Top 10 Facts About Who Owns Red Roof Inn – #4 Will Surprise You

Red Roof Inn is a household name for budget-conscious travelers seeking clean, comfortable stays across the United States and beyond. But have you ever wondered who’s behind this iconic hotel chain? From its humble beginnings to its complex ownership structure, the story of Red Roof Inn’s ownership is filled with twists and turns.

In this blog, we uncover the top 10 facts about who owns Red Roof Inn, with fact #4 sure to catch you off guard! Whether you’re a frequent guest or just curious, these facts will give you a deeper understanding of the brand’s journey. Save big with the VP+ promo code offering 35% off your stay at Red Roof Inn. Book now to enjoy affordable comfort!

1. Founded by a Visionary Entrepreneur

Red Roof Inn’s story begins with James R. Trueman, an Ohio-based contractor with a passion for affordable hospitality. In 1973, Trueman opened the first Red Roof Inn in Columbus, Ohio, with a mission to provide quality lodging at budget-friendly prices.

Charging just $8.50 a night, his vision was to create a no-frills experience that didn’t skimp on comfort. Trueman’s entrepreneurial spirit laid the foundation for what would become a national chain, but his untimely death in 1986 marked a turning point for the company’s ownership.

A Legacy of Simplicity

Trueman’s philosophy of “Sleep Cheap” resonated with travelers. His focus on clean rooms, friendly service, and pet-friendly policies set Red Roof Inn apart from competitors. Even today, the brand honors his legacy by maintaining its commitment to value-driven hospitality.

2. The Trueman Family Held Control for Years

After James Trueman’s passing, ownership of Red Roof Inn passed to a trust led by his widow, Barbara Trueman. For eight years, the Trueman family maintained control, guiding the company through a period of steady but slowed expansion. Without Trueman’s bold leadership, the chain lost some of its early momentum, but the family’s stewardship ensured the brand remained true to its roots.

A Shift in Dynamics

During this time, the company transitioned from entrepreneurial management to a more structured approach. This shift, while necessary, highlighted the challenge of maintaining Trueman’s vision without his hands-on guidance.

3. Morgan Stanley’s Big Buyout in 1994

In 1994, the Trueman family sold Red Roof Inn to The Morgan Stanley Real Estate Fund for an undisclosed sum. This marked the first major shift in ownership, as the company moved from family hands to a corporate investment group. Morgan Stanley’s involvement brought financial muscle, enabling Red Roof Inn to expand its footprint and modernize its operations.

Franchising Begins

Under Morgan Stanley’s ownership, Red Roof Inn began franchising in 1997, with its first franchised location in Branson, Missouri. This move allowed the brand to grow rapidly, as independent owners invested in the Red Roof name.

4. A French Hospitality Giant Took Over

Here’s the surprising fact: in 1999, Red Roof Inn was acquired by Accor, a French hospitality management company, for $1.115 billion. Yes, a French company owned this quintessentially American budget hotel chain! Accor, known for brands like Motel 6, saw Red Roof Inn as a key piece of its North American strategy. At the time, the acquisition made Accor the third-largest hotel chain in the world by guestrooms, with Red Roof Inn’s 324 locations and 37,208 rooms adding significant scale.

Why This Matters

Accor’s ownership brought global expertise but also shifted Red Roof Inn’s focus. The French company aimed to streamline operations and integrate Red Roof into its broader portfolio, setting the stage for future changes.

5. Sold Again in 2007 to Citigroup and Westbridge

In 2007, Accor sold Red Roof Inn to a consortium led by Citigroup’s Global Special Situations Group and Westbridge Hospitality Fund LP for $1.3 billion. This sale allowed Accor to focus on its Motel 6 brand in North America, while Red Roof Inn entered a new phase under investment-driven ownership. Some Red Roof locations were converted to Motel 6 as part of the deal, reducing the chain’s footprint slightly.

A New Direction

The Citigroup-Westbridge acquisition emphasized profitability and efficiency. The new owners invested in modernizing properties, paving the way for the brand’s NextGen room design introduced in 2013.

6. Morgan Stanley Returns as Owner in 2013

In a twist of fate, Morgan Stanley re-entered the picture in 2013, acquiring Red Roof Inn from Citigroup and Westbridge. This marked a return to familiar hands, as Morgan Stanley’s real estate fund had previously owned the chain in the 1990s. Today, Morgan Stanley remains a key player in Red Roof Inn’s ownership structure, overseeing its strategic direction.

Stability and Growth

Morgan Stanley’s second stint as owner has focused on stability. The company has supported Red Roof’s expansion, including international ventures in Brazil and Japan.

7. Franchisees Play a Major Role

While Morgan Stanley holds corporate ownership, Red Roof Inn’s day-to-day operations rely heavily on franchisees. Hundreds of independent entrepreneurs own and operate individual Red Roof Inn locations, investing in the brand’s name and standards. Franchisees benefit from Red Roof’s marketing, training, and operational support while maintaining control over their properties.

Empowering Diversity

Red Roof’s RIDE with Red Roof initiative, launched in 2023, has added over 30 women and underrepresented individuals to its franchisee community, showcasing the brand’s commitment to inclusive ownership.

8. RRI West Management: The Largest Franchisee

By 2020, Red Roof Inn had streamlined its directly managed properties, transferring 67 locations to RRI West Management, LLC, a newly formed entity.

RRI West became the single largest franchisee of the Red Roof brand, overseeing a significant portion of its portfolio. Some administrative functions stayed in New Albany, Ohio, while others moved to El Cajon, California.

A Strategic Move

This restructuring allowed Red Roof Inn to focus on brand consistency while empowering RRI West to manage a large chunk of its properties efficiently.

9. Investors and Shareholders Add Complexity

Beyond Morgan Stanley and franchisees, Red Roof Inn’s ownership includes investors and shareholders who hold financial stakes in the company.

Investment groups like Five Mile Capital Partners, LLC, have purchased portfolios of Red Roof properties, adding another layer to the ownership structure. These stakeholders influence strategic decisions, from renovations to expansions.

Balancing Interests

Managing the interests of corporate owners, franchisees, and investors is a delicate balance. Red Roof Inn’s leadership, led by President Zack Gharib, works to align these groups around a shared vision of affordable hospitality.

10. A Brand with a Global Footprint

While Red Roof Inn remains American at heart, its ownership has driven international growth. The chain opened its first international location in Curitiba, Brazil, in 2015, followed by a second in Vitoria, Brazil, in 2016.

Red Roof has also expanded to Japan, with plans for further global ventures. This global reach reflects the confidence of its owners in the brand’s universal appeal.

Looking Ahead

As Red Roof Inn continues to grow, its ownership structure will likely evolve. Whether through new franchisees, additional investors, or further corporate acquisitions, the brand’s commitment to value and comfort remains unwavering.

Conclusion: A Complex but Fascinating Ownership Story

From James Trueman’s vision to Morgan Stanley’s corporate oversight, Red Roof Inn’s ownership journey is a testament to its resilience and adaptability. The surprising twist of French ownership under Accor, the rise of franchisees, and the brand’s global ambitions highlight a chain that’s more than just a budget hotel.

Next time you check into a Red Roof Inn, you’ll know the fascinating story behind who owns it—and why fact #4 stands out! Ready to book your stay? Use the 35 off vp+ promo code at red roof inn to save on your next trip!