PHOENIX, Arizona—David Kong, a mild-mannered, dedicated executive, is celebrating his fifth year as president and CEO of Best Western International, the membership organization that bills itself as the world’s largest hotel chain.
Kong suggested he enjoys operating below the radar in a recent telephone interview from Best Western headquarters in Phoenix, Arizona.
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David Kong
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“I just like to stay out of politics and try to do as good a job as I can,” he said, referring to interacting with Best Western’s board of directors, to which he answers.
“Anyone who wants to be successful at Best Western needs to accept the fact that we’re a different organization,” he said. “It’s like any relationship—with your spouse, your children, even your parents. You love them for the entire package, though you wish there were some things you could change. Likewise, you have to love this organization as a package.”
Charlie Helm, who joined the board of directors in late 2004, about the time Kong went from acting to permanent chief, said Kong’s work ethic and integrity are second to none.
“The man has no hidden agenda,” Helm said. “Everybody knows exactly where he stands. And he’s a workaholic—he eats and sleeps Best Western.”
Helm, who was board chairman in 2007, is in the second year of his second three-year term. He owns Best Westerns in Lufkin and Greenville, Texas; will open one in Forney, Texas, next week; and has started to build a fourth, in Denton, Texas.
“David Kong isn’t in a class of his own, but it doesn’t take long to call the roll,” Helm said, paraphrasing O.A. “Bum” Phillips, a former (and the winningest) coach of the Houston Oilers football team.
Since he became top dog at Best Western in fall 2004, Kong has overseen the reinvention of the brand’s loyalty program, shepherded its affiliation with NASCAR, introduced the contemporary Atrea prototype and guided its growth in Europe and Asia. He came to Best Western in 2001 when then-president and CEO Jim Evans hired him from KPMG Consulting to help relaunch the loyalty program then known as Gold Crown International. It’s now called Best Western Rewards.
Stability a hallmark
From 1998 to 2004, Best Western management was volatile. Ron Evans, who ran the brand from 1979 to 1998, was succeeded by Jim Evans (no relation), who left in 2002. Then the brand hired Tom Higgins, former president and CEO of Days Inn Worldwide, who lasted just less than two years. When Higgins left in 2004, Kong was named acting president and CEO. The other Best Western honcho in the running, chief financial officer Anupam Narayan, left to become president and CEO of Red Lion Hotels.
“We’ve been on a path of strengthening the brand promise,” Kong said, citing improvements of customer care, enforcement of brand standards that has led to the shedding of 500 properties from its 4,000-plus hotel portfolio, and navigating this giant, cantankerously democratic flag through the current economic recession.
“We have more work to do,” he said. “I’ll be very focused on making that happen. It’s unfortunate we have this soft economy and credit crunch, and that hotels that are approved aren’t coming to fruition as fast as we’d like.”
Nevertheless, he’s heartened by the acceptance of the Atrea prototype: 28 developers have signed deals for Atrea-styled Best Western.
In fall 2007, Best Western introduced Atrea in five- and six-story configurations. Offered in three different styles, Atrea is Best Western’s first step into the mid- to upscale segment. Like such competitors as Choice’s Cambria Suites and Marriott’s revamped Courtyard, it features a multifunctional community space. The 100-room Atrea, which Best Western says can be built for US$85,000 to US$90,000 a key, also offers a loft concept and a color palette designed to cross generations.
The Kong record
During the past five years, Best Western notched numerous firsts, according to the company:
- It became the first official hotel sponsor of NASCAR, the car-racing organization;
- it was the first chain to offer virtual tours of every North American property on its Web site;
- it pioneered presenting its Web site in eight different languages;
- it was the first chain to offer electronic gift cards; and
- it was the first chain to offer free, high-speed Internet access at all of its member properties.
Mike Kistner, who developed and executed that HSIA rollout as chief information officer and senior vice president of distribution, left Best Western in 2005 for Pegasus Solutions, a Dallas, Texas-based hotel travel distribution technology company, where he’s CEO. He attests to Kong’s diplomatic skills.
“David made a point from the beginning to convey and demonstrate his understanding of how important the members are to the organization and to him,” Kistner said. “This helped build a level of trust and open communication that help him navigate the sometimes uncertain waters of a membership organization.”
The economic crisis presents opportunities, David Kong said.
“You think of Apple Computer losing about 35 percent of its revenue in 2001, but they spent money on research for the iPod and iPhone, and look how they grew,” he said. “Asia is a huge opportunity. We’re the fastest-growing brand there.”
The Middle East also is an opportunity: Three Best Westerns are set to open in Dubai this year.
“Those things you have to do regardless of the economy,” Kong said, noting Best Western also is investing in training and developing a next-generation customer care program with Ideo, the company that designed the Apple mouse and reinvented the Palm Pilot as the Palm V. “We’re making a lot of investments for our future.”
