Ramada Franchise Systems, Inc. announced today that it has doubled its Interest Free Renovation Loan Program to existing franchisees to $10 million. Originally offered as a $5 million program in December of 1999, the fund was depleted only three months after its debut.
The Interest Free Renovation Loan Program was created to encourage existing Ramada® properties to provide guests with the best possible hotel environment and top-quality amenities. As part of the chain`s three-stage, $30 million strategic growth plan to enhance the Ramada position in the upper-mid market hotel segment, Ramada will lend up to 15 percent of a property’s annual gross room revenue with a minimum loan amount of $50,000 and a maximum of $200,000. Repayment of the loan will be spread evenly over a three-year period.
“As the lines between brands continue to blur in an already fiercely competitive marketplace, we knew that existing Ramada properties needed a competitive edge,” said Steven Belmonte, Ramada Franchise Systems President and CEO. “Doubling the fund to $10 million not only allows more Ramada properties to participate in the program, but the fact that we had to double it after only three months is testament to our commitment to our franchisees and guests as well as to the integrity of the Ramada name.”
Ramada Franchise Systems, Inc., a subsidiary of Cendant Corporation (NYSE:CD), is a mid- to upper-mid-market chain of over 1,000 open or under development Ramada Limited, Inn and Plaza Hotel properties throughout the United States. Reservations can be made at any Ramada property via 1-800-2-RAMADA or ramada.com.