In an increasingly competitive hospitality landscape, Red Roof is doubling down on the fundamentals that have long set it apart—core values, consistency, and culture—while also evolving to meet today’s traveler demands. With Zack Gharib, president of Red Roof, guiding the way, the over 700-hotel company is rolling out new initiatives and strategies that will keep the company organized and agile.
At the heart of these efforts is a strong emphasis on company culture and business strategy, both of which were top initial priorities for Gharib when he started in the position 16 months ago. He explained, “When I joined the organization, my major focus was on learning the company, owning my business strategy, and working with leaders and team members to refine our culture and core values that everybody should be proud of, and this way, we can elevate the brand together for all our stakeholders.”
A defined set of principles is essential for any organization’s success, and Red Roof’s core values culminate in the “HABITS” framework: hospitality, adaptability, belonging, impact, trust, and success. These tenets were framed, Gharib noted, when the company “did an exercise where we asked all our employees what’s important to them from a culture perspective and the core values that they want to be part of. … Every team member at the corporate level and in the field feels like they’re part of that culture, and we have the buy-in from everybody.”
With a renewed focus on core values that impact the performance of the company, Red Roof also shifted its emphasis on enhancing franchisees’ return on investment (ROI) by aligning operational improvements with revenue-driving opportunities. Gharib explained how investing in franchisees’ ROI intersects with the company’s culture: “You can’t drive success unless you have a great culture. We also take great strides in improving our quality and consistency throughout our reporting system. That’s an important initiative for us. We’re very aware that our property owners’ wallets and ROI are very important, so we always keep that in mind. We want to make sure that the ROI for a guest and for the owner are at the front and center of everything we do.”
Gharib continued, “With these factors in mind, we’re paying closer attention to areas of opportunity, like during property visits, and also stretch our action plans with owners so we can elevate their property, drive revenue, and improve the bottom line.”
A Focus on Company Culture
Gharib started his career when he was 21 years old at White Lodging Services, working for companies including LaQuinta by Wyndham, Highgate Homes, and Marriott, where he realized the critical role of effective leadership and the responsibility to care for and empower team members. One of the biggest takeaways from his previous experience is “having a great culture is extremely important.”
Although many executives take a top-down approach to leading their companies, Gharib prefers a bottom-up method that starts with the property level and corporate team members. That way, Red Roof’s leadership actively listens to and learns from its employees to create the best working environment possible for everyone. When leaders adapt their approach to fit the business, they help their property-level teams succeed, and that success rises all the way to the top, where executives are inspired to lead with the same commitment.
“We have the buy-in of everyone in the organization of that culture because that means it’s easier to adapt to, it’s easier to understand. It’s part of who we are, and then comes our core values. That’s the type of leader I am overall,” Gharib explained. “At the end of the day, I’m a results-driven leader. I like to have an impact. It’s part of our core values. … That accountability, that drive, that takes ownership rolling up our sleeves. Being there with our franchisees and our guests, that’s critical.”
With this approach in mind, Gharib prioritizes listening, actively considering feedback from franchisees, property-level employees, and guests to guide decisions that serve the entire system. At the same time, the company works to balance the evolving needs of its franchisees with the broader strategic goals of its stakeholders. Through a focus on transparency, alignment, and shared success, Red Roof’s leadership remains committed to supporting its franchisees, ensuring their voices are heard, while also driving performance, safeguarding brand integrity, and delivering value across the portfolio.
When choosing to implement a new partnership or strategy, Gharib and the Red Roof leadership team considers the strategic goals of the company, including whether the decision will drive consistency, increase quality, and result in a higher ROI while making a positive impact on the business. If a prospective decision would positively impact all stakeholders, “that means we’re on the right track,” Gharib explained. But, if there isn’t a positive impact for every stakeholder, “it means we need to adapt and we need to pivot.”
A major resource in this process is Red Roof’s Franchise Advisory Council, which leadership heavily relies on to make strategic, informed decisions about the trajectory of the company. Gharib explained, “This is a group of owners that know the industry very well. They know the brand very well. They’re connected in the communities. And we consult with them on a regular basis through meetings, through team calls, and this way, we’re aligned on most of our strategic initiatives. Their feedback is very valuable to us.”
Development Pipeline and Growth Strategy
After reaching its 700-hotel milestone in 2024, Red Roof is poised for development growth in 2025. Gharib outlined how the company’s development target will reach 50 new hotel openings and 65 agreements for the company’s four brands—Red Roof, Red Roof PLUS+, the Red Collection, and HomeTowne Studios—and its dual-brand option. At its 2024 Brand Conference, a new prototype was shared for the Red Roof brand.
“We know the winning formula for these brands as well as a fifth [dual-brand] offering. … It helps attract a lot of owners and franchisees that want exclusivity when you have a Red Roof in the market,” Gharib shared.
Rather than rapidly expanding, the company is intentionally choosing to keep its brand lineup small, making sure each one gets the care and attention it needs to grow. “We know these [brands] very well,” Gharib explained. “We’ve been doing them for a long time. We know what guests love about them, and we’re able to make sure we drive performance to those brands. I think that’s attractive to our franchisees. I think the franchise community is yearning for a brand that raises the value of the product as time goes by without diluting the value.”
Even with a handle on its brand lineup, Gharib noted that Red Roof isn’t closing the door on any opportunities, including acquisitions or international expansion, as the company looks to the future. “The exciting part, too, is we’re exploring acquisitions that fit our brand and new international markets right now. So, our eye is on expansion and growth, and that’s really important, and we’re working very hard on that,” he said.
Inclusive Ownership Programs
Red Roof is helping shape a more inclusive future in hospitality through its thriving RIDE with Red Roof and SHE, inspired by Red Roof programs, which create pathways to ownership for underrepresented groups and women, respectively. “These two programs have been really successful and underscore our focus on underserved markets in the industry,” Gharib emphasized. “They’re designed to motivate and activate women and minorities in ownership, and that can help, especially women to lead and own hotels, which used to be scarce in our industry from an ownership perspective.”
Since June 2023, these initiatives have brought more than 30 women franchisees into the Red Roof system. The company’s commitment to diversity and inclusion is deeply rooted in its core values and reflected in its ongoing franchisee support. To encourage more franchisees to join Red Roof, “we’re doing all kinds of incentives, drivers, and programs to welcome all spectrums of owners into our mix—not only ownership, but leadership as well,” he noted.
Relationships and Results
At its core, Red Roof prioritizes authentic relationships and measurable results, which are values that are embedded in its strategy, culture, and identity, and forged into the company’s motto of “Genuine Relationships. Real Results.” Gharib highlighted the team’s dedication, sincerity, and commitment to the success of its franchisees and property-level employees: “Our team is [comprised of] amazing individuals who are very genuine, but they care, and they invest in everything they do to make sure our franchisees are successful for their experience and the guest experience as well. A lot of people can maybe say it, but I truly believe we don’t just say it; we live it, and we work hard on it.”
Gharib also noted that the company’s franchisee satisfaction rate exceeds 92 percent, which is a testament to the strong relationships and support Red Roof provides. Gharib credits this success to the company’s focus on partnerships and collaboration. He elaborated, “We work directly with our franchisees and outside partners to elevate the business together and drive profitable growth for us. And that has been persistent throughout the years.”
Relationships are paramount to the overall guest and employee experience at Red Roof, yet the company’s strong performance and growth can also be attributed to its focus on technology, partnerships, and consistent brand standards. “I believe that we are now a transformative organization,” Gharib explained. “We are doubled down on technology. Our partnerships are focused, and these are partnerships with organizations that have those same values of growth and focus on AI and improving everything through technology.”
Market Differentiation and Future Vision
In the next three to five years, Red Roof is prioritizing strategic growth, consistency, and the continued elevation of its brand standards. Gharib emphasized that “the look and feel [of Red Roof] is going to be different for our brand. Our brand standards offer value to our guests. Consistency is a big deal.”
With a refreshed energy and direction, the company plans to expand into key markets, particularly along the West Coast and in high-performing areas such as New York. “We want to grow. West Coast expansion is very critical to us. Higher RevPAR markets are very critical, like New York. … We’re having tremendous growth right now around New York and the boroughs,” Gharib said.
As Red Roof looks to the future, its strategy is rooted in meaningful relationships, operational excellence, and thoughtful growth. With a renewed focus on consistency, brand standards, and market expansion, the company is building on a strong foundation. By staying true to its motto and maintaining a clear commitment to its franchisees, Red Roof is positioned for long-term success across its portfolio. As Gharib concluded, “‘Genuine Relationships. Real Results.’ is a real thing, and we’re building on that momentum. We’re definitely moving in the right direction.”
Driving Efficiency: Red Roof’s Tech Partners Support the Company’s Operations and Growth
As Red Roof navigates a competitive market, it continues to lean on carefully selected technology partnerships to support both operational efficiency and long-term growth. President Zack Gharib emphasized the company’s ongoing investment in technology as a key driver of performance and enhanced guest experiences. In addition to the recent unveiling of a redesigned website, Gharib pointed to several key partners that help power Red Roof’s day-to-day operations:
• HotelIQ: Red Roof uses the HotelIQ Decision Cloud, which is an AI-powered revenue management system, to enable hotel owners and operators to use performance metrics to make faster, data-driven decisions and boost revenue.
• FreedomPay: Red Roof uses this service to power payments across its portfolio through an integrated payment solution and upgraded service that adds cost savings and operational efficiency.
• Sojern: Red Roof’s technology to enhance guest interaction and analytics, Sojern “allows us to be more active with the guest,” said Gharib. “We understand our guest needs, what they like, and what they don’t like. It gives us reporting to roll up our sleeves and put action plans to give the best guest experience we can in the field. But also, it allows us to have that guest connectivity back and forth where we can interact with the guests when they arrive, through messaging.”
• ibex: Red Roof uses ibex as its contact center, which provides “real-time translation services where you can talk with the technology … in your language, and it comprehends what you’re saying and translates to the contact center agent speaking another language. It’s a conversation back and forth,” Gharib explained.
Technology partnerships are essential for Red Roof because they provide the agility and innovation needed to stay competitive, streamline operations, and deliver a seamless, modern experience for both guests and franchisees. Gharib said, “As we continue to grow and ensure our franchisee success and also our guest experience, we have to double down on technology and have partnerships that can grow that aspect.”
