THE PIPELINE : BEST WESTERN INTERNATIONAL
a unique business relations strategy for a hotel brand here in Asia and the Middle East ,” de Souza says .
Unlike in the Middle East , the European economy is the main challenge for the company . While its nonownership-based strategy allows it to enter riskier markets , European
Best Western Premier Mariemont Inn , Cincinnati , Ohio
Best Western Plus Chemainus Inn , Vancouver
development still requires a thorough search for locations that have upside . While some of the company ’ s development will be in places like the United Kingdom , where it has a long history , it ’ s also branching out into countries like Italy and Sweden , each of which expects to see eight new Best Western properties by the end of the year .
Prime opportunities for the company , though , come from growing where international brands haven ’ t yet blossomed . One focus is Russia , where most major markets remain under-supplied . There is also development buzz around the 2014 Olympics in Sochi ( where the company plans to have a hotel ) and the 2018 World Cup .
In the Moscow luxury market , Best Western has a Premier with the Vega , its 966-room Best Western , on the outskirts . It also recently launched its first Plus hotel in the country , in Tyumen , Siberia . Best Western plans to open five more hotels by the end of the year and continue growing in the region long term . “ There aren ’ t a lot of international branded hotels in Russia right now , and out of 200,000 rooms only about 20,000 are up to international standards ,” Yoder says .
Yoder adds that even beyond gateway targets there are huge possibilities for expansion . “ There ’ s the so-called golden ring of tourist destinations in places with enough demand for international brands — cities like Yaroslavl , Ivanovo and Vladimir ,” Yoder says . “ Those will be our next destinations .”
Navigating roadblocks Despite Best Western ’ s recent successes , the story is one of so far , so good . However , not all experts think the formula is perfect . While most industry insiders agree introducing the tiers was smart , Best Western still has to convince owners , especially in North America , that the strategy is worth it .
Originally , about 20 % of the properties offered the Plus designation didn ’ t opt in . “ We haven ’ t seen the buy-in we wanted for Plus and Premier , but we are starting to get more interest as owners see the results ,” Williams says .
Detlefsen of HVS agrees that as time goes on , these upgrades will , to an extent , sell themselves . But , he adds , the five-figure initial investment could be an issue . He feels the company should consider offering a loan guarantee or financing assistance to properties looking to upgrade .
48 HOTELS April 2012 www . hotelsmag . com