Microtel Gives Economy Lodging Segment A Makeover From The Ground Up

Chain to Have 500 Newly Constructed Locations by 2010

ATLANTA, GA – Backed by a simple pledge to provide its customers and franchisees the highest quality at the lowest price, Microtel Inns and Suites is the nation's fastest growing new construction hotel brand in the economy segment, according to Pat Ford, president of Lodging Econometrics, the industry authority for hotel real estate.

Ranked No. 1 in the economy hotel category by J. D. Power and Associates North America Hotel Guest Satisfaction Study for 2002, 2003 and 2004, Microtel implemented standards that require all locations to be built new using a consistent structure and design, a strong selling point for consumers and investors alike. In fact, the consistency among Microtel's 275-plus properties nationwide is a proven theme, contributing to the success and continued growth of the brand. Microtel forecasts signing another 100 franchises in 2005 for a total of 500 open locations projected by 2010.

"At Microtel, our customers feel that they get the same great hotel experience anywhere they go and the same rings true for our franchisees," said Mike Leven, Chairman and CEO of Atlanta-based U.S. Franchise Systems, franchisor for Microtel Inns and Suites. "Microtel's proven franchise model is designed to succeed in virtually any market. That, combined with the simple, affordable nature of the concept, makes it an ideal opportunity for entrepreneurs to become a part of the lucrative lodging industry."

Raising the Bar
Converting hotels previously franchised by other hotel brands is common practice within the hotel industry. However, in its unprecedented effort to create system-wide quality and brand consistency, Microtel is the only hotel chain within its segment to require ground-up construction for all locations. With land requirements of just 1 – 1.5 acres, and lower upfront capital expenditures, the cost to invest in a Microtel is significantly less than any hotel concept on the market, Leven said.

The newness of all Microtel properties creates excellent curb appeal, while interior corridors, electronic door locks, and extensive interior and exterior lighting provide a safe and secure environment for customers. All hotels have queen-sized beds that meet American Chiropractic Association standards, and offer free local and long-distance calls as well as free high-speed wireless Internet access. All suites feature a wet bar, microwave, coffee maker, refrigerator, and full sofa sleeper. Additionally, all Microtel locations meet or exceed the Americans With Disabilities Association requirements.

"I have long believed that there should be a hotel product in the marketplace that not only appealed to the consumer and provided quality, safety and value, but also took into consideration the needs of the hotel owner by offering; low cost development, low cost operations, and a potential for high rate of return on investment. At Microtel, our philosophy is to offer a high quality product at a lower price in all markets, and a professional operation that delivers a consistent value for our guests and franchisees," said Leven.

Designed to be Affordable
The Microtel concept was created in 1989 by a group of hotel consultants, whose goal was to develop a hotel brand that costs less to build and operate without sacrificing quality. The first step was to create a building with less square footage, promoting optimal use of space, and easy to construct and maintain. An example in Microtel guest rooms is that the heating and cooling system is built into a window seat, allowing customers to take advantage of an additional two and one-half feet of space that also includes a dresser and drawers that most hotel chains leave unused. Non-revenue generating aspects of traditional hotel concepts, such as two story oversized lobbies, and expensive exteriors and porte-cochere's were also eliminated, leaving a concept that provided customers the best value and lowest price for quality accommodations.

After building 22 hotels, Microtel founders decided to sell the concept on October 2, 1995 to Mike Leven, former President and COO of Holiday Inn Worldwide and Days Inn of America. Leven formed U.S. Franchise Systems, Inc. with his team of experts, and with their proven track record to begin franchising Microtel Inns and Suites. In just 10 years the chain has opened more than 250 additional locations, a feat Leven attributes to the company's business infrastructure and the innovative nature of the concept.

"U.S.F.S. was founded on the principles that franchisees are our partners and we understand that our franchisees are in business for themselves, but not by themselves," Leven said.

The franchise fee for Microtel is $35,000. For this fee, Microtel franchise owners receive site selection assistance and complete working prototype drawings, including mechanical and electrical detail. They receive extensive training on all business systems, plus field support from a corporate representative who works on-site during pre-opening and opening of the hotel. Ongoing support includes field training representatives and sales support as well as access to regional marketing co-ops in the 43 states where there are Microtel locations along with advanced training seminars and a dedicated toll-free franchisee support hotline that guarantees a 24-hour response time from a Microtel corporate representative.

About Microtel Inn and Suites
Microtel Inns and Suites, owned by U.S. Franchise Systems, Inc., the nation's fastest growing chain of all newly-constructed, economy hotels, is an influential leader in the hospitality industry with more than 275 open hotels in 43 states, and 5 other countries for a total of 500 franchised locations set to open by 2010. In addition to Microtel Inns and Suites, U.S.F.S. is also the franchisor of the America's Best Inns and Suites, Hawthorn Suites and AmeriSuites brands. U.S. Franchise Systems, Inc. is the first hotel company to receive the Fair Franchising Seal, which is awarded by the American Association of Franchisees and Dealers (AAFD) for exemplary record of franchise practices that embody fairness, voice, service, equity, quality, and satisfaction to the organization "bringing fairness to franchising".

Source: Microtel Inn and Suites