What was the amount of program revenues for Surestay Hotel By Best Western for the year 2023?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
1.jpeg)
Consolidated Statements of Revenues and Expenses
| (in thousands) | 2023 | Years Ended November 30, 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 | |
| EXPENSES: | |||
| Compensation, taxes and benefits | 197,303 | 175,005 | |
| Advertising and promotion | 121,415 | 105,950 | |
| Depreciation and amortization | 18,162 | 14,748 | |
| General and administrative | 88,222 | 77,477 | |
| Program cost of sales | 19,540 | 16,531 | |
| TOTAL EXPENSES | 444,642 | 389,711 | |
| Net realized and unrealized gains (losses) on investments | 12,414 | (1,391) | |
| Interest and dividend income, and interest expense, net |
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, the program revenues for the year 2023 were $180,273,000. This figure reflects the income generated through various programs offered by Best Western International, Inc., which Surestay Hotel By Best Western is a part of. These programs include the Best Western Rewards program and the Best Western Travel Card. Program revenues are a key indicator of the success and utilization of these loyalty and incentive programs within the Best Western system.
For a prospective Surestay Hotel By Best Western franchisee, understanding the sources and amounts of these revenues is crucial. It demonstrates the potential benefits of being part of the Best Western network and leveraging its established programs to attract and retain customers. The Best Western Rewards program, in particular, incentivizes guests to choose Best Western-branded hotels, including Surestay locations, thereby driving revenue through increased occupancy and customer loyalty. The Travel Card program also contributes to revenue when cards are redeemed or when the likelihood of redemption is considered remote, providing another revenue stream for the company and its franchisees.
The FDD also indicates that program revenues are used to fund the operational expenses of the BWR program, with any excess revenues contributing to the program's financial health. Additionally, the company recognizes revenue from the Best Western Travel Card when the card is redeemed or when card breakage occurs, further adding to the program revenues. Monitoring these revenue streams and understanding how they are managed can help a franchisee assess the overall financial stability and effectiveness of the programs offered by Best Western.
Overall, the program revenues represent a significant portion of Best Western's total revenues, highlighting the importance of these programs in the company's financial performance. For a Surestay Hotel By Best Western franchisee, this underscores the value of participating in and promoting these programs to maximize their own revenue potential and benefit from the broader Best Western network.