Red Roof Inn is expected to open its first international destination in Brazil. Partnering with Brazil-based Nobile Hoteis, Red Roof Franchising, LLC will be working with Nobile 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’s performance and track record were the precise impetus to attract a prestigious company with the caliber of Nobile Hoteis. The company has the management skills, standards, distribution systems and credibility to propel the Red Roof brand to the same standard of success it enjoys in the U.S.,” says Andrew Alexander, President, Red Roof.
Nobile Hoteis with extensive experience in the Brazilian hotel industry, has in just seven years become the 4th largest hotel management company in Brazil. The Red Roof new builds and conversions are a part of a fresh branding strategy, executed with the support of BSH International. “Nobile is a young company growing at an impressive rate with properties in budget to up-scale segments. The company is now positioned to expand even faster. It’s extended stay operations are being driven by a newly formed company, Serendipity Hospitality, and the budget/economy businesses will be developed under the Red Roof brand,” says Jose Ernesto Marino Neto, president, BSH.
“Red Roof was the ideal partner to develop budget and economy segments in Brazil. It is a company with a great reputation, image and success and we know our exclusive alliance with this quality brand will be integral to our growth and their's,” says Roberto Bertino, Founder, President & CEO, Nobile Hoteis.
The timeframe for Red Roof’s infiltration of the Brazilian market couldn’t be more fortuitous as Brazil sees a significant upsurge in tourism from its recent hosting of the 2014 World Cup and its upcoming role as host city for the 2016 Summer Olympics. In addition, the country has seen a growth spurt in its economy with over 40 million Brazilians over the past decade moving into the middle class. They are seeking value and quality and are price sensitive, looking for opportunities in the upscale economy sector which will be the segment driving future growth.
“We know our premium experience at a value price is a combination that will attract new customers in new markets, especially those outside the United States, and we are confident that working with Nobile Hoteis will build the Red Roof brand across one of the most exciting destinations in the world - Brazil,” says Phil Hugh, Chief Development Officer, Red Roof. “Nobile Hoteis’ enthusiasm for the Red Roof brand and their desire to help propel the brand internationally speaks volumes about how influential and recognizable Red Roof hotels and the Red Roof experience has become.”
“Red Roof is a textbook fit. A U.S. brand with a very bright future, good management, quality and an impeccable image. Our strong skills are in the management and distribution side. Red Roof will complement those skills,” notes Bertino. “The brand has all the precise attributes for expansion into Brazil, a market with a consumer-base that will embrace their upscale economy offering.”
Red Roof in partnership with Nobile Hoteis expects to open between 35-40 Red Roof properties between 2015 and 2025. The exclusive master franchise agreement goes up to 2040.
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