H: The pandemic has accelerated the hospitality industry’s shift towards technology automation. Will automation completely replace the front desk? What’s the next tech-related move being considered by Best Western and how do you convince owners to make the investment now after such a tough few years?
LC: We have invested heavily in our technology platform, assets, and personnel. We revamped bestwestern.com and the results have been remarkable. Last summer, bestwestern.com set several records of performance exceeding the prior record-setting year of 2019 – we continue to set daily and monthly revenue producing records.
Will automation completely replace the front desk? Not in the near term.
How will Best Western convince hoteliers to invest in innovation? Our hoteliers are smart – they invest when there is a need, a business case, and an appropriate return on investment.
We recognize that consumers are relying more and more on the mobile experience, and we are investing heavily in that direction as a result. As we focus on improving the mobile experience, we are developing the ability to accept additional forms of payment besides credit cards. We also want to make our gift cards easier to use so that they can be redeemed online.
H: How strong is the Best Western pipeline today versus two or three years ago? Which parts of the world is Best Western looking at for expansion opportunities? Which brands do you expect to have the most growth?
LC: BWH Hotel Group remains focused on growing our presence globally. In recent years, we have had tremendous success in thoughtfully increasing our scale in key locations throughout the world. With the acquisition of WorldHotels in 2019, we expanded our global reach, while adding brands in the upper upscale and luxury segments. In addition, we have launched new brands that appeal to today’s travelers and developers, including four boutique offerings: Vīb, GLō, Sadie and Aiden. I’m extremely proud of our diverse and contemporary portfolio with 18 distinctive brands across every chain scale segment – from luxury to economy.
In terms of regional focus, and as the pandemic wanes internationally, North America will remain a strong growth market. Additionally, noting our strong international partners, our development strategy will continue to place an emphasis on key international markets in central Europe and Asia Pacific. Our pipeline is as strong as ever.
H: Are you looking to launch new brands?
LC: We are not looking to launch new brands right now; however, we are always exploring the right avenues for scalability and development in key markets across the globe.
H: Are you satisfied with the growth of Best Western boutique brands? What about WorldHotels? What can be done better across the company to drive unit growth?
LC: We are experiencing tremendous success with our boutique brands, and they will continue to be a big player in our growth plans – hotels with a local flair are in demand from both developers and travelers. We know that our travelers are looking for great experiences with modern amenities whether they are traveling for business or leisure. Recognizing the needs of both travelers and developers, we launched our urban, upscale boutique brand, Vīb. We already have a Vīb in Antalya, Turkey, and in Bangkok, Thailand, as well as others in the U.S. That brand, along with our boutique brand Aiden, which has locations in France, Austria, U.S. Australia, Italy and South Korea, will continue to be a major focus for us.
With regard to WorldHotels, we recently promoted Ron Pohl to president of WorldHotels. Throughout his tenure with BWH Hotel Group, Ron has made many significant contributions, including increasing the company’s presence around the world. In his new role, Ron will be ensuring the organization’s strategic goals are met to include increasing scale, driving exceptional revenue to hoteliers, and enhancing the brand’s image.
H: How are owners performing today coming out of the deepest recesses of the pandemic?
LC: We’re positive about the outlook of both business and leisure travel and we are trending towards pre-pandemic levels. For example, our weekend occupancy is already on par with 2019 levels, and our midweek occupancy over recent weeks across our Best Western, Best Western Plus and Best Western Premier brands is only slightly behind 2019 levels. Meanwhile, rates are strong and we’re expecting the majority of our hotels to have a record-breaking summer in terms of RevPAR. Regions like Canada are springing to life now, and primary markets, which had been so severely impacted during the pandemic, are trending toward recovery.
H: What is your performance forecast for Best Western?
LC: We are confident that we will have an extremely strong summer season – recent performance and future bookings are consistent with the experts’ predictions. The industry’s reasonable belief is that business travel will eventually return as well – again, we agree.
Our forecast — we have great hoteliers who provide great hotel stays. Because they exceed guest expectations, and build brand loyalty, we predict continued record-setting success — that is our forecast.
By Kathakali Nandi