Microtel Franchise Information:

Microtel Inns & Suites is one of the fastest growing, all-new construction hotel franchise brands in the economy/budget segment and has established a reputation for customer satisfaction in the minds of travel consumers around the country. In fact, for the fourth (4th) consecutive year, J.D. Power and Associates has ranked Microtel Inns & Suites 'Highest in Guest Satisfaction Among Economy/Budget Hotel Chains' in its North America Hotel Guest Satisfaction Studysm.

Ranked Highest In Guest Satisfaction Among Economy/Budget Hotel Chains For Four Years in a Row*

*J.D. Power and Associates 2002-2005 North American Hotel Guest Satisfaction StudiesSM. 2005 study based on 37,471 responses from guests who stayed in a hotel between December 2004 and May 2005. Thirteen economy/budget hotel chains were ranked in the 2005 study.

Microtel has also received high marks in other prominent industry studies. The results of an important lodging survey conducted by the firm D.K. Shifflet & Associates ranked Microtel Inns & Suites #1 in the Budget and Economy segments. For 2004, Microtel has also been selected as the Best Budget Hotel Chain for the annual Business Travel awards in Entrepreneur Magazine. Microtel's proven track record of successful development, strong operating performance and sustainable growth in the economy/budget market are what set us apart from the competition. With 259 hotels open and 137 under development as of August 1, 2005, Microtel is well positioned for continued growth. If you are looking to build an economy/budget hotel, look into Microtel.

Why Microtel? Microtel is a proven leader in the economy/budget hotel market. Years of hotel management experience and innovative planning went into the development of the Microtel Inns & Suites concept. Our business plan has been modeled with the same basic business points of Wal-Mart and Southwest Airlines. Simply put, the concept involves offering the traveling public a high quality product at a value rate while keeping operating and development costs to a minimum.

All Microtel Inns & Suites are 100% new construction (no conversions) assuring a consistent expectation and experience. It's this consistency that has earned us the recognition as one of the great consumer satisfaction brands in the lodging industry.

Key Advantages
Years of hotel management experience and innovative planning went into the development of Microtel Inns & Suites. Today, Microtel is not only one of the fastest growing all-new construction brands in the hotel industry, but also has secured a reputation in the franchise industry for fairness, positive consumer awareness, high quality and rapid growth. Recently, Microtel was awarded the Fair Franchising Seal from the American Association of Franchises and Dealers (AAFD) and was also recognized by both the American Hotel Foundation (AHF) and American Express as the "Best Practice Champion", cited for having "more two-sided" franchise relationships and for terms that "contribute to building good faith and good business relationships".

To our Franchisees we offer:

• The highest quality at the lowest cost (100% newly-constructed)
• Low development costs / Smaller land requirements / Less construction time
• Efficient, cost effective operating system
• System Occupancy, Average Daily Rate and Revenue Per Available Room (RevPAR) exceeding the economy/budget segment average
• Competitive royalty and marketing fees
• Aggressive national sales team targeting corporate, leisure and group business
• National marketing programs
• Internet marketing support with links to travel related sites
• Franchise support, training and quality assurance programs
• Industry leading fair franchise agreement

To our Customers we offer:

• The highest quality at the lowest price
• 100% consistent product anywhere guests stay
• MicroPass TM Frequent Guest Program
• Curb appeal superior to any other economy/budget segment hotel
• Safety & Security: electronic locks on all doors, single after-hours entrance, superior lighting inside and outside the property
• Satisfied Guests, with a Customer Intent to Return rating of 98.6%
• Free Local Calls, Free Long Distance, Free High Speed Wireless Internet Access (domestic)