Vantage Hospitality Group has entered into an agreement to acquire America’s Best Franchising hotel brands: America’s Best Inns & Suites, Country Hearth Inns & Suites, Jameson Inn, Jameson Suites, Signature Inn and 3 Palms Hotels & Resorts, as well as ABF’s license for the Budgetel Inns & Suites brand.
ABF brands represent more than 225 hotels.
The acquisition reportedly makes Vantage the eighth largest hotel chain worldwide, which includes more than 1,000 properties under the Americas Best Value Inn, Canadas Best Value Inn, Value Inn Worldwide, Value Hotel Worldwide, Lexington Inn, Lexington Hotel and Lexington Legacy banners.
“By combining brands under the Vantage umbrella, we will strengthen our synergies and continue to enhance our competitive advantage with a full line of brand segments that address the needs of both hotel owners and consumers. This will offer our members greater distribution, more marketing dollars and enhanced exposure, and additional revenue-generating programs and resources,” said Vantage founder, president & CEO Roger Bloss.
On selling to Vantage, America’s Best Franchising president & CEO Sterling Stoudenmire said, "After discussions, it was clear to find a strategic partner with scale, necessary to compete and win. And had to be consistent with our owner-first philosophy.
"Earlier this year, the ABFI Board of Directors brought me in to evaluate the capacity to grow ABF and bring more value to our franchisees and our shareholders,” he continued. “The ABFI team eagerly embarked on an immediate transformation of the company, its culture, and our products. We have already made substantial progress, but the team is aiming very high…to transform our existing brands into market leaders and create tremendous value for property owners. After numerous discussions with our board, our existing franchisees and industry experts, it became very clear that the best way to realize this vision was to find a strategic partner with the scale, resources and expertise necessary to compete—and win—in this demanding market…and to do so in a manner consistent with our ‘owners first’ philosophy. No doubt Vantage will do this."
Vantage's bottom-up, parliamentary process is unique among major hotel chains, writes Blue Maumau. Each hotel brand follows the national directions of their franchise owners, who collectively vote on all major strategic actions taken by their individual brand.
The transaction was arranged by Brown Nester Hospitality Services (an affiliate of Vantage) and its resident, Chuck Nester. The terms of the transaction, which is expected to formally close later this year, were not disclosed.
"It’s exciting to experience a continued evolution of our brands and philosophies," added Bloss. "All of our properties will benefit as we reach the right consumer, with the right brand, at the right price, at the right time, which means more ROI for our hotel owners."