WELCOME TO CUSTOMERized FRANCHISING

VISTA® Hospitality offers a fresh, innovative franchise environment for VISTA® brand hotel owners. CUSTOMERized FRANCHSING is all about affecting meaningful change in the franchisor/franchisee relationship in the hospitality industry. Our primary focus and dedication is to service the interest of our franchisee.

The VISTA® franchise program is designed to allow our mid-tier customers to own and operate lodging establishments with maximum freedom and effective support and with minimum dictates and interference through our VistaAdvantage 5 point program. This promotes a relationship of mutual commitment, accountability and flexibility that correlates into profitability and success for both the brand and hotel owner.

VistaAdvantage 5 Point Program:

1. Flexible Agreements
2. Mutual Commitment
3. Operations Support System
4. Guest Approval
5. Triumphant Customers

1. FLEXIBLE AGREEMENTS

• Flat Fees – We do not share in your upside potential
• Long Term agreements with mutual annual anniversary terminations with or without cause
• No Liquidated Damage provisions in our agreements
• Business protection through negotiated areas of protection  [Top]

2. MUTUAL COMMITMENT

• Written defined parameters of accountability (responsibility for performance &success)
• VISTA® Commitment:

• Clear mid-tier market positioning
• The VISTA® Fairness Doctrine – FranchisePolicy
• Support & Services
• Best practices approach and guidance for:Technology&Operations
• Consumer trends
• Effective marketing

• CUSTOMER Commitment:

• Guest Approval
• Asset management
• Operations management  [Top]

3. OPERATIONS SUPPORT

• Comprehensive online Operations Support Resource (OSR) – All elements needed for optimum hotel operation
• Flexible Employee Benefits Program – Menu of benefits offered for developing a customized employee benefits program
• Operations Support Director (OSD) – Business and/or market plan review and customer desired/need support visit at least every 60 days  [Top]

4. GUEST APPROVAL

• VISTA®Tracking of Guest Satisfaction, the outcome of quality and service
• Base Line standards with market driven upward amenity mobility option – We start with a Base Line Standard of clean, well maintained and comfortable facilities for our mid-tier guests and allow our customers the option to add any amenity package appropriate for their marketplace and dynamics.
• Self review program for quality and service – we provide tools, forms and training for regular reviews by owners and staff.  [Top]

5. TRIUMPANT CUSTOMERS

Our customers should expect two primary outcomes for their hard work and substantial investment in their hotel real estate - Return on Investment & Asset Appreciation.

• VISTA® Tracking of and focus on REVPAR the lead indicator of Return on Investment (ROI) – REVPAR is what you take to the bank.
• Asset Appreciation follows through improved REVPAR, efficient operations and brand growth  [Top]

VISTA® FAIRNESS DOCTRINE

To be the premier lodging franchisor and set the standard for fair and equitable franchising in the hospitality industry.

VISTA® COMMITMENTS

1. We will always be sensitive to the profitability of our customers (our franchisees) and to the preservation and promotion of the value of their assets.
2. We will always provide our customers a collective voice and participation in all aspects of our business that affect their revenues, expenses, profits and asset values.
3. We will be fair but firm in all our business dealings and will expect the same from our franchisees.
4. We endorse all industry, trade, and local business associations in their commitment to improving the lodging industry.
5. We endorse, support and will promote AAHOA membership, the AAHOA CHO program and AAHOA initiatives in Fair Franchising.

VISTA® FAIR FRANCHISING

1. A flat fee long-term contract with annual anniversary mutual termination rights, with or without cause and subject only to a six (6) month prior written notice.
2. Our contracts will not include any liquidated damage provisions.
3. No standards changes will be implemented without offering participation to our  customers and the approval of the customer advisory board.
4. We will not enforce vendor exclusivity, but will require approval of all suppliers to protect the standards and integrity of our system.
5. Every agreement will have a fair and clearly defined area of protection from business encroachment.
6. Franchise sales personnel will be required to be ethical, accountable and signatories of the VISTA® Fairness Doctrine.
7. All company and/or sales personnel representations will be provided in writing.
8. A Business Terms Summary will accompany our contract documents.
9. A duly executed Mutual Commitment Letter will accompany all agreements.
10. In the event of an unresolved quality review dispute, we will submit to a customer paid professional licensed mediator.
11. Mediation will be offered for contract dispute resolution.
12. Transfers of non-default licenses will be accommodated with the payment of a nominal administration fee. Family and/or estate related transfers will be processed at no charge.
13. We will submit to a negotiated venue arrangement in all our agreements.
14. We will provide regular and detailed shared funds (marketing & reservations) reporting to the duly elected customer advisory board.
15. Profits from any customer purchasing or marketing programs will be shared with our customers through the shared funds.
16. Any marketing use of data will be limited to system benefit criteria.
17. We will never undertake or underwrite any program that makes a profit for the franchisor at the expense of our customer.

Franchise Fee Program

Fees for VISTA® Inn and Vista® Inn & Suites Brand of hotels are as follows:

• Application Fee
• Initial Franchise Fee
• Monthly Royalty Fee
• Monthly Sales & Marketing Fee
• Monthly Conference Fee
• Reservations fees
• Fees are charged per room per month based upon number of guest rooms.

Current Fees:

• Application Fee: Non-Refundable $1,000.00
• Franchise License Fee $10,000.00 + $75.00 per room over 50 rooms
• Monthly Royalty Fee - $15 per room ($750 minimum)
• Sales & Marketing Fee $5.00 per room
• Annual Conference Fee - $50 per month

Future Fees:

• Fees are subject to review and adjustment each year based on system growth and market conditions.

Reservation Fees:VISTArez Fees:

• GDS Reservations – 8% of net reservation revenue plus $5.95 transaction fee

• 24/7 Toll Free Reservations -  8%  of reservation revenue

• VISTArez.com – 8% of reservation revenue.

• Travel Agents – Industry standard 10%

VISTArez provides:

• 24/7 Reservation Support
• Competitive fees
• Comprehensive, automated revenue management processes
• Professionally trained  Reservation Sales Agents 24/7
• Dedicated Revenue Manager
• Toll free property and travel agent support 24/7
• Comprehensive management reports
• Complete database maintenance and support
• Reservations transmitted via PMS interface, email or fax

• GDS/ADS reservations
  • Seamless connectivity to GDS (Sabre, Galileo, Worldspan & Amadeus) and ADS (internet travel websites such as Expedia & Orbitz)
  • Three participation levels (retails, merchant and opaque)

• Website - www.VISTArez.com reservations
  • Graphical booking engine located on the VISTArez website
  • Guests reserve rooms instantly, safely and accurately using a stepped process

• Toll-free voice reservations
  • Less than 3% abandon rate
  • Less than 2 second speed of answer
  • Dedicated group sales specialists
  • Signature Training – structured sales scripts to increase ADR & conversion