Why Hotel Investors Keep Choosing Conversions

Glenn: [00:00:19] Yeah, it really has. Deals are getting done. Things are happening. And that’s what I like about this conference is about putting people together with money. And when people are together with money, they might do a deal. They’re good folks over at Red roof. So I’m curious to see how things are going for you in general. And my hunch is that new construction in general is down. So you’re probably very happy with way conversions are going right now.

Lina: [00:00:41] Yes. Now conversions are really going well. People are coming. Owners are coming to us. Our brand has really been shining. We are, I would say this year 80% of our hotels are conversions.

Glenn: [00:00:54] Wow. That’s a that’s pretty impressive. And it really it’s really interesting. We were talking about this before before we got on air, but for those younger people out there who don’t realize in the late 1990s, there’s really when that select service hotel boom initially happened. Sure, there were brands out there, but it really caught the zeitgeist in the investment community. And that’s where the big proliferation had. Now a lot of contracts are coming to an end, and people are figuring out what are they going to do with those properties. So it’s a big conversion game out there, particularly since the cost of conversion is usually better than the cost of new build hotels. So now you’re like positioned to grab this. So what are you thinking? What is it about red roof and maybe what your president, Zachary, has been doing over the last two years is making things more attractive to the investment community to get behind a red roof project.

Lina: [00:01:43] Oh, yeah. The value proposition that the red roof brand brings to our owners that it’s being recognized. No rebates. All of our discounts go directly to owners. It’s great when they’re renovating. They’re finding vendor partnerships that we have collected, gathered that are doing really well that they know that it’s the values there. Overall, the you know, the brand is shining. I, I believe it shows because a lot, lots and lots and lots of interest is happening at in the world of red.

Glenn: [00:02:20] Volvo for sure. And as I’ve gotten to know you over the last few years, the genuine relationships, real results mantra, I’ve seen it, I’ve witnessed it. And I know that’s helping you get deals closed. But one of the cool things is you’re not just worrying about conversions, you’re helping people get into hotel ownership, which I love. Which reminds me, make a note. I gotta hook up with Lena because I gotta get myself into a hotel one of these days. Your ride initiative. I’d love to get an update about how that’s going.

Lina: [00:02:46] How it’s going really well, you know, since the inception of our ride initiative which happened two and a half years ago, we have brought on 40/40 new owners. Yes, 40 new owners. And I’ve got riders that are on different stages of their life on beginning of a learning ownership to capital raise to where to find capital, to becoming owners. Yeah, it’s been fantastic.

Glenn: [00:03:12] That’s that’s really great because one of the things that I am approaching as a, you know, I don’t know if I’ll really own a hotel, but I would like to own a hotel in some sense, but I don’t know what I don’t know. So it’s very mysterious. And what you’re out there doing is helping demystify some of those problems and make a the inconceivable, a real conceivable kind of a goal.

Lina: [00:03:32] Yes. Educating information over communication and making them feel because my background is also hotel ownership. So bringing that to the platform and showing them that that’s been the game changer for our ride initiative.

Glenn: [00:03:47] That’s great. All right. So let’s just wrap up where we are here at lending and stuff. What do you think about the the energy and what do you think about its ability to help you network and you know, continue to help people get into hotels?

Lina: [00:03:58] It’s been great. I mean, this is the sixth year of lending con. I’ve attended all of them except for the first one. And every year it gets better and better and the vibe is great. People are looking for money. Money is here. Come get it. London, Conn. I’m really appreciating it.

Glenn: [00:04:15] I love it. Oh, wait, I think there’s some cash in the corner over there. All right, we’re gonna go. You know, if you see a loose 20, you gotta grab it. Yes. Lena. So great to see you. Thank you. I really appreciate it. It’s so great to see you. Please, like, share, subscribe, all that kind of good stuff. Visit our good friends over at Red roof while you’re at it. RedRooffranchising.com. Thank you guys. See you later. Bye bye.