Originally published in AAHOA Lodging Business, January 2007

Industry Update

2006 proved to be a successful year for hoteliers and their hospitality partners. ALB asked both franchisors and membership-based hospitality companies to update AAHOA members on their initiatives, affliations and hotelier programs that were launched in 2006 and provide an update on the company’s plans and goals for 2007. For additional franchisor and membership-based hospitality company updates, please click here. 

Compiled by Laura Jorgensen

A major highlight of 2006 for Budget Host Inns has been the impact on occupancy, revenues and ADR resulting from their placement on the world’s largest GDS/Internet reservation system, putting them on every important travel web site. Adding icing to the cake, Budget Host headquarters pays each affiliated inn’s GDS setup and monthly maintenance fees. Inns pay only commissions on reservations received and only on those resulting in completed stays.

Best Western was founded in 1946 and in 2006 celebrated its 60th anniversary. As of November 30, 2006, Best Western had 111 properties (8,872 units) active in North America.

In 2004, Best Western signed an exclusive agreement with the fastest-growing sport in North America, becoming the first-ever “Official Hotel of NASCAR.” In addition, the company entered into a partnership with Michael Waltrip, driver of the #55 NEXTEL Cup Car and the #99 Busch Series Car. With an estimated 75 million fans, NASCAR offered a highly sought-after channel through which to promote and contemporize the Best Western brand. The popularity of the sport has brought more media exposure to Best Western than any other marketing program or corporate initiative. This groundbreaking partnership was renewed in 2006 and will continue to deliver exciting business opportunities for years to come.

Best Western’s Education and Training department offers General Manager Professional Development (5-day series), New General Manager Orientation (2-day) along with regionally-based training sessions focusing on Customer Care, Sales and Marketing. Online training is currently being tested and will be expanded in 2007.

Best Western International proudly co-sponsors AAHOA’s CHO program for the following reasons:

• It provides hands-on, interactive learning with a focus on ownership issues

• It allows for Best Western members of all cultures and backgrounds to increase their knowledge base and professionalism

• This valuable learning program is provided at no additional cost to any Best Western Member

• It demonstrates an ongoing commitment to continuing education

• For the first time, Best Western offered CHO certification during four consecutive, 12-hour days prior to the 2006 Convention in Grapevine, Texas. Overwhelming response to this program will provide similar opportunities during 2007 meetings.

Also important to Best Western’s 2006 success:

• The Best Western Travel Card was also important to Best Western’s success. It was first introduced as an electronic gift card four years ago. Since its debut in December 2002, more than 540,000 Best Western Travel Cards have entered the worldwide marketplace, generating nearly $36.7 million in sales. Best Western International will be introducing its gift card at several additional North American retail outlets, providing consumers with a convenient and smart option for the upcoming holiday season.

• Best Western Web site (www.bestwestern.com) – This year Best Western launched virtual tours for all North American hotels. The tour offers consumers up to eight different views of Best Western hotels including guest rooms, and public areas.  Bookings online average over one million dollars per day to Best Western hotels.

• Gold Crown Club International (GCCI) – Best Western has seven million GCCI members worldwide. In 2006 Best Western International introduced a new point earning/redemption structure and other changes to improve the loyalty program.

In 2006, Best Western entered into a preferred partnership with AAA/CAA to launch the “AAA/CAA Preferred” Gold Crown Club International (GCCI) Program, bringing exclusive new offers and privileges to the hotel chain’s AAA and CAA guests. Extending this preferred relationship to the six top AAA regional clubs, the program has produced dramatic results, increasing business as much as 100 percent in certain categories.

• Best Western has 145 new hotels planned for 2007 in North America. Development efforts will be focused on gateway and primary cities along the East coast of the United States.

Based in Parsippany, N.J., the Wyndham Hotel Group was established in 1990 as a hotel franchisor, and a hotel management services subsidiary was created in 2005. Through steady growth during the last 15 years, Wyndham Hotel Group has become an international lodging franchisor with more than 6,400 open hotels representing more than 533,000 rooms on six continents.

With initiatives including the launch of the TripRewards loyalty program in 2003, the purchase of Ramada Worldwide trademark rights in 2004 and the acquisition of the Wyndham Hotels & Resorts brand and Wyndham Hotel Management Company in 2005, the Hotel Group has evolved into an integrated, multi-segment, international franchise and management company. 

In 2006, Wyndham Hotel Group’s highlights include:

• The Wyndham Hotel Group bolstered its commitment to limited-service, midscale lodging by acquiring the Baymont Inn & Suites brand.

• The Wyndham Hotels and Resorts brand rolled out new hotel and guestroom prototype and design standards.

• The first center-city Wingate Inn hotel opened in New York City.

• The Wyndham Hotels and Resorts brand launched its One to One Owner training program focused on personalization.

• Wyndham Hotels and Resorts introduced a new general manager orientation program.

• Wyndham Hotel Group redesigned its brand Web sites with enhanced functionality and larger property photographs

• Wyndham Hotel Group’s parent company, Wyndham Worldwide, spun off from Cendant Corporation and began trading on the New York Stock Exchange under the symbol WYN on August 1.

• From Sept. 2005 to Sept. 2006, the Wyndham Hotel Group grew by 70 properties.

In 2007, Wyndham Hotel Group intends to optimize performance of its North American economy and midscale portfolio; position the Wyndham flagship and Wingate Inn brands as value-added alternatives to competitive brands; and grow its international core brands which include the Wyndham, Ramada, Days Inn, Super 8 and Howard Johnson brands.

Seven seems to be a lucky number for the Vantage Hospitality Group.  However, Roger Bloss, CEO, president and founder of Vantage, will tell you that luck has nothing to do with it.  The secret to the group’s seven years of success lies in its unique membership structure and the ability to provide an affordable alternative to franchising. 

Starting with just two hotels in 1999, Vantage is now the 12th largest hotel company in the world and ranked number 492 on the 2006 Inc. 500 list of fastest growing private companies.  An honor for any company, Vantage Hospitality is the only hotel brand to be recognized by the prestigious list in its 25 years of publication.

Vantage’s first hotel brand, Americas Best Value Inn, was recognized for the fourth consecutive year as the Fastest Growing Hotel Chain in the United States.  In the first quarter of 2006, the brand kept this momentum going by adding one new property for each business day, bringing the total new properties for 2006 to 188 and the overall number of Americas Best Value Inns throughout North America to 692.

Vantage’s upscale hotel brand, The Lexington Collection, under the leadership of Steve Belmonte, the new CEO, president and equity partner, was successfully launched in the second quarter of 2006.  Steve Belmonte is the new CEO, President and equity partner of The Lexington Collection.

Vantage’s philosophy has always been to “educate, not mandate” its members.  In the last quarter of 2006, Vantage partnered with the Educational Institute of AH&LA to provide  its Americas Best Value Inn properties the opportunity to educate and train their employees to become Certified Lodging Managers (CLM) or receive certification in one of eight hospitality venues including Front Desk Manager, Housekeeping Manager, and Hospitality Sales Manager.

To encourage each property to participate in this educational training program, Vantage will cover the majority of the cost for 2007.  At Americas Best Value Inn’s Educational Conference in December 2006, the membership discussed options to continue the program in 2008 and beyond.

Vantage Hospitality showed great support for AAHOA in 2006. Gene Kordoban, Partner, and Director of Industry Affairs and Membership Development, was a familiar face at the AAHOA Regional Shows, and Vantage was honored to have Mukesh Mowji, AAHOA’s chairman, as the keynote speaker for its annual Educational Conference and Tradeshow.  This was the eighth consecutive year that an AAHOA Chairman was the keynote speaker for the conference.

Settle Inn & Suites had a banner year in 2006!  Although the brand has been around for over 14 years as a regional mid-scale brand, in May of 2006 Settle Inn began franchising and is off to a dramatic start.

Here are a few highlights:

• Settle Inn developed a franchise agreement that has been recognized as the first start-up franchise to earn AAFD Accredited Status — earning a near perfect 99.3 percent conformity against AAFD standards — easily the highest conformity ever achieved by a Fair Franchising Seal Applicant in any industry.  Settle Inn was recently recognized by the American Association of Franchisees and Dealers (AAFD) for setting a new standard when it comes to franchise agreements. 

• Settle Inn LLC completed a total redesign of its consumer trademark, Web site and corporate identity, including launching an enhanced development Web site for owners and operators.

• In August 2006, Settle Inn LLC signed a multi-property development agreement with a Green Bay, Wisc., Developer, John Shaline, to construct up to 12 new hotels in Wisconsin.  The first hotel is under construction in Appleton, Wisc., and will open in May 2007.

• In September 2006, Settle Inn LLC signed a multi-project franchise agreement with a Pierre, S.D., investor, Mark Foster. Foster signed a development agreement with Settle Inn & Suites for four property locations in Wyoming and the Dakotas. Cities earmarked for the hotels include Gillette, Wyoming, Sioux Falls, S.D., and Fargo and Bismark, N.D. The agreement requires that one property per year be built with the first hotel to be constructed by September 2007.

• Settle Inn LLC signed a partnership with American Road magazine, a quarterly magazine that celebrates America's two-lane highways and the people and places that make them great, and will begin in-room distribution in January 2007.

• In December 2006, Settle Inn acquired the GuestHouse International brand. Settle Inn LLC bought GuestHouse International Inns, Hotels & Suites, an upper-economy brand of more than 70 franchisees with operations in 22 states and China.

Accor North America has been in business for 14 years. In addition to being an AAHOA Founding Sponsor, Accor has committed to Founding Sponsorships with NABHOOD and the Hispanic Hotel Owners Association. Accor will sponsor such major industry events in 2007 as the Hotel Brokers International Association and Hotel Investment Conference and Franchise Expos throughout the U.S.

Earlier this month, Accor announced a partnership with the Ohio Rehabilitation Services Commission (RSC) to maintain employment positions for individuals with disabilities and was awarded a grant by the Ohio RSC. The Ohio RSC’s Governor's Initiative on Jobs for People with Disabilities is a grant program that offers economic development projects that create job opportunities for people with disabilities.

Additional promotional partners include National Hot Rod Association (NHRA), Professional Bowlers Association (PBA), Domino’s, NAVTEQ, infoUSA, Delorme, Jack Hanna and the Columbus Zoo & Aquarium.

Accor is dedicated to developing relationships with minority entrepreneurs. As a result, it has formed a task force to increase minority awareness of ownership opportunities with Accor Hotels. The focus of this effort will provide initiatives along with a comprehensive instructional guideline that will present potential franchisees with all of the elements necessary to help them succeed, whether or not they are experienced hotel operators.

During 2006, Accor proudly sponsored the 2006 AAHOA South Pacific Regional Conference in Buena Park, Calif., co-sponsored the March 22 dinner at the 2006 AAHOA Annual Convention & Trade Show, the LKPS Convention in Fayetteville, N.C. and numerous golf events including the 2nd Annual KHAZANA Charitable Golf Event.

Accor North America was recognized as an EPA “Energy Star Leader” for rising to the challenge to reduce the energy they use and help the environment. As part of the Energy Star Building Challenge, Accor joined 20 others as Energy Star Leaders for improving the energy efficiency of buildings.

In addition, Accor participated in numerous franchising events such as the IFA (Taste of Franchising Event) and the Minority Vendors Outreach Showcase.

In 2007, Accor anticipates a 12 to 15 percent increase in growth through franchising of the Motel 6, Studio 6 and Red Roof Inn brands.


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