“After an above-average growth in the past years, the success story of Best Western Hotels has continued through the business year of 2008″, rejoices Marcus Smola, Director of Best Western Hotels Deutschland GmbH, who has been managing the German branch of the world’s largest hotel chain since April of last year. “As a strong brand for the individual hotel industry, we are well prepared for the upcoming challenges, despite difficult economic conditions”, said Smola. The hotel group will be presenting another record business year in Germany at their annual press conference in Frankfurt. As brand partner for the independent hotel industry, the group was able to significantly strengthen its stand in Germany. For the first time, the Best Western hotels managed to realize total earnings of 502.6 million euros, relating to a seven percent plus as compared to the previous year. Currently, Best Western Hotels Deutschland GmbH comprises 177 individual hotels in the categories of three to four stars, including convention and city hotels, as well as resorts.
„Our growth rates are well above the industry average“, explains Smola. The hotel group’s pleasing annual balance shows in the average net rates of hotel rooms, which rose by more than 5% to reach 78.30 euros. „It is our intention to keep the level of rates at German hotels consistent throughout 2009“, said Smola. The occupancy of German Best Western Hotels, too, experienced a slight increase last year, with the hotels of the group realizing an average occupancy rate of 67.5 percent, relating to a 1.5 percent plus (2007: 66.5 percent occupancy). „With this increase, we are again above the results of the industry as a whole, which, according to key data by market research institute MKG Hospitality, realized a 3.9 percent plus in rates, and a 1.3 percent minus in occupancy, even, from January to December 2009“, said Smola. The average room revenues at Best Western Hotels, the so-called RevPAR (Revenue Per Available Room), were boosted by an impressive 6.5 percent to 52.80 euros in the business year of 2008. The persistently positive business year is reflected in the group’s hotel expansion, with the hotel portfolio of Best Western Hotels Deutschland GmbH having been significantly expanded, once again, in the previous year: With a current 176 hotels in Germany and one property in Luxembourg, Best Western is the largest hotel group in Germany. In 2008, the hotel group recorded 13 new members, while six hotels left the group due to lack of quality or change of operating company.
„We are feeling a rising demand for international market access among individual hotels and hotel operators – especially in economically challenging times. The connection to global sales and marketing measures and quality controls secures the economic success of individual hotels“, as Smola explains the brand expansion. It already showed in the first weeks of this year. Six hotels have chosen Best Western since the start of the year. The former Steigenberger Hotel in Lam, for example, now adds to Best Western’s range of golf and spa hotels as Best Western Premier Hotel Sonnenhof. Another holiday hotel in Timmendorfer Strand is to join the hotel chain in the first quarter of 2009. Also among the new Best Western hotels of this year are properties in Mettmann and Lahnstein, as well as two hotels currently under construction in Heidenheim and Bamberg.
„The current global financial and economic crisis will have its effect on the German hotel industry, as well. We are anticipating a decline in market demand this year, along with the consequential revenue cuts, particularly in the 5-star hotel business. It is imperative, however, to refrain from unnecessary rate dumping and to react to possible losses rationally. At the moment, we are observing business shifts in the market towards less expensive hotel categories, which Best Western Hotels may benefit from“, said Smola. „Being a quality brand in the 3 to 4-star segment, we are registering only slightly decreased revenues. Many business trips and conventions that used to take place in the luxury segment are now more often being booked in our hotels. Accordingly, we are carefully optimistic in regards to the future.“
„At the same time, our strategic decisions are not merely focused on the stock-exchange price. We consistently concentrate on the satisfaction of our guests and on tying new target groups to our brand“, Smola explains. „The motto is: Now, more than ever! Instead of cutting budgets, we will expand our sales and marketing force in order to increase the influx of revenues to our hotels and to clearly distinguish ourselves from our competition.“ It is highly likely that there will be an above-average expansion of the Best Western hotel portfolio this year. „History has shown that the demand for brand affiliation among hotel operators is particularly high in times of crises“, Smola explains.
„We consider the difficult economic circumstances as a challenge, requiring us to even further distinguish ourselves in the market and to secure a larger piece of the dwindling cake“, said Smola. „Our conditions are excellent in this respect: We are part of a hotel category that belongs to the winners in the market during these times, since many travelers consider a good price-performance ratio as much a decisive criterion as the security of a quality brand“, Smola explains the positive projections for the future. „Our brand will rise from the crisis stronger than before, because we can now obtain guests that used to book in higher-priced categories before.“ The director of Best Western expects that the range of hotels in Germany may be expanded to 190 properties by the end of the year. Smola: „We are on the right path to realizing our target of 200 hotels in Germany by 2010.“
