Lexington Collection Gives Members ROI Guarantee

It’s an offer a hotel owner can hardly say no to. The Lexington Collection, the upper-mid to upscale brand from Vantage Hospitality Group, yesterday rolled out a compelling promise to its members: The chain will deliver more revenues than what owners pay in membership fees, guaranteed.

“It’s simply the right thing to do,” says Roger Bloss, Vantage’s president, CEO and founder, who notes that the company already makes the same guarantee to the nearly 800 members of its Americas Best Value Inn brand. “It’s our job to deliver reservations to our members. Why should they pay if something isn’t creating value for them?”

The chain works with the owner of each hotel to analyze what level of reservations, as well as group and wholesale business, the property can expect Vantage to deliver. This ROI sheet is reviewed quarterly to make sure expectations are met. If not, headquarters will dispatch a SWAT team to the hotel to help the owner boost business and maximize res contributions from the chain. Often, says Bloss, the solutions are simple.

“We’ll put an action plan in place and if, after a determined amount of time, we’re not exceeding the member’s goals, we’ll waive membership fees until acceptable delivery of business is realized,” says Bernie Moyle, Vantage’s COO and CFO.

Bloss says the guarantee is “an early warning system for properties that might be off track. Because we’ve created a culture that encourages members to come to us with any problems or questions, they’re more likely to call us early enough that we can help them. The worst thing is to have a silent customer.”

Bloss doesn’t fear the program will hurt Vantage’s profitability or lead to defections from the chain. He notes the same guarantee has been in effect for the ABVI brand for more than a year, but has resulted in only one property leaving the chain.

Lexington has 12 properties open in the U.S. and three more in China. In July, a 212-room property in Lansing, MI will join the system, and Bloss believes it will grow by one to two hotels a month in the U.S. and about one a quarter in China. The brand recently reorganized with the departure of President & CEO Steve Belmonte. Now, Bloss and Moyle directly oversee Lexington, and a retooled 11-person development team solicits memberships.


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