Looking better for us. Can you put a background color on this and think of a way to incorporate your "A" in the name? Use of a 1/2 moon "swoosh" above the A might be nice to see too.
Can you now move the A above the hotel name and put three RED stars above the circle on the A. We like the 1/2 moon look above the A. So just use that as an Icon, and put another A on American Inn.
Stars should be more star burst style, 6 points higher on the top and bottom if you can.
Also, can you make AmericanInn one word, with a Capital "I" and the Inn in a different color to stand out more. Remember this is going to be on a street sign, so has to be clear to read from afar.