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The VISTA® Inn & Suites Brand Offers Franchise Program that
Empowers Hotel Owners to Operate with Maximum Freedom
with Minimum Dictates and Interference

Royalty fees Refunded at 100% if Reservations Performance Not Met

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SAN ANTONIO, TEXAS – MARCH 27, 2008 — Vista Hospitality Solutions (http://corporate.vistarez.com), an AdVantis Hospitality Alliance based in Murfreesboro, Tenn., announced today an unprecedented “Performance Guarantee” for customers of its two franchised brands: VISTA® Inns and VISTA® Inn & Suites. According to brand President Ramesh Gokal, “Vista will deliver a mutually agreed upon reservation performance or we will refund royalty fees paid in that year.” The announcement was made at the Asian American Hotel Owners Assn. (AAHOA) 2008 Annual Convention & Trade Show in San Antonio, Texas.

“We believe that with more than 300 hotel brands in America today, it is time that at least one of them should do the right thing,” Gokal said. “VISTA® is all about change and doing the right thing! Many brands offer some sort of guarantee or windows to exit their system, but most of those programs have onerous qualifiers the hotel owners have to meet in order to exercise their exit.  Our philosophy is decidedly different. We simply give our customers their money back if we do not perform up to their expectations. There are no hooks or catches to this program.”

When it comes to performance, Gokal said franchisors continuously push mandates on owners to maximize revenue streams. In contrast, when challenged about its own performance, the franchise company tends to fall back on age-old management-limitation and control excuses. At Vista, he said, customers are empowered to own and operate their hotels with maximum freedom and support, and minimum dictates and interference.

“We aren’t looking to share in the upside revenue potential of our owners,” said Kelly Harvel, Vista Executive Vice President. “Instead, we have designed what we call a ‘CUSTOMERized’ franchise program that promotes a relationship of mutual commitment, accountability, and flexibility that correlates into profitability and success for both the brand and the hotel owner.

“Instead of dictating to our customers about what they must do, we encourage their willing participation in well-defined parameters of accountability,” he said. “If they know our expectations, and they meet those expectations at a minimum plus do whatever the market and competition dictates, they can’t help but be successful.” 
 


Ramesh Gokal

Kelly Harvel

Harvel cited several differences between Vista and other franchise companies, including: 

  • No liquidated damages – Customers can leave the Vista system with or without cause with an established annual mutual window;
  • No inspections – Vista instead tracks quality through guest complaints; 
  • No standards changes – Vista will not mandate brand changes without the approval of its customer advisory board and willing participation of its customers; 
  • No vendor exclusivity; Vista will only require specifications compliance; 
  • No property improvement plan – Customers determine if Vista should consider the property application based on pending “improvements” or “as is”; 
  • No vague impact policy – Vista offers a clearly defined area of protection based on business protection; 
  • No underwriting of programs – Vista will not make a profit for itself at the expense of the customer.
Doing the Right Thing

According to Gokal, leadership demands that franchise companies “do the right thing.” To Vista, “the right thing” means being held accountable for the performance it delivers to its customers.

“Doing the right thing is not just about our Performance Guarantee,” he said. “It’s about who we are and what we do to affect real and meaningful change in the franchising environment through flexible agreement terms, mutual commitments, customer service and support, and guest satisfaction.

“We invite all franchise companies (regardless of segment) to join us in changing the experience for hotel owners for the future betterment of our industry,” he said. “After all, hospitality is about doing the right thing.”

Gokal and Harvel said they plan to grow the Vista brand in 2008 from 10 hotels to more than 50 hotels, with a goal of 400 hotels representing 28,000 guestrooms by 2013.

About Vista Hospitality Solutions
VISTA® Hospitality Solutions franchises their unique VISTA® brand of hotels throughout the United States, with an initial focus in the southern regions of the country. For franchise opportunities please call 615-904-6133 ext 105 or via email info@vistarez.com. You can also visit or websites www.vistarez.com and http://corporate.vistarez.com. 
 
 

Current Vista Hotels:

    * VISTA Inn & Suites Bryant, Arkansas
    * VISTA Inn & Suites - Huntington, Indiana
    * VISTA Inn & Suites - Perrysburg,Ohio
    * VISTA Inn & Suites - Antioch, Tennessee
    * VISTA Inn & Suites - Hermitage, Tennessee
    * VISTA Inn & Suites - Murfreesboro, Tennessee
    * VISTA Inn & Suites - Galesburg, Illinois
    * VISTA Inn – Fitzgerald, Georgia
    * VISTA Inn  & Suites - Pawley's Island, South Carolina
    * VISTA Inn & Suites - Warner Robins, Georgia
    * VISTA Inn & Suites - Memphis,Tennessee

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Contact:

Barb Worcester 
PRPRO
 440.930.5770
barbw@prproconsulting.com

Kelly Harvel
Vista EVP
615-904-6133 ext 103
kharvel@vistarez.com
 

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Also See: More Hoteliers Consider Flying Own Flag; Difficult to Justify the Enormous Franchise and Royalty Fees / February 2004
What Does a Hotel Franchise Cost? / Stephen Rushmore / Canadian Lodging Outlook - August 2005 Year-to-Date
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