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Step 1: Go to www.AmericasBestValueInn.com

Step 2: Click on“Hotel Owners”on the right side ofthe navigation bar.

Step 3: Click onlaptop graphic withSPIN logo.

Step 4:Fill in your informationand click “Register Now.”You have the option toremain anonymous.

Step 5: Attend the webcast,ask questions, and learn howyou can increase yourbottom line.

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Just a reminder,our webcast is everyWednesday @ One p.m.

Eastern Time.For more info or questions

88 8-582-2378

The premise is simple. Do what you’re supposed to do as a good hotel operator, and we’ll do what we’re supposedto do as a good hotel brand. If you participate as an active member, do everything you need to be doing as a member,and still do not realize more revenue than what you, as an owner, pay in membership fees, we will credit yourmembership fees and action plans will be implemented until acceptable delivery of business is realized.

Promise Provisions

Property Conditions/Standards:Property must timely comply with all transition requirements, including initiating as an ABVI Propertyand making its first monthly Brand Fee Payment and subsequent payments per signed Agreement.

Property must be in the Brand System for a sufficient time period to have received a Quality Assuranceinspection and must achieve a minimum score of Grade A (485-500) on all Quality Assuranceinspections (minimum of one per year; announced visits).

ROI evaluation will take place after the property has been in ABVI’s system for one year. We will standby our promise even if you have left our membership or have given us notice that you intend to do so.

Program Participation:Property shall achieve a minimum score of 85% compliance with the Marketing Checklist.

Member shall provide substantial inventory, competitive room rates and industry-standard cancellationpolicies available in the Central Reservation System (CRS).

Member shall enroll and actively participate in all applicable and available brand-sponsored programs,including Brand Promotions, Tour & Travel, Group Sales, Net Rate and Consortia / Corporate programs.

Member shall send at least one management-level representative to the Annual Conference (included infees) every year for educational training, brand initiatives and overall ROI analysis.

Member shall send at least one property representative to at least one regional Vantage Academytraining seminar each year (complimentary training).

Guest Services Satisfaction:Member shall implement a social media strategy aimed at increasing the consumer’s overall satisfactionas related to such social media Internet sites such as TripAdvisor, IgoUgo, etc. Such strategy shall beprovided by the Brand at corporate level and implemented by the Member at property level.

Member in Good Standing:Member shall pay all Fees as outlined in the Fee Summary and GDS Booking Fees on a timely basis.GDS Booking Fees are paid through the TACS system.

"I'm so confident that Vantage Hospitality has the best resources in our industry segment, that ifyou take advantage of everything we offer and implement our revenue and marketing programs,your ROI will exceed 100 percent of your membership fees. This promise speaks volumes aboutour commitment to our members and our confidence in our brand."

- Roger Bloss, Founder, President & CEO, Vantage Hospitality Group

Americas Best Value Inn Adds 127 Hotels in 2011to Surpass the 1,000 Mark

Tuesday, January 17, 2012

Americas Best Value Inn®, the 10th largest hotel brand in the world, enjoyed another year of impressive growthin 2011 with the addition of 127 properties to the system. Included in the total was ABVI’s 1,000th hotel, anindustry milestone that the brand proudly achieved in just 12 years.

Americas Best Value Inn and Canadas Best Value Inn® added locations in 35 states and four provinces. Texas ledthe way with 15 new properties, followed by 11 in Missouri and 10 in California. All told, ABVI’s and CBVI’s127 new inns, hotels and suites included conversions from such brands as Best Western®, Days Inn®, MicrotelInns & Suites®, La Quinta®, Ramada®, Quality Inn®, Crestwood Suites®, Howard Johnson® and Comfort Inn®, aswell as dozens of independent properties.

The 1,000th hotel was an 80-room, former Best Western in Normal, IL.

"We are so thrilled to be named the 1,000thAmericas Best Value Inn. It's a significant milestone for the company,so everyone at the hotel is extremely honored. We are very proud to be a part of the Vantage Hospitality familyand look forward to a long relationship with them," said owner Sonny Punjabi.

A limited-service brand, ABVI operates under its Freestyle® brand model, which allows hotel owners to pay low,flat, monthly fees based on number of rooms – not a percentage of revenue as do other national hotel brands thattypically charge fees that are three to five times higher than ABVI’s. Owners also have short-term contracts, avoice and a vote in the direction of the brand, reasonable property improvement plans, and the one-of-a-kind 100%Return On Investment Promise.

“Throughout NorthAmerica, hotel owners are continuing to embrace our innovative model that allows them to bein business for themselves, not by themselves. Vantage Hospitality is also growing and evolving by constantlyadding more corporate support team personnel and further advancing technology and resources, such as our state-of-the-art Central Reservation System powered by Sabre. And we’re continuing to expand our progressive,revenue-generating programs and comprehensive resources to help our hotel owners increase their return oninvestment potential, like our new $1, $2, $3 renovation program,” said Roger Bloss, the Founder, President andCEO of Vantage Hospitality Group, which also includes the Chinas Best Value Inn®, Value InnWorldwide®, Lex-ington Hotels® and Lexington Inns® brands.

It’s official. In less than a dozen years, Vantage Hospitality hasachieved a major milestone; the fastest hotel company to reach morethan 1,000 properties in its system. In fact, the company is well on itsway to 1,100 properties under such brands as Americas Best Valueand Lexington Collection.

The announcement was made last week as part of the company’sannual conference, which was held at the Golden Nugget in Las Vegas,Nevada.

But even though reaching 1,000 hotels is impressive – all whileroughly eliminating the bottom 10 percent of hotels annually due tolow quality scoring – the company announced some new plans andpromotions designed to help their core ownership base of mom andpop hoteliers better compete in a topsy-turvy hotel market.

To excel in today’s operating environment, many hotel companies arelooking to get their hotels in the best shape possible so owners canup rates. That means millions of rooms are already under, or will getrenovated in 2012. And all those new rooms put rate pressure on forhotels that are not up to date.

Problem is many owners – especially those small family businesses –cannot get secure financing to update and modernize their hotels.Enter Vantage Hospitality founder and CEO Roger Bloss, whose teamcreated what’s being dubbed the ‘$1, $2, $3 Dollars-A-Day Program.’Essentially the program is for all member hotels in good standing toreceive pre-approved financing that will give them enough money toupgrade their facilities. The name of the program refers to how muchit costs property owners per room per day, depending on the type ofwork that needs to be done. The program is in cooperating withAmerican Hotel Register Company and Cicero’s Development.

“This is somethingweworked hard onwith our operations and vendors,”said Bloss. “We knew competitors would come out heavily with strongPIPs (product improvement plans). I don’t think we have the right tolook into people’s bank accounts and ask them how much they arewilling to spend.

“There is a lack of confidence to raise ADR so we felt that this gives[owners] a model that shows if they do this they can raise rates. Theydon’t have to go through a bank or friends or family to raise money,”Bloss continued.

The main focus of the program will be on FF&E renovation, opera-tional supplies required to improve guest experience, and consolidatingand streamlining the procurement process.

For example, for just one dollar a day per room, owners can choosebetween 12 drapes and duvets that will sharpen a room’s look whilehelping boost rates by more than that single dollar.

He expects about 65 percent of hotels to participate.About 25 percentof hotels in the system have been updated already within the last fewyears.

The company is also adding educational and training programs to helpoperators boost the profit line.

But to be successful,Americas Best Value Inn and Lexington Collectionhotels need guests. Though Bloss said reservation flow is increasing,the company also unveiled its 2012 marketing plan.

One highlight is the addition of 10-second commercial spots locatedwithin the body of certain syndicated television shows like “Dr. Phil”and “Judge Judy.” The idea here is combat DVR users who areaccustomed to skipping traditional television ads. Since these spotsare located within the show they are more likely to be viewed.

Another non-traditional marketing move is to give away hotels staysas part of game shows, like the very popular “Let’s Make A Deal,”starringWayne Brady. During the conference’s annual general sessionwe saw a one-week stay in a Lexington Collection hotel given awayas part of a prize package to Jackson Hole, WY.

Vantage also announced an agreement with Sabre Hospitality Solutionsto utilize its Central Reservation System (CRS) platform.

The other big news coming out of the conference was Bloss’ continuedconfidence the company eventually get a new brand, most likely aneconomy extended-stay concept.

“It’s no secret a brand extension is very much on our radar. And it’sno secret we bid on AmericInn. We have a huge appetite to find anextended stay brand and think that it’s a real good niche for us,” saidBloss, who said they’d consider launching one if one was not availablefor purchase.

Finally, we don’t want to miss discussing Lexington. The brand has 25hotels with several big announcements set to come immediately. Infact, we know of one real big one but have promised to keep it underwraps. When announced it’s sure to cause a stir about the Lexingtonsoft brand to deliver reservations.

“We have been concentrating on building a strong base of propertiesand delivering programs that deliver a strong return on investment,”said Bill Hanley a partner inVantage who runs that side of the company.“The high end and mid-tier hoteliers are desperately searching foralternatives to franchising and Vantage has been their beacon of light.Soft branding shows the power of Vantage and how hotels canjoin and maintain own identity while taking advantage of Vantage’sresources.”

Vantage Hospitality is a freestyle membership company that allowshotels to come and go through annual contracts. All brand standardsand fees are voted upon by its members. Vantage Hospitality operatesbrands under the names Americas Best Value Inn, the LexingtonCollection® of hotels, inns and suites as well as Canadas Best ValueInn, Chinas Best Value Inn and Value Inn Worldwide.

Vantage Adds Pricing Empowerment Programs for Member HotelsAt Vantage Hospitality’s annual conference, the company launched several new programs

designed to empower hoteliers to make better room pricing decisionsBy Glenn HaussmanDecember 13, 2011

In June of this year, Vantage Hospitalityhit the 1,000-property milestone inthe12th year since its founding. Last weekat its annual convention and trade show,founder and CEO Roger Bloss made itclear Vantage was far from done. Blossand his company announced plans for aninnovative renovation program, introduceda new digital and central reservationssystem partner and even discussed thepossibility of buying an existing brand.

“This isn’t change for the sake of change,”said Chief Operating Officer and ChiefFinancial Officer Bernie Moyle during theannouncement to members about themove to Sabre Hospitality Solutions asCRS provider. “We owe it to you to stayon the cutting edge.”

Moyle was speaking about Sabre, buteverything Vantage had on display at theGolden Nugget in Las Vegas last weekwas about staying ahead of the game. Notonly will the relationship with heavy-weight Sabre open the door to more

mobile and social media booking applications, but Bloss believesthe partnership will help entice larger ownership groups and man-agement companies to consider the Americas Best Value Inn andLexington Collection brands.

“We need to be in Chicago, New York, Miami and Los Angeles,”Bloss said during a press conference after the general session onWednesday. “We have started talking to larger companies that havebeen with bigger brands and used these systems and they are excited.This really opens up doors.”

For the current 1,043 properties in the system—1,018withAmericas,Canadas and Chinas Best Value Inns and 25 with Lexington — theshift to Sabre will also open several other doors. The transition fromprevious provider Genares will begin on Feb. 1 and the conversionwon’t cost members anything. Booking fees will not increase either,saidMoyle. Sabre COO Steve Fitzgerald said somemobile and socialmedia applications would be available as soon as Feb. 1.

“Technology does not drive change – it enables it,” Moyle said.“This new venture with Sabre will allow Vantage to continue tobring our members the most comprehensive marketing and distri-bution tools available and empower all of us to make informeddecisions that will result in more accurate forecasting, insights intorate and channel management, stronger revenue management tools,and ultimately, more occupancy at rates that enhance our members’gross operating profit.”

ScottAnderson, president and CEO of hospitality consulting companyHigh Country Hospitality, said 83% of ABVI’s revenue bookedthrough its CRS came via online channels. Anderson has workedwith Vantage this year to improve its digital distribution strategiesand to grow Lexington Collection, Vantage’s soft brand.

Bloss added 43% of guests booking online are influenced by socialmedia. “The world has moved online,” he explained as the primaryreason for the change from Genares, a company owned by Vantage.Bloss stressed it wasn’t about money or corporate profits, but instead,the future.

Bloss also announced a renovation program he expected almost fullcompliance with. Partnering with vendors like American HotelRegister, Vantage will offer members three options to upgrade theirproperties, for $1, $2 or $3 a day per room. All members in goodstanding will be able to take advantage of the program financedthrough Vantage and American Hotel Register.

“We know our competitors will be mandating property improvementplans,” Bloss said, “so we wanted to give our members options. Thisis all financed through our vendor associations and members won’thave to go to the bank. This will provide a solid return on investmentwithin our freestyle philosophy letting [owners] do what [they] wantwith [their] property.”

Bloss also said he felt Vantage would be able to take advantage ofthe bigger brands’ hard push for PIPs this year and conversionopportunities would be ripe with owners looking for less expensivealternatives.

“I believe these [other] brands will push too hard, too fast, too soon,”Bloss told themedia. He also openly spoke ofVantage’s goal of addingbrands in segments other than where ABVI and Lexington sit.

“We have focused on multiple brands,” Bloss said. “We have a hugeappetite to find an extended stay brand.” He added the companywould consider launching one, but would prefer buying and improvingan existing product.

Vantage will also go national this year with its TV ad campaign. Aseries of 10-second commercials will be embedded in nationallysyndicated programs.

Vantage Hospitality Stays on the MoveCompany looks to grow with Sabre, Possibly new brand

By Eric StoesselDecember 12, 2011

Roger Bloss

Bernie Moyle

In June, Vantage Hospitality Group, thecompany behind Americas Best ValueInn, Canadas Best Value Inn, Chinas BestValue Inn, and Lexington Collection, sur-passed the milestone 1,000th hotel mark.And, by the growth plans laid out byPresident and CEO Roger Bloss andCOO/CFO Bernie Moyle during thecompany’s annual conference at theGolden Nugget Las Vegas this week, thatwas just the beginning.

As widely reported, Vantage Hospitalityhas risen to become the 10th largest hotelcompany in the world in only 11 years ofexistence. Since June, the company hasadded an additional 43 properties andstands at 1,043 total properties throughDecember 2011.

Moyle opened the conference’s generalsession by declaring that despite thedownturn in the economy, the privatelyheld company is financially stable. Bloss

added that a number of initiatives debuted this week are intendedto increase the visibility of bothAmericas Best Value Inn and Lex-ington Collection, as well as to increase the ability of members toincrease their average daily rates.

The biggest debut for the company this week was the announce-ment of a partnership with Sabre Hospitality Solutions to switchVantage’s central reservation system and to install a platformwhich seamlessly reached customers across a variety of channels,such as third-party bookers, social media, mobile devices, andtablet computers like the iPad.

“Our membership has grown so fast, we now need a different typeof technology,” Moyle said.

Bloss said he believes the new technology, which will launch onFeb. 1, will increase the company’s ability to attract new membersand properties, especially for the company’s soft brand, Lexington.“This will help us get new properties,” Bloss told reporters fol-lowing the general session.

Scott Anderson, president of High Country Hospitality, told theaudience that Generation X and GenerationY consumers are goingto become the travel buyers in the next few years, and many ofthem shop via smartphones. “We cannot afford to not be innova-tive. We cannot afford to not take advantage of the latest mobiletechnology,” Anderson said.

Moyle agreed, saying, “We must commit more resources to mobiletechnology.”

But, CRS development was just one of the ways Vantage is prepar-ing for additional growth. The company also announced a renova-tion program for properties to economically make only thenecessary upgrades that are needed, when they are needed. Blossrailed against system-wide renovation mandates, saying, “No oneshould have the right to force system-wide renovation plans withno justification.”

Instead, Vantage’s renovation plans are separated into three pro-grams, each designed to make the investment in remodeling eas-ier for owners and operators. It also is designed to let ownersdecide which improvements are truly necessary for their customerbase and to be done on their timetable. “We wanted options for ourmembers,” Bloss said.

Bloss said the company expects approximately 65 percent partic-ipation in the renovation programs. He also said that any memberwithin Vantage who is in good standing automatically qualifies forcredit to help with the programs.

The company also announced several marketing initiatives de-signed to raise the profiles of Americas Best Value Inn and Lex-ington.Among the initiatives is the company’s foray into televisionadvertising where it will debut 10-second, in-program commer-cials on several popular TV shows.

Bloss also reiterated the need to develop in high-profile locations.“We need to be in NewYork, Chicago, Miami,” he said. “We needto get in the premier locations. That’s our biggest opportunity.”And, he hinted that several big deals are in the works, although thecompany was not ready to discuss such plans.

He also said that Lexington, which currently has 25 properties,will soon “have future contracts that will blow your mind.”

Bloss also offered that the company is looking into the possibilityof brand expansion, “although we will not have any new brandsthat compete with our current ones,” he said.

He admitted that the company “has a huge appetite for an ex-tended-stay brand.” Ideally, that would come from an acquisition,but Bloss didn’t rule out the possibility of creating Vantage’s ownextended-stay brand. “We would create our own, but our model isto first invest in member services, not corporate services,” he said.

Vantage Hospitality Preps for More GrowthBy Len VermillionDecember 9, 2011

Roger Bloss

Bernie Moyle

LASVEGAS—After collecting more than 1,000hotels in its membership platform in 11 years,Vantage Hospitality Group is looking possiblyto expand further by adding another brand to itsportfolio.

During a press conference followingWednesday’sgeneral session at the company’s 2011 conferenceand trade show at the Golden Nugget Las Vegas,Roger Bloss, Vantage’s founder, president andCEO, said the desire for the company to continuespreading its “freestyle lodging” concept couldlead to the acquisition or launch of anotherbrand.

Unlike other hotel companies, Vantage offers hotel owners the resourcesof a hotel franchise but the freedom of a membership program. Thisfreestyle-lodging concept allowsmembers to choose amenities and programsthey want for their properties.

“We are not looking to have brands that compete with our existing brands,”Bloss said.

The Coral Springs, Florida-based company’s goal is to add brands insegments it is not represented in to ensure differentiation between brands,Bloss said.

“We have a huge appetite to find an extended-stay brand,” he said, adding theextended-stay hotel model of being about location, price and amenitiesfits well into Vantage’s strengths.

Bloss made it clear that Vantage’s approach to potentially launching abrand would be cautiously measured because he believes the large amountof capital required to do it could test the company’s focus.

“Our culture at Vantage is to reinvest in member service rather thancorporate service,” he said. “To take those corporate dollars and spend itthere rather than focusing on what you have and making it better is just notour culture.”

However, if the right opportunity came along, Bloss said he would beinterested in expanding Vantage’s roster of brands.

Continuing the MarchIn the meantime, the company will continue itsmarch to expand the Americas Best Value Inn,Canadas Best Value Inn, Chinas Best Value Innand Lexington Collection brands.

A primary focus for Lexington brand GroupPresident Bill Hanley is to court larger hotelownership andmanagement companies to convertproperties; the Lexington brand has 25 hotels inits portfolio.

“We need to be in Chicago, New York, LosAngeles, Miami, and that’s what Bill’s objective is by going to see thosecompanies because those are the companies that control those properties,”Bloss said. “… It’s part of our business plan.”

Bloss said Vantage enjoyed a 98% renewal rate of properties in 2011 andremoved the bottom 10% performing properties. It added 127 propertiesto the system and currently stands at 1,043 hotels.

“It’s not about adding numbers, it’s about putting quality properties in themarketplace,” Bloss said.

Soft BrandingThe CEO noted that the Lexington brand is active in the soft-brandingtrend that is popular in the industry.

“We have several contracts out today with properties that will just blowyour mind that will do a soft brand with us (under the Lexington flag),”Bloss said.

He said Vantage’s switch to hotel Internet marketing company SabreHospitality Solutions’ central reservation system, which was announcedearlier in the day, will make it more attractive for such companies to becomepart of the Lexington portfolio.

“It’s going to open up doors,” he said.

Bloss said one example of a proposal Lexington has in front of a potentialprospect will save that property about US$1.50 per transaction by havingan affiliation with Lexington.

Guest ServicesThe discussion about additional brands inVantage’s portfolio came following the annualconference’s company update. The sessionfeatured a video in line with the conference’ssuperhero theme that depicted Vantage defeatingvillains Doctor Downturn, Chaotic Chameleon(changing technologies), Double Vision Demon(hidden fees by competitors) andMr. Megabucks(large marketing funds).

Jordan Langlois, Vantage’s VP of brandmanagement, said the directive for members is

simple: “The area to focus on this year is guest services, which cost zerodollars to fix.”

One major program launched during the conference allows members torenovate their properties for US$1, US$2 or US$3 per room a day.

“It positions you to increase your (average daily rate),” Langlois said.

During the press conference, Bloss said the program has been in developmentfor about two years, and the various levels of renovation fit the needs andbudgets of each of the company’s properties.

“We knew the competitors will come out heavily with strong propertyimprovement plans,” Bloss said. “What we wanted to do was createoptions for (members).”

Every property in good standing with Vantage qualifies for financing fromprogram providerAmerican Hotel Register Company, according to Bloss.

“There are three or four things you can do that aren’t going to break you,”Hanley said.

Bloss said he expects about two-thirds of the company’s members to usethe program.

Vantage CEO Open to Adding Another BrandBy Jeff Higley

December 8, 2011

Bill Hanley

Jordan Langlois

Roger Bloss

LAS VEGAS--Vantage Hospitality Group is ready to make 2012the year of mobile technology for itsAmericas Best Value Inns andLexington Collection Worldwide brands.

At the membership company’s annual conference inLas Vegas this week, mobile is the buzzword, since thecompany today also announced a partnership withSabre Hospitality Solutions to use its central reservationssystem platform. This agreement replaces the company’s7-year relationship with GenaresWorldwide ReservationSystem.

“Our momentum has grown so fast and so large that wenow require a different technology platform,” saidBernie Moyle, CFO and COO of Vantage.

It’s all part of the company’s overall strategy toencourage its members to embrace digital technologyboth in the front and back of the house. “This reallybrings us to the forefront of technology,” said RogerBloss, founder, president and CEO of Vantage, addingthat the partnership “without a doubt” will allow thecompany to add more properties, particularly in recog-nizable gateway cities.

Currently Vantage brand website bookings account for42 percent of total booking revenue.

The switch from Genares to Sabre will happen Feb. 1,and Steve Fitzgerald, COO of Sabre Hospitality Solu-tions, said the mobile booking application will launchthen as well, with additional social media booking appsset to roll out from there.

Moyle called the move “a cost-neutral change.” Mem-bers will incur no conversion costs to switch to the newplatform or take advantage of the new tools.

Vantage currently has 1,043 properties opened or signed,the vast majority with the Americas Best Value Inn brand.The soft brand, Lexington Collection, has 25 properties open.The company’s 1,000th property opened this summer.

Additional noteworthy announcements at the conference included:

• Growth in key cities: “We need to be in Chicago, NewYork City,L.A. and Miami,” Bloss said. “Our goal is to get those premier

locations.” Bloss and Bill Hanley, group president ofthe Lexington Collection, said the company is meetingwith management companies that have distribution inthose gateway locales in effort to forge new partnerships,particularly for the soft Lexington Collection brand,which incorporates three- and four-star hotels intocategories of hotels, inns and suites based on marketniches.

• New segments on the radar: Vantage bid on theAmericInn Hotels chain, which was up for sale severaltimes over the past few years but never found a buyer.Still, Bloss said adding a new brand to the company’sportfolio “is very much on our radar.”

“We have a huge appetite to find an extended-staybrand; we think that would be a great niche for us,”he said.

• Product improvement: Vantage drops the bottom-performing 10 percent of its portfolio from the systemannually, and 2012 will bring a renewed focus on prod-uct improvement at performing locations.

But Bloss warns these aren’t your typical brand stan-dards. The company partnered with American HotelRegister Co. to offer a three-level product improve-ment program to members.

“We know other companies are coming out heavy withstrong property-improvement plans,” Bloss said. “Idon’t think we have the right to go into our owners’bank accounts so we wanted to create options forthem.”

Under the program, members can choose to spend $1,$2 or $3 per day per room inclusive of all costs and

choose from several options for upgrading softgoods and more atthe three levels. All financing is through the company’s vendorprogram.

“It’s a very easy system to justify a very easy ROI,” Bloss said.

Vantage Hospitality Adopts Sabre CRS,Sets Growth Goals at Annual Conference

By Stephanie RiccaDecember 7, 2011

Roger Bloss

Bill Hanley

Bernie Moyle

Is a War Brewing Between Hotel Franchisors and Franchisees?By Ed Watkins - October 10, 2011

It’s been nearly 15 years since full-scale warfare broke outbetween hotel franchise companies and the franchisecommunity, led by activists within theAsianAmerican HotelOwners Association. The beef was the franchisors’ unwill-ingness (saidAAHOA) to conform toAAHOA’s 12 points offair franchising, a manifesto crafted to hold brand companies’feet to the fire over issues such as impact, liquidated damages,transferability, ownership of customer data, dispute resolutionand more.

The dispute came to a head in the spring of 1999, whenCendant (now Wyndham) unilaterally withdrew its supportfromAAHOAone week before the group’s annual conference.The two sides eventually kissed and made up, but an under-current of us versus them remains to this day amongAAHOA’s membership. Ultimately, it was two things thatpushed these issues to the sideline. First was a rapidlyimproving hotel industry that through most of the 1990smade a lot ofAAHOAmembers rich and happy. Nothing likea fat bank account to alleviate other issues.

Secondly, and perhaps more crucial, was the ascent of thehotel membership model in the 1990s. Pioneered primarilybyAmericas BestValue Inn, these new style brandsmostly gavehotel owners what they want, and what AAHOA advocates:lower, evenly applied fees, cost-effective marketing andsupport programs and a real voice in the operation of thebrand, particularly when it comes to brand standards. It’s nowonder ABVI has grown to 1,000 hotels and its VantageHospitality parent is perennially listed on the Inc. magazine500/5000 list of fastest-growing private companies.

Yet, after more than 10 years of relative peace betweenAAHOAand its franchise company sponsors, a new skirmishbroke out last month. AAHOAsent a letter to Choice Hotels,saying it would sever ties with the franchise giant unlessChoice addressed a couple of issues AAHOA says violatesthe principles of good faith and fair dealing on which thefranchise covenant is built. AAHOA set a 90-day deadlinefor Choice to resolve the issues or lose its 2012 membershipin the organization and its ability to participate in theAAHOAannual conference. In a boilerplate response, Choiceaffirmed its legacy as a fair franchisor and its willing toaddress the issues.We’ll know by the end of the year whetherthe problem is solved.

While these are serious charges, and I’m sure Choice isconsidering them to be, I’m not sureAAHOAcarries as muchclout with its members as it did in the 1980s and ‘90s. ManyAsian-Indian hoteliers in the U.S. are no longer Mom-and-Pop operations that rely on AAHOA guidance to make theirdecisions. Rather, they’re large, very sophisticated corporationsthat make branding decisions based on a variety of factors,not just pronouncements from AAHOA. Still, should thisenmity spread to other brand companies we may see anotherfull-fledged war between franchisors and franchisees. If,however, business continues to improve for most hotels, a lotof these issues will again fade to the background. The wholemess is a lesson to franchisors not to take their licensees forgranted and for hotel owners to realize the power they canwield when necessary.

Hotels, Inns, and Suites Worldwide

20 Canadas Best Value Inns and MoreBy Colleen IsherwoodSeptember 2011

CHAGRINFALLS,OH—So far this year,VantageHospitalityhas added Canadas Best Value Inns in Huntsville, Bellevilleand Kitchener, ON and Lethbridge, AB. And if you countthe openings of Kelowna, BC and Port Colborne, ON latelast year, that makes six new CBVI locations in the last 12months, for a total of 20 Canada-wide.

Vantage partner Bill Hanley, who hasoverall responsibility for development inCanada, Mexico and India, says that’sjust the beginning, and that the brand willtop-out at 75 to 100 properties over thenext six years.

The company has already demonstratedimpressive growth, with 1,000 properties

expected by year-end from a company that started 11 years ago.

Vantage has focused development of Canadas Best ValueInns in the Maritimes over the past two years. The companywould like to continue its growth in Ontario, build on its basein Western Canada, and then establish a presence alongmajor highways throughout the rest of the country.

On tap for the rest of the year are properties in PEI, NewBrunswick, British Columbia andYukon Territory. This willbe their second Yukon hotel, as they already have one inWhitehorse.

“I expect we will add five or six hotels next year, and six toeight the following year,” Hanley notes.

In Canada, Hanley works with KashJoshi, whose company, Canadian Hospi-tality Group, is the exclusive develop-ment partner to represent, sell, andmarket the Canadas Best Value Inn brandthroughout Canada.

Asked about Vantage advantages, Hanley says the corporatemandate is, “Educate, don’t mandate,” the idea being thatif people understand why change is happening, they willimplement it morequickly and embrace it.

“It seems to be working,”says Hanley, adding thatVantage Academy train-ing programs on currenttopics such as revenuemanagement and socialnetworks, take place in several locations throughout Canadaand the U.S. each year.

“We also provide aremarkably attractive flatfee versus a percentageof revenue. It ends upbeing 40 to 50 per cent ofthe cost of a franchisebrand.”

Vantage hasn’t focused on bringing its second brand, theLexington Collection, to Canada just yet. But “in the fullnessof time,” Canada could see 10 to 15 properties for thislifestyle collection thatblends local flavour withbrand comfort.

Bill Hanley

Kash Joshi

Democracy Comes to FranchisingBy Don SniegowskiApril 6, 2011

CORAL SPRINGS, Fla. — Corporate chains have employees, but a franchise chain has anarmy of entrepreneurs. That can be a huge competitive advantage.

Ask hotelier Roger Bloss, CEO of Vantage Hospitality, one of the top pioneers in the franchisingindustry. He has franchisees direct the brand.

CNBC's reporter Darren Rovell says of Americas Best Value Inn, subsidiary of VantageHospitality, "Roger Bloss created what might be the most democratic system in the wholeentire franchising world.”

While the franchise industry struggles to figure out how to fully tap into the strengths of talented franchise owner-operators, Bloss has taken the lead in providing franchisor transparency, drawing on franchisee talents and givingfranchisees a vote in directing the brand.

What are the results in trusting franchisees to make decisions for the brand?

"We are the fastest-growing hotel chain in the history of the industry," declares Bloss. Vantage is now the 10thlargest hotel company worldwide, having grown to nearly a thousand properties within 11 years.

Here are a few things that Vantage is pioneering:

• Franchisees (members) vote on all major brand decisions• An agreement written on just one sheet of paper• Deferred fees for distressed hotel owner-operators until business picks up

Roger BlossPresident & CEO

Visit VantageHospitality.com toview this CNBC web exclusive.

Absent from the panel of experts on stage at the general session of the AsianAmerican Hotel Owners Association convention last week was VantageHospitality CEO Roger Bloss. When asked why, Bloss surmised, “I’m just notcontroversial enough.” He explained that AAHOA has its 12 Points of FairFranchising. Vantage complies with all of them. “It wasn’t really an attempt byVantage to comply. Our philosophies or cultures just seem to match.”

But there seem to be strong coincidences on why the two philosophies match.Bloss is a listener.

Editor's note: Blue MauMau reporter Janet Sparks caught up with franchisinginnovator Roger Bloss during the AAHOA convention in Chicago last week.

The CEO affirms that he has had strong ties to the independent hotel franchiseeassociation since its inception twenty years ago, and Vantage was one ofAAHOA’s founding Platinum sponsors. Bloss said he has brought several ini-tiatives toAAHOAand they have implemented several of his programs. “Everyyear all of theAAHOAboard members come to my conference, and the sittingchairman speaks at the event. We also attend all of their functions. We are asactive as any chain could be with them,” Bloss said.

One major difference between Bloss’ hospitality group and the others is thatVantage is not a public company. “Of the top 10 hotel chains today, we’re theonly private one out there,” he said. When asked if his group will ever go public,he responded, “Only if I’m underground. Vantage won’t be as long as I have avoice. I have no desire to take it public because I would then not be running thecompany; I would only be taking direction.”

Bloss added that the monetary side of it is irrelevant to him, so there is nomotivation whatsoever to take Vantage public.

Sparks: So, why don’t other top hotel companies concentrate more onfranchisee relationships instead of on stockholders?

Bloss said there were a multitude of different reasons. “For some hotel groups,they have such a powerful force in the industry that they just, quite frankly,don’t have to. Others with the stringent guidelines and standards they set forth,they truly believe that it is in the best interest of their business model and theircustomers. On the third side of it, you’ve got companies that have to deliverrevenue, have to bring EBITA in order, so sell, sell, sell and cut, cut, cut, andmake the EBITAwork. So, I think it is a multitude of things depending on thetype of company it is—the stature and leadership of the company, and whereit stands in that Wall Street market.”

Sparks: Growth being Vantage’s top priority, just how large does Blosswant the system to grow?

“I would like to have total penetration without saturation,” he explains. “WhatI mean by that is I want to have properties everywhere my customers wantthem, without impeding my existing members’ businesses. I believe my numbercan easily double before I face those types of issues. We’ve all seen it; there isa McDonald’s and Starbucks on every corner.At some point that starts to impactone or another of those businesses. I don’t want my people, who have their lifesavings invested in their business to have the slightest bit of impact. But at thesame time, I can’t sacrifice customers’ desires.”

Bloss said growth is important because it keeps your system fresh, it brings itin to new locations, and it brings in new types of properties, new operators.“So, yes, it is important but not for growth sake. I’m not out there trying to bethe largest, but I am obviously out there striving to always be the best. The sizeof my system is irrelevant when compared to how we operate and how we treatour customers,” he adds.

Sparks: How does Vantage get most of its franchisees?Are they operatorswho want to leave their current systems and do something different?

Bloss said yes. “Amajority of them have had experience with our competitorsand they have heard the successes that our members have had. Now going onover ten years, they’ve seen the track record, they’ve seen the culture, they’ve

seen the results, and they’ve seen the savings. So, I think when they have anopportunity to bring more value to their business they take full advantage ofthat. When you have year-to-year agreements and over 98% of your membersrenew annually, it speaks volumes about their satisfaction. Happy customers telltheir friends.

Half of their growth comes from referrals, according to Bloss. “I have peoplego to my website, download the paperwork, or fill it out right on the webpageand send it in. They never talk to a development officer. They make up theirmind that they want to be a part of it and they join.”

The CEO also does a live web cast every Wednesday. “I invite anybody andeverybody that would like to listen to me talk about what we do as a brand foran hour every week. We have a lot of people come on to comparison shop andto hear who I am and how I speak. They want to know my values and whatdirection our company is taking. It is open so listeners can ask questions duringthe session. That’s the way we get people interested without having to travel,”he said.

This year Bloss asked his board and the advisory council members if theywould have any objection to opening their board meetings to their member-ship so that they can listen in and submit questions. “They said absolutely not,because they are here to represent the membership.” Bloss said next year theyare going to televise the meetings live and broadcast it throughout the entirecountry.

Sparks: Does Bloss feel the pain ofAAHOAmembers in this bad economy?

“Most of these people have immigrated here with little or no resources and themoney they have invested in their properties is their life savings. It’s their sweatequity. They built their systems with what they thought would be some prettygood wealth,” the CEO explained. But then they watch 20, 30, 40 or 50 percentof it dissipate in the blink of an eye. Bloss said, “I know.We own a hotel in LasVegas that for 10 years set occupancy records, revenue records. Today I can’teven generate enough money to pay the utilities. I know their pain.”

Again, he feels this is where his company and theWall Street companies differ.The others may have to write off a million dollars. Bloss said, “Try telling thesmall business person to write off a million dollars.”

Bloss said the down economy has strengthened Vantage’s relationship with itsfranchise owners, because they have done some things no other companieswould ever dare to do, not just in the hospitality sector but in all of franchising.They instituted two things; one is an ROI program, return on investment, wherethey promise every member that they will send them more business than theypay them in fees, or they don’t pay Vantage. “No one in any industry wouldever guarantee or promise that,” Bloss emphatically states.

“Another thing we did was we created ESPN, economic stimulus plan now.That means, if you are sitting there at your desk paying your bills and you’vegot $10, and your bills are $13, someone is not getting paid. Since our agree-ments are year-to-year, when the franchisee tells us they can’t pay us for threemonths until their busy season hits, we say fine. If their agreement expires inDecember, we tack the three month to the end of their term. Basically, theyhave an interest-free loan with all the services, and it doesn’t cost them anymoney, any penalties or interest. All they did was add those months on to theback of their agreement. So that way there’s buy in from both parties. We bothattack this economic crisis together, and we’re in it together. Neither one of ushas to suffer,” Bloss said.

Ties that Bind Vantage Hospitality and AAHOABy Janet SparksJune 2010

Vantage partners Gene Kordoban,Roger Bloss visit India.

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Over 1,000 Properties in 12 Years – an Industry First!

The10th Largest Hotel Company WorldwideSM

As the only hotel company to be featured on the Inc. 500/5000 list ofFastest Growing Private Companies four years in a row, VantageHospitality has taken the lodging industry by storm.This recognitionplaces Vantage in the 99th percentile, outperforming 7 millionbusinesses in the U.S.

Growing from two to over 1,000 properties in only 12 years, Vantageis the 10th largest hotel company in the world! Our success is inour membership. We give our members a voice and a vote in theBrand’s direction and more resources and revenue channels thanany of our competitors.

We are honored to be an Inc. 500/5000 Company and recognized asan Innovator of the Lodging Industry.We will continue to encourageour members to embrace the entrepreneurial spirit that has putVantage Hospitality in the spotlight with some of the most successfulcompanies in the world.

Award-Winning Performance!

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To join our Award-Winning Brands, call 888-316-2378or visit VantageHospitality.com

In Business For Yourself, Not By Yourself.

Roger Bloss, CEO, President, Founder, Vantage Hospi ta l i tyGroup, was recognized twice as Lodging’s Innovator of the Year. Hisbelief that hotel owners should have a voice and a vote in the brand'sdirection continues to defy conventional wisdom in the hotel industry.

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SIGNAGE Americas Best Value Inn ‘s Logo Signage

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AWNINGS/ELONGATED SIGNS:

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Note: All sign layouts must be approved by Vantage Hospitality Group, Inc. prior to production.Vantage Hospitality Group, Inc. is unable to approve, disapprove or otherwise render an opinion with regard to whether the shape

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