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.
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
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].