Travel Wise And Cool

Best Western's China Strategy: Premium Upscale Hotel Chain

The strategy is probably flawed. I am not sure if Best Western can efficiently build brand image as an upscale hotel chain in China, given all major hotel chains have invested in 4-/5-star hotels heavily in China, and more people have visited the U.S. (and therefore know one thing or two about what Best Western is in America). On the other hand, downtown thrifty hotels are in huge demand -- a domestic 3-star hotel chain has just went IPO in NASDAQ lately.

Best Western International Inc., the world's biggest hotel chain by rooms, is changing its China strategy in hopes of going beyond its traditional image as a purveyor of budget hotels.

The Phoenix-based chain has scrapped plans to build a network of 100 three-star, budget hotels in China by 2007. Instead, it plans to triple the number of its four- and five-star hotels in China to 60 by 2009.

David Kong, chief executive of Best Western, described the chain's image as a "solid three-star brand in the United States," that developed alongside the explosive growth of American interstate highways in the 1950s and 1960s.

But it is the company's chain of more upscale hotels, called Premier, that Best Western is trying to introduce overseas in greater numbers.

Company officials have found that China's car culture isn't as conducive to overnight stops as that of the U.S., leading them to focus on nicer hotels in cities.

"China is virgin territory. We're trying to build brand awareness," said Mr. Kong.