Best Western

Mark Williams, vice president of North American development with Best Western International, answers questions about Best Western and its membership philosophy. For information about Best Western International, contact Marie Yarroll, Communications Manager Phone: 602-957-5752 Fax: 602-957-5641 Email: marie.yarroll@bestwestern.com Web site: www.BestWestern.com

Fast Facts:
•    Number of Best Western hotels worldwide: 4,200
•   Number of Best Western hotels in the U.S.: 2,200
•   Number of Best Western hotels in Canada: 180
•   Membership fees: Initial one-time fee of $48,000*; annual dues of $3,993*;
     annual marketing fee of approximately $38,000*; annual reservations fee
     of $9,125*
                  *Note: fees are based on a 100-room property

LodgingOperator.com: What makes Best Western different from other hotel membership organizations?

Mark Williams: Our size, diversity and organizational structure set us apart from other hotel membership organizations.

LO: How do membership organizations differ from franchise companies?

Williams: Best Western is a non-profit member organization made up of independently owned and operated hotels, all of which have a vote as a member of the association. In terms of fees, our members pay annual dues instead of franchise fees or royalties. Our members are not tied into long-term contracts.

LO: How does your organization benefit hoteliers?

Williams: Best Western offers its members the unique advantage of retaining their independence while offering a global reservations system, marketing, advertising, purchasing, training and quality standards.

LO: What educational opportunities do you offer to your members?

Williams: Best Western offers a full slate of training and development programs for its members and their employees, including general manager training, orientations for new members and hotel owners, customer care training and more. Best Western – in partnership with AAHOA (Asian American Hotel Owners Association) – sponsors the CHO (Certified Hotel Owners) program for all AAHOA members.

LO: How long has the Best Western brand been around? Briefly, will you tell the story of how the brand was founded?

Williams: Best Western was founded in 1946 by M.K. Guertin, a California-based hotelier with 23 years of experience in the lodging industry. Best Western International began as an informal referral system among member hotels. By 1963, Best Western was the largest chain in the industry, with 699 member hotels and 35,201 rooms. In 1964, when Canadian hotel owners joined the system, Best Western took the first step toward global expansion.

LO: What is the most innovative idea that Best Western has introduced to its hoteliers?

Williams: Best Western has been a hotel industry innovator throughout its history. A decade ago, we were one of the first lodging brands to provide online booking capabilities. The web site, BestWestern.com, has been booking $1 million in revenue per day for the hotel chain since January 2005 and recently recorded its first $2 million day.

Best Western was also the first global hotel brand to require its properties to provide high-speed Internet access, which we implemented system-wide in 2004.

Best Western became the first-ever Official Hotel of NASCAR in 2004.

LO: What are the keys to your success?

Williams: There are many factors, but I will highlight two: continually improving our brand quality and providing outstanding member service.

LO: Please describe the “typical” Best Western property — average number of rooms, typical demographics of the trade area, etc.

Williams: Because Best Western properties are all independently owned and operated, there is no typical property in terms of size or appearance. Each of our 4,200 hotels is unique. We have business hotels, resort hotels, hotels built in castles, near movie theaters, on golf courses … the list goes on.

Although different in appearance and size, all Best Westerns offer a basic set of amenities, including free high-speed Internet access, breakfast on site, free local calls, a coffee or tea maker in all guestrooms and more.

LO: What is the quality assurance process like for Best Western members?

Williams: Member hotels are evaluated twice each year to ensure they are meeting the minimum standards set by Best Western. Hotels that don’t meet the standards work with member liaisons to improve their properties.

LO: Can you give some measure of member satisfaction? (i.e., how many members renew their membership each year?)

Williams: Members report extremely high satisfaction rates. In fact, 99.6 percent of our existing members opt to renew their membership every year.

LO: What are your plans for growth? How many Best Western hotels do you expect to open in 2007? What are your target markets within the U.S. and Canada?

Williams: Best Western's goal for 2007 is 150 new properties focusing mainly in gateway and primary markets to better profile Best Western in large metropolitan areas. Of these, 60 percent will be new construction.

LO: What are your other goals for the next couple of years? (i.e., plans to launch new initiatives, new marketing campaigns, etc.)

Williams: Reaching new levels of customer care is a priority for us, as is looking at new products and markets for development. We are also building our customer loyalty program, Gold Crown Club International, and leveraging our marketing partnerships with NASCAR and AAA.



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