A cobranded credit card from the hotel industry, geared to attract economy-minded business and leisure travelers, will hit the market next week.
Hospitality International, the Atlanta-based budget motel chain, will launch the Hospitality card, which follows the Marriott Honored Guests Visa, launched in 1988 by First Chicago Corp.
One of the pioneer cobranded programs, the Marriott card has an interest rate of 9.9% over prime and a $30 annual fee. It gives rebate points toward hotel stays.
The Hospitality card, also a Visa, will cater to members and guests of Red Carpet Inn, Scottish Inns, Passport Inns, Downtowner Inn, and Master Host Inns and Resorts.
Issued by Fidelity National Bank of Atlanta, the Hospitality card will offer discounts of up to 15% at participating motels.
Other incentives include automobile rental and travel discounts, room upgrades, merchandise discounts, travel agency discounts, and International Cruise raffle packages. Cardholders will also be able to participate in the current Visa Rewards vacation and travel program, available to all Visa card owners.
Members can opt for a variable-rate card at prime plus 6.9%, or a 15.9% fixed-rate card, both with a $20 annual fee, which is waived the first year, or a 17.9% fixed rate card with no annual fee.
"We're very excited about the program," said Dan Lee, senior vice president of Fidelity National, head of the $105 million-outstandings card program. "We have every reason to believe that with the benefits that our cobranding partner has pulled together it will have real appeal."
Mr. Lee said that with more than 400 hotels nationwide, Hospitality International serves about two million business and leisure travelers each year.
"They're going to put an application in front of everyone of them," he said.
In addition to "take-ones," Hospitality newsletters and special promotions will be used to advertise the card.