BWH Hotel Group — the Phoenix-based parent company of Best Western Hotels & Resorts, WorldHotels Collection and SureStay Hotel Group — has launched a new extended-stay brand.
BWH executives unveiled Home by BWH, a midscale extended-stay brand that is launching with a lean, new-construction prototype but will also have conversion options available for developers.
Brad LeBlanc, BWH's senior vice president and chief development officer, said in a statement that the extended-stay hotel segment has been overflowing with demand.
"The extended-stay segment has been outperforming the industry, is driving 25% higher revenue than in 2019, and it is showing no signs of slowing down,” LeBlanc said. “When talking to our hoteliers about the segment and assessing what is on the market, we recognized an opportunity to change the way extended-stay is designed, both for the developer and guest."
Home by BWH isn't the company's first extended-stay brand. Its Executive Residency by Best Western brand has eight open hotels — four in the U.S., two in Canada and one each in Kenya and The Netherlands. SureStay Studio by Best Western has seven locations around the world.
BWH President and CEO Larry Cuculic said in a statement that there's plenty of room for different types of extended-stay hotels in the segment.
“We know that extended-stay is an important market segment and there is tremendous demand for more options in this category, so we are extremely proud to bring a new product offering to developers and our valued guests,” Cuculic said.
Prospective developers and hotel owners who choose to build or convert a new Home by BWH hotel will have more flexibility, which BWH executives said is unique to the brand. Promising "options, not mandates," each Home by BWH property will have flexibility on providing breakfast, design elements and operations and staffing.
Industry and Company Outlook
BWH Hotel Group executives and hotel owners — which are part of the company's membership organization — met in Cleveland, Ohio, over the weekend to recap the past year's performance highlights and preview what's to come.
In his opening remarks, Cuculic congratulated BWH members on keeping daily rates high throughout the summer to take advantage of booming leisure demand.
"Throughout our district meetings, I implored you, I said, 'Please, please, please drive rate,' as we anticipated a strong summer season," Cuculic said. "And we witnessed that strong summer season. You did great; we did great."
Michael Morton, vice president of brand management, echoed Cuculic's sentiments about members sustaining high average daily rate.
"Some of you might be worried that leisure demand is softening — don't. Do not," Morton said. "While I'm cautiously optimistic, I can tell you that the outlook is solid, every bit as good as 2019. So keep being aggressive.
"But keep in mind as you raise rates, you also raise guests' expectations regarding their experience at your hotels."
Despite the threats of a looming recession, high inflation or staffing shortages, Cuculic maintained his optimistic outlook for the hotel industry and BWH's part in it.
"I firmly believe in the resilience of travel and unique experiences that you provide," he said. "People will always travel. We love to travel, to share time with family for new and exciting experiences, to broaden our horizons and of course to celebrate life. Yes, people will always travel."
Development Outlook
BWH Hotel Group will finish 2022 with a portfolio of 2,509 hotels in North America and 4,115 hotels globally, executives said.
Ron Pohl, BWH's president of international operations and president of the WorldHotels Collection, toured all of the international markets where the company has a hotel presence during his presentation.
"The major growth in the hospitality industry and for Best Western Hotel Group will be in international markets," Pohl said. "All major brands today are focusing on international development, but we already have a strong presence and we're creating a more effective global structure. We are well-positioned for growth."
Of note, BWH's China portfolio — where the company has 36 open hotels — continues to face headwinds as the country enforces COVID-19 lockdowns, Pohl said.
"China is a very challenging market, but it has huge potential once the country finally reopens its doors," he said.
Labor Environment, Tech Innovation
Morton acknowledged that staffing shortages have hit the hotel industry hard, but he added that help is coming in 2023 with the expected release of an additional 65,000 H-2B visas in the U.S.
"Finding staff just got a little bit easier for those of you that hire seasonal workers," Morton said. "And whether you're hiring a seasonal worker or you're looking for a staff member who can grow with your team, attracting and retaining talent should be top of mind."
BWH is pursuing some initiatives to help ease the labor crunch and make its hotels even more attractive for workers. Morton shared some preliminary details about some of BWH's properties testing eTip, a cashless mobile tipping app where guests can scan an employee's QR code and immediately tip them.
The company is also testing front-desk kiosks, which Morton admitted the industry has struggled with.
"While the concept has been around a long time, the experience has been inconsistent, and in many cases, it's horrible," Morton said.
After showing a video demo of the check-in kiosks, Morton said they're not a silver bullet, but should help with persistent labor challenges.
"The kiosks in and of themselves won't solve staffing challenges, but can help you realize some staffing efficiencies," he said.
Editor’s note: BWH Hotel Group paid for a meal and waived attendance fees to allow coverage of its brand conference. Complete editorial control was at the discretion of the Hotel News Now editorial team; BWH Hotel Group had no influence on the coverage provided.