A spokesperson for Budgetel Lodging, the Atlanta-based investor group that has owned the Budgetel hotel brand name since 2007, wants to correct recent industry reports that the upper economy chain is being terminated. The Budgetel brand will continue and expand, but under new management.
According to Leva, Budgetel has been operated since 2008 by America’s Best Franchising under a long-term licensing agreement. On July 16, Vantage Hospitality announced that it had entered into an agreement to acquire America’s Best Franchising’s hotel brands, as well as ABF’s license for the Budgetel Inns & Suites brand. On July 25, Vantage said it would not be assuming the sublicense to the Budgetel brand as part of the acquisition, which, instead, would terminate by mutual agreement.
“That licensing agreement was not assignable, so Budgetel could never legally be part of the recent acquisition of brands by Vantage Hospitality from America’s Best Franchising,” Leva explained. “Our investors and stockholders control the brand, and they are firmly committed to a bright future for our current franchised properties and to growing the Budgetel family.”
There are currently 18 Budgetel properties operating in the United States. “We have ambitious, but realistic, plans for this fine brand,” Leva said. “In the very near future, we will announce a new management team plus a superior infrastructure to serve our existing franchisees and to attract additional owners.”