Investors acquire Budgetel from the Blackstone Group

A group of private investors has acquired the Budgetel upper-economy hotel chain 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.

Blackstone acquired the Budgetel brand as part of a package when it purchased the La Quinta Corp. in November 2005. Currently, there are no Budgetel properties operating in the U.S.

"We have very ambitious plans to expand and enhance the rich history of this fine brand," explained Mike Patel, who, along with R.C. Patel, heads the investment group.

Industry veterans, both Patels are principals of Diplomat Hotels, which owns several hotel properties.

"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, who serves as chairman of Budgetel Franchise System, which will operate Budgetel.

Plans for the brand include opening as many as 15 Budgetel hotels in North America over the next 15 weeks.

"Most of these will consist of re-branding existing properties, however, some may be new properties currently under construction," said R.C. Patel, who serves as CEO of the new company.

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

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