When did the Best Western Vīb hotel in Tempe, Arizona open?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
In December 2019 and March 2020, the Company acquired land to develop two hotels, located in Tempe, Arizona, and Denver, Colorado, respectively. Property development costs, including property construction costs, interest and other financing fees, property taxes, architectural and engineering fees, and other direct and indirect development costs, are capitalized beginning when 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.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the Vīb hotel in Tempe, Arizona, opened in March 2022. This information is part of a section detailing hotel investments made by Best Western. The document also mentions that Best Western acquired land in December 2019 to develop this hotel, along with another location in Denver, Colorado.
Best Western capitalizes property development costs, including construction, interest, financing fees, property taxes, and architectural and engineering fees, from the start of development until the property is ready for occupancy. Once the Vīb hotel in Tempe opened in March 2022, the assets were placed into service, and depreciation began. This indicates that Best Western considers the opening date as the point when the hotel becomes a revenue-generating asset.
For a prospective franchisee, this information provides insight into Best Western's investment activities and timelines for hotel development. Understanding the development process, from land acquisition to opening, can help franchisees gauge the potential timeframes and costs associated with establishing a new Best Western property. Additionally, knowing that Best Western directly owns and operates certain hotels, like the Vīb in Tempe, offers a point of comparison for franchisees in terms of operational performance and financial results.