Pacrim to bring Red Roof to Canada

Red Roof NextGen guestroom.

Red Roof NextGen guestroom.

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COLUMBUS, Ohio — Red Roof is expanding its reach again, signing a 20-year deal with developer Glenn Squires of Pacrim Hospitality Services, who anticipates shovels in the ground for the first four new build units this summer.

This is not the first time Red Roof has tried to come to Canada, but the difference this time is that it has teamed up with a Canadian hotel company in a deal that is backed by Chinese investors. Squires, a 35-year hospitality veteran and native of Newfoundland & Labrador, is CEO of Pacrim Hospitality Services.

Squires told CLN he is pleased with the scope of the deal, which aims to build and brand 40 hotels across Canada over the next 20 years. “This agreement is between myself and Red Roof. It's a 20-year deal, so it is for the kids and the senior management team. When I first spoke to Red Roof, they were talking about three or four properties for the new brand — I preferred an extended development program.”

The first four hotels will be up and running by 2016. They will be in Squires' backyard, as Pacrim is based in Bedford, N.S.  These will be new builds, not conversions, with most built as Red Roof PLUS+ properties, Red Roof’s enhanced and upgraded offering. The first four hotels will be opening in Grand Falls and Bay Roberts in Newfoundland & Labrador and Wolfville and Antigonish in Nova Scotia.

“This agreement signals Red Roof’s strong growth internationally and the demand for our upscale economy product. The key to our success is our ability to find partners with deep local knowledge,” says Andrew Alexander, president of Red Roof.

“Canada is a perfect market for us. Canadian consumers are ready for a true economy hotel brand; a new value proposition.” The new Canadian properties will not only boast PLUS+ upgrades and amenities but many will also have indoor pools and restaurants adjacent to their properties; both a major attraction for the leisure market.”

Phil Hugh.

Phil Hugh.

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Phil Hugh, chief development officer, Red Roof, says the Red Roof Plus+ brand is suitable for Canada, since it offers the highest service level and it works in markets that can offer a little higher RevPAR. “It's economy, but it can compete nicely with properties in the midscale sector.”

Pacrim will help develop the hotels in the Eastern and Atlantic regions as well as a second group of Canadian properties due to open in Ontario, British Columbia and Alberta over the next few years.

Squires has taken a 50 per cent interest and has partnered with Chinese investors to form Canada China Culture Hospitality Development Inc. operating as CCC Hospitality Development.  CCC has committed to fund a number of Red Roof Inns across Canada.  Squires noted that Cushman & Wakefield is currently mapping the country to determine appropriate locations, focusing on small to medium sized markets that have limited hotel offerings or aging hotel stock.

The Canadian venture is Red Roof's second foray into the international arena. Late last year, the company announced that it was partnering with respected Brazil-based Nobile Hotels 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 is a leader in the economy lodging industry with franchised, corporate-managed, and corporate-owned properties. It has 400 pet-friendly properties, offering fee-free stays for pets across the U.S. The brand recently completed a $200 million investment to renovate and upgrade hotels nationwide with sleek and modern NextGen redesign elements. The company is also rolling out Red Roof PLUS+, an enhanced offering at a value price.