ONE BRAND. ONE FOCUS.

®

AND NOW MORE WOW.

INTRODUCTION

CHECK OUT RED ROOF AND PREPARE TO BE WOWED.

It all began in 1973 when builder, contractor and future Indianapolis 500 winning race team owner James R. Trueman opened the first Red Roof Inn in Columbus, Ohio, charging guests a staggeringly affordable $8.50 a night. And over the last 40-plus years we’ve maintained our devotion to one singular brand rather than building a collection of competing entities. Which means our guests, as well as our franchisees, get our full attention. We firmly believe every Red Roof Inn defines what makes a value a value while proving economy and quality can exist on the same property. And now we’ve introduced Red Roof PLUS+®. A brand extension that’s the perfect fit for properties looking to revive their hotel at a reasonable cost while positioning themselves for optimal return. PLUS+ is designed for guests seeking more value and an enhanced experience, but engineered for economy segment efficiency. So, we invite you to take a closer look at the brand that’s serious about giving guests and hoteliers the experience they’ve been dreaming of.

ONE BRAND. ONE FOCUS.® AND NOW MORE WOW.

ABOUT RED ROOF INN

OVER 400 LOCATIONS. ONE VISION. furnishings, spa-inspired baths and additional

success of our one brand. Our “One Brand.

also means brand decisions are made with the

what we can tell, our guests are not only loyal,

outlets, guests’ reactions have been over-

One Focus®” philosophy means our top priority

success of each property in mind. And it’s an

they’re also mighty happy.

whelmingly positive. The NextGen package

is every hotel, every franchisee, every day. Our

added bonus that our Regional Vice Presidents

relationship with our franchisees is based

of Operations are all experienced GMs who

GUEST SATISFACTION

on fairness, honesty and open communications.

understand the ins and outs of running a hotel.

According to Review Metrix Satisfaction Index,

We’re working together and understand where you’re coming from – after all, we own

BRAND POSITIONING

and operate hotels ourselves. This means

Red Roof earned the highest customer

wall, lounge area and more.

The promise of a clean, comfortable and

budget hotels for five consecutive years. Based

If you’re considering rebranding, renewing and

we’re focused on the same outcomes as our

affordable place to stay is what’s led to Red

on more than 350,000 online reviews, guests

relaunching your current property, Red Roof

franchisees, and we actively solicit and value

Roof’s position at the top of the budget lodging

ranked our rooms, service and overall value

is the perfect solution for repositioning your

their opinions. The Franchise Advisory Council

segment, appealing to both leisure and business

higher than other economy hotels including

hotel for the upper economy market. Whether

meets regularly with each member serving as

value-conscious travelers. In fact, we’re talking

Microtel, Comfort and Super 8. In addition,

you’re converting an interior or exterior corridor

the brand liaison between the franchisees in his

4.9 million stays per year with 1.72 average

we came in at #1 in USA Today Travel’s

property, raising our flag will upgrade your

or her area and the Red Roof Franchising

nights per stay. Meanwhile, redroof.com gets

10 Best Budget Hotels. The newspaper’s

location’s image. Our NextGen prototype design

readers had four weeks to vote online, and

elements are flexible to fit virtually any product

Red Roof topped the list beating out Candlewood,

considering renovation or conversion upgrades.

America’s Best Value and Hampton Inn.

Giving converting properties an updated

BR

#1 in USA Today Travel’s 10 Best Budget Hotels Readers’ Choice Awards 2014 Rated among the leaders in guest satisfaction in 2014 by J.D. Power and Associates* #1 among economy hotels in online reviews for five years in a row** *Source: J.D. Power 2014 North America Hotel Guest Satisfaction Index StudySM **Review Metrix, 2010 – 2014

image, a level of standard that exceeds guests’ expectations and competitive offerings that

So, how do you make your guests happier

could potentially lead to increased ADRs and

when they already say you’re the best? Well,

overall improved performance. Plus we work

for many of our franchisees it has meant

with each individual franchisee to develop a

renovating to our NextGen® design. From the

Property Improvement Plan that works for that

wood-like flooring, flat screen TVs and high-

particular hotel.

end bedding to the contemporary home-like

G ET H O TEL

RED ROOF INN

abundance of natural light, a decorative stone

CHANGING FLAGS

INNOVATIVE DESIGN

UD

also extends to the lobby and features an

satisfaction score in online reviews among all

►► Click here to visit a gallery of our repositioned properties.

TB

BE

over 13 million online visitors a year. And from

ND

– Paul Patel, Red Roof Inns Franchisee

executive team. Our owner-operator perspective

A

“Red Roof is the best repositioning opportunity out there.”

At Red Roof we’re completely focused on the

S

CULTURE & FOCUS

ONE BRAND. ONE FOCUS.® AND NOW MORE WOW.

BRAND SUPPORT

WANTED: ENTREPRENEURS LOOKING TO GROW.

OUR BRAND SUPPORTS YOUR SUCCESS.

SUPPORT OVERVIEW “Since renovating to NextGen®, my guests claim I’m running an economy hotel trapped in the body of an upper mid-scale product.” –Anish Prakash, Red Roof Inns Franchisee

Our Regional Vice Presidents of Operations are not only among the most knowledgeable in the industry, they are also readily available to share advice and best practices. In fact, our franchisees rate our RVPOs superior to others they’ve worked with. Our revenue management is dedicated to franchise performance by helping

SALES SUPPORT Red Roof has its own national sales team, driving revenue to you through business-to-business marketing efforts. In other words, we work diligently to contact corporations, tour operators, travel agencies and government associations

regional sales personnel per property of any

team is here to assist you in any way possible.

national brand. And we get results – our Volume

And that includes offering expert guidance

Plan Plus® and sales accounts represent over

on media proposals, recommendations and

29 percent of our system revenue.

execution. Best of all, these services don’t

E-MARKETING

cost our franchisees a single cent. Plus prior to the opening of your new or converted property,

With click-through ads appearing everywhere

we’ll provide you with an easy to follow Grand

to maximize revenue, analyze pricing strategies,

on your behalf. Springfield, OH franchisee Ajay

from CNN to Facebook, our online presence

Opening plan, as well as support your launch

implement quality/service initiatives and execute

Patel testifies, “The national accounts Red Roof

keeps Red Roof on guests’ minds.

with press releases, mentions in newsletters

operational and marketing programs. What’s

delivered day one was like having a built-in

• Digital media generates over

and emails, sales support, announcements on

more, Red Roof’s brand contribution is one of the

account base that I didn’t have to work to get.”

highest in its category at a whopping 63 percent.

At 1:16, we have the highest ratio of national/

600 million impressions

redroof.com and in social media.

• ROI on digital media is an incredible 14:1. • Over 35 million emails are sent per year in system-wide and propertyspecific campaigns

LOYALTY With over a million truly loyal members, RediCard® is one of the top-rated loyalty programs in the economy segment. But beyond

• Red Roof mobile app allows guests to

rewarding our guests, the program accounts

book a room via their smart phone

for 24.5 percent of overall system revenues

LOCAL MARKETING SUPPORT

• PLATINUM, GOLD, SILVER & BRONZE PUBLIC RELATIONS

2014 ReviewMetrixTM Customer Satisfaction Index: • HIGHEST CUSTOMER SATISFACTION SCORE

• GOLD: 2014 INTERACTIVE ADVERTISING BUREAU (IAB) MIXX AWARDS • GOLD: 2014 MOBILE MARKETING • GOLD: MEDIAPOST’S 2014 OMMA AWARDS • GOLD: 2014 US SEARCH AWARDS • GOLD: DIGIDAY SAMMY/MOBI AWARDS

and almost 18 percent of all property direct business. And as high as those numbers are,

With property-specific design services for flyers,

our franchise program participation fee is the

rack cards, outdoor and transit advertising and

lowest in the industry at just 4.0 percent.

other local promotional needs, our marketing

• BEST IN SHOW

Digital Marketing Awards:

• Conversions and ADRs are higher through e-commerce

►► Click here to see Anish's interview.

Red Roof consistently receives industry recognition: 2014 HSMAI Adrian Awards

ONE BRAND. ONE FOCUS.® AND NOW MORE WOW.

PERFORMANCE

RED ROOF BY THE NUMBERS. Red Roof consistently has one of the highest RevPARs of any hotel in the economy market*.

120%

120.0%

Our 63% Brand Contribution is tops in the economy segment.*

37%

118.0%

PROPERTY DIRECT

116.0%

“At Red Roof we continually listen to our customers in order to evolve the brand.”

63% OVERALL BRAND

–Andrew Alexander President Red Roof Inn

CONTRIBUTION*

114.0% 112.0% 110.0% Q1 2012

Q2 2012

Q3 2012 Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

*Quarterly RevPAR Economy Tract Index for Red Roof locations open and operating for at least 2 years and for all of 2014, Smith Travel Research. 328 properties.

83.0 81.0 79.0 77.0 75.0 73.0 71.0 69.0 67.0 65.0

80.5 79.9

Re

dR

oof

Inn

CUSTOMER SATISFACTION INDEX (CSI)

For the 5th year in a row Red Roof has earned the #1 position for consumer satisfaction.

s Inn tr el o Mic

s uite S &

78.9

y alit Qu

Inn

Data: Based on Review Matrix data, Jan-Dec 2014 ®Market Matrix. All rights reserved

*The Brand Contribution is the percentage of room revenue generated for the Properties, the reservations for which were generated by the Red Roof Inn website, the Red Roof call center, group booking, National Sales, Global Distribution System (“GDS”), third party websites and reservations by RediCard members booked directly with the Properties. This is calculated by dividing the total room revenue generated by the channels referenced above for the Properties by the total room revenue generated by all occupied rooms at the Properties

Red Roof offers competitive systemwide performance.

$58.28 ADR*

77.4

e Sup

75.2

e

r8 Ec

odg no oL

(INDEX 108.4%)**

74.3

n y In a ew Rod

74.0

Inn aD ys

73.7

e odg l e v Tra

72.3

rd wa Ho

son n h Jo Am

t Bes s ' ca eri

71.9 n

In ue Val

63.3%

$36.84

(INDEX 109.2%)**

(INDEX 118.36%)**

OCCUPANCY*

REVPAR*

*Reflects average performance for all Red Roof Inn locations open and operating for at least two (2) years and for the entire period of January 1, 2014 through December 31,2014; total 328 inns. In addition, there were 68 Red Roof Inns which were not open throughout the entire year or were not in operation at least two (2) years. ** Smith Travel Research, 2014

69.3 6 tel Mo

67.8 Kn

ts igh

Inn

IT ALL ADDS UP Our dedicated reservations and customer service center (800.Red.Roof) has one of the highest conversion rates in the industry – 48.8 percent in 2014. What’s more, in a franchisee survey conducted in 2013, 84.6 percent of our franchisees said they’d recommend Red Roof to other potential franchisees. You’d be hard pressed to find better stats than Red Roof’s.

ONE BRAND. ONE FOCUS.® AND NOW MORE WOW.

RED ROOF PLUS+

®

RED ROOF PLUS+ EQUALS EVEN MORE WOW. ®

►► Click here to learn more about Red Roof PLUS+.

72.4%

$71.17

$51.56

(INDEX 113.3%)**

(INDEX 113.9%)**

(INDEX 129.0%)**

OCCUPANCY*

ADR*

REVPAR*

We basically turned the economy hotel market on its roof with the introduction of Red Roof PLUS+. Designed for guests seeking a more upscale experience at a value price, PLUS+ includes all of the NextGen upgrades from rooms to the lobby. For more discerning guests, Premium Rooms offer upgraded services and extra amenities. In addition, all properties are smoke-free, have Red Roof PLUS+ signage, entrance canopy, enhanced landscaping and designation boasting their upgraded status. As a PLUS+ property you’ll also receive enhanced customer service training, upgraded uniforms and NextLine™ – our designated customer resolution toll-free number. So, if you’re looking to boost your numbers by giving your guests the experience and value they’re seeking, now’s the time to look into Red Roof and Red Roof PLUS+.

TO GET THE BALL ROLLING VISIT REDROOFFRANCHISING.COM OR CALL 888.473.8861. *Reflects the Average Occupancy Rate, Average Daily Room Rate and RevPAR for Red Roof Affiliate Managed and Affiliate Owned hotels that have implemented the NextGen renovations standards. These locations (30 properties) were open and operating for at least two (2) full years, started renovations in 2011 or later and have completed renovations for the entire period of January 1, 2014 through December 31, 2014. **Smith Travel Research, 2014

Red Roof Inns, Inc. The Red Roof Building 605 South Front Street Columbus, Ohio 43215 redrooffranchising.com 888.473.8861

Red Roof Inns, Inc. The Red Roof Building 605 South Front Street Columbus, Ohio 43215 redrooffranchising.com 888.473.8861 This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with the applicable authorities. For New York: An offering can only be made by a prospectus filed first with the Department of Law for the State of New York. Such filing does not constitute approval by the Department of Law. For Minnesota: #F-5824. Red Roof Franchising, LLC, 605 South Front Street, Columbus, Ohio 43215. © 2015 Red Roof Inns

PERFORMANCE CLOSE WINDOW

RED ROOF BY THE NUMBERS. Red Roof consistently has one of the highest RevPARs of any hotel in the economy market*. Red Roof consistently has one of the highest RevPARs of any hotel in the economy market*.

120%

120.0%

120.0% 118.0%

Our 63% Brand Contribution is tops in the economy segment.*

37%

118.0%

116.0% 114.0%

PROPERTY DIRECT

110.0% Q1 2012

Q2 2012 114.0%

Q3 2012 Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

112.0% For the 5th year in a row Red Roof has earned the #1 position for consumer satisfaction.

63% OVERALL BRAND

–Andrew Alexander President Red Roof Inn

Red Roof offers competitive systemwide performance.

83.0 81.0 79.0 * * 77.0 (INDEX 109.2%)** (INDEX 118.36%)** (INDEX 108.4%)** 75.0 73.0 *Reflects average performance for all Red Roof Inn locations open and operating for at least two (2) years and for the entire period of January 1, 2014 through December 31,2014; total 328 inns. In addition, there were 68 Red Roof Inns which were not open throughout the entire year or were not in operation at least two (2) years. 71.0 ** Smith Travel Research, 2014 69.0 *Quarterly RevPAR Economy Tract Index for Red Roof locations open and operating for at least 2 years and for all of 2014, Smith Travel Research. 328 properties. 67.0 65.0 Our dedicated reservations and customer service center (800.Red.Roof) has one of the highest e n n n n 8 ge l6 es nn nn

80.5 110.0% 79.9

78.9

$58.28 ADR

77.4

Q2 201274.3 75.2

Q1 2012

y In au lit

Re d

Ro of I n

n

CUSTOMER SATISFACTION INDEX (CSI)

“At Red Roof we continually listen to our customers in order to evolve the brand.”

*The Brand Contribution is the percentage of room revenue generated for the Properties, the reservations for which were generated by the Red Roof Inn website, the Red Roof call center, group booking, National Sales, Global Distribution System (“GDS”), third party websites and reservations by RediCard members booked directly with the Properties. This is calculated by dividing the total room revenue generated by the channels referenced above for the Properties by the total room revenue generated by all occupied rooms at the Properties

*Quarterly RevPAR Economy Tract Index for Red Roof locations open and operating for at least 2 years and for all of 2014, Smith Travel Research. 328 properties.

t Sui & s Inn tr el o Mic

120%

CONTRIBUTION*

116.0%

112.0%

Q

Data: Based on Review Matrix data, Jan-Dec 2014 ®Market Matrix. All rights reserved

er

Sup

E

d oLo con

R

I ay w e od

Q3 2012 Q4 2012

74.0

s In Day

73.7

dg

o vel Tra

72.3

Q1 2013

71.9

nso

eI

oh rd J a w Ho

e

alu st V

Am

eri

sB ca'

69.3 te Mo

67.8 n ts I

gh Kni

✖

Q2 2013

Q3 2013

Q4 2013

63.3%

OCCUPANCY*

Q1 2014

$36.84 REVPAR

Q2 2014

Q3 2014

Q4 2014

IT ALL ADDS UP

conversion rates in the industry – 48.8 percent in 2014. What’s more, in a franchisee survey conducted in 2013, 84.6 percent of our franchisees said they’d recommend Red Roof to other potential franchisees. You’d be hard pressed to find better stats than Red Roof’s.

ONE BRAND. ONE FOCUS.® AND NOW MORE WOW.

PERFORMANCE CLOSE WINDOW

RED ROOF BY THE NUMBERS. For the 5th year in a row Red Roof has earned the #1 position for consumer satisfaction. CUSTOMER SATISFACTION INDEX (CSI)

83.0 has one of the highest RevPARs of any hotel in the economy market*. Red Roof consistently 81.0 120% 120.0% 79.0 118.0% 77.0 116.0% 75.0 114.0% 73.0 112.0% 71.0 110.0% 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2012 Q2 69.0 67.0 65.0 For the 5th year in a row Red Roof has earned the #1 position for consumer satisfaction.

80.5 79.9

78.9

77.4

75.2

Our 63% Brand Contribution is tops in the economy segment.*

37%

PROPERTY DIRECT

74.3

n

oof In

80.5 79.9

i uQ al

n n I ty

s Inn tr el o Mic

s uite S &

ity ual

Inn

Q

Data: Based on Review Matrix data, Jan-Dec 2014 ®Market Matrix. All rights reserved

dge

r8

e Sup

Ec

Lo ono

n

Ro

In ay ed w

Inn aD ys

on

rd wa Ho

ns Joh

est

Am

eri

sB ca'

ue Val

Inn

6 tel Mo

–Andrew Alexander President Red Roof Inn

CONTRIBUTION*

73.7

72.3

71.9

69.3

n e n 6 l n g o I Is nn e s d t e n o lo u 63.3% $36.84 h l e M o a v Day $58.28 V REVPAR* dJ t OCCUPANCY* r(INDEX ADRT*ra s a (INDEX 108.4%)** oH w 109.2%)** a's Be (INDEX 118.36%)** ric e Am IT ALL ADDS UP

67.8 n n I ts

h nK ig

*Reflects average performance for all Red Roof Inn locations open and operating for at least two (2) years and for the entire period of January 1, 2014 through December 31,2014; total 328 inns. In addition, there were 68 Red Roof Inns which were not open throughout the entire year or were not in operation at least two (2) years. ** Smith Travel Research, 2014

69.3

dge

o vel Tra

63% OVERALL BRAND

Red Roof offers competitive systemwide performance.

Iy nn a w e Rod

e g d o L o on

8 r e up

S s n Ec 78.9 77.4 el In ri ot 75.2 c 74.3 74.0 73.7 M 72.3 71.9

Re dR

Re d

Ro of I n

n

CUSTOMER SATISFACTION INDEX (CSI)

tu es i &S

74.0

“At Red Roof we continually listen to our customers in order to evolve the brand.”

*The Brand Contribution is the percentage of room revenue generated for the Properties, the reservations for which were generated by the Red Roof Inn website, the Red Roof call center, group booking, National Sales, Global Distribution System (“GDS”), third party websites and reservations by RediCard members booked directly with the Properties. This is calculated by dividing the total room revenue generated by the channels referenced above for the Properties by the total room revenue generated by all occupied rooms at the Properties

*Quarterly RevPAR Economy Tract Index for Red Roof locations open and operating for at least 2 years and for all of 2014, Smith Travel Research. 328 properties.

83.0 81.0 79.0 77.0 75.0 73.0 71.0 69.0 Data: Based on Review Matrix data, Jan-Dec 2014 ®Market Matrix. All rights reserved 67.0 65.0

✖

67.8 Kn

ts igh

Inn

Our dedicated reservations and customer service center (800.Red.Roof) has one of the highest conversion rates in the industry – 48.8 percent in 2014. What’s more, in a franchisee survey conducted in 2013, 84.6 percent of our franchisees said they’d recommend Red Roof to other potential franchisees. You’d be hard pressed to find better stats than Red Roof’s.

ONE BRAND. ONE FOCUS.® AND NOW MORE WOW.

PERFORMANCE CLOSE WINDOW ✖

RED ROOF BY THE NUMBERS. Our 63% Brand Contribution is tops in the economy segment.* Red Roof consistently has one of the highest RevPARs of any hotel in the economy market*.

120%

120.0%

37%

118.0% 116.0%

PROPERTY DIRECT

114.0% 112.0% 110.0% Q1 2012

Q2 2012

Q3 2012 Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

*Quarterly RevPAR Economy Tract Index for Red Roof locations open and operating for at least 2 years and for all of 2014, Smith Travel Research. 328 properties.

83.0 81.0 79.0 77.0 75.0 73.0 71.0 69.0 67.0 65.0

80.5 79.9

Ro of I n Re d

78.9

37%

PROPERTY DIRECT

63% OVERALL BRAND

63% OVERALL BRAND

–Andrew Alexander President Red Roof Inn

CONTRIBUTION*

CONTRIBUTION*

*The Brand Contribution is the percentage of room revenue generated for the Properties, the reservations for which were generated by the Red Roof Inn website, the Red Roof call center, group booking, National Sales, Global Distribution System (“GDS”), third party websites and reservations by RediCard members booked directly with the Properties. This is calculated by dividing the total room revenue generated by the channels referenced above for the Properties by the total room revenue generated by all occupied rooms at the Properties

Red Roof offers competitive systemwide performance.

$58.28 ADR*

77.4

“At Red Roof we continually listen to our customers in order to evolve the brand.”

(INDEX 108.4%)**

63.3%

$36.84

(INDEX 109.2%)**

(INDEX 118.36%)**

OCCUPANCY*

REVPAR*

75.2 *The74.3 Brand Contribution is the percentage of room revenue generated for the Properties, the reservations for which were generated by the Red Roof Inn website, the Red Roof call center, 73.7 Global Distribution System (“GDS”), third party websites and reservations by RediCard members booked directly with the Properties. This is calculated by group booking,74.0 National Sales, 72.3 by the71.9channels referenced above for the Properties by the total room revenue generated by all occupied rooms at the Properties dividing the total room revenue generated 69.3 IT ALL ADDS UP 67.8

*Reflects average performance for all Red Roof Inn locations open and operating for at least two (2) years and for the entire period of January 1, 2014 through December 31,2014; total 328 inns. In addition, there were 68 Red Roof Inns which were not open throughout the entire year or were not in operation at least two (2) years. ** Smith Travel Research, 2014

n

CUSTOMER SATISFACTION INDEX (CSI)

For the 5th year in a row Red Roof has earned the #1 position for consumer satisfaction.

Our 63% Brand Contribution is tops in the economy segment.*

s Inn tr el o Mic

s uite S &

ity ual

Inn

Q

Data: Based on Review Matrix data, Jan-Dec 2014 ®Market Matrix. All rights reserved

dge

r8

e Sup

Ec

Lo ono

n

Ro

In ay ed w

Inn aD ys

dge

o vel Tra

on

rd wa Ho

ns Joh

est

Am

eri

sB ca'

ue Val

Inn

6 tel Mo

Kn

ts igh

Inn

Our dedicated reservations and customer service center (800.Red.Roof) has one of the highest conversion rates in the industry – 48.8 percent in 2014. What’s more, in a franchisee survey conducted in 2013, 84.6 percent of our franchisees said they’d recommend Red Roof to other potential franchisees. You’d be hard pressed to find better stats than Red Roof’s.

ONE BRAND. ONE FOCUS.® AND NOW MORE WOW.

PERFORMANCE

RED ROOF BY THE NUMBERS. ✖

CLOSE WINDOW

Red Roof consistently has one of the highest RevPARs of any hotel in the economy market*.

Our 63% Brand Contribution is tops in the economy segment.*

120% Red Roof offers competitive systemwide performance.

120.0%

37%

118.0%

$58.28

116.0% 114.0% 112.0% 110.0% Q1 2012

Q2 2012

Q3 2012 Q4 2012

Q1 2013

Q2 2013

ADR* Q3 2013

Q4 2013

63.3%

Q1 2014

Q2 2014

(INDEX 108.4%)**

Q3 2014

Q4 2014

Ro of I n

n

CUSTOMER SATISFACTION INDEX (CSI)

Re d

s Inn tr el o Mic

REVPAR

*

(INDEX 118.36%)**

Red Roof offers competitive systemwide performance.

*Reflects average performance for all Red Roof Inn locations open and operating for at least two (2) years and for the entire period of January 1, 2014 through December 31,2014; total 328 inns. In addition, there were 68 Red Roof Inns which were not open throughout the entire year or were not in operation at least two (2) years. ** Smith Travel Research, 2014 * *

80.5 79.9

s uite S &

$36.84

–Andrew Alexander President Red Roof Inn

*The Brand Contribution is the percentage of room revenue generated for the Properties, the reservations for which were generated by the Red Roof Inn website, the Red Roof call center, group booking, National Sales, Global Distribution System (“GDS”), third party websites and reservations by RediCard members booked directly with the Properties. This is calculated by dividing the total room revenue generated by the channels referenced above for the Properties by the total room revenue generated by all occupied rooms at the Properties

(INDEX 109.2%)**

For the 5th year in a row Red Roof has earned the #1 position for consumer satisfaction.

63% OVERALL BRAND

CONTRIBUTION*

OCCUPANCY*

*Quarterly RevPAR Economy Tract Index for Red Roof locations open and operating for at least 2 years and for all of 2014, Smith Travel Research. 328 properties.

83.0 81.0 79.0 77.0 75.0 73.0 71.0 69.0 67.0 65.0

PROPERTY DIRECT

“At Red Roof we continually listen to our customers in order to evolve the brand.”

78.9

ity ual

Inn

Q

Data: Based on Review Matrix data, Jan-Dec 2014 ®Market Matrix. All rights reserved

$58.28 ADR

77.4

75.2

74.3

dge

r8

e Sup

(INDEX 108.4%)**

Ec

Lo ono

n

Ro

In ay ed w

74.0

Inn aD ys

73.7

72.3

dge

o vel Tra

71.9

on

rd wa Ho

ns Joh

est

Am

eri

sB ca'

ue Val

Inn

63.3%

$36.84

(INDEX 109.2%)**

(INDEX 118.36%)**

OCCUPANCY*

REVPAR

*Reflects average performance for all Red Roof Inn locations open and operating for at least two (2) years and for the entire period of January 1, 2014 through December 31,2014; total 328 inns. In addition, there were 68 Red Roof Inns which were not open throughout the entire year or were not in operation at least two (2) years. ** Smith Travel Research, 2014

69.3 6 tel Mo

67.8 Kn

ts igh

Inn

IT ALL ADDS UP Our dedicated reservations and customer service center (800.Red.Roof) has one of the highest conversion rates in the industry – 48.8 percent in 2014. What’s more, in a franchisee survey conducted in 2013, 84.6 percent of our franchisees said they’d recommend Red Roof to other potential franchisees. You’d be hard pressed to find better stats than Red Roof’s.

ONE BRAND. ONE FOCUS.® AND NOW MORE WOW.