Best Western
Hospitality · Hotels & Extended Stay
- Active units
- 1,768
- Royalty
- 5.0%
Franchised, year-end 2024
of weekly Net Sales
About Best Western
Best Western is a hotel chain headquartered in Phoenix, Arizona, United States. It was founded in 1946 by M.K. Guertin and initially consisted of a group of independently owned and operated hotels that partnered together to increase their marketing reach. Today, Best Western has grown into a global brand with over 4,700 hotels in more than 100 countries and territories. The company offers a range of products and services, including hotel accommodations, meeting and event spaces, loyalty programs, and online booking services. Best Western hotels aim to provide comfortable and affordable lodging options for both leisure and business travelers. In terms of its global operations, Best Western has several noteworthy subsidiaries, joint ventures, and partnerships. This includes Best Western Premier, Best Western Plus, Best Western Signature Collection, and Vīb. The company also has a joint venture with WorldHotels, a global affiliation of independent hotels. Through these partnerships, Best Western is able to offer a diverse range of hotel options to cater to various customer preferences. Best Western holds a strong market position in the hospitality industry, both in the United States and globally. It is one of the largest and most recognized hotel brands worldwide. The company's global sales have continued to grow over the years, driven by its extensive network of hotels and its focus on customer satisfaction. In terms of major events and achievements, in 2015, Best Western launched its new brand identity and logo, which aimed to modernize and elevate the brand's image. This rebranding effort was part of the company's strategy to remain relevant in a highly competitive market. Additionally, Best Western has received numerous awards and accolades for its excellence in customer service and overall guest experience. As of the latest information available, Best Western continues to expand its global presence. The company regularly opens new hotels around the world and strives to provide exceptional service to its customers. Best Western is committed to adapting to the changing needs of travelers and maintaining its position as a leading hotel brand.
Key terms
- Franchise fee
$49k
- Entrance Fee reduction
During fiscal year 2024, some new prospective Members received a reduction of up to $23,000 in their Entrance Fees.
- Brand fund
2.1% of Net Sales
- Local advertising
0.0% of Net Sales
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2025 filing).
Growth
- Total locations1768
Franchised units open at year-end
- New openings31
Gross new units opened during the calendar year
- 1-year unit growth rate-1.8%
Net unit growth versus prior year
- 3-year unit CAGR-2.4%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio6.2×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$9.4M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open24 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.