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.
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
BEST WESTERN PLUS Edmonds Harbor Inn – Edmonds, WA
BEST WESTERN PLUS Caldwell Inn and Suites – Caldwell, ID
BEST WESTERN PLUS Kennewick Inn – Kennewick, WA
Topics of Discussion
• Descriptor Update
• Company Performance
• Industry Awards
• Key Initiatives
DESCRIPTOR UPDATE
tango flex latitude
Imitation is the Highest Form of Flattery
Advance Premier Business
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
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
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
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
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
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%
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%
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
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
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
COMPANY PERFORMANCE
BW Rewards Continues Its Impressive Growth
FY 2012 % Chg
Frequency Revenue $1.2B 21.0%
Frequency ADR $94.28 4.0%
# of BW Rewards Members 16.0M 17.5%
% Active BWR Members 19.2% 0%
Source: Best Western Rewards
NA Best Western Rewards program revenue contribution reaches 34%
of total hotel revenue
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Best Western Rewards Contribution
Source: Best Western Rewards, FY 2002-FY2012
Increases seen in GSS Intent to Recommend and QA scores
104.7
105.5
GSS Intent to Recommend Index vs. Corporate Comp Set
FY 2011 FY 2012
912
918
GRPA – Brand Average
FY 2011 FY 2012
Source: Medallia, Member Services
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
LYNX revenue ($USD)
Global North America
LYNX Revenue Hit All Time High in 2012
Source: LYNX, FY2002-FY2012
$1.4B
$935M
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.
2012 INDUSTRY AWARDS
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
TTG Travel Awards
BEST MID-RANGE HOTEL CHAIN SIX YEARS IN A ROW
ADRIAN AWARDS
25 ADRIAN AWARDS INCLUDING 14 GOLD FOR EXCELLENCE IN ADVERTISING, PUBLIC RELATIONS AND DIGITAL MARKETING AND 2 PLATINUM
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
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)
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%
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%
BEST WESTERN Monticello Monticello, NY
Industry-wide Only 10% of Hotels Receive Recognition
KEY INITIATIVES
Key Initiatives
Best Western Mission Statement Improve member value
• Drive revenue
• Streamline and simplify
• Train, train, train
Enhance brand equity
• Strive for customer loyalty
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
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.