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16.02.2017

Best Western Hotels Central Europe GmbH

Strong Revenue Growth in All Countries

After Best Western Hotels Central Europe GmbH has been reorganized last year with now ten countries under the common corporate umbrella and the global brand relaunch, the signs point to growth. The financial year 2016 was concluded successfully with a stable revenue growth in all countries. In the ten countries Austria, Czech Republic, Croatia, Germany, Hungary, Liechtenstein, Luxembourg, Slovakia, Slovenia and Switzerland more than 230 individual hotels belong to the brand. The new company structure, which is no longer limited by national borders, contributed to a stronger marketing and sales power for the member hotels. The total revenues generated by Best Western in 2016 in hotels of all countries grew about twelve percent to 154.9 million euros compared to the previous year. In Germany and Luxembourg a revenue growth of 9.1 percent to 131.9 million euros was achieved. The focus is now on the expansion of the hotel portfolio in all countries, which are supervised by the Best Western Hotels Central Europe GmbH. A further increase of revenues in the double-digit range through the own distribution channels in combination with an expansion of strategic partnerships, has made a decisive impact on strengthening the economic success and profitability of the individual hotels.

Eschborn/Vienna/Bern, 16 February 2017. In 2016, the year of its 70^th anniversary, Best Western saw far-reaching changes. The brand of individual hotels has reinvented itself over the last year, in order to render the entrepreneurially independent hotels even more successful. Therefore, since the start of the last year more than 230 hotels in the ten countries Austria, Croatia, Czech Republic, Germany, Hungary, Liechtenstein, Luxembourg, Slovakia, Slovenia and Switzerland are under the corporate umbrella of the Best Western Hotels Central Europe GmbH with the main office in Eschborn (Germany) as well as regional offices in Bern (Switzerland) and Vienna (Austria). “The integration of formerly separated regions has worked very well. We could generate increases in revenue in all countries due to accelerated cross-border marketing”, says Marcus Smola, CEO of Best Western Hotels Central Europe GmbH. “Because of the concentration of our activities all our member hotels could benefit from more central services and a stronger sales and marketing power”, explains Smola at the annual press conference of the hotel group in Frankfurt.

Double-digit Growth in All Countries in the First Year

A look on the development of the whole region, which is supervised by the new Best Western Hotels Central Europe (BWCE), shows the successful development of the group in the first year. With 23 new hotels, the hotel portfolio of BWCE has grown to a total number of 233 hotels since the beginning of 2016. Some of the new locations include Wolfsburg, Bremen, Dortmund, Braunschweig, Mannheim, Ochsenfurt, Unterfoehring, Erfurt and Vienna. The merger of the countries into one cross-border organization has paid off economically for the member hotels in all countries. Thus, the generated total revenue via Best Western channels for the individual hotels in all countries has grown by 11.98 percent to 154.9 million euros in 2016 compared to the previous year. “We are pleased that our measures and initiatives have born fast and significant fruits already in the first year of the new Best Western Hotels Central Europe. We expect a further stable growth in the countries attached – in revenues as well as in the expansion of our portfolio”, says Smola. In Germany alone, the hotel portfolio saw 22 new additions since the beginning of 2016. The by now 188 Best Western hotels in Germany and the three hotels in Luxembourg benefited from a total revenue of 131.9 million euros generated by the brand, which is a plus of 9.1 percent compared to the previous year. In Austria, at the moment twelve hotels with 1,049 rooms at the locations Vienna (5), Salzburg, Innsbruck, Graz, Wels, Feldkirch, Kitzbuehel and new in 2016 Voesendorf belong to the brand. These houses had a room revenue of total 5.55 million euros generated directly by the brand last year, which is considered a plus of more than 60 percent as compared to 2015. In the neighboring region Central Eastern Europe (CEE) with as of yet 13 hotels and 1,343 rooms in the countries Croatia, Czech Republic, Hungary, Slovakia and Slovenia a revenue of 4.8 million euros was generated by Best Western, which is a rich growth of 15.6 percent. In Switzerland, right now 17 hotels with 1,156 rooms at the locations Zurich (2), Bern, Zermatt (2), Chavannes-de-Bogis, Biel, Lausanne, Ittigen, Genf, Schaffhausen, Lugano, Luzern/Horw, Bulle, Winterthur, Rorschacherberg and Neuchâtel are part of the brand. In the previous year, 12.64 million euros of room revenues were generated directly for these houses – a plus of 28.8 per cent compared to the previous year. „The increased revenues in all regions for our hotels show that we could successfully generate business in the hotels with our services and that our various marketing and sales measures took effects”, tells Smola.

Signs Point to Growth: Further Expansion of the Portfolio

“Best Western Hotels Central Europe set the objective to further expanding the current portfolio of high-quality hotels in all countries. On this matter, we are on a very good track. In many locations in cities and holiday regions we are having intensive talks with hoteliers who would like to join the brand”, explains Smola. In Germany alone, there are 15 further hotel projects in the pipeline this year. In Switzerland and Austria the hotel offers shall be doubled in the years to come. By now, the Best Western Hotels Central Europe GmbH provides hotel operators with the following brand offers, for the respective hotel or location: Best Western, Best Western Plus, Best Western Premier, Vib and the soft brand BW Premier Collection. “In all markets we see potential to expand with all our brand offers. Considering the increasing market concentration, it is important to provide individual hotel operators with professional instruments and offer services in order to compete successfully in the future. We observe that hotels, which do not belong to international brands, will have a hard time due to rapid digitalization of the sales’ world, permanently increasing distribution costs and a sharper competition for guests and employees”, continues Smola. Best Western successfully manages to combine individuality and professional brand power because the hotels stay entrepreneurially independent and benefit from the sales and marketing power of a worldwide brand at the same time. Moreover: Through the parent company of Best Western Hotels Central Europe, the DEHAG Hotel Service AG, all hoteliers are exclusive owners of the brand at the same time. This concept is unique worldwide: The whole group is owned by all individual hoteliers – they all decide over strategic settings of the course and give the brand a special individual profile. “This is, apart from the economic advantage especially for private hoteliers who have run their house often for generations as a family business, a key reason for joining the brand”, explains Smola.

Upwind thanks to New Brand Strategy and Cross-Border Sales’ Solutions

A milestone started to roll in the previous year: By the end of 2017, a worldwide brand refresh of Best Western Hotels & Resorts will be completed. Since the end of 2016, the first Best Western hotels have been shining with the new logo. “Today, we can show modern and up-to-date logos for all brands, which suit our hotels much better and are perceived in a positive way by guests and partners”, explains Carmen Duecker, Deputy Manager Best Western Hotels Central Europe GmbH and responsible for e-commerce, marketing and distribution. “Our merger in Europe was and is very positive for our hoteliers because we can make our portfolio for all customers in these countries significantly more attractive and operate in the markets across-borders”, says Duecker. In the previous year, the central Best Western strategies in the areas of marketing and sales expanded to the new countries successfully. “Almost the entire hotel distribution has become digital today. It is a matter of offering technological and technical marketing solutions, which render our hotels economically stronger. The implementation of all e-commerce measures and strategies shows significant successes. Not only did the electronically generated revenue for our houses in all countries grow considerably, but also did the distribution channel internet increase due to our measures”, says Duecker. This said, the revenue share of the internet across all booking channels in all BWCE countries in the year 2016 was 65.5 percent, which is a further plus of nine percent compared to the previous year (GDS 28 percent, Call Center 6 percent). In Germany, the internet share was 66.3 percent and more than 10 percent higher than in the previous year. Overall, an online revenue growth of 44 percent could be achieved in Germany, in Switzerland even 104 percent and in Austria 74 percent. Also, in the future the hotel group strategically counts of the further expansion of its own distribution and reduction of sales’ costs. “Our strategies in the area distribution and sales concentrate on strengthening our own distribution channels through modern technologies as well as innovations and further developments of exclusive products. Furthermore, we continue to strengthen our loyalty program Best Western Rewards, which has about 30 million members by now, in order to target both the products and communication even better on the needs and expectations of our customers. In addition, we strongly believe in long-term strategic partnerships to increase our reach and acquisition of new customers and markets”, says Duecker.

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Strong revenue growth in all countries: In 2016, the generated total revenue by Best Western in the hotels in all countries increased by twelve percent to 154.9 million euros. In Germany and Luxembourg a revenue growth of 9.1 percent to 131.9 million euros was achieved. On the Picture: Best Western Plus Berghotel Rehlegg, Ramsau

Best Western Hotels Central Europe with CEO Marcus Smola and Deputy Manager Carmen Dücker set the target to expand the current portfolio with high-quality hotels in all countries.

About Best Western Hotels & Resorts:

Best Western Hotels & Resorts headquartered in Phoenix, Ariz., is a privately held hotel brand with a global network of more than 4,000 hotels in more than 90 countries worldwide. Best Western Hotels Central Europe (BWHCE) headquartered in Eschborn / Germany is in charge of approximately 230 hotels in ten countries: Austria, Croatia, Czech Republic, Germany, Hungary, Liechtenstein, Luxemburg, Slovakia, Slovenia and Switzerland. In addition to its German headquarter in Eschborn there are regional offices in Vienna and Bern. All city and resort hotels of Best Western guarantee uniform and consistent quality standards worldwide and still keep their individual styles and their entrepreneurial independence. As a membership association all Best Western hotels are independently owned and operated. Best Western offers seven hotel brands to suit the needs of developers and guests in every market: BEST WESTERN^®, BEST WESTERN PLUS^®, BEST WESTERN PREMIER^®, EXECUTIVE RESIDENCY®, Vīb®, BW Premier Collection® and GLō.

As a service partner Best Western pursues to increase the profitability, success and competitiveness of their member hotels. Best Western Hotels maintain their independence while locking in all the advantages of the world's largest lodging affiliation. Member hotels benefit from a powerful global brand with full-service support and comprehensive marketing and sales activities for all relevant market segments and target groups. All hotels are optimally presented and bookable through all worldwide reservations and online booking channels. More than 27 million travelers are members of the brand’s award-winning loyalty program Best Western Rewards^®, one of the few programs in which members earn points that never expire and can be redeemed at any Best Western hotel worldwide. More information: www.bestwestern.de and www.bestwestern.com

For further information please contact:

Best Western Hotels Central Europe GmbH
Austria | Croatia | Czech Republic | Germany | Hungary | Liechtenstein | Luxemburg | Slovakia | Slovenia | Switzerland

Anke Cimbal, Director of Corporate Communications

Frankfurter Strasse 10-14, 65760 Eschborn, Germany
Tel: +49 (0) 6196 - 47 24 301, Fax: -129
Email: anke.cimbal@bestwestern.de

Websites www.bestwestern.de, www.bestwestern.de/presse

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