Microtel Reports 15 Openings and 10 Construction Starts

First Half of 2007

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. October 14, 2008

ATLANTA, GA, July 16, 2007. Microtel Inns & Suites - the chain of all new-constructed, interior corridor hotels - continues to demonstrate its leadership position in the economy lodging segment with increased levels of development, ringing in 15 openings and 10 ground breaks during the first half of 2007. The robust activity is also evident in Microtel's pipeline, which consists of an active backlog of more than 170 executed franchise agreements and more than 90 approved in-house applications pending execution.

According to Lodging Econometrics of Portsmouth, NH - the industry authority for hotel real estate research - Microtel continues to be the top hotel brand for number of projects and rooms in the economy segment, with 51% of all new construction in the development pipeline.

New Microtel hotels are located in:

Huntsville, AL;

Wellton, AZ; Tulare, CA;

Panama City, FL; Columbus,

Conyers and Jasper, GA;

Indianapolis, IN;

Colfax, IA;

Hattiesburg, MS;

Dover, NH (the first Microtel in this state);

Middletown, NY;

Durant, OK;

Grove City, PA, and

Hazelton, WV.

New Microtel hotels under construction are located in:

Bentonville, AR; Canton and Woodstock, GA; York, ME (the first Microtel in this state); Bath, NY; Stillwater, OK; Morgantown, WV; Juarez, Mexico; Mactan Islands, Cebu, The Philippines, and Cabanatuan, The Philippines.

"Microtel continues to aggressively develop both domestically and internationally, and the remainder of 2007 is looking even brighter," said Roy E. Flora, Chief Operating Officer of US Franchise Systems, Inc. (USFS), parent company of the franchisor of the Microtel Inns & Suites hotel brand. "During the next six months, Microtel plans to open an additional 20 hotels and break ground on an additional 30 hotels."

Microtel hotels are now located in 45 states and five international countries including Argentina, Canada, Honduras, Mexico and The Philippines.

Microtel is the only economy hotel chain to provide guests with free local and long distance phone calls within the continental U.S., plus free wireless high speed Internet access in all guestrooms nationwide. Microtel is also known as the preferred hotel chain for travelers with disabilities, Little People and seniors, and is committed to providing these rapidly growing market segments with quality, accessible hotel accommodations, and with a service culture prepared to make their stay an enjoyable experience.

For an unprecedented fifth consecutive year, Microtel has been ranked highest in overall guest satisfaction among economy/budget hotel chains in the J.D. Power and Associates 2006 North America Hotel Guest Satisfaction Index StudySM.