A group of private investors acquired the
Budgetel brand for an undisclosed sum from the Blackstone Group.
The deal includes
all rights to the Budgetel trademarks and franchise operations in
the U.S. and Canada. There are no Budgetel hotels in the
Mike and R.C.
Patel head the investment group that has formed a new company,
Budgetel Franchise System, to operate the economy chain. The Patels
are principals of Atlanta-based Diplomat Hotels, which owns several
The new owners
plan to open as many as 15 Budgetels over the next 15 weeks. "Most
of these will consist of rebranding by existing properties;
however, some may be new properties currently under construction,"
said R.C. Patel, who is CEO of the new company.
"Our first and
most important step is to implement a superior infrastructure that
can properly serve the new franchisees we are now actively
pursuing," said Mike Patel, chairman of Budgetel Franchise
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