ATLANTA— Less than a year after acquiring the America’s Best Inns and Suites brand from U.S. Franchise Systems, Inc., Americas Best Franchising, Inc. (ABF) has opened two hotels in northeastern Argentina—a third property is under construction— marking its entry into the South American marketplace. All three are owned and operated by Guillermo Santaella, master franchisor for America’s Best Inns and Suites, who is the president of Turismo y Inversiones Internacionales. Santaella is an active developer and hotelier in the region, with several USFS-branded properties open and under development in the cities of Buenos Aires, Malargue and Mendoza. He had been working on several deals when the brand was acquired. The move gives ABF, which also franchises Country Hearth Inns and Suites, its second international location for the brand; it also has a 66-room hotel located in Niagara Falls, Ontario, Canada. According to Doug Collins, chairman/CEO of ABF, the expectations are high for the brand’s development outside the U.S. “We believe that America’s Best Inn has a great future, both internationally and nationally. The Argentina transaction with our master licensee is the first of several transactions we’re working on with this licensee and other licensees. We expect to have several more master licensees in other South American countries in the next year or two,” said Collins. “There are plans for the development of at least six more America’s Best Inns and Suites in Argentina, Uruguay and Peru through [Santaella],” said Chip Elbers, vp/COO of ABF. Collins noted there are no current plans by the hotelier to develop any Country Hearth Inns. The first hotel offers 40 guest-rooms and four suites. Known as America’s Best Inn Empedrado, it is located on the Parana River in Corrientes, and offers separate convention facilities for approximately 200 people. One hotel highlight is a fishing pier attached to the property. Collins indicated the convention center and hotel pairing is common in South America and he anticipated there could be more such pairings for the brand as it evolves in various countries. The second property, America’s Best Inn Paso de la Patria, has 20 rooms, with an additional five planned. It is located in Mariano Moreno y Mitre, Corrientes. A third property, America’s Best Inn San Gara, is under construction on the coast of the Parana River in Ituzaingo, Corrientes and is slated to open in November with 20 rooms and its own fishing pier. Both executives noted “going international” could entail some product adjustments, depending on market demands; however these would not be dramatic changes. “As a company, we’re focused on building strategic alliances with development partners who share the same common goals as America’s Best Franchising, i.e., the development of quality properties targeting today’s more educated, budget-conscious traveler,” said Elbers. “During the period of growth we’re going through we’re going to do our best to hold true to our company’s core values, which are cleanliness, friendliness, comfort, safety and security, and customer service. Each international market may call for some tweaking as far as the product goes to better fit the needs of their specific travelers.” For example, he noted Santaella’s properties have more of a boutique feel and are situated in “resort-type” areas that cater to travelers who are interested in fishing and hunting. “They’re kind of in tune with what that type of traveler might need.” The two properties opened by Santaella in June “are performing very well,” said Collins, who noted the properties’ competitive sets currently consist of local, non-branded hotels. The America’s Best Inns have rates equivalent to $80 to $120. ABF is keeping its options open in terms of international locations for the brand and is currently in negotiations with a new strategic partner in Mexico and Central America. “Their goal is to establish the America’s Best Inn brand in key cities, such as Mexico City, Chihuahua, Juarez and Panama City, Panama,” said Elbers. There’s also a Brazilian development group with which ABF is in discussions. The group wants to do six new-construction America’s Best Inns in key interior cities of that country. Elbers expected development details to be finalized this month. The CEO said ABF would expand internationally as the opportunities present themselves. “We are looking at partners in other areas of the world, including expanding our presence in Canada,” he said. Europe, however, is not on ABF’s agenda right now. With the Argentina property additions, there are 95 America Best Inns and Suites representing 6,376 rooms.
