BWH Hotels franchisees made a strong showing at the company’s annual convention, which took place this week in Honolulu at the Hawaii Convention Center and Hilton Hawaiian Village. The attendance figure of approximately 2,000 is comparable to previous conventions in Hawaii, which BWH Hotels visits every seven years.
Yesterday’s spirited general session was tempered by a recognition of the tragedies caused by the August wildfires on Maui, which destroyed the historic Best Western Pioneer Inn among many other downtown properties. Appropriately, President and CEO Larry Cuculic began the session with a moment of silence, followed by a positive takeaway from the local community’s response to the tragedy. “I realized something important regarding what has occurred on Maui, the history of Hawaii, and Best Western. The word I land on is ‘resilience.’ We, all of you, have had challenges recently—resilience is the key. Challenges make us better,” he said.
BWH Hotels has done much more than persevere in 2023, and the “Big Wave” convention theme represented both the company’s positive impact and surge of achievements. “Our big wave has rippled through our organization, our industry, and our lives, touching your guests, your communities, and leaving a rich legacy of success,” said Cuculic.
Best Western Rewards
Among BWH Hotels’ recent successes are the strides made by its loyalty program. “Best Western Rewards earned the No. 2 spot on Newsweek’s list of America’s Best Loyalty Programs for 2023,” Cuculic cited. “And with respect to BWR revenue, we are making a huge wave. BWR revenue contribution is up two full percentage points from where it was last year. … We can be proud that North American revenue associated with our BWR members has increased 10 percent fiscal year to date.”
New loyalty promotions have been launched to boost this performance further. This fall, reward program members—currently numbering 54 million globally—will have the opportunity to accrue 5,000 bonus points for staying two nights at BWH Hotels properties across the United States, Canada, and the Caribbean. In addition, WorldHotels Rewards is giving members the chance to earn up to 20,000 bonus points through stays at the brand’s independent hotels and resorts through Nov. 20, 2023.
Revenue Records
Cuculic also highlighted brand contributions to revenue growth over the last 12 months. “Our lowest-cost booking channel has generated $1.64 billion in global revenue, which is up 12.4 percent compared to the previous 12-month period and sets a new record,” he said. “We have experienced 30 consecutive months of year-over-year growth. Additionally, global revenue for our mobile app surpassed $166 million, a 44 percent increase for the same time period, also establishing a new record.” The company’s global reservation enterprise “produced $5.2 billion of revenue in 2022, a 25 percent increase from 2021 production, and a 17 percent increase over 2019 production,” Cuculic added.
Diverse Development
The company currently has 19 brands in every segment, including luxury, lifestyle, upscale, midscale, premium economy, and extended stay. “We’ve grown to 4,300 hotels in over 100 countries and territories around the world,” Cuculic said. He called that growth “the big wave that spans the globe. It can be seen from Juneau, Alaska, to Bangkok, Thailand, to Sydney, Australia, and beyond. We’re not stopping anytime soon. The expansion of our boutique brands like Aiden across North America and global markets has been critical to our big-wave success.” Aiden’s portfolio of 23 global properties is set to double this year. Meanwhile, the new @HOME by BWH “will allow us to capture our fair share of the extended-stay segment, which is expected to generate at least $18 billion in revenue opportunity this year alone,” Cuculic added.
Promising International Outlook
Also speaking at the general session, President of International Operations Ron Pohl cited an overarching opportunity for hoteliers: “Bloomberg recently reported travel is set to become a $15.5 trillion industry by 2033, accounting for more than 11.6 percent of the global economy. This represents a 50 percent increase over its $10 trillion value in 2019. That’s a tidal wave of opportunity.” BWH Hotels is set to further capitalize on that demand. “This year, we’ve entered many new markets for the very first time. We currently have the 232 Best Western hotels and 37 WorldHotels in our international pipeline,” said Pohl, adding “APAC remains our fastest-growing market.”
Pohl led a “redefinition” of WorldHotels this year to make the brand “a bit more competitive.” “Today’s travelers want unique experiences, and developers want to create their own vision and story for their hotel, just like all of you,” Pohl explained. “So, we created a new brand story for WorldHotels, and it serves as a platform for each property to magnify their story. It’s called Welcome to Our World.” The narrative showcases the craftsmanship that goes into each of the soft brand’s properties, from immersive culinary offerings to locally sourced spa treatments to the displayed work of emerging artists.
