Vantage Hospitality expands Lexington brand, franchising

LAS VEGAS – Vantage Hospitality remains firmly committed to its membership philosophy, although it will comply with certain state franchising regulations now.

This week at the membership company’s annual conference at the Golden Nugget in Las Vegas, founder, president and CEO Roger Bloss and COO/CFO Bernie Moyle informed members that “to avoid future hassles,” the company will register as a franchisor in states with strict franchising laws that require franchise disclosure documentation for new franchises.

But both were quick to point out that the move in no way turns Vantage—known for its “freestyle” brand affiliation model—into a franchise company.

“This doesn’t change anything,” Bloss said. “Within our existing membership it's irrelevant. As always, our handshake is our bond, and we will always remain a membership group.”

So far, Bloss and Moyle said South Dakota is the only state requiring franchise disclosure documentation from the company, which includes the Americas Best Value Inn, Canadas Best Value Inn, Chinas Best Value Inn, Value Inn Worldwide and Lexington Collection brands.

Vantage also has complied with franchise requirements in Canada, and earlier this year partnered with Kash Joshi to “take command” of properties in Canada, Moyle said. He said the company wants “warp-speed growth” in Canada in the coming year.

Despite the procedural changes involved with franchise recognition, Moyle said, “Our fees will still be voted on by our membership. We will continue to offer you the best value in the lodging industry,” he said.

Bloss pointed out some benefits to the new arrangement, including more recognition and security from banks, and more security for members on their agreements. Vantage members are accustomed to one-year agreements, and now they will be able to sign ten-year agreements “with windows” every year. Bloss explained that structure would continue to give the member the same short-term renewable contract, but with less paperwork over a longer period.

The company will continue to operate on its same flat, monthly membership fee structure, and no-liquidated-damages stance.

Currently Vantage has 973 properties, of which 21 are Lexington properties. Americas Best Value Inn added 130 properties in 2010. Americas Best Value Inn started in 1999, and the company launched the Lexington Collection in 2007.

Lexington expansion
At the conference the company also launched its new Lexington Inn brand, as part of the Lexington Collection of higher-end hotels and resorts. The select-service Lexington Inn brand is for three-diamond and above properties.

The two properties Vantage added to the Lexington Collection this year, in Minnesota and Arkansas, are Lexington Inns.

“It was based on demand,” Bloss said. “We just weren’t in that space.”

He said ABVI members would have the option to change three-diamond and above properties into Lexington Inn properties, if the market suggests it, and by complying with Lexington’s standards.

“The name has a certain cache to it,” said Bill Hanley, Lexington Collection group president.

New initiatives
Distribution and bookings are a top priority for Vantage in 2011, and the company will launch a redesigned Lexington website next year, and new mobile websites.

Additional growth goals include:
• Adding 16-21 Lexington properties
• Additional sales and marketing resources available to members
• Growth of the Vantage Academy training program
• Raising guest perception scores, including JD Power and Associates and Market Metrix scores
• Strengthening relationships with online travel agencies, groups and travel agents
• Expanding instant rewards offered through Vantage’s Value Club loyalty program

“We have something very special at Vantage—a family atmosphere with brands that put you in command.” Bloss said. “Our commitment will always be to provide you, our family of members, with the best value. We’re confident our growth will continue.”