What were the hotel operations revenues for Best Western for the year ended November 30, 2022?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
the development activity commences and ending when all infrastructure is substantially complete and the property is available for occupancy.
The Vīb in Tempe, Arizona opened in March 2022 and the Vīb in Denver, Colorado opened in June 2022. During the month the respective hotel opened, the development in process assets were placed into service and depreciation of these assets commenced.
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, hotel operations revenues for the year ended November 30, 2022, were $3.3 million. These revenues are generated from hotels that Best Western owns and operates, specifically the Vīb hotels in Tempe, Arizona, and Denver, Colorado. The results of these hotel operations are included within 'other revenues' and 'general and administrative expenses' in Best Western's consolidated financial statements.
For a prospective franchisee, this information provides insight into Best Western's direct involvement in hotel ownership and operations, in addition to its franchising activities. It demonstrates that Best Western has experience managing hotels directly, which could be beneficial in terms of understanding the challenges and opportunities faced by franchisees. The revenues and expenses associated with these hotels are consolidated into Best Western's overall financial statements, offering a more comprehensive view of the company's financial performance.
It's important to note that these hotel operations revenues are separate from the fees, dues, and assessments collected from Best Western's membership, soft brand licensees, SureStay franchisees, and WorldHotels licensees. The FDD also details revenues from these sources, providing a broader picture of Best Western's revenue streams. Understanding the different sources of revenue can help a potential franchisee assess the overall financial health and stability of the Best Western organization.