Vantage acquiring core ABF brands
 
Vantage acquiring core ABF brands
16 JULY 2014 12:05 PM
Vantage Hospitality Group is acquiring the six core brands of America’s Best Franchising.
Update 7:42 Eastern Standard Time, 28 July 2014: Vantage will not assume America’s Best Franchising’s sublicense to the Budgetel brand, which, instead, will terminate by mutual agreement.

REPORT FROM THE U.S.—Vantage Hospitality Group is acquiring the core brands of America’s Best Franchising.
 
Terms of the acquisition were not disclosed. The brands included are:
  • upper-midscale 3 Palms Hotels & Resorts (17 hotels open or under development in the U.S., Belize and India);
  • midscale America’s Best Inns & Suites (more than 100 properties comprising thousands of rooms in the U.S., Canada and Argentina);
  • economy Country Hearth Inn & Suites (65 hotels open in the U.S.);
  • economy brands Jameson Inn and Jameson Suites (25 hotels open in the U.S. and India); and
  • midscale Signature Inn (which was an inactive brand at the time of acquisition). 
Vantage also acquired from ABF the license for the Budgetel Inns & Suites, which includes 18 hotels open in the U.S. within its portfolio.
 
All told, ABF counts more than 225 hotels in its portfolio. All staff at the companies will remain in place following the deal. Vantage has more than 1,000 properties in its global portfolio. Vantage’s existing brands include: Americas Best Value Inn; Canadas Best Value Inn; Lexington; Chinas Best Value Inn; and Value Inn Worldwide.
 
Sterling Stoudenmire, president and CEO of ABF, said the deal will better allow its owners to compete against legacy hotel companies as well as third-party distribution companies.
 
“We want to transform our existing brands into market leaders,” Stoudenmire said during a webcast announcing the deal Tuesday. “That’s been our goal.”
 
Stoudenmire took over the top post at ABF earlier this year when former president and CEO Doug Collins stepped down to pursue other opportunities.
 
“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 said in a news release. “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,” Stoudenmire continued. 
 
Roger Bloss, Vantage’s founder, president and CEO, said the deal will result in higher revenue and higher return on investment for property owners.
 
“We’re very excited,” he said. “This is going to be a win-win for all of us.”
 

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