Growth Program Launched By GuestHouse

ATLANTA— GuestHouse International, a collection of limited-service inns, full-service hotels, extended-stay hotels and resort properties, has begun a new direct mail campaign to franchisees and prospective franchisees as a part of its new aggressive growth strategy. A brochure being used in the campaign features a drawing of the Boston Tea Party with the headline “Grossly Over-Taxed?” across the top. Upon opening the brochure, recipients see the declaration-style pledge of GuestHouse International and an information request card that they can fill out and return to the brand. The theme came from “the history of the Boston Tea Party and the events which proceeded it [which]seemed to parallel our experience as a franchisor,” said Rob Wilson, president of GuestHouse International. The pledge is made up of five parts, which differentiate the GuestHouse brand from other brands, he said. The first part of the pledge reads “Flat fees: We believe in helping you increase profits while you keep more of it.” Noted Wilson, who believes in revenues going back into the hotel, “we do not participate in the upside of revenues.” He added that franchise fees are based on the room count rather than the room revenue. “We never break a treaty: Your territory is always your territory. GuestHouse International guarantees area protection,” is the second part of the pledge. GuestHouse helps its franchisees with their local marketing as well. According to Deb Naughton, director of marketing for the brand, “all of our properties are unique. Guests who stay in different properties will not have the same experience at each property.” Hence, the third and fourth parts of the pledge, “GuestHouse International believes in celebrating brand diversity and GuestHouse International will foster your interdependence and unique identity.” The final part of the pledge is the “Franchisee-friendly agreement: We’ve won that battle… you won’t find a more franchisee-friendly agreement. It’s been ratified for hoteliers, by hoteliers.” Greg Plank, president of parent company Suburban Lodges of America, and Wilson agreed that while fair franchising is a hot topic within the industry, it is the way GuestHouse has been operating for nearly five years. “GuestHouse is best described as of the people, by the people and for the people,” stated Plank. GuestHouse International is a brand that is “right in the thick of the mid-market segment,” said Wilson, who added that “we compete with Holiday Inn, Holiday Inn Express, Days Inns, Sleep Inns… with almost everyone.” At presstime there were 62 GuestHouse properties open with an additional 55 under development and 12 slated to open by year’s end. By the end of 2001, Wilson and Plank hope to have between 130 and 150 GuestHouse properties open. The average size of a GuestHouse is 92 rooms with the largest property featuring 250 rooms and the smallest, a boutique-type property, offering 26 rooms.