What was the total amount Best Western spent on advertising and promotion in 2024?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
ated Statements of Financial Position
| (in thousands) | | | |---|---|---| | 2024 | 2023 | | | Liability related to the loyalty program | $ 308,058 | $ 292,438 | | Affiliation fees received from hoteliers | 49,999 | 51,343 | | Total contract liabilities | $ 358,057 | $ 343,781 | See accompanying notes to consolidated financial statements.
Consolidated Statements of Revenues and Expenses
| (in thousands) | 2024 | 2023 |
|---|---|---|
| REVENUES: | ||
| Fees, dues and assessments | $ 292,244 | $ 293,536 |
| Program revenues | 167,615 | 180,273 |
| Other revenues | 61,083 | 60,589 |
| TOTAL REVENUES | 520,942 | 534,398 |
| EXPENSES: | ||
| Compensation, taxes and benefits | 207,143 | 197,303 |
| Advertising and promotion | 139,190 | 121,415 |
| General and administrative | 102,157 | 88,222 |
| Depreciation and amortization | 20,774 | 18,162 |
| Program cost of sales | 19,448 | 19,540 |
| TOTAL EXPENSES | 488,712 | 444,642 |
| Net realized and unrealized gains on investments | 35,323 | 12,414 |
| Interest and dividend inc |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the company's expenses for advertising and promotion in 2024 totaled $139,190,000. This figure is part of the overall expenses, which amounted to $488,712,000 for the same year. This is a significant increase from the $121,415,000 spent in 2023. These expenses are listed in the receipts section of the FDD.
For a prospective franchisee, this indicates Best Western's commitment to marketing and promoting the brand. The substantial investment in advertising and promotion suggests that Best Western actively works to maintain brand visibility and attract customers to its member hotels. This can be a major advantage for franchisees, as they benefit from the brand's marketing efforts and potentially increased occupancy rates.
It's important to note that while the FDD provides an overview of advertising and promotion expenses, it does not detail the specific strategies or channels used. A potential franchisee may want to inquire about Best Western's marketing plans, including the allocation of advertising funds across different media and target markets, to fully understand the benefits they can expect from these promotional activities. Understanding the details of these strategies can help a franchisee assess the value and effectiveness of Best Western's marketing efforts in their specific location.