GuestHouse International(R) Adds Nine New Properties

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. October 14, 2008

HENDERSONVILLE, TN, August 3, 2005. GuestHouse International(R) (GHI) Inns, Hotels & Suites has added nine new properties in the first six months of 2005. "We started the year with an excellent core of experienced franchisees," says Bennett Greenberg, senior vice president of franchise operations for GuestHouse International. "It's been a springboard for growth, with nine new properties that are great quality hotels with increased room counts."

The new properties are a diverse lot across many states, with locations from roadside to suburban to destination locations. In the first half of the year, the nine new properties were opened in California, Washington, Louisiana, Utah, Missouri and Idaho. Other properties are under development in Tennessee, Louisiana, Michigan, Missouri, Alabama, Florida, California and Texas. GHI expects to add 15-20 new properties in total this year, and then 25-30 properties in 2006 and each year thereafter.

While GHI may be better known for its hotel conversions, there are also several new construction projects in the works as part of an overall growth plan. In Brunswick, Georgia, a new property broke ground August 1st, and there are talks underway for a new build hotel in Texas. "We've had strong interest in new construction and mid-market projects overall," says Greenberg. "And in addition to new builds, GuestHouse International Plus, our extended stay flag, has a number of owners choosing to convert existing properties. GuestHouse International Plus is well suited for corporate relocations and other long-term stays."

Shoney's Inn conversions still continue, with the latest property conversion located in Gallatin, Tennessee. The owner, Susan Parks, says GHI has taken her under its wing. "GHI will bend forward and backward to accommodate my needs. The staff is exceedingly hands-on and is very approachable at every level of management," says Parks. She is interested in looking for more properties to purchase and convert to GHI. Driving the growth of GHI is its superior franchise service and support, hands-on intensive training programs, state-of-the-art reservations center (InnLink) and a reasonable flat fee structure.

John Manderfeld, president of Marin Management, manages the newly converted GuestHouse International Inn San Fernando Valley in Mission Hills, California, as well as the GuestHouse International Inn & Suites in Santa Clara, California. Manderfeld, who has worked with many hotel brands throughout his career in the hospitality industry, says he likes to work with GuestHouse International. "It's a good return on investment," he says. "The cost is lower and the terms are more flexible." He also adds that GHI is always "responsive and supportive." Another key attribute making GuestHouse International successful is its ability to respond immediately to the needs of franchisees. Because GHI boasts a lean, seasoned senior management team, the reaction time to a franchisee's request is very quick.

Vimal Patel, general manager of the GuestHouse International Inn & Suites in Shreveport, Louisiana, converted his property this past March and said business has increased by over 50 percent. "GHI was very helpful in making sure the transition was as smooth as possible," says Patel. "GHI provides hands-on help like I have never seen or even heard of before." Patel appreciates the personal attention he has received from his franchise service manager, who has been to visit the property four times since the conversion just four months ago.

"You can talk and tell people what to do, but it's much better if you actually show them," Greenberg says. "This is real roll-up-our-sleeves and work-together approach."

Another new property, a former Best Western located in St. Anthony, Idaho, was converted by owner Steve Rice to a GuestHouse International Inn. This property is his fourth with GHI and helps continue to strengthen GHI's presence in the Northwest. Rice says he values the support and personal attention that GuestHouse International provides him. "This is a national chain that is extremely attentive to each individual property and market. They understand the essence of partnership - they are truly looking to enjoy mutual success," says Rice.

"Our franchisees support our strategy of quality growth instead of quantity growth," says Greenberg. "We won't accept an application just for the sake of adding properties, but we are growing with the kind of hoteliers who will improve the chain - those good-quality operators who appreciate the personalized business and sales support we provide our franchise partners."