Best Western notches record-breaking year
27 JANUARY 2015 1:54 PM
Best Western International set a brand record, achieving a North American RevPAR index of 111.2 in 2014.
PHOENIX—Best Western International set a brand record achieving a North American revenue per available room (RevPAR) index of 111.2 in 2014* (100 represents fair market share). This follows the company’s previous two year record of a RevPAR index of 110 or above and represents a 26.8 percent growth rate in RevPAR since 2011, outpacing the competition by six points.
2014 also saw the brand reach two other milestones; generating total revenue of $3.9 billion in North America and exceeding the $1 billion mark through its central reservations system.
“I am pleased with the success we have achieved over the past three years. Several factors have contributed to this success including the introduction of our descriptor program, improving the quality of Best Western hotels in North America and our continued investment in our marketing and sales programs and our technology infrastructure,” said David Kong, Best Western president and CEO.
“In 2015 we are focused on continuing our unprecedented success in RevPAR performance, enhancing our current industry-leading technologies by implementing a new digital platform to power our internet and mobile strategies and developing our two new global hotel products Vib and BW Premier Collection,” added Kong.
With the addition of Mike Muir, vice president of North American development in 2014, the company also added an aggressive new construction focus to its development strategy. The 2015 North American pipeline is strong at 160 projects, of which almost 60 percent are new construction and of the BEST WESTERN PLUS® branded projects in the pipeline, 65 percent are new construction.
“We have set aggressive goals for developing new construction BEST WESTERN PLUS and BEST WESTERN PREMIER hotels and with the introduction of our new refreshed, contemporary prototypes, we are seeing increased interest from developers,” said Muir. “Add to that our new boutique concept Vib and our soft brand BW Premier Collection, and we now offer hotel developers six types of products that cover the hottest segments in the industry.”
Best Western’s portfolio of hotel products offers development opportunities spanning the midscale to upper upscale segments:
BEST WESTERN PREMIER®: The company’s upscale hotel offering earns an average daily rate (ADR) of $134. Since 2011 the portfolio of BEST WESTERN PREMIER branded hotels has grown to almost 150 worldwide.
BW Premier Collectionsm: Best Western’s new soft brand consists of independent upscale and luxury hotels in destination and major markets. The unique pay-for-performance fee structures means hoteliers only pay fees for business earned through Best Western channels.
BEST WESTERN PLUS: Since introducing the upper midscale PLUS descriptor in 2011, the global footprint of BEST WESTERN PLUS hotels has grown to more than 1,000. With a North American ADR of $105 BEST WESTERN PLUS provides an excellent return on investment (ROI).
BEST WESTERN PLUS EXECUTIVE RESIDENCYsm: This upper midscale extended stay hotel is designed to generate a superior ROI. In the steadily growing extended stay segment, the average occupancy rate is 80 percent and ADR is up six percent.
Vibsm: Best Western’s new chic, hip boutique concept is designed to combine value and style for today’s traveler and is unique to the midscale segment. Development strategy, for this boutique concept, is focused on major markets and new construction projects.
BEST WESTERN®: With a global footprint of more than 2,700 hotels and a North American ADR of $90 BEST WESTERN outperforms the competition in the midscale segment.
For more information on development opportunities with Best Western please visit bestwesterndevelopers.com.
* Best Western conducted an analysis of a dozen midscale and upper midscale competitors that provide public RevPAR information which yielded an average RevPAR index of 101. Best Western’s index of 111 averaged 10 points higher. The brands were compared to their respective chain scales to determine the associated index. Brands in the comparison included Holiday Inn, Holiday Inn Express, Fairfield, Comfort Inn & Suites and La Quinta.