SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC 20549

                                  FORM 12b-25

                                             Commission File Number 1-10346

                          NOTIFICATION OF LATE FILING

(Check One):    / / Form 10-K          / / Form 20-F          / / Form 11-K
                /X/ Form 10-Q          / / Form N-SAR

            For Period Ended: June 30, 1996
                / / Transition Report on Form 10-K
                / / Transition Report on Form 20-F
                / / Transition Report on Form 11-K
                / / Transition Report on Form 10-Q
                / / Transition Report on Form N-SAR

            For the Transition Period Ended:

      Read attached instruction sheet before preparing form. Please print or
type.

      Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.

      If the notification relates to a portion of the filing checked above,
identify the Item(s) to which the notification relates:





PART I - REGISTRANT INFORMATION


Microtel International, Inc.
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Full Name of Registrant


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Former Name if Applicable


2040 Fortune Drive, Suite 102
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Address of Principal Executive Office (Street and Number)


San Jose, California 95131
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City, State and Zip




PART II - RULES 12b-25(b) and (c)

         If the subject report could not be filed without unreasonable effort
or expense and the registrant seeks relief pursuant to Rule 12-b-25(b), the
following should be completed. (Check appropriate box).


/X/      (a)      The reasons described in reasonable detail in Part III of
                  this form could not be eliminated without unreasonable
                  effort or expense;

/X/      (b)      The subject annual report, semi-annual report, transition
                  report on Form 10-K, Form 20-F, 11-K or Form N-SAR, or
                  portion thereof, will be filed on or before the fifteenth
                  calendar day following the prescribed due date; or the
                  subject quarterly report or transition report on Form 10- Q,
                  or portion thereof will be filed on or before the fifth
                  calendar day following the prescribed due date; and

/ /      (c)      The accountant's statement or other exhibit required by
                  Rule 12b-25(c) has been attached if applicable.


PART III - NARRATIVE

         State below in reasonable detail the reasons why Form 10-K, 11-K,
10-Q, N-SAR, or the transition report portion thereof could not be filed within
the prescribed time period. (Attach extra sheets if needed.)



PART IV - OTHER INFORMATION


(1)      Name and telephone number of person to contact in regard to
         this notification

Barry Reifler                                                   (408) 435-8520
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   (Name)                                      (Area code and telephone number)

(2)      Have all other periodic reports required under Section 13 or 15(d) of
         the Securities Exchange Act of 1934 or Section 30 of the Investment
         Company Act of 1940 during the preceding 12 months or for such shorter
         period that the registrant was required to file such report(s) has
         been filed? If answer is no, identify report(s).

                                                      / / Yes          /X/ No

(3)      Is it anticipated that any significant change in results of operations
         from the corresponding period for the last fiscal year will be
         reflected by the earnings statements to be included in the subject
         report or portion thereof?

                                                       /X/ Yes          / / No

         If so, attach an explanation of the anticipated change, both
         narratively and quantitatively, and, if appropriate, state the reasons
         why a reasonable estimate of the results cannot be made.

         It is anticipated that the registrant will report a net loss of
         approximately $324,000 for the six months ended June 30, 1996 compared
         with net income of $453,047 for the six months ended June 30, 1995.

                         Microtel International, Inc.
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                 (Name of Registrant as specified in charter)

has caused this notification to be signed on its behalf by the
undersigned hereunto duly authorized.


Date: August 15, 1996                          By: /s/ Barry Reifler
      ---------------                              ---------------------------
                                                   Barry Reifler

         Instruction. The form may be signed by an executive officer of the
registrant or by any other authorized representative. The name and title of the
person signing the form shall by typed or printed beneath the signature. If the
statement is signed on behalf of the registrant by an authorized representative
(other than an executive officer), evidence of the representative's authority
to sign on behalf of the registrant shall be filed with the form.

                                   ATTENTION

         Intentional misstatements or omission of fact constitute




Federal criminal violations (see 18 U.S.C. 1001).

                             GENERAL INSTRUCTIONS

         1. This form is required by Rule 12b-25 of the General Rules and
Regulations under the Securities Exchange Act of 1934.

         2. One signed original and four conformed copies of this form and
amendments thereto must be completed and filed with the Securities and Exchange
Commission, Washington, D.C. 20549, in accordance with Rule 0-3 of the General
Rules and Regulations under the Act. The information contained in or filed with
the form will be made a matter of the public record in the Commission files.

         3. A manually signed copy of the form and amendments thereto shall be
filed with each national securities exchange on which any class of securities
of the registrant is registered.

         4. Amendments to the notifications must also be filed on Form 12b-25
but need not restate information that has been correctly furnished. The form
shall be clearly identified as an amended notification.

         5. Electronic Filers. This form shall not be used by electronic filers
unable to timely file a report solely due to electronic difficulties. Filers
unable to submit a report within the time period prescribed due to difficulties
in electronic filing should comply with either Rule 201 or Rule 202 of
Regulation S-T or apply for an adjustment in filing date pursuant to Rule 13(b)
of Regulation S-T.





                                      III

         The subject Form 10-QSB could not be filed within the prescribed time
period because the registrant's senior executives were engaged in material
negotiations out of the country which required their full attention.


                                      IV

         It is anticipated that the registrant will report a net loss of
approximately $812,000 for the six months ended June 30, 1996 compared with net
income of $158,000 for the six months ended June 30, 1995.