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Boulder / Success Stories

Best Western - Impact Model Development

Project
Best Western International is the world's largest hotel chain with more than 4,100 hotels in 80 countries and territories. It is a membership association of independently owned and operated hotels that provides marketing, reservations and operational support to its members. For nearly 20 years Best Western utilized a number of consulting firms including HVS International to conduct Impact Studies in order to assist in their decision making when considering the application of a new licensee in an area where an existing Best Western operates.

The HVS Assignment
The Board of Best Western which is comprised of Best Western Hotel Owners who use the Impact Studies in their decisions to grant or reject license applications along with the current CEO David Kong and some of his top management felt that the varied methodologies and report styles employed by the different companies were not providing a consistent benchmark from which they can make decisions. Some of the studies were better supported using more scientific methodology and clearer narratives while others were not. David Kong approached Greg Hartmann, Managing Director of the Boulder Office of HVS International where during the last five years Senior Vice President, Carter Wilson has overseen and engineered most of the key models employed by HVS in their market demand and valuation analysis. David’s charge was to create a universal impact model and report template that would utilize the information provided by objecting licensees together with independent market research to develop a more mathematically consistent and objective analysis, regardless of who performed the study.

Results
After months of model development and rigorous testing, the HVS-developed impact model is now being used as the standard for every Best Western impact study performed in North America. Since the model's development, HVS offices alone have utilized it to perform over 50 impact studies for Best Western, allowing for further refinement of the model and its ultimate release in late 2004 to other independent hotel consultants and consulting firms around the county. Currently, Best Western is once again enabled to utilize the services of various regionally diverse consultants (including the HVS offices) to perform the impact studies. The resulting studies require the consultant to use their unique expertise and opinion, however, now these consultants must clearly delineate their thought process and provide the necessary support consistently so that the Board of Best Western can make a fair and informed decision based on a standardized methodology. HVS continues to perform our fair share of the impact studies and Carter Wilson closely communicates with the Best Western management team to educate outside firms and refine the model.