Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-After taking a flyer on a startup online hotel reservations company started by a former executive, locally based Suburban Lodges of America Inc. will report to shareholders Thursday that it lost $7.4 million on loans to HotelTools Inc. of Atlanta.

David Krischer, Suburban Lodges’ CEO, is shouldering the blame.

“I regret that the capital environment for technology companies has been so poor these past 12 months,” Krischer says in a prepared statement. “That has resulted in HotelTools being reliant solely on continued loans from Suburban Lodges, which in turn, we believe, contributed to doubts by HotelTools’ potential customers as to its ability to deliver services over the long run.”

Seth Christian formed HotelTools a year ago. Radiant Systems Inc. of South Plainfield, NJ has purchased certain assets of HotelTools and repaid Suburban Lodges $168,000 on the secured loans.

Radiant signed a two-year contract with Suburban to provide software services to the company and its franchisees. The New Jersey company also agreed to pay off the $1 million balance HotelTool owes on an equipment-financing lease with Suburban.

“We are pleased that the transaction between HotelTools and Radiant Systems provides a solution to this issue, eliminates the need for Suburban to make additional loans to HotelTools and maintains the software for the use of our company-owned hotels and our franchisees,” Krischer says in his statement.

A Thomson/First Call analysts’ poll indicated Suburban will report second-quarter net income of 15 cents a share and 46 cents a share for the year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.