Press Release
October 26, 2000
ATLANTA, GA -- Microtel Inns & Suites, the all-new construction brand, continues to outperform the budget segment
of the hotel market and is the top brand in its segment for the number of projects and rooms in the active pipeline,
according to Smith Travel Research and Lodging Econometrics, respectively.
As the Microtel concept continues to focus on delivering the basics so the value-conscious guest doesn’t have to
pay for the things he or she doesn’t use, it appeals to all types of travelers and is one of the fastest growing
all-new construction brands in the industry.
The brand boasts a 98.6 percent intent to return rating in satisfaction surveys and has continued to exceed its
competition in occupancy, average daily rate (ADR), and RevPar. For example, in second quarter 2000, ADR for properties
open 24 months or more was about 12 percent higher than the budget segment; RevPar was nearly 15 percent higher,
and occupancy 2 percent higher.
“Similar to the effect that the new Hampton Inns had on the older mid-priced hotels of years ago, so too is Microtel
successfully attacking the budget segment, which predominantly consists of older properties,” said Steve Romaniello,
president and COO of USFS. “Microtel, by virtue of its unique design, is able to produce high quality, safety
and comfort to guests at a modest premium over older budget hotels.”
Meanwhile, significant growth in reservations performance for the chain continues, with net room nights up 52 percent
over 1999. As channels of distribution improve, there has been a 24 percent increase in the number of calls handled
through the central reservations office, and a 301 percent increase in reservations made via the Internet.
Microtel had 22 open hotels when it was acquired by USFS in October 1995, and reached its 200th property opening
[in Myrtle Beach, S.C. in August 2000] in less than five years. With more than 250 properties open or under construction
in 49 states, the brand’s first property in New England recently opened in Bethel, Conn. There are also international
properties open in Buenos Aires and Mendoza, Argentina and San Pedro Sula, Honduras, and another under construction
in Calapan City in the Philippines.
According to Lodging Econometrics’ June 30, 2000 quarterly Development Pipeline Summary, Microtel had 85 properties
and 5,783 rooms in the active pipeline, and 30 percent of the economy segment’s total active pipeline currently
consists of Microtel properties.
Commented Mike Leven, chairman and CEO of U.S. Franchise Systems, Inc. (Nasdaq: USFS), parent company of the franchisor
of the brand, “We’re proud that Microtel has been acknow-ledged the leader in its segment and that hotels continue
to ramp up well. This speaks to its high level of quality, consistency and guest satisfaction, and also to its
appropriate positioning as a new brand against older budget motels.”
All Microtels offer single, double and suite accommodations, remote cable TV with ESPN, CNN and one free movie
channel, and chiropractic-approved mattresses. A chain-wide standard of complimentary continental breakfast will
be implemented on Jan.1, 2001. For reservations or a Microtel directory, call 1-888-771-7171 toll-free or visit
.
Lodging Econometrics, the research division of National Hotel Realty, was formed in 1998 and monitors all aspects
of hotel real estate, sales and development nationwide. It maintains extensive Development Pipeline Summary records
for projects that are newly-opened, under construction, in permitting and early planning. National Hotel Realty
offers brokerage, management and consulting services, and is the highest volume full service brokerage in the Northeast.
Certain of the above statements are forward looking statements that involve risks and uncertainties.
-----------------------------------
Contact:
Barbara Wiener Vice President, Corporate Communications U.S. Franchise Systems, Inc. 404-235-7400 barbara.wiener@usfsi.com www.microtelinn.com