40
YEAR
JOURNEY...
BUDGETEL INN & SUITES
"The Budgetel brand was very popular in the 1980's and 90's, then went dark in 1998 when all 153 hotels were re flagged by La Quinta Management as Baymont Inns & Suites."
The Budgetel torch has been passed many times during its decades-long history.
The brand was founded in 1974 in Oshkosh, Wisconsin, by Stephen Marcus from The Marcus Corporation. In 1986, the company began to franchise the brand.
In February 1998, Marcus Corporation announced Budgetel’s name change to Baymont. At the time of the announcement, the company owned and franchised 153 properties in 30 states. One Budgetel property was kept open in Wisconsin so the name would still be registered with the trademark office.
In July 2004, the company announced it had signed a definitive agreement for the sale of its limited-service division to La Quinta Corporation. In this agreement, La Quinta purchased the Baymont Inns & Suites, Woodfield Suites and Budgetel Inns brands.
The acquired portfolio, according to La Quinta’s third-quarter 2004 earnings release, included: 90 Baymont Inns & Suites hotels (including one management contract); seven Woodfield Suites properties; and one Budgetel hotel. The company also acquired all of the trade rights associated with the Baymont, Woodfield Suites and Budgetel brands as well as the Baymont franchise system. The price tag was approximately $415 million, according to the release.
In November 2005, Blackstone Group acquired La Quinta for $3.4 billion. Many Baymont properties were converted to La Quinta hotels. The Baymont name was then sold to Cendant Hotel Group (now known as Wyndham Worldwide) in July 2006.
Budgetel did not get lost in the mix. Blackstone sold the brand’s trademarks and franchise operations for the United States and Canada in March 2007 to an Atlanta-based investor group headed by Mukesh “Mike” Patel and R.C. Patel.
In 2009, the Budgetel torch was passed yet again to be managed by America’s Best Franchising where Doug Collins was CEO and it stayed there until Vantage bought the company’s brands in July 2014 but did not acquire the sublicense to the Budgetel brand.
Today...
Collins acquired licensing and management rights for the Budgetel brand in 2008 while serving as chairman and CEO of ABF, a position he held since the company’s inception in January 1993. He left ABF in February 2014 to form his own family-owned businesses: Hospitality Lodging Systems and the hotel brokerage firm DC Hospitality. Based on his familiarity with the brand, he reacquired licensing and management rights for Budgetel.
Budgetel Inn & Suites Brand has had quite the journey over it's 40-year history. Here is a look, where it started and where it is now
1974-Founded in Oshkosh, Wisconsin
by Stephan Marcus from the Marcus
Corporation
1986- Marcus Corporation begins to
franchise brand
1998-Marcus Corporation announces Budgetel"s name to Baymont. One property in Wisconsin is kept alive so that brand would still be registered with trademark office.
2004-Marcus Corporation signs an agreement for sell its limited service hotel division to La Quinta Corporation . La Quinta Corporation buys, Baymont Inns & Suites, Woodfield Suites and Budgetel Inns brands.
2005-Blackstone Gtoup acquires La Quinta and most of Baymont branded properties are converted to La Quinta brand.
2006-Blackstone Group sells the Baymont brand to Cendant Hotel Group (now known as Wyndham Worldwide Hotels)
2007-Blackstone Gropu sells the trademarks and franchise operations for the Budgetel brand to an Atlanta-based investor group headed by Mukesh (Mike_ Patel and R.C. Patel.
2009-Budgetel brand and franchise operations passed to America's Best Franchising Company. (ABF)
2014-Vantage Hospitality Group acquires ABS"s brands but not the Budgetel trademark and license.
2014-Hospitality Lodging Systems purchises Budgetel brand.
2017-Budgetel Inns & Suites franchised in US to overall 50 properties.
2018-Continent Worldwide Hotels, entered into Strategic Development Partnership and Master License Agreement with Hospitality Lodging Systems to expand brand globally.
In January 2018, Atlanta-based Hospitality Lodging Systems (HLS) announced its expansion plans of Budgetel and Haven economy brands internationally under a new master license agreement with Continent Hotels Worldwide (CHW) based in Istanbul, Turkey. This new form of partnership, grants to Continent Hotels Worldwide develop, franchise and manage properties with Budgetel and Haven brands globally.
In same agreement, Hospitality Lodging Systems also secured rights to develop, franchise and Manage properties with Continent Worldwide's multiple brands in North America and USA.