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Confidential: This presentation contains confidential, proprietary information and trade secrets of Best Western International, Inc. It is intended for use solely by Best Western International, Inc. and its Members. This presentation and its content may not be shared with or disclosed to any non-Best Western third-party. Initiatives described may be amended based upon Member feedback, and may be implemented in whole, in part, as revised, or not at all.

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Page 1: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Confidential: This presentation contains confidential, proprietary information and trade secrets of Best Western International, Inc. It is intended for use solely by Best Western International, Inc. and its Members. This presentation and its content may not be shared with or disclosed to any non-Best Western third-party. Initiatives described may be amended based upon Member feedback, and may be implemented in whole, in part, as revised, or not at all.

Page 2: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Confidential: This presentation contains confidential, proprietary information and trade secrets of Best Western International, Inc. It is intended for use solely by Best Western International, Inc. and its Members. This presentation and its content may not be shared with or disclosed to any non-Best Western third-party. Initiatives described may be amended based upon Member feedback, and may be implemented in whole, in part, as revised, or not at all.

CEO Update David Kong

President and CEO

Page 3: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

BEST WESTERN PLUS Edmonds Harbor Inn – Edmonds, WA

Page 4: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

BEST WESTERN PLUS Caldwell Inn and Suites – Caldwell, ID

Page 5: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

BEST WESTERN PLUS Kennewick Inn – Kennewick, WA

Page 6: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Topics of Discussion

• Descriptor Update

• Company Performance

• Industry Awards

• Key Initiatives

Page 7: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

DESCRIPTOR UPDATE

Page 8: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

tango flex latitude

Imitation is the Highest Form of Flattery

Advance Premier Business

Page 9: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

FY2012 YE Descriptor Mix

FY 2012 NA Active NA Pipeline Int’l

Active

BEST WESTERN 1,238 48 1,633

PLUS 872 160 141

PREMIER 21 18 127

Page 10: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

STR Chain Scales (US)

Midscale: ADR $60 - $84.99 BEST WESTERN

Example Brands:

La Quinta Inn Hawthorn Suites Quality Inn Wingate

Sleep Inn Candlewood Suites Baymont Ramada

Upper Midscale: ADR $85 - $104.99 BEST WESTERN PLUS

Example Brands:

Hampton Holiday Inn Express Holiday Inn Clarion

Comfort Inn TownPlace Suites Fairfield Country Inn & Suites

Source: STR

Page 11: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

2012 Year End RevPAR Index

United States RevPAR Index

Canada RevPAR Index

BEST WESTERN vs. Midscale 117.4 126.5

BEST WESTERN PLUS vs. Upper Midscale

98.7 106.0

BEST WESTERN PREMIER vs. Aggregate Competitive Sets

105.0 92.8

Source: STR, CY2012

Page 12: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Opportunities exist in certain months of the year

91.4 93.1 93.2 96.5 97.3 101.3 107.8 108.2 103.7 95.9 91.8 95.3 80

85

90

95

100

105

110

US BEST WESTERN PLUS vs. Upper Midscale RevPAR Indices

One Month Index CYTD Index

Source: STR

Page 13: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Bottom 20% Lags Significantly in Performance

Source: STR

* Based on an aggregate percentile score derived by weighting the 2012 GRPA average and Product GSS, then ranking..

US BEST WESTERN PLUS

CY 2012 RevPAR RevPAR % Growth

RevPAR Index

Occupancy Index

ADR Index

Top 80%* $62.53 7.7% 101.8 101.7 100.0

Bottom 20%* $53.78 4.8% 87.5 95.7 91.5

US

Average GSS Product

Average GRPA

Top 80%* 68.7% 943

Bottom 20%* 50.7% 872

Page 14: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Top 80% Competes Effectively in Comp Set

Source: STR

* Based on an aggregate percentile score derived by weighting the 2012 GRPA average and Product GSS, then ranking..

US BEST WESTERN PLUS vs. US Upper Midscale

CY 2012 RevPAR RevPAR % Growth

RevPAR Index

Occupancy Index

ADR Index

Top 80%* $62.53 7.7% 101.8 101.7 100.0

Bottom 20%* $53.78 4.8% 87.5 95.7 91.5

All US BEST WESTERN PLUS $60.62 5.5% 98.7 100.3 98.4

US Upper Midscale $61.43 6.7%

Page 15: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Top 80% Competes Effectively in Comp Set

Source: STR

* Based on an aggregate percentile score derived by weighting the 2012 GRPA average and Product GSS, then ranking..

US BEST WESTERN PLUS vs. US Upper Midscale

CY 2012 RevPAR RevPAR % Growth

RevPAR Index

Occupancy Index

ADR Index

Top 80%* $62.53 7.7% 101.8 101.7 100.0

Bottom 20%* $53.78 4.8% 87.5 95.7 91.5

All US BEST WESTERN PLUS $60.62 5.5% 98.7 100.3 98.4

US Upper Midscale $61.43 6.7%

Page 16: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

US BEST WESTERN PLUS RevPAR Index Trended Lower

2011 2012

US BEST WESTERN PLUS 99.7 98.7

* Based on an aggregate percentile score derived by weighting the 2012 GRPA average and Product GSS, then ranking..

Source: STR

RevPAR Index Comparison

Page 17: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Bottom 20% Declined by 160 Basis Points

2011 2012

US BEST WESTERN PLUS 99.7 98.7

Bottom 20%* US BEST WESTERN PLUS

89.1 87.5

* Based on an aggregate percentile score derived by weighting the 2012 GRPA average and Product GSS, then ranking..

Source: STR

RevPAR Index Comparison

Page 18: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Top 80% Improved by 100 Basis Points

2011 2012

US BEST WESTERN PLUS 99.7 98.7

Bottom 20%* US BEST WESTERN PLUS

89.1 87.5

Top 80%* US BEST WESTERN PLUS

100.8 101.8

* Based on an aggregate percentile score derived by weighting the 2012 GRPA average and Product GSS, then ranking..

Source: STR

RevPAR Index Comparison

Page 19: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

COMPANY PERFORMANCE

Page 20: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

BW Rewards Continues Its Impressive Growth

FY 2012 % Chg

Frequency Revenue $1.2B 21.0%

Frequency ADR $94.28 4.0%

# of BW Rewards Members 16.0M 17.5%

% Active BWR Members 19.2% 0%

Source: Best Western Rewards

Page 21: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

NA Best Western Rewards program revenue contribution reaches 34%

of total hotel revenue

34%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Best Western Rewards Contribution

Source: Best Western Rewards, FY 2002-FY2012

Page 22: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Increases seen in GSS Intent to Recommend and QA scores

104.7

105.5

GSS Intent to Recommend Index vs. Corporate Comp Set

FY 2011 FY 2012

912

918

GRPA – Brand Average

FY 2011 FY 2012

Source: Medallia, Member Services

Page 23: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

LYNX revenue ($USD)

Global North America

LYNX Revenue Hit All Time High in 2012

Source: LYNX, FY2002-FY2012

$1.4B

$935M

Page 24: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

NA RevPAR Index vs. Broad Midscale highest in 10 years

102.9 103.9 104.4

104.5

103.5 102.6

103.8

105.1

104.6

106.0

110.0

100

102

104

106

108

110

112

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

RevPAR Index vs. Broad Midscale

Source: STR CY2002-CY2012 Broad Midscale comprises STR Upper Midscale and Midscale. Index is weighted based on number of Best Western properties in each chain scale.

Page 25: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

2012 INDUSTRY AWARDS

Page 27: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

2013 Most Engaging Midscale Brand

4th Year Best Western Ranks Best in Delighting the Customer in Midscale Segment

Hotel (Midscale)

1. Best Western

2. Hampton Inn

3. Ramada

4. Holiday Inn

5. Comfort Inn

Page 28: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

TTG Travel Awards

BEST MID-RANGE HOTEL CHAIN SIX YEARS IN A ROW

Page 29: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

ADRIAN AWARDS

25 ADRIAN AWARDS INCLUDING 14 GOLD FOR EXCELLENCE IN ADVERTISING, PUBLIC RELATIONS AND DIGITAL MARKETING AND 2 PLATINUM

Page 30: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

2012 Most Successful Year

• $1.4 billion in worldwide LYNX revenue

• $1.2 billion in Best Western Rewards revenue

• Highest RevPAR Index 110

• Record number of industry awards

Source: LYNX, Best Western Rewards, STR

Page 31: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Industry Forecasts

Occupancy % Increase

ADR % Increase

RevPAR % Increase

US Upscale 0.9% 5.2% 6.2%

US Upper Midscale

1.3% 4.2% 5.6%

US Midscale 1.4% 2.9% 4.3%

CAN Industry 1.6% 2.3% 3.8%

Source: PwC Directions 2012 (US), PKF Outlook for the Canadian Lodging Sector 2012/2013 (Canada)

Page 32: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

N.A. FYTD Results Are on High End of Industry Forecast

FYTD April FYTD 2013 FYTD 2012 % Growth

LYNX Revenue $310.2M $293.0M 5.9%

Total Hotel Revenue $1,260.3M $1,197.9M 5.2%

Page 33: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

We Need to Continue to Focus on ADR Opportunities

FYTD April FYTD 2013 FYTD 2012 % Growth

LYNX Revenue $310.2M $293.0M 5.9%

Total Hotel Revenue $1,260.3M $1,197.9M 5.2%

Total Hotel Room Nights 14,305K 14,003K 2.2%

Total Hotel ADR $88.10 $85.55 3.0%

Page 34: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

BEST WESTERN Monticello Monticello, NY

Page 35: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Industry-wide Only 10% of Hotels Receive Recognition

Page 36: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

KEY INITIATIVES

Page 37: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Key Initiatives

Best Western Mission Statement Improve member value

• Drive revenue

• Streamline and simplify

• Train, train, train

Enhance brand equity

• Strive for customer loyalty

Page 38: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Confidential: This presentation contains confidential, proprietary information and trade secrets of Best Western International, Inc. It is intended for use solely by Best Western International, Inc. and its Members. This presentation and its content may not be shared with or disclosed to any non-Best Western third-party. Initiatives described may be amended based upon Member feedback, and may be implemented in whole, in part, as revised, or not at all.

LEAD THE INDUSTRY IN SUPERIOR CUSTOMER CARE

Page 39: Best Western - Confidential: This presentation …video.bestwestern.com › video › mybestwestern › 2013 district...Confidential: This presentation contains confidential, proprietary

Confidential: This presentation contains confidential, proprietary information and trade secrets of Best Western International, Inc. It is intended for use solely by Best Western International, Inc. and its Members. This presentation and its content may not be shared with or disclosed to any non-Best Western third-party. Initiatives described may be amended based upon Member feedback, and may be implemented in whole, in part, as revised, or not at all.