Blackstone Group unloads Budgetel for undisclosed sum

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 U.S.

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 hotels.

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 System.

To contact the reporter who wrote this article, send e-mail to Michael Milligan at [email protected].

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