Centerstone Hotels is a mid-tier to upper-mid-tier hotel brand that was launched in May 2011 by industry veteran Steve Belmonte, a former CEO of Ramada, along with partners Neal Jackson and Cory Jackson Jr. of Key West Inns. The brand was originally operated under Vimana Franchise Systems LLC and later acquired by Cobblestone Hotels in 2018.
Brand Structure
Centerstone operates across three distinct segments, each designed to serve different market tiers:
The Centerstone Hotels tier specifically offers a minimum three-star experience with amenities such as a full-service restaurant or complimentary breakfast, in-room coffee, and free Internet access.
Franchise-Friendly Philosophy
Centerstone was built on a "fair franchising" concept that set it apart from larger chains. Its franchise fees were set at 2.6% of revenue, compared to an industry average of 12.7% across comparable segments. Franchisees were not required to pay separate reservation fees or work with mandated suppliers—policies the founders considered unnecessarily burdensome. The brand also offered short-term agreements and a low cost of entry, making it an attractive alternative for independent hotel owners seeking affiliation.
Guest Experience
Despite the lean fee structure, Centerstone emphasized quality and distinctive guest programs. A "Certified Clean" rooms initiative placed the general manager's phone number directly in each room so guests could report concerns immediately. The loyalty program offered a 15% discount on future stays, late checkout, and room upgrades when available. The brand also introduced lighthearted touches such as "Start the Day With a Smile," a daily joke delivered under each guest room door, and a "lucky centerstone" in the lobby that guests could rub for good fortune.
Growth and Reach
The brand initially grew by converting existing Key West Inn properties, with approximately 20 hotels integrated in its first phase. It then expanded through both conversions from other brands and new construction, targeting 15 to 25 additional hotels annually. Centerstone properties have opened across multiple states, including Alabama, Illinois, Iowa, Missouri, Pennsylvania, Minnesota, Texas, and Virginia. A notable early project was the conversion of a 1930s-era Warner Bros. Theater in West Chester, Pennsylvania, into a 76-room Centerstone Hotel.
Centerstone Hotels remains a distinctive example of a franchise model built around owner flexibility and accessible entry, while still delivering a dependable guest experience across its three-tier system.
Centerstone Hotels approaches FF&E with a pragmatic, cost-conscious philosophy that prioritizes durability and value over fleeting trends. A defining initiative was its 2016 “ALL-AMERICAN” guest room prototype, created with Braeside Design, which won multiple People’s Choice awards at the HI Connect event despite being the most affordable entry. The room was intentionally designed for the mid to upper-mid tier to be “practical and affordable, yet timeless,” using exclusively U.S.-manufactured items to avoid the specification issues often encountered with overseas sourcing. The complete prototype could be purchased for approximately $5,500, excluding freight. Key FF&E partners for this initiative included Klem Furniture, Echota Drape and Bedspread, Integrity Furniture, Wilsonart Laminate, US Vinyl, Ashley Lighting, Northwest Mattress, The Spacia Group, and Lexmark Carpet. For broader purchasing and project management, Centerstone has also worked with Benjamin Brothers, a firm specializing in FF&E procurement for hospitality. This strategy aligns with the brand’s franchise-friendly model, which seeks to minimize unreasonable mandates while still delivering a consistent, quality guest experience.