What was the reported liability related to the loyalty program for Bw Premier Collection in 2023?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, the liability related to the loyalty program in 2023 was $292,438 (in thousands). This figure represents the financial obligation Bw Premier Collection has to its loyalty program members, primarily through the Best Western Rewards program. This liability arises from points earned by members that have not yet been redeemed for goods or services at Bw Premier Collection hotels.

For a prospective Bw Premier Collection franchisee, this figure is important for understanding the scale and financial health of the loyalty program. A large liability indicates a popular and active rewards program, which can drive business to the hotels. However, it also means that Bw Premier Collection must effectively manage the program's costs and ensure that enough revenue is generated to cover the future redemptions. The success of the BWR program is tied to the perceived value and ease of redemption for its members.

The FDD also mentions that the assessment fees collected from Bw Premier Collection hotels are deferred and recognized as program revenues as the loyalty points are redeemed. This means that a portion of the fees paid by franchisees contributes directly to covering the costs associated with the loyalty program. The company estimates breakage, which is the points that members will likely never redeem, based on historical data and actuarial analysis to refine revenue recognition.

Overall, the loyalty program liability is a key indicator of the program's importance to Bw Premier Collection's business model. Prospective franchisees should inquire about the specifics of the BWR program, including how it is managed, the costs associated with it, and the benefits it provides to hotel owners in terms of increased occupancy and revenue.