Red Roof’s brands here are all hotel franchises. Each is franchised on its own terms, under its own agreement, so the cost to open, the fees and the record of each brand differ, even where the parent company is the same.
Brands owned by Red Roof
| Brand | Cost to open | Franchise fee | Royalty | Locations | 3-year change |
|---|---|---|---|---|---|
| Red RoofHotel | $7.25M–$8.9M | $27,000 | 5% | 623 | +26 (+4%) |
| The Red CollectionHotel | $223K–$1.61M | $30,000 | 4.5% of room revenue | 5 | +2 |
Change is in US locations, franchised and company-owned, over the three latest years in each brand’s filing. A dash means the brand’s counts aren’t usable.
Size and growth
Together these brands have 628 US locations, 96% of them run by franchisees. Across the brands, the total grew by 28 locations (+5%), from 2023 to 2025.
Grew the most
- Red Roof+4%
Brands that started the three years with at least 10 locations.
Fees and royalties across the brands
Franchise fees run from $27K to $30K across these brands, with a typical $29K. Red Roof charges a single 5% royalty. At one brand the royalty isn't one rate on all sales: it is tiered, ranged, charged on part of revenue or comes with a minimum.
A shared parent can mean shared suppliers, systems and support staff, but it rarely means shared terms: compare the agreements brand by brand, and ask whether owning one brand gets you anything when you buy another.
Sales per location and who runs it
One brand shares earnings figures, but none as a yearly sales figure per location. None requires the owner to run it day to day; a trained manager can.
| Brand | Sales per location | Marketing fund | Who runs it |
|---|---|---|---|
| Red Roof | Other figures | 4% of sales | Owner needn't take part |
| The Red Collection | Not shared | – | A trained manager can run it |