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.BestWesterndevelopers.com

Fast Facts:
Number of Best Western hotels open in the U.S.: 2,069
Number of Best Western hotels open in Canada: 182
Number of hotels worldwide: 4,000

Fees:
Affiliation fee: $37,000 plus $200 for each additional room over 50
Evaluation fee: $3,000
Annual dues: $4,237 for 100 units
Annual membership fee: $40,333 for 100 units
Reservation fee: $.26 per room for first 12 months of membership; afterward, fee is based on number of room nights booked through the system
Advertising/marketing fee: $7.63 per room per month

LodgingOperator.com (LO): What makes Best Western a unique hotel membership organization?

Mark Williams: Two things stand out:  Our simple mission to drive revenue to our member hotels; and our global brand recognition, which also drives business to our North American properties.

LO: How do membership organizations differ from franchise companies? How does Best Western differentiate itself from other franchisor companies?

Williams: Best Western is a non-profit member organization, and all of our independently owned and operated hotels have a vote as a member of the association. Our members pay annual dues based on number of rooms -- instead of royalties based on revenue. And our members are not tied to long-term contracts.

LO: What is the most innovative idea that Best Western has introduced to its hoteliers? How else does your organization benefit hoteliers?

Williams: Best Western recently introduced a turnkey upper mid-scale development prototype. Designed with business travelers in mind, the prototype is contemporary and sleek, with signature community gathering space, guestroom design and color palette. The prototype is designed to compete against brands like Hyatt Place and Cambria Suites, but can be built at a much lower cost – an estimated $85,000-$90,000 per key, compared to more than $100,000 per key for its competitors.
     Our organization benefits hoteliers through our flexible membership model, which gives each owner a voice in guiding the brand. Best Western provides the guidance for property standards, while allowing developers and the entrepreneurial freedom to offer their own signature guest experience to best compete in their markets.
     Developers who choose Best Western really get the best of all worlds: the flexibility to meet the unique needs of the local market, international brand recognition, and the entry-path and cost efficiencies that only The World’s Largest Hotel Chain® delivers.

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

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, sponsors the Certified Hotel Owners program for all AAHOA members.

LO: Briefly, how was the brand was founded (how long ago, what was its original impetus, etc.)? How has the business plan shifted over the years?

Williams: Best Western was founded in 1946 by M.K. Guertin, a California-based hotelier with 23 years of experience in the lodging industry. He had a vision to create a network of high-quality hotels that would refer business to one another through a membership organization. By 1963, Best Western was the largest hotel chain in the industry with 699 member hotels.
     Today, Best Western remains THE WORLD’S LARGEST HOTEL CHAIN®, with more than 4,000 properties in 80 countries. While Best Western is the largest hotel brand in world, our business plan is focused on quality – not on quantity. In the last several years, the brand in North American has stepped up its quality measures to assure that only top performing properties fly the Best Western flag.

LO: What are your plans for growth? How many Best Western hotels do you expect to open in 2008? What are your target markets within the U.S. and Canada?

Williams: In 2008, Best Western plans to add 180 new properties representing more than 15,300 rooms in North America. Of these, nearly 130 are expected to be new construction. The brand strategically is targeting secondary markets throughout the United States and Canada, and high-growth areas like Texas, California, New York City and Alberta.

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

Williams: One of our main goals is to keep improving our frequent-stay program, Gold Crown Club International. The program will be re-launched as Best Western RewardsSM in late 2008 with new enhancements, including priority check-in and special offers for elite members. The club has more than 8.5 million loyal members and recently earned an 8 out of 10 rating from InsideFlyer, a must-read magazine for frequent travelers.
     We also have a five-year vision to lead the industry in customer care. To help achieve this, we are bringing innovative customer care training to every North American property this year. This commitment to service is about going beyond the already high level of customer care that people expect from Best Western and delivering heroic hospitality – the special connection that makes our hotels the welcoming place that more than 400,000 guests call home each night.

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 4,000 hotels is unique. We have business hotels, resort hotels, hotels built on golf courses, on wineries … the list goes on.
     The exception to this is Best Western’s recently introduced upper midscale prototype.  Its signature features, including multi-function community space and loft-style guestrooms with a neutral color palette, will be consistent in each hotel.
     Although different in appearance and size, all Best Western hotels offer a basic set of amenities, including free high-speed internet access, breakfast on site, free local calls and more.

LO: Please describe the quality assurance (QA) process for Best Western members. Can you give some measure of member satisfaction? (i.e., franchise renewal rate or some other measure?)

Williams: Member hotels are evaluated twice each year to ensure they are meeting the minimum standards set by Best Western. Hotels that are not meeting standards work with member liaisons to improve their properties.
     Members report extremely high satisfaction rates. Nearly 98 percent opted to renew their memberships last year.

LO: In your view, what are the keys to Best Western’s success? Is there anything else you’d like to add?

Williams: Many factors contribute to Best Western’s success:

1.) Best Western is a privately held membership organization, so we cannot be acquired or taken over by a larger company. For hotel developers and investors, this stability means that they’ll be able to keep their Best Western flag and branding consistent.

2.) North American hotel owners benefit greatly from Best Western’s global strength.  We are opening four- and five-star hotels in Asia, Europe and South America. Given the strength of the Euro and pound sterling, international travelers are booking their North America travel at Best Western hotels based on the strength of our brand.

3.) Each Best Western member votes on a regular basis to help determine what’s best for the brand and ultimately their guests.

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