Established
1973
Franchise Units
600
Minimum Investment
$1,500,000
Franchise Fee
$30,000
Total Investment Range
$6,500,000
Home Based
No
Description
economy lodging segment. Known for its simple, clean, and value-driven accommodations, Red Roof Inn has built a strong reputation among budget-conscious travelers, business guests, families, and road trippers across America.
Positioned in the economy and midscale hotel category, Red Roof Inn focuses on essential comfort, consistency, and accessibility rather than unnecessary frills. This clarity in brand promise has allowed the company to scale nationally, weather multiple economic cycles, and remain relevant in a competitive hospitality market. For investors, the franchise offers a proven hotel model with strong brand recognition, centralized systems, and operational efficiencies designed to support long-term profitability.
As travel demand in the U.S. continues to be fueled by domestic tourism, interstate mobility, business travel, and value-seeking consumers, Red Roof Inn stands out as a practical and scalable hotel franchise opportunity with broad market appeal.
Why Invest in This Franchise?
Investing in a Red Roof Inn franchise offers a combination of brand strength, operational simplicity, and consistent demand within the U.S. lodging market.
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Established National Brand with decades of consumer recognition and trust
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Economy Segment Stability, appealing during both strong and soft economic cycles
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Streamlined Operating Model designed to control labor and overhead costs
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Centralized Reservations & Marketing driving direct bookings and occupancy
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Flexible Development Options, including conversions and new builds
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Strong Interstate & Urban Presence, ideal for high-traffic locations
Background
Established Year: 1973
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Founders: Jim Trueman
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Industry Category: Economy & Midscale Hotels
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Headquarters: United States
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Franchise Active Units: 600+ hotels across the U.S. and international markets
Red Roof Inn began its journey in Ohio with a clear mission: provide affordable, comfortable lodging without compromising cleanliness or convenience. Over the decades, the brand expanded aggressively across major highways, suburban corridors, and urban centers, becoming a familiar name for travelers nationwide.
The company evolved through multiple ownership phases, strengthening its franchise systems, technology platforms, and guest experience standards along the way. Today, Red Roof Inn operates under a modern hospitality framework that balances cost efficiency with consistent guest satisfaction.
Support Training
Red Roof Inn delivers comprehensive end-to-end franchise support, ensuring owners are equipped from development through day-to-day operations.
Pre-Launch Support
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Site selection and market feasibility guidance
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Design, construction, and renovation standards support
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Vendor sourcing and procurement assistance
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Pre-opening project management and timelines
Training & Operational Support
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In-depth initial training for owners and management teams
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Property operations, guest service, and housekeeping systems
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Revenue management and pricing strategy guidance
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Ongoing field support and performance evaluations
Marketing & Technology Support
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Centralized reservation system and brand website exposure
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National marketing campaigns and loyalty programs
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Digital marketing, reputation management, and online travel agency integration
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Property management systems and reporting dashboards
Ongoing Franchise Support
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Continuous operational consulting
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Brand audits and quality assurance programs
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Access to updated brand standards and innovations
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Franchisee collaboration, conferences, and best-practice sharing
Ideal Candidate
The ideal Red Roof Inn franchisee is a disciplined investor or hospitality-focused entrepreneur with a long-term ownership mindset.
Best-Suited Candidates Include:
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Hotel owners seeking brand conversion or portfolio expansion
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Real estate investors with hospitality or asset-management experience
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Multi-unit franchise operators looking to diversify into lodging
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Entrepreneurs with strong financial capacity and management focus
Key Attributes:
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Commitment to brand standards and guest satisfaction
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Ability to manage or oversee hotel operations
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Financial capability to support development and working capital
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Interest in high-traffic highway, suburban, or urban locations
Hands-on involvement is beneficial, but experienced management teams are also well-suited for this franchise model.
Financial Detail
| Financial Component | Estimated Range (USD) |
|---|---|
| Total Investment | $1.5 million – $6.5 million |
| Minimum Investment Required | $1.2 million+ |
| Franchise Fee | $30,000 – $50,000 |
| Infrastructure / Build-Out Cost | $1.0 million – $5.0 million |
| Marketing & Launch Budget | $25,000 – $75,000 |
| Working Capital | $150,000 – $400,000 |
| Royalty Fees | ~5% of gross room revenue |
| Marketing Fees | ~3% of gross room revenue |