Now that Vantage Hospitality has successfully integrated the new brands it picked up with the
America’s Best Franchising acquisition in 2014, the company is focusing on continued growth. After all, with high distribution costs and an increasingly competitive marketing arena, size matters. President and Chief Executive Officer Roger Bloss expressed these sentiments and more during Vantage Hospitality’s International Educational Conference & Trade Show at the Hard Rock Hotel & Casino Las Vegas this week.
To further define the company and its offerings, Vantage has streamlined all its brands under one division: Vantage Hotels. The brands are then split into two sectors: Value, which includes the Americas Best Value Inn (ABVI), Country Hearth, and Signature Inn brands, and midscale/upscale, which features the Lexington, Jameson, and 3 Palms brands. Meanwhile, Vantage Hospitality Group encompasses the real estate, insurance, revenue management, and hotel management divisions, as well as Cruise Inn RV Parks.
The America’s Best Inns and Suites brand will eventually fade away, Bloss said, but Vantage will continue to honor existing agreements and treat owners as part of the family. “We hope at the end of the day, they will see the value of maybe Signature or some of our other brands where they can really flourish instead of maybe just maintaining status quo,” Bloss said.
Vantage now has a total of 1,221 hotels in its system, more than 1,000 of which fall under the ABVI, Canadas Best Value Inn, and Value Inn Worldwide brands. To bolster its higher-tier brands, Vantage is making a concerted effort to grow Lexington and Jameson, which currently have 36 and 25 properties, respectively. Other major initiatives in the works include transforming the Signature Inn brand, which fell dormant, into an upper economy, boutique-style product, and developing a unified rewards program for Vantage Hotels.
Since last year’s conference, Vantage has made some changes in terms of the appropriate segment for each brand. The overall Country Hearth product wasn’t what Vantage expected, Bloss said, so it has been moved from the upper economy/lower midscale tier to the economy segment to suit the majority of its members. Properties of a higher caliber have the option of moving into the ABVI or Jameson brands.
Vantage originally slated the Signature Inn brand for the budget segment, but discovered that owners perceived it in the upper economy tier as a new construction product geared toward next generation travelers. “Signature presents us with an opportunity to build a brand from the ground up that’s unique and perfect for the budget and boutique segment,” Bloss said. “Owners are free to customize properties with their own styles, design, and products and services to meet the individual demands of their markets and customers.” The first new-construction Signature Inn is planned in Houston.
Key hoteliers attended a Signature Inn think tank session during the conference to share their creative input and ideas for the new brand. A prototype for the building has been created, but participants had the chance to weigh in on everything from social gathering spots and signature items to interior design and fitness options. Vantage hopes to solidify brand standards and launch a full announcement in time for AAHOA’s National Conference in 2016.
Vantage also has developed the architecture for a unified rewards program. Consumers would have the ability to choose either points or a discount, while owners would be able to control room rates and availability. “We’ve tested it financially, and there’s enough money in the bank that we can not only pay the hotelier for that redeemed room, but also do the marketing we need to a carry program like this,” said chief financial officer and chief operating officer of Vantage, Bernie Moyle. Vantage is also in ongoing conversations with board members to shape the program, and is working with several technology vendors to bring together all the moving parts. Bloss expects the program to come to vote next year.
