WINTER 2015

NEWSThe real winners in the future world arena will be more often the champions of “cooperation,” rather than the champions of “competition.”

We all know that competition provides the soil in which

free enterprise takes root. And we all know what happens when a company or group had no competition; there is no incentive for quality or service. However, a look at the word Compete is revealing. It comes from the Latin source Competere, meaning “to come together, agree, belong.” Although someone does come in first, the best approach to competition is that everyone is better off just for having run the race.

Winning used to mean beating others and being Number One. It signified standing victoriously over a fallen adversary. It is obvious the very nature of “winning” must change.

The real winners in the future world arena will be more often the champions of “cooperation,” rather than the champions of “competition.”

While power to maintain access to markets and secure world peace will continue, “the survival of the

fittest” philosophy will give way to the “survival of the wisest” philosophy of understanding, sharing and reason.

Instant satellite and Internet communications have created a small, global village with blurred borders and few secrets. There are too many people, too few resources, and a too delicate balance between nature and technology to produce winners in isolation today. ■

Winning Takes TeamworkSubmitted by Edward Mirza, Senior Vice President of Franchise Operations

From The Psychology of Winning by Denis Waitley

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GROWTH

In August 2014, Red Roof Inn announced a 350% increase in signed hotel agreements from the same time last year. With over 70 hotel agreements signed in 2014, Red Roof has showcased immense and intense growth in the past year. “The continuing evolution of the Red Roof brand has fueled our growth and propelled us to these impressive development milestones,” says Andrew Alexander, President, Red Roof. “With the strong customer response to our service enhancements and hotel innovations, franchisees have tremendous confidence in our strategy and direction, and their demand for the brand is very high.”

Heading into 2015, the Red Roof Franchise operations team and developers are working hard to continue the exceptionally strong development we saw in 2014. Red Roof has kicked off the year with two very exciting announcements concerning the growth of the brand.

Red Roof Inn Expands Internationally with First Hotel Scheduled to Open in Brazil

Announced in late 2014, Red Roof plans to open its first international destination in Brazil. Red Roof will partner with Brazil-based Nobile

Hoteis to develop 35-40 properties across the country in the next 25 years. The first property will open in Brasilia in 2015

“Red Roof was the ideal partner to develop budget and economy segments in Brasil. It is a company with a great reputation, image and success and we know our exclusive alli-ance with this quality brand will be integral to our growth and theirs,” says Roberto Bertino, Founder, President & CEO, Nobile Hoteis.

400th Red Roof Inn Property Signaling Continued and Robust Demand Red Roof opens its 400th property in Council Bluffs, Iowa. This franchise owned property joins a strong network of 399 properties in forty states. Zane Varvel, franchisee owner, is currently working on completing NextGen renovations to his Council Bluff’s property. ■

Growth of the Brandby Sarah Kessler, Marketing Communications Specialist

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OPERATIONS

The Four Operative Words by Edward Mirza, Senior Vice President of Franchise Operations

It is very important that you recognize the fact that they are in a particular order. One may not surpass the other. Here’s why:

Quality - You must have the right Quality of People, Product, and Service to proceed to the next one.

Efficiency - The right quality of people begins with the right hiring and proper training. We can’t have efficiency if our people are not the right fit. We must attain “the right person for the right job”. The right person needs the right amount of training, supervision, and positive re-enforcement in order to live up to your expectation and to be efficient in what they do. “Inspect What You Expect” is the Golden Rule.

Productivity: Once you have the Right People and the Quality of Product, it’s easier to expect better “Productivity” from everyone. That’s when you hold everyone accountable and each individual realizes the importance of his/her role. Each individual realizes the importance of their individual contribution to the success of your overall goals & objectives. It doesn’t matter what the individual does - cleaning rooms, mopping floors, checking in guests, or patching holes in walls. Without the individual contribution, as simple or minor as it may seem, you will never get a “WHOLE”.  Your pie will be imperfect and nothing will be complete. Your job, as a manager, is to make each individual feel important in what they do for the perfection of the overall picture.

Profitability:  It’s simply the by-product of all the above. Profitability is the result of the efforts of the Right People in the Right Jobs, the Quality of your Product & Services, and the Efficiency of your staff. There will not be any “Profitability” if you don’t have each and every one of the above.

Thus the “Essential Sequence”. But let’s add one additional thought to the equation.

Discipline is the key to any, and all, of the above. Without discipline everything will be an unattainable dream. ■

Discipline is the key to any, and all (of these four words).

Without discipline everything will be an unattainable dream.

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OPERATIONS

There are many things you can do every day to give meaning, purpose, and joy

to the lives of everyone around you. The kindness you show others is not only appreciated, it’s also contagious. When you practice these gestures at your Inn you’ll notice improved communication and more fulfilling relationships between your team members and even your guests.

Here are a few tips to get you started. Please be sure to share and discuss these tips with your GSRs.

BE THERE

• Physically and mentally.

• Focus on the people around you, enjoy the moments of interaction.

• Months after a conversation, can you remember the smell of their perfume? The color of his shirt? What you had for dinner? Or what you talked about? Silence the phone, clear distractions, and focus on your company. Focus on your guests.

LISTEN BETTER

• Learning to listen better can help us pick up concerns from our guests and our employees.

• Learn to listen without interrupting, hear the whole story. Don’t form opinions early on.

• Giving others the opportunity to fully express themselves is a great gift.

IF YOU THINK OF A COMPLIMENT, GIVE THE COMPLIMENT

• Paying it forward is what we want our guests to do with Trip Advisor and Market

Learning to listen better can help us pick up concerns from our guests and our employees.

Simple Gestures of Appreciation that Impact Serviceby Vickie Lam, Regional Vice President of Operations

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OPERATIONS

Metrix Reviews. What do we do when others ask us to complete a survey? What level of service do others have to deliver for us to feel compelled to compliment the individual?

• Take time to compliment others for their service. No need to wait for the grand moments. Everyday simple kindness and good work should also be recognized.

• Actions rewarded will become actions repeated even if the reward is a simple gesture of a “thank you”.

HANDWRITE A CARD

• I’m a sentimental fool, I admit. I’ve kept every handwritten card or letter written to me. Family, friends, colleagues, and even guests will surely cherish a handwritten card from you especially when it’s unexpected.

• Commit to sending or hand delivering a card to someone who’s made a difference in your day both personally or professionally at least one time each week.

GO ABOVE AND BEYOND

• Could you do something each day to take a burden off someone’s shoulder?

• At the Inn, what’s a simple gesture we could ask each GSR to commit to each day in order to go above and beyond for the guest? Are you a good role model?

• How does your Red Roof Inn set itself apart when providing the guest the most memorable level of service and product?

SMILE

• It takes more muscles to frown than it takes to SMILE.

• A simple human connection of a friendly smile puts others as ease and breaks down barriers.

• A smile makes us more approachable to provide assistance to others.

LEARN

• Recently at an Inn, I needed to learn hand gestures of the American Sign Language to communicate with a GSR. Other than the ability to sign the alphabet I had no previous experience. In about 10 minutes the GSR Lavern at RRI #388 Albany, GA taught me the best way to communicate with her for a project I needed her help with. At the end of 10 minutes I learned the gestures for – old, new, good morning, good night, question, slow, no, yes, more, thank you, welcome, and understand. I could see in Lavern’s facial expressions and body language how much she appreciated my willingness to communicate with her in a manner that was most comfortable for her.

• What have you learned to do differently or what new task have you taken on to further your own knowledge of the world around you?

May your 2015 be filled with gratitude and gestures of appreciation all days of the new year! ■

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OPERATIONS

Wisdom From Joy LynnBy Glenn Galbraith, Regional Vice President of Operations

During one of my first management assignments in 1981, I was running an operation with extremely poor operating results: The staff was difficult to manage and was impossible to motivate. Luckily, I had a mentor at that time named Joy Lynn. What Joy Lynn said to me was timeless: Start with your people because everything flows through them.

Your staff is your first step to a financially successful hotel. And your staff does this by completing all the tasks necessary for providing a memorable experience for your guests. Yes, you need to renovate your hotel and keep it in great condition, but if you don’t complement it with an effective, enthusiastic and personable staff, you will probably wonder why your revenue is not improving.

Here are some fundamentals for hiring a great staff.

• Hire people who like people.

• Hire people who want to work with you.

• Hire people who can adapt, learn and apply.

• Hire people who can see your vision.

• Hire people with those old fashioned values: hard work, dependability, persistence, honesty, and willingness to listen to instruction.

WHEN INTERVIEWING:

• Interview your applicants as quickly as possible. Good employees do not stay unemployed for long.

• Ask open-ended questions during the interview. Simple yes or no answers will not give you what you need to make an effective decision.

• Take at least 20 minutes to interview. The more time you spend interviewing, the more you will learn about the applicant.

• Let the applicant do the talking. Learn what they are about. If you do all the talking, all you are going to learn is what you already know.

• Check references. Past behavior is the best indicator of future behavior.

• Learn what motivates the applicant.

• Ask the applicant what they liked about their last job, their manager, their customers.

• Ask the applicant what is their schedule availability, what pay are they expecting, and how many hours per week do they need.

• Ask yourself does this applicant bring value to your business.

With an improving economy, finding the right people is getting increasingly more difficult. If you interview and hire right, you will have happier guests and a much more profitable business! ■

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TRENDS

What’s Trending in the Hospitality Industryby Edward Mirza, Senior Vice President of Franchise Operations

TRENDING DOWN

Old bedding

Newspapers

DVD players

In-room Internet fees

Hot tubs

Carpeting in guest rooms

TRENDING

UPIn-room video on demand

High Definition & flat screen TVs

High-speed & wireless Internet

Free breakfast

Towel re-use programs

LED lighting & water saving programs

Free computer in the lobby

Free boarding pass printing

Mobile apps for guest services

Hotels contributing to charities

Hotel employees volunteering time to nonprofits

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Celebrating in Ft. Lauderdaleby Jane Plumbo, Regional Vice President of Operations

The entire franchise team met in January in Fort Lauderdale to celebrate our successes of 2014 and address the opportunities for 2015. Chief Development Officer Phil Hugh proudly calls this group,

“Team Grow,” as evident not only by the amazing success of Red Roof Inn’s growth last year, but the continued goals for the future. Led by Matt Hostetler, Sr. Vice President of Franchise Sales and Development, and Edward Mirza, Sr. Vice President of Franchise Operations, “Team Grow” is responsible for bringing new Inns into the brand, opening and transferring Inns, as well as supporting our new franchisees with training, marketing, sales, and revenue management. Together, Red Roof Franchising had a record year of activity!

Matt and Edward, along with their respective team members, diligently worked to deliver an impactful meeting involving the collaboration of both the sales and operation efforts. While our continued focus is on growing the brand, we also addressed areas of opportunity where we could make the brand even stronger. Phil shared his vision for the upcoming year and what was needed to reach our new goals. Colonel Robert S. Cohen, USMC, Retired enlightened us on the significance of teamwork and how this is the “center of gravity for organizational success.” Edward conveyed the importance of the operations team to support and inspire our franchisees, so they can deliver a quality experience for our customers. Matt showed the team how a lone nut can embrace his followers to form a movement to effect great change. Most memorably, he challenged us with the need to go after that ‘extra degree’ every day in everything we do:

Andrew Alexander, Red Roof Inn President, reflected on the brand’s successes and challenges. Marina MacDonald, Chief Marketing Officer, inspired us with great service stories. Staci Olney, Director of National Sales, took us on a virtual “cruise” and introduced our new Direct Bill invoicing program called RediBill - details coming soon. Throughout the meeting, Michelle Emmons, Director of Field Training, and her team engaged us with team building activities to form a synergy to continue to capitalize on our passion and our team spirit.

The highlight of the three day event was the awards banquet where Phil Hugh, Edward Mirza, and Matt Hostetler honored those who surpassed their goals and whose exceptional performances were key to our success in 2014. “Team Grow” is looking forward to an even more successful 2015! ■

TEAM GROW

Matt Hostetler SVP Franchise Sales & Development

Edward Mirza SVP Franchise Operations

“At 211 degrees, water is hot. At 212 degrees, it boils. And with boiling water comes steam, and steam can power a train.

One extra degree = exponential results” -212° The Extra Degree, Give More Media

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Vickie Lam, Franchise Regional Vice President Operations, Region 4 – Franchise Operations Person of the Year

Keith Worsham, Franchise Development Director – Franchise Sales Person of the Year

Cory Zirwes, Field Trainer – Honorary Team Grow Member

Jeff Stephenson, Franchise Development Director – Best Property Conversion #324 –Augusta, GA

TEAM GROW

Presenting Your 2014 Team Grow WinnersAll winners are featured with Andy Alexander, President, Phil Hugh, Chief Development Officer, Matthew Hostetler, SVP Franchise Sales & Development and Edward Mirza, SVP Franchise Operations.

Michelle Safley-Redmon, Franchise Operations Director, Region 9 – Most Improved Region

Jane Plumbo, Franchise Regional Vice President Operations, Region 7 – Most Valuable Player, Franchise Operations

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TEAM GROW

Keith Worsham, Franchise Development Director – Team Grow Quota Achiever 2014

Scott Pokorny, Franchise Development Director - Team Grow Quota Achiever 2014

Jason Yarbough, Franchise Development Director – Team Grow Quota Achiever 2014

Kyle Krumwiede, Franchise Development Director – Rookie of the Year

Jeff Stephenson, Franchise Development Director - Team Grow Quota Achiever 2014

Timothy Means, Franchise Development Director - Team Grow Quota Achiever 2014

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TEAM GROW

The Team Grow Team

Michelle Safley-Redmon, Niel Scott, Leslie Fisher and Fouad Malouf

Leslie Fisher, Glenn Galbraith, Greg Miles, Phil Hugh and Cheryl Billo

Staci Olney, Julie Duwalt, Heidi Cordes and Cheryl Billo

Julie DaWalt, Director, Franchise Revenue – Teamwork Unsung Hero

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COMING ATTRACTIONS

2015 Red Roof Brand Conference The Diplomat Resort & Spa

Hollywood, Florida September 20 - 23, 2015

SAVE THE DATE!

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COMING ATTRACTIONS

Looking for a partner to help you drive revenue, increase property performance and optimize profit potential? Look no further than Red Roof’s REDvenue Optimizer Program.

For an affordable monthly fee, our experienced in-house Revenue Management team will analyze the entire data specific to your inn, and recommend strategic ways to efficiently and effectively grow your revenues.

REDvenue Optimizer Consulting Service:

Provides professional revenue management consulting services:

Monitors, tracks and initiates strategies that will help drive revenue• Increases your staff’s efficiency by providing:

- Targeted analytical information and recommendations for driving sound revenue management decisions

- Tactical execution of rates and inventory controls within PMS- Implementation of all brand-wide promotions

• Offers the following services within your affordable monthly fee:- Revenue management training within the property management system- Monitoring and distributing weekly and monthly Smith Travel Research Star

Reports- Business Intelligence revenue management tools to help track results, trends and

drive profitability- Coordination and implementation of brand-wide promotions- Ongoing training of new tools and resources related to revenue management- Biweekly review of reports to help identify and plan revenue

management strategies- Assistance with pricing, market positioning and room inventory

management at the property level- Overseeing the processes associated with demand, revenue opportunity

analysis and inventory management- Dynamic reporting packages that include current trends and future forecasts- Assistance in monitoring on-line travel review sites and online curb appeal- Recommendation and implementation of length of stay, extended stay, and

allocation restrictions

Costs:

REDvenue Optimizer program starts at just $600 a month. This costeffective monthly fee can provide potential revenue increases and business growth. Plus, you’ll always have a partner to help you make important decisions.

Ready to experience increased revenue?Become a part of the proven successful REDvenue Optimizer.

Contact: Julie DaWalt jdawalt@redroof.com 608-239-4224

Smoking Hot Results! RevPAR Index to comp 96.8% (Non REDvenue Inns 87.63%)

RevPAR Index to tract 107.8% (Non REDvenue Inns 102.7%) *12 months rolling through October 2014*

REDvenue Optimizer Program.Get it while it’s hot!

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COMING ATTRACTIONS

The Road to Success, Road Show 2015 will give you the direction that will help you navigate to more revenue!You have two choices:

1. Do nothing and expect the customer to come to you.

2. Be proactive and attend The Road to Success,

Road Show 2015! Julie DaWalt and Greg Miles are

bringing back, by popular demand, Road Show 2015!

THE ROAD TO SUCCESS!

Over $350 value!

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COMING ATTRACTIONS

Date and Location: Raleigh, NC – Tuesday, March 10, 2015

Dallas, TX – Tuesday, April 21, 2015 Philadelphia, PA – Tuesday, May 19, 2015

Contact Julie DaWalt at jdawalt@redroof.com or Greg Miles at gmiles@redroof.com if interested in attending!

What’s included in your trip?• Preparing your vehicle – Industry overview and predictions• Map out your route – Knowing your market and

competitive set• Start your journey – Using available reports, national sales/

sales solutions• Using technology as your GPS for success – Setting strategies

in RediStay®, digital marketing• What to see and do along the way – Preparing for and

conducting sales calls, using PACE effectively• Avoiding detours, speed bumps and road blocks – Refueling

your tank, REDvenue Optimizer/RediSales

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GROWING REVENUE

Positioning for Success with State and Local Governmentsby Mark Feggler, National Account Executive

One of the ways the Red Roof National Sales Team works to benefit our Franchisees is by maintaining a strong presence in the Government Market.

Federal Government agencies and Military markets offer a variety of programs – and involve a variety of registration processes – that could position your Inn to receive business should the opportunity arise. We encourage participation in such programs as FEMA Emergency Lodging Assistance (ELA), Fedrooms and the System for Award Management (SAM) managed by the Federal Government.

As we progress through 2015, we’ll make a special effort to turn our attention to potentially untapped state and local government markets.

Each state approaches travel differently. Some, like the State of Texas, have sophisticated travel programs that place specific requirements on participating hotels. Due to its size, Texas offers greater opportunities to capture in-state travel by state employees. Smaller states like Alabama have simple travel policies and largely follow Federal Government per diems on lodging and meals. Likewise, municipal governments vary widely on their travel policies and programs depending on the size and need of local government operations.

In January we started gathering information on the different travel policies, online booking tools and third party travel agencies employed by all 50 states. Our primary goals are to learn the best way for Red Roof to position our brand and how we can best advise you to position your Inn to increase awareness among state and local government decision makers.

For example, all state agencies in California spending more than $100,000 annually are assigned Small Business Advocates who work to ensure 25% of all spending is done with certified Small Businesses. Red Roof franchise locations in California can significantly improve their visibility among state agencies by achieving Small Business certification.

Look for tips such as this one throughout the year as we learn more about the details of state and local government travel. If you have information to share that might benefit other Red Roofs, please email it to mfeggeler@redroof.com.

Government Market sales efforts are coordinated by Senior National Account Executive Ardy Edgerton (aedgerton@redroof.com) and National Account Executive Mark Feggeler (mfeggeler@redroof.com). ■

Red Roof Media Hotline: 1.888.339.8442 | Reservation Center: 1.937.327.6500 | Email: fieldtrainers@redroof.com

© 2015 Red Roof Inns