The reason is that the red light is a light source, therefore it's much brighter than any other parts of the scene. The pixels showing it are overblown - meaning there was more light coming than your camera sensor could capture. The light is not pure red, it emits enough green and blue light to blow these color channels of pixels too.

The hood is just reflecting light from it. It was hard to see with a naked eye, because the light beneath it was much stronger and the hood seemed perfectly black compared to it. In photo, however, the intensity of captured light is capped by your camera sensor's dynamic range, and you can see the subtle reflection next to overblown pixels.

Unfortunately, overexposed pixels cannot be restored in post processing. You could try simply painting the pixels with solid color or slight texture. As evidenced by blowing all color channels, the color wasn't pure red, so it might take a bit of playing with colors to get it looking right. Judging by the glow, the color seems to have more blue than green.

To capture a similar scene with correctly exposed light source, you should take a second frame (from tripod in same place) with exposure reduced to a level where the light source is exposed correctly, and then either create an HDR image (might not work too well due to steam changing between frames) or simply use layer masking in Photoshop/Gimp/etc to select which parts of image should come from which frame.