Looking to close a gap in its brand strategy, Vantage Hospitality has added two sub-brands to its Lexington Collection flag. Vantage found it didn’t have a logical home for three-star-type properties that are too upscale for the Americas Best Value Inn brand but not quite at the quality level of other Lexington properties.

The Lexington Inn & Suites in Stilwater, MN is one of the first two properties in Lexington’s select-service sub-brands.

As announced at Vantage’s annual conference last week in Las Vegas, the two select-service sub-brands will be known as Lexington Inn and Lexington Inn & Suites. The first two are open in Jonesboro, AR (a former Quality Inn) and in Stillwell, MN (a former Country Inn & Suites).

“While this strategy helps us close the gap today between Lexington and higher-end ABVIs, the momentum should grow once new development starts again in the industry,” said Roger Bloss, Vantage founder, president and CEO, at an impromptu press conference following a general session during the conference. “At that time, a lot of five- to 10-year-old properties in other brands will be looking for new homes because they won’t be able to get financing for the PIPs (product improvement plans) mandated by the other brands or they won’t be able to justify the rate of return on that investment.”

Whether Vantage is a membership group or a franchise company was another question raised at the conference. According to company officials, South Dakota—and perhaps other states in the future—wants to redefine Vantage as a franchisor instead of a membership company. While the company disagrees with the categorization, it is succumbing to the request and will beef up its paperwork to conform to prevailing franchise disclosure laws. In the future, instead of a year membership agreement, members will sign a 10-year franchise agreement with yearly options for members to leave the system if they choose to do so.

Officials were quick to point out the move is merely administrative; the company, its brands and its freestyle membership model will remain the same.

“It doesn’t change anything we do or our relationship with our members,” said Bloss. “As in the past, our agreement will remain a handshake on paper.”

And as Lexington brand President Bill Hanley added, “There are some advantages, too. Using public franchise documentation, banks and the SBA will more easily be able to access in-depth information about our brands.”

Democracy in Action
Unlike other franchise or membership groups in the lodging industry, Vantage asks its members to vote on any key changes in brand policies, including the setting of fees. A two-thirds vote by members is required for proposals to become policy. At last week’s conference, membership voted on nine main topics and a number of sub-topics. Here are the results:

• A strong majority (86 percent) agreed to shorten the time member properties have for review of travel agent commission payments from three weeks to two, concluding on the 15^th of every month, or the next banking day.

• The members agreed to shorten the time properties have to respond to guest complaints from 10 calendar days to five business days and that all complaints be assigned to one of three categories (written apology only, apology plus complimentary future stay or discount, or apology and automatic refund or partial refund) and that the Vantage corporate team work with the properties to facilitate the outcomes.

• A proposal requiring properties to offer an additional guest amenity of their choosing was rejected by the membership.

• By a wide margin, members rejected a proposal for the chain to implement a mystery shopping program.

• Similarly, about two-thirds of voters opposed a resolution that all properties maintain 75 percent of rooms as non-smoking (or more if required by local law).

• Members agreed to a children-stay-free policy and defined children as those under age 12. They also overwhelmingly agreed to allow properties to set their own policies on how many guests are allowed to stay in each room.

• Eighty-two percent of voters agreed to task the brand’s advisory board and ad council to create incentives and rewards for properties that participate in 85 percent or more of the chain’s marketing programs.

• The voters failed to approve five sub-resolutions related to a variety of housekeeping, maintenance and operations issues, ranging from mandatory use of odor-eliminating products in guestrooms to the addition of four pillows on king-sized beds.

• Membership agreed to a plan in which guests would be asked to donate about $1 per night, with 75 percent of proceeds going to C.A.R.E., a charity supported by the brand for many years, and 25 percent going to the hotel’s charity of choice.