Jul. 25--SAN BERNARDINO, Calif.--Five Inland Empire hotels are changing their brand names in an effort to upgrade their properties and their affiliations. 

Hotels in San Bernardino, Fontana, Norco, Hemet and Ontario are converting to GuestHouse International Inn & Suites hotels as part of a nationwide expansion by the Atlanta-based hotel chain. 

The company, which is opening eight converted hotels in five states during the summer, already operates 22 franchised hotels in Southern California. 

GuestHouse International is a subsidiary of the 333-hotel Suburban Lodges of America Inc. that competes in the mid-priced market with Hampton Inn and Courtyard by Marriott brands. Room rates in the market typically go for between $60 and $70, according to Smith Travel Research, a hospitality industry consulting firm based in Hendersonville, Tenn. 

The Inland Empire locations are upgrading their furnishings, exteriors and reservation systems to comply with GuestHouse International's standards. 

"By joining GuestHouse, it forces us to keep the property up and teaches us how to run the business more professionally," said Malti Dayaran, co-owner of the 64-room GuestHouse International Airport Inn, formerly an Economy Inn in Ontario. 

GuestHouse officials attribute the companies rapid growth during the past three years to it charging a flat franchise fee rather than the industry norm of taking a percentage of a hotel's revenue, said GuestHouse President Rob Wilson. 

Rather than being independent, hotel owners often elect to pay a franchise fee for the privilege of having a brand name, marketing support and nationwide reservation system. The company enters into five-year franchise agreements at $30,000 or $300 per guest room, whichever is greater, according to Securities and Exchange Commission documents. 

"The No. 1 advantage is name recognition. If people are driving by and recognize a hotel's name, they tend to pull in before pulling into a no-name independent property," said Joel Biggs, president of Hotel Managers Group LLC, a Rancho Bernardo-based hotel builder. 

The hotel upgrades should be a boon for the hotels' cities, said Steve Henthorn, executive director of the San Bernardino Convention & Visitors Bureau. 

"When you have better quality hotels, theoretically, you get more people with more money to spend which raises the (transit occupancy tax) and puts more money into the city coffers," Henthorn said. 

Suburban Lodges reported revenues of $70.7 million and a net income of $5.3 million last year. On Tuesday, its stock closed on Nasdaq at $8.45, down a nickel. 

LOCATIONS AND PREVIOUS NAMES OF GUESTHOUSE INTERNATIONAL 

GuestHouse International Inn 
Formerly a Budget Inn 
1280 S. E St., San Bernardino 

GuestHouse International Inn & Suites 
Formerly The Norco Inn & Suites 
3131 Hamner Ave., Norco 

GuestHouse International Inn 
Formerly The Hemet Inn 
800 W. Florida Ave., Hemet 

GuestHouse International Inn & Suites 
Formerly a Comfort Inn 
16780 Valley Blvd., Fontana 

GuestHouse International Airport Inn 
Formerly an Economy Inn 
1120 E. Holt Blvd., Ontario 

SOURCE: GUESTHOUSE INTERNATIONAL 

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