ATLANTA—Gone from the hotel industry landscape since its last properties were converted to Baymont hotels several years ago, the Budgetel brand is now poised to make a comeback, HOTEL BUSINESS® has learned. Responsible for the rebirth of the economy brand will be Atlanta investors Mukesh “Mike” Patel and R.C. Patel, who have acquired the brand’s trademarks and franchise operations from the Blackstone Group. Blackstone had been in possession of the brand name since it acquired La Quinta Corp. La Quinta previously oversaw the conversions of the last Budgetels into Baymonts. The rejuvenated Budgetel will formally operate out of Atlanta under the name Budgetel Franchise System. Mike and R.C. Patel plan on opening the first 15 Budgetel properties within the next 15 weeks. Most of these new hotels will emerge via conversion; however, some will be the result of new-construction projects. Beyond the first 15 hotels, the new owners plan on growing the brand rapidly, specifically within the upper economy segment. This growth is expected to be enhanced by the fact that franchisees will be given an opportunity to have an ownership stake in the overall company. Consequently, owners will be able to direct the brand’s development. Mike Patel is the founder of Haven Trust Bank. R.C. Patel is the chairman/CEO of the Diplomat Cos., which is involved in the development, ownership and management of hotels. Joining the new Budgetel are Carl Newberry, who will be the brand’s president, and Randy Evanchyk, who will be the brand’s evp/franchise development. Newberry previously was CFO/treasurer of Days Inn, as well as a senior executive with Suburban Extended Stay Hotels. Evanchyk has worked for Red Roof Inns, Accor Economy Lodging and La Quinta Inn.—Christopher Ostrowski
