hours of classroom training available. Ongoing support is the core of the model: a Regional Vice President of Operations team averaging about 15 years' experience, many former Red Roof general managers, works with franchisees on pricing, revenue management and expense control. Owners also tap central procurement, technology and property-management systems, national marketing and the RediRewards loyalty program. Buyers should confirm what transfer training and system access apply when ownership changes.

  2. Ideal Owner

    Red Roof suits owners who think like hospitality operators: comfortable overseeing a property's daily running, managing front-desk and housekeeping staff, and holding service and cleanliness standards consistently. Prior hotel experience helps but is not essential, as training and field support are provided. The model works for hands-on operators and for investors running properties through a management team, since active involvement is common but absentee ownership is permitted. The best-fit owner is strong on cost control, local marketing and guest experience, and treats the hotel as an operating business rather than a passive asset.

  3. Recognition & Awards

    Red Roof is one of the most established names in US economy lodging, with more than 50 years of operating history and a portfolio of over 700 locations. Franchisee sentiment is a notable signal: in the brand's franchise survey, 92% of franchisees said they were satisfied with their decision and 87% would recommend Red Roof to other hoteliers. The company has also been recognized as an industry leader in women ownership, with around 31% of hotels owned or part-owned by women, supported by its annual SHE Leads Forum. For resale buyers, brand recognition should be weighed alongside the specific property's guest reviews and local reputation.

  4. Industry / Market

    Red Roof operates in the US economy and extended-stay lodging segments, part of a hotel industry that generates well over $250 billion in annual revenue (American Hotel & Lodging Association). Budget and extended-stay properties are among the more resilient categories, drawing value-focused leisure travelers, working and relocating guests, and construction or insurance housing demand that holds up when discretionary travel softens. Extended-stay in particular is one of the faster-growing US lodging formats. For resale buyers, local demand drivers such as nearby employers and highway traffic shape an individual property's performance.

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