Hotel Online  Special Report



Microtel Inns & Suites Sold 83 Franchises in 2005, 
Currently 260 Microtel Hotels Open
ATLANTA (March 23, 2006) - Microtel Inns & Suites - the chain of all new-constructed, interior corridor budget/economy hotels - continues to demonstrate its leadership position in the economy lodging segment with nearly half of all the economy hotels under construction in the U.S., according to the January 2006 "Smith Travel Research/TWR/Dodge Construction Pipeline" report. 

The report cites that in January 2006, out of 59 hotel chains in the budget/economy segment, 43 hotels representing 2,660 rooms were under construction.  Twenty of those hotels, representing 1,398 rooms, were Microtel hotels.  In addition, the report reflected that out of 60 recently opened hotels, 13 of them were Microtels, more than any other chain in the segment.  
Meanwhile, the brand's development momentum continues with a backlog of 156 executed agreements and 98 in-house applications.  There are currently 260 Microtel hotels open and 20 hotels under construction, including two international properties in Boracay Island, The Philippines and Parry Sound, Ontario, Canada. 

"We are proud that Microtel is the leader in its segment and we are committed to growing the brand," said Mike Leven, President and CEO of US Franchise Systems, Inc., (USFS), parent company of the franchisor of Microtel Inns & Suites.  "We sold 83 new franchises and posted significant growth in 2005.  In addition, we achieved our highest occupancy level ever and had substantial RevPAR (revenue per available room) gains, nearly 40% more than segment competitors.  And 2006 is looking equally bright, with increased levels of development activity during the first quarter." 

Microtel's performance far exceeded the economy segment average during 2005: average daily rate (ADR) increased from $48.61 to $51.78, over 6%; occupancy increased from 56.38% to 59.44%, over 5%, and RevPAR increased from $27.40 to $30.78, almost 11%, compared to 2004.  According to Smith Travel Research, the average economy segment ADR for 2005 was $48.33; occupancy was 54.2%, and RevPAR was $26.21. 

In addition, the brand's reservation center produced 12.8% more revenue over the same period last year, with room nights up 9%.  Reservations contribution rose by nearly 7.5%, and brand website revenue and traffic were up 56.2% and 16% with a conversion rate of 6%, well above the industry average.

Other recent Microtel Inns & Suites accomplishments include:

  • Microtel is the first economy/budget hotel chain to provide guests with free local and long distance phone calls within the continental U.S., plus free wireless high speed Internet access in all its guestrooms nationwide.  The brand won the 2005 "Extra Mile Award" from Arthur Frommer's Budget Travel Magazine for offering the free telecommunications amenities.
  • For the fourth consecutive year, Microtel was ranked highest in guest satisfaction among economy/budget hotel chains in J.D. Power and Associates' "North America Hotel Guest Satisfaction Study."  
  • Microtel was the winner of the Fourth Quarter 2005 "Market Metrix Hospitality Index" with an 86% customer satisfaction score, far surpassing other brands in the economy hotel segment.  
  • Microtel was rated the top brand in the budget segment by Business Travel News in its 2006 "Top U.S. Hotel Chain Survey."  It swept every category in the budget portion of the survey and scored extremely high in both the physical appearance of its properties and price-value relationship.
  • Microtel continues to attract more travelers with disabilities. During 2005, net revenues for ADA room nights increased by 42% over 2004 and Internet bookings for ADA rooms also increased.  Microtel is committed to providing this rapidly growing market with quality, accessible hotel accommodations, and with a service culture prepared to make travelers with disabilities' stays more enjoyable.
All Microtel Inns & Suites <> hotels are independently owned and operated.

Barbara Wiener-Fischhof
US Franchise Systems, Inc. 

Also See: Mike Leven, CEO and President of U.S. Franchise Systems Inc., Reminds Johnson & Wales University Hospitality Students that Customer Service a Priority; First Occupant of Johnson & Wales' Tiefel Professional Chair / April 2004

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