Background:
Having started his hospitality career at the age of 17, Roger Bloss, the founder and president/CEO of Vantage Hospitality Group (formerly Cal-Vegas, Limited), has logged more than 35 years in the business. That experience includes both property level positions, such as general manager, as well as brand executive positions, including a tenure with Knights Inn where he helped build the budget brand to some 250 properties before it was sold to Cendant Corp (now known as Wyndham Worldwide) in 1995. In 1996, Bloss and his partners acquired their first property and began building the infrastructure for the company, which officially was launched three years later as a membership organization. The company now carries the America’s Best Value Inn (ABVI) and Lexington Collection flags.
Current Challenges:
One major challenge is establishing a clear identity for its Lexington Collection among both developers and consumers. Positioned as an upper-mid and upscale, full-service brand when it was launched three years ago, it has grown to close to 20 properties, but still lacks a clear identity and consistency. The company has named veteran Bill Hanley as managing director of Lexington and tasked him with taking the brand to the next level.
Keeping its portfolio of ABVI properties up to standard is an issue resulting from recent economic conditions, which prevented many cash strapped owners from re-investing in their properties. The company has been vigilant in enforcing its standards, however. “We non-renewed 60 non-conforming properties this year,” Bloss said.
With some 973 properties worldwide, another challenge going forward may be finding new markets to penetrate, particularly in the U.S., without impacting existing properties.
2011 Agenda:
Vantage Hospitality expects to continue its rapid growth and reach the 1,000-property milestone as soon as the first quarter of 2011. International growth remains a top priority, with China representing the most opportunity. The company has eight properties there as of press time, and inked a new master license agreement that could result in as many as two dozen new properties, including both new builds and conversions. “There’s so much potential there,” said Bloss. In addition, the company currently has some 22 Canadas Best Value Inns.
Vantage also recently announced the launch of Lexington Inns, a select-service brand designed to complement the full-service offering. Bloss sees opportunity for the conversion of a number of ABVI properties to the new brand. “If you look at ABVI, we’ve done a phenomenal job of bringing in really high quality properties. We want to see if some of those ABVI’s would be better as Lexington Inns,” he said.
Another item on the company’s agenda, according to Bloss, is to help members get their balance sheets straightened out so they can execute on property improvement plans. The company also plans to cross-sell both its ABVI and Lexington brands for the first time to help improve distribution for both.
What HB Sees:
Vantage Hospitality will continue to broaden its brand portfolio as it begins to leverage its size and scope more effectively. With no debt on its books, according to Bloss, expect the company to at least consider an acquisition of an existing brand or assets that would help it enter the boutique or extended stay segments. “We’re totally open minded, but we would not acquire just for acquisition’s sake. It’s got to be strategic,” he said.
The company will also continue to forge deals internationally to expand its presence and distribution as well.