With tourism contributing 9% to the country’s GDP and welcoming its 18 millionth international visitor as of August 2015, Thailand is one of the most coveted destinations in the world and considered a universal market with no high or low seasons. So when deciding to meet continuing demand for its brand worldwide, U.S. economy lodging leader, Red Roof Inn, knew a partnership with Thailand-based Paragon Hotels Limited, part of Paragon Partners, was the right decision. With over 148 million domestic travel-related trips forecasted for Thailand travelers in 2015, Paragon Hotels expects Red Roof to be the upscale economy choice for those travelers in the future who will be looking for cost-effective lodging solutions. Paragon Hotels will break ground for the first property in 2016 and plans to open a series of new-build hotels across Thailand, between 2017-2020, in all major tourist locations.
“While red is considered lucky in some Asian cultures, it was more than luck that brought this partnership with Paragon Hotels together, says Andrew Alexander, President, Red Roof. “Paragon Hotels is a company with deeply embedded relationships in Thailand and a smart and sophisticated research and development team that vetted several hotel brands before choosing Red Roof. They knew that the timing was right for Red Roof to fill a gap in the Thai marketplace with hotels at our price point that provide great amenities in safe, clean, quiet rooms. This is a win-win for both companies and the foreign and domestic tourists who travel throughout Thailand.”
Hoping to create brand consistency and loyalty, Paragon Hotels says their strategy for Red Roof will be to roll out a series of new-build hotels, deploying Red Roofs’ NexGen concept to ensure that exterior and interior features are immediately recognizable and distinguishable from other hotels in the country. This first set of hotels will have standard Red Roof signage, roofing and room topography. Paragon Hotels says upholding Red Roof’s high upscale economy hotel standards will be the key to winning guests’ hearts and minds in Thailand as it already has in the U.S.
“Red Roof is quality at a comfortable price and that’s exactly what the Thai travel market needed,” says Rajinder S. Sidhu, Paragon Hotels. “We see Red Roof as a global brand that’s expanding rapidly, not just the best U.S. brand, and we knew this was the right time to bring Red Roof’s value and quality to the market that’s not being serviced correctly. Rolling out multiple international brand-specific hotels at the same time has never been done before in South East Asia but with Red Roof that’s the right choice and we know we will see a robust return on investment once the brand is established.”
Targeting both leisure and business international and domestic travelers, Paragon Hotels hopes to eventually build Red Roofs hotels across the Asian continent in Myanmar, Laos, Cambodia, Bangladesh and other countries, expanding Red Roof’s presence. Red Roof, Paragon Hotels notes, is an impeccable, well-regarded brand that readers of USA TODAY voted the winner in their Readers’ Choice poll for Best Budget Hotel Brand and that also recently earned the top spot in the 2014 ReviewMetrix CSI Benchmark. For the fifth consecutive year, Red Roof earned the highest customer satisfaction score among its economy lodging competitors according to the ReviewMetrix™ Consumer Satisfaction Index. Guests ranked Red Roof’s rooms, service, cleanliness and its overall value, higher than its economy brand competitors in online reviews.
“With the first series of locations strategically selected by Paragon Hotels expected to roll out throughout Thailand, Red Roof will have immediate brand density and exposure across the country,” notes Phil Hugh, Chief Development Officer, Red Roof. “This is one of the most aggressive implementations of Red Roofs we’ve ever attempted and we partnered with Paragon Hotels because we were more than confident that they could undertake this venture.”
Red Roof has opened its first international location in Brazil in partnership with the Brazil-based Nobile Hoteis. Red Roof Franchising, LLC is working with Nobile to develop 35-40 properties – new builds and conversions – across the country over the next twenty-five years. Red Roof has also signed a twenty-year deal with developer Glenn Squires to build and brand 40 hotels across Canada, with the support of Pacrim Hospitality Services Inc. The first four hotels will be up and running by 2016.
