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| ATLANTA, July 15, 1998 - Canadian-based Vinings Franchise
Systems and Atlanta-based U.S. Franchise Systems (Nasdaq: USFS), franchisor
of Microtel Inn Suites -- the fastest growing chain of all newly-constructed,
interior corridor, budget/economy hotels in the U.S. -- have entered into
a master franchise agreement to bring the Microtel concept to Canada.
Planning rapid development first in the Toronto metropolitan area, then to Ontario, Quebec and western Canada, Microtel properties are also in the works for the country's major airports. According to Mike Leven, president and chief executive officer of USFS,
Vinings Franchise Said Peter Murphy, CEO of Vinings Franchise Systems, "We chose Microtel because it is superior to everything else in its category, with rates that are 20 to 30 percent less than the competition. With strong corporate leadership, Microtel has proven itself as the industry leader for budget hotels of the future." He added, "As a Canadian company, we are excited about the many job opportunities that will be created, both on the construction and operations sides." All Microtel properties are newly constructed and offer guests chiropractic mattresses, remote cable TV, CNN and ESPN, and complimentary morning coffee. Murphy, who lived in Toronto until recently, was formerly CEO of a Canadian resort development firm; he has 20 years of international sales management, construction and development experience. President of Vinings Franchise Systems is Klaus J. Henck, with more than 35 years experience in the hotel industry. Best known for bringing Renaissance Hotels to the U.S., Henck formed Astor Management in 1983 and has been providing management and consulting services to properties around the globe. Other International Alliances Microtel first went international when USFS entered into a master franchise agreement to bring its concept to Argentina and Uruguay. Further fueling international growth, USFS signed a master franchise agreement to build properties throughout Central America in Honduras, Costa Rica, El Salvador, Nicaragua and Panama; the first will break ground in San Pedro Sula, Honduras this month. USFS has also signed agreements for Microtels in the Philippines, Brazil, the Dominican Republic, Haiti, and the Turks Caicos Islands, and is working with companies in Mexico, Europe, India and South Africa on similar kinds of agreements. As of July 14, there were 152 Microtels open or under construction, and an additional 352 under development. About the Company Atlanta-based U.S. Franchise Systems was formed in August 1995 by Michael
A. Leven, a 38-year veteran of the lodging industry, and Neal K. Aronson,
former principal of the New York investment firm of Odyssey Partners, L.P.
The company purchased the franchise system rights to the Microtel brand
1995. The company acquired the franchise rights to Hawthorn Suites in 1996,
and full
Certain of the above statements are forward looking statements that involve risks and uncertainties. Actual results could differ materially as a result of a variety of factors, including competitive developments, and risk factors listed from time to time in the Company's SEC reports. |
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Also See:
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Microtel Inn Suites Survey Offers Insight Into What Travelers with Disabilities Want Most from Their Hotel / Oct 1997 |