Vol. 4: No. 10, October 2009

Best Western to add 13 Thai hotels

(Bangkok Post, 10.10.2009)

The American hotel chain Best Western International (BWI), spotting an opportunity in the global slowdown, aims to add at least 13 properties in Thailand by 2010.

Rashane Sala-Ngarm, BWI's international development manager for Asia, said local hoteliers in Bangkok and resort destinations such as Phuket are looking for international hotel chains to manage their properties after their operations have been hit by the global downturn and local political problems.

"Strong sales and marketing networks as well as good operational system are key for local hoteliers to survive. BWI sees great opportunity to expand its brand in Thailand," he said.

Seven contracts have been concluded for hotels that will open by 2010 - Best Western Premier Signature Pattaya, Best Western Allamanda Laguna Phuket, Best Western Sawaddi Patong Phuket, Best Western Premier The Breeze, a Best Western Premier hotel whose name has yet to be revealed, Best Western @20, and Best Western The Alcove Hiptique Bangkok.

Another five projects in Bangkok and three in Samui are under negotiation.

Local operators have started to look for international hotel chains to manage their properties since the end of last year.

"We have been approached the most in the past seven years. This is why we think it is a good time to expand our brand here," said Mr Rashane.

The Best Western brand's mid-range focus matches with the demand of Thailand's hoteliers. Mid-priced hotels tend to be easier to manage than properties in other categories as they typically have no more than 150 rooms.

The company expects Thai tourism to recover next year with the easing of the downturn as the country has a wider variety of products than competitors such as Malaysia and Singapore.

But Mr Rashane sees Vietnam as another key competitor because of its long coastlines and fresh natural tourist attractions.

Hotels in big cities such as Bangkok will also face an oversupply because new properties are opening every month, he said. City hotels must compete both with similar operators and with serviced apartments, which is why BWI constantly researches demand and develops its services and products, he said.

"Even if BWI is new in Asia when compared with other international chains, we believe that our strong customer-base will help boost our performance in this region including Thailand," he said.

Best Western has about 11 million club members - including 70,365 in Asia, 30% of whom are active.

The company will slow its development plan and focus on opening hotels in its portfolio on time, said Mr Rashane.