How did the program revenues for Bw Premier Collection change between 2022 and 2023?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2023 | 2022 |
|---|---|---|
| REVENUES: | ||
| Fees, dues and assessments | $ 293,536 | $ 276,766 |
| Program revenues | 180,273 | 165,915 |
| Other revenues | 62,787 | 51,199 |
| TOTAL REVENUES | 536,596 | 493,880 |
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the program revenues experienced an increase between 2022 and 2023. In 2023, the program revenues totaled $180,273,000, while in 2022, they amounted to $165,915,000. This represents an increase of $14,358,000 in program revenues for Bw Premier Collection year-over-year.
Program revenues are generated through the Best Western Rewards program. These revenues are derived from assessment fees charged to BWH hotels, which are deferred and recognized as revenue as loyalty points are redeemed. The revenue recognized is net of redemption expenses and is impacted by the company's estimate of breakage for points that BWR members will never redeem.
For a prospective franchisee, understanding the dynamics of program revenues is crucial. The increase in program revenues suggests a growing and active rewards program, which can be a significant draw for customers and contribute to overall hotel performance. Franchisees should inquire about the factors driving the growth in program revenues and how they can leverage the rewards program to attract and retain guests.