Red Roof Inn Expands Internationally with First Hotel Scheduled to Open in Brazil in 2015
The economy lodging giant signs deal with Brazil's Nobile Hoteis with a robust development schedule of properties in the next decade.
COLUMBUS, Ohio - December 17, 2014 - (BUSINESS WIRE) - U.S. economy lodging leader, Red Roof Inn®, meeting high demand for its brand, is expanding, expected to open its first international destination in Brazil. Partnering with respected Brazil-based Nobile Hoteis, Red Roof Franchising, LLC will be working with Nobile to develop 35-40 properties – new builds and conversions - across the country over the next twenty five years. The first property, a conversion of an existing hotel, will open in Brasilia in 2015.
"Red Roof's performance and track record were the precise impetus to attract a prestigious company with the caliber of Nobile Hoteis. The company has the management skills, standards, distribution systems and credibility to propel the Red Roof brand to the same standard of success it enjoys in the U.S.," says Andrew Alexander, President, Red Roof.
Nobile Hoteis with extensive experience in the Brazilian hotel industry, has in just seven years become the 4th largest hotel management company in Brazil. The Red Roof new builds and conversions are a part of a fresh branding strategy, executed with the support of BSH International. "Nobile is a young company growing at an impressive rate with properties in budget to up-scale segments. The company is now positioned to expand even faster. It's extended stay operations are being driven by a newly formed company, Serendipity Hospitality, and the budget/economy businesses will be developed under the Red Roof brand," says Jose Ernesto Marino Neto, president, BSH.
"Red Roof was the ideal partner to develop budget and economy segments in Brazil. It is a company with a great reputation, image and success and we know our exclusive alliance with this quality brand will be integral to our growth and their's," says Roberto Bertino, Founder, President & CEO, Nobile Hoteis.
The timeframe for Red Roof's infiltration of the Brazilian market couldn't be more fortuitous as Brazil sees a significant upsurge in tourism from its recent hosting of the 2014 World Cup and its upcoming role as host city for the 2016 Summer Olympics. In addition, the country has seen a growth spurt in its economy with over 40 million Brazilians over the past decade moving into the middle class. They are seeking value and quality and are price sensitive, looking for opportunities in the upscale economy sector which will be the segment driving future growth.
"We know our premium experience at a value price is a combination that will attract new customers in new markets, especially those outside the United States, and we are confident that working with Nobile Hoteis will build the Red Roof brand across one of the most exciting destinations in the world - Brazil," says Phil Hugh, Chief Development Officer, Red Roof. "Nobile Hoteis' enthusiasm for the Red Roof brand and their desire to help propel the brand internationally speaks volumes about how influential and recognizable Red Roof hotels and the Red Roof experience has become."
"Red Roof is a textbook fit. A U.S. brand with a very bright future, good management, quality and an impeccable image. Our strong skills are in the management and distribution side. Red Roof will complement those skills," notes Bertino. "The brand has all the precise attributes for expansion into Brazil, a market with a consumer-base that will embrace their upscale economy offering."
Red Roof in partnership with Nobile Hoteis expects to open between 35-40 Red Roof properties between 2015 and 2025. The exclusive master franchise agreement goes up to 2040.
Red Roof has pet-friendly properties, offering fee-free stays for pets at nearly 400 hotels in the U.S. For more information and to book, please visit redroof.com or call 800.RED.ROOF (800.733.7663).
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 nearly 400 properties in the U.S. The primary goal at Red Roof is to provide customers a savings without sacrificing comfort. The brand recently completed a $200 million investment 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 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; and because the company has a single brand in their portfolio, Red Roof also offers franchisees One Brand. One Focus™. The Red Roof loyalty program, RediCard®, is the richest in the industry rewarding members with free nights with only 6,000 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. The Columbus, Ohio based company has more than 4,500 employees. For more information or reservations, call 800.RED.ROOF (800.733.7663) or visit www.redroof.com.
About Nobile Hoteis®
Nobile Hotéis "Brazilian Hospitality" was founded in 2008 in Brasilia (country's capital) and within 7 years has become the 4th largest lodging company in Brazil (Jones Lang LaSalle Yearbook Nov. 2014). YTD Nobile accounts for USD 45 million in revenue (growing at a rate of 22% within 12 months). With 22 hotels, Nobile Hotéis employs more than 1,100 people. Nobile operates under management, leasing or franchise contract models. The company's guest satisfaction rate (OTA metrics) has risen to 87% as of January, 2014. Hotel facilities are spread throughout Brazil in 6 State capitals and 13 cities. To connect with Nobile Reservation Channels, please visit, www.nobilehoteis.com.br.
About BSH International®
BSH International is the leading hospitality investment consulting firm in Brasil. It's a 25-year old organization dedicated to advisory, development and hospitality asset management. BSH is involved in projects in excess of R$ 4 billion (four billion reais) and was responsible for the introduction of many international groups in Brazil including Sol Meliá (Spain), SuperClubs (Jamaica), Sonesta (USA), Tivoli (Portugal), NH Hoteles (Spain), Howard Johnson, Ramada and Days Inn (USA). For more information please visit www.bshinternational.com or call +55 11 3813-6188.
Hill + Knowlton Strategies