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Best Western introduces ‘white label’ franchise

Best Western Hotels & Resorts today introduced a subsidiary called SureStay Hotels, three brands that it calls a “white-label” franchise model that offers hotel owners the company’s infrastructure and distribution channels without having to adhere to design parameters.  

 “In North America, there are currently 17,000 branded hotels, and another 12,000 unbranded, in the economy and midscale segments,” said CEO David Kong. “The white label approach allows Best Western to tap into this tremendous potential without compromising its brand image. Currently, many of these hotels have little to no consumer relevance. Their brands have very little potential to drive superior revenue, and the owners are incurring high franchise fees from brands that don’t provide the necessary support, service or value.”

Phoenix-based Best Western will offer three brands – SureStay Hotel (premium economy), SureStay Plus Hotel (lower midscale) and SureStay Signature Collection (midscale soft brand). There will be no consumer reference to Best Western. The company says this will allow it to leverage existing infrastructure while creating a new revenue stream, without putting the company’s position in its current categories at risk.

Hotels that join SureStay will have access to Best Western OTA commission rates, distribution, and desktop and mobile websites including a cloud-based PMS. To qualify, they must achieve and maintain a TripAdvisor score of 3.5 or higher and adhere to the SureStay Promise of quality service.

“With SureStay, we are seeking to create a core group of hotels that will differentiate themselves from others in the market, focusing on delivering high quality and outstanding service,” said Kong. “There is no PIP for SureStay hotels. Rather, we are working to create consumer relevance and confidence through unprecedented quality and care. We believe this will really resonate with consumers in these segments.”

Nearly 20 SureStay letters of intent have been signed since a soft launch to Best Western members earlier this month. Initial projections have 150 hotels online within three years and 800 by 2026.  

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