"The Honduras property is just the beginning of Microtel's growing presence in Latin America," said Mike Leven, president and CEO of US Franchise Systems, Inc. (Nasdaq: USFS), owner of the Microtel brand.

"We are continuing work with CJ Hotels to bring the Microtel concept to Costa Rica, El Salvador, Nicaragua and Panama."   Microtel is the fastest growing chain of all newly-constructed, interior corridor, budget hotels in the U.S.

The Microtel Inn & Suites in San Pedro Sula will be a two-story, 60-room property.  Single, double and suite accommodations will offer queen beds, remote cable TV, CNN, ESPN, HBO and Pay-Per-View movies.  In addition, there will be complimentary continental breakfast, exercise room, pool, and a 24-hour business center with fax, copier and computer/printer services.  The hotel will also provide complimentary transportation to Central Plaza and other area shopping centers. 

"Microtel is changing the concept of the hotel industry with its mixture of high value and comfort at an affordable price," said Mark Jacobson, COO of CJ Hotels.  Founded by Jacobson's parents, Harry and Mollie Connor Jacobson, in 1952, CJ Hotels currently owns and operates properties in Guayaquil, Ecuador (Grand Hotel Guayaquil), San Pedro Sula, Honduras (Gran Hotel Sula) and Panama City, Panama (Executive Hotel).  The company is run by brothers Mark, Peder and Tom Jacobson. 

As of June 30, 1998, there were 151 Microtels open or under construction and another 360 in development.  Microtel first went international when USFS entered into a master franchise agreement to bring its concept to Argentina and Uruguay.  USFS has also signed agreements for Microtels in Southern Africa, Canada, the Philippines, Brazil, the Dominican Republic, Haiti, and the Turks & Caicos Islands, and is working with companies in Mexico, Europe and India on similar agreements.  For reservations or a copy of the Microtel directory, call 1-888-771-7171 or visit Microtel online at www.microtelinn.com.

Based in Atlanta, Ga., U.S. Franchise Systems, Inc. was formed in August 1995 by Mike Leven, a 38-year veteran of the lodging industry, and Neal Aronson, former principal of a New York investment firm, when the company purchased the franchise system rights to Microtel Inn, Microtel Inn & Suites and Microtel Suites.  Traded on the Nasdaq National Market System (symbol USFS), U.S. Franchise Systems acquired the franchise rights to Hawthorn Suites, an extended-stay product, in 1996, and full ownership of the brand in March 1998.  U.S. Franchise Systems also recently acquired the franchise rights to Best Inns & Suites, a mid-level economy brand.