Skip to content

Search

Latest Stories

All with a smile on his face, Red Roof CDO joins Leadership Series

Matt Hostetler shares his joy in this Leadership Series installment

All with a smile on his face, Red Roof CDO joins Leadership Series

Matthew Hostetler, chief development officer at Red Roof, has been operating outside his wheelhouse for about 18 years now. In this installment of Asian Hospitality’s Leadership Series, he explains how he does it all with a smile on his face.


Hostetler was at the Hunter Hotel Conference in March in Atlanta when he took time to talk about his history in the hotel business along with the current status of Red Roof. Topics also included AAHOA’s 12 Points of Fair Franchising, the company’s preparations for possible economic headwinds this year and the success of Red Roof’s newest brand.

Same job, different industry

In 2002, Hostetler was recruited by Cendant Hotel Group, which is now Wyndham Hotel Group, to conduct franchise sales under Phil Hugh, who was at that time senior vice president for franchise sales. That was when he stepped out of his comfort zone.

“I said yes to an opportunity that was way, in sales was not outside of my wheelhouse, but outside of my industry,” Hostetler said. “I was in transportation for 15 years before that. So yeah, that definitely outside the wheelhouse.”

In 2014, he joined Red Roof as the senior vice president of development, again working under Hugh. In 2020, when Hugh left the company, Hostetler became chief development officer. Now he’s settled into the job.

“I love the hotel business. I love hospitality. I love the people in this business, how they are so entrepreneurial,” Hostetler said. But there's also so people oriented as well. That's what attracts talent so much right? Hospitality. Everyone has a smile on their face most of the time.”

AH MAY LS Matt Hofstetler Matt Brand Conference Hostetler, shown here at the Red Roof brand conference in November, said the company supports AAHOA’s 12 Points of Fair Franchising and does not take rebates from venders.

Sometimes the smiles fade a little, and there are disagreements among members of the industry. Red Roof has picked a side in one of those conflicts, the schism between AAHOA and several large hotel companies over fair franchising.

No vender rebates, period

Since the beginning of the year, Marriott International and Choice Hotels International have withheld their support for AAHOA over the association’s support for hotel franchise reform. Red Roof is one of three companies that have publicly supported the 12 Points of Fair Franchising, and Hostetler was one of several executives with the company that met with AAHOA leaders to express that support.

In his Leadership Series interview, Hostetler explains what he thinks is the most important of the 12 points.

“Anybody has a right to figure out what they think is fair. What we are proud of is that at Red Roof, we don't take rebates [from venders]. We don't take any, I don't want to use the bad word, but kickbacks, or anything like that,” Hostetler said. “Our goal at Red Roof is to procure the absolute best possible pricing for any of the products that we have in our systems and standards manual.”

Red Roof helps its franchisees find the vender they prefer and which meets certain criteria, Hostetler said. It's about procurement and finding the best opportunity, he said.

“We work daily with our franchisee base. I've never had anybody walk up to me in an event like this and say, ‘You guys are unfair,” Hostetler said. “So I feel good about going to bed at night.”

Streamlined and ready

Hostetler also gives his assessment of Red Roof’s readiness for the possibility of an economic downturn, or even a recession, later this year. Inflation, the labor shortage and the recent failure of some small banks are factors driving those concerns, but he said they are ready.

“We're set up in a way to be streamlined as an organization. But, we also wanted to make sure as we streamlined that our franchisee base is going to be taken care of, positioning ourselves to make sure that our franchisees are in the know,” Hostetler said. “I know there hasn't really been any talk internally about the banks. I think that's something we're all watching. But I think what we all need to do is just stay calm, stay calm, which is really the key part here. We don't need major investor groups going and pulling their money out.”

At least some of the concern comes from the fact that the industry is still recovering from the pandemic.

“Coming out of the pandemic, everyone still talks about it,” Hostetler said. “But you know, we are just trying to put that behind us and continue to drive the business for our franchisees and that's what we're all about.”

Strong performances

Another topic Hostetler discussed was the success so far with Red Roof’s new dual branded prototype that combines a traditional Red Roof side and the company’s extended-stay HomeTowne Studios. Nine are open and operating and doing very well, he said, and there’s been a tremendous amount of interest by developers.

AH APRIL BRAND ROUNDUP Hunter conference Red Roof Dual Brand Red Roof’s new dual branded prototype that combines a traditional Red Roof side and the company’s extended-stay HomeTowne Studios has seen a lot of interest by developers, Hostetler said.

“No one likes a half empty hotel. We want to be more than half full,” Hostetler said. “We want to get close to 85 percent occupancy. So if they can do it from a dual brand perspective, they're really taken advantage of more options, and the good part about it is we've been able to test it with conversions and it's working.”

That’s why they need shades

As for the future, Hostetler said, “the sky's the limit.”

“We're going in a positive direction, we have a happy franchisee base, a growing franchisee base, a culture at our company that is second to none and people that want to be part of it,” Hostetler said. “We're very excited about that, we want to continue to grow.”

More for you

Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less
Newly renovated Marriott Saddle Brook hotel in New Jersey, now managed by Stonebridge Cos.

Stonebridge to manage Marriott in Saddle Brook, NJ

Summary:

  • Stonebridge Cos. has added the Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
  • The renovated property is owned by Victory Worldwide LLC, led by CEO Anil Monga.
  • Located 20 miles from New York City, it is near the Meadowlands Sports Complex, Garden State Plaza and Hackensack University Medical Center.

STONEBRIDGE COS. RECENTLY added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service managed portfolio. The property is owned by Victory Worldwide LLC, led by CEO Anil Monga.

Keep ReadingShow less
International bookings drop at US mountain hotels; occupancy dips despite rate hikes, DestiMetrics reports

Report: Travel decline weighs on western resorts

Summary:

  • International tourism to U.S. western mountain destinations fell in May, lowering occupancy 0.7 percent, according to DestiMetrics.
  • Summer booking hesitancy persisted as bookings from Canada, Europe and Mexico declined.
  • DestiMetrics tracks data from about 28,000 lodging units across 17 mountain destinations in seven western states.

MOUNTAIN DESTINATIONS IN the western U.S. saw a drop in international tourism in May amid economic uncertainty, affecting resort occupancy, according to DestiMetrics. ADR rose 2 percent, while occupancy fell 0.7 percent year over year.

Keep ReadingShow less
Salamander D.C. Joins Preferred Hotels’ Legend Collection
Photo credit: Salamander Collection

Salamander D.C. joins Preferred’s Legend Collection

Summary:

  • The 373-key Salamander Washington, D.C. joined Preferred Hotels & Resorts’ Legend Collection after a full renovation.
  • The hotel is part of Salamander Hotels & Resorts, led by founder and CEO Sheila Johnson.
  • Preferred Hotels & Resorts is the largest independent hotel brand, with more than 600 properties in 80 countries.

SALAMANDER WASHINGTON, D.C., located on the city’s southwest waterfront, joined Preferred Hotels & Resorts’ Legend Collection. The 373-room hotel recently completed a property-wide renovation that includes updated communal spaces, redesigned guest suites, a two-level Salamander Spa and Dōgon by Kwame Onwuachi.

Keep ReadingShow less