The new lifestyle brand from Best Western International (BWI), Vib (pronounced Vibe), is a bit of a late-comer to the hip, lifestyle trend. But not because it was long in the making.
CEO David Kong told reporters at the company’s North American Convention Thursday that the board came up with the idea at a European retreat this past June, then hired two Houston firms put to put the idea together in about 90 days.
“The Vib concept actually was launched by the need to have a relevant product,” Kong said, noting fast-growth brands like Motel One and CitizenM in Europe.
There were no focus groups, he said, just consultations with some member developers and some visits to properties like CitizenM, where board members pretended to be guests and asked things like how guests reacted to such small rooms.
Unlike CitizenM, however, Kong said the goal of Vib is to be stylish yet still comfortable for older travelers.
Ron Pohl, BWI’s senior vice president of brand management and member services, said he hopes to see the first Vib properties move toward development by year’s end. The company has identified some 20 target markets for the brand, including primary urban markets like New York and Chicago and cities like Seattle, Atlanta and Austin, Texas.
No deals have yet been signed, but company officials said they are already seeing interest.
Pohl said he expects most development to be new construction, as the concept revolves around small rooms with a large communal lobby that includes gathering, eating, working and play areas. Few existing properties, executives said, have the lobby space to make it work.
“We are certainly open to conversion, but we have to make sure we stay true to the concept — vibrant open space that creates the customer experience even before [guests] arrive,” Pohl said.
Kong estimated construction costs at about US$60,000 per key and said the hotels will be cost-efficient to run.
“There is no free breakfast,” Pohl added. “We’re not giving anything away.”
Pohl said he envisions a partnership with a high-end coffee company as well as a “high-end breakfast experience that is a la carte along with all-day food sales and a bar — all highly profitable areas when they are done right.”
Soft brand plans
Also this week, BWI announced it would open online reservations to select independent hotels in primary markets under the soft brand BW Premier Collection.
The idea, Kong said, is to offer independents in large cities — as well as casino hotels — an alternative to OTAs while giving travelers using Best Western’s website more options in cities where its brands are under-represented.
While the collection properties will be required to maintain a AAA 3-Diamond rating or a minimum of 4 on TripAdvisor, Kong said the relationship will be strictly one that replicates an OTA, with the properties paying about 15% per booking made through the Best Western site.
There is no other member or contractual agreement, he said.
“We only get paid for rooms we book,” Kong added.
Possible Expedia deal
Speaking of OTAs, Dorothy Dowling, BWI’s senior vice president of marketing and sales, on Thursday said Best Western is close to finalizing a deal to give members better terms with Expedia and its family of 150 booking sites in 70 countries.
Under terms that have yet to be finalized and approved by members, she said, Expedia has agreed to a commission rate of 15% on a last-room-available basis for an annual fee of US$250 and a commitment to honor Expedia’s best-price guarantee.
For hotels currently participating with Expedia, Dowling said the deal represents a significant savings.
Members who do not work through wholesalers or OTAs, Dowling added, could apply for an exemption waiver.
Jeri Clausing is a freelance contributor to HOTELS.