David Kong-who got his start as a busboy and dishwasher at the Hilton Hawaiian Village-told an enthusiastic group of owners and managers at Best Western's 2008 North American convention the company is poised to weather the sluggish economy. About 1,700 attendees and 575 registered exhibitors convened at the Hawaii Convention Center in Honolulu, which is fitting as Kong, Best Western's president and CEO, graduated from the University of Hawaii. Not surprisingly, the economy topped Kong's list.

"The values that have made this organization prosper for over six decades will serve us through these tumultuous times and provide the platform to succeed in the future," Kong said. To deal with the economic downturn, he said the company has freed up an extra $8 million for advertising and implemented a hiring freeze. The advertising spend for 2008 is expected to exceed $43 million, a record for the company.

 "Economic softness is an opportunity for us to take market share from our competitors," said Kong, who admonished owners to avoid indiscriminate discounting: "Let's not panic and discount unnecessarily. Yield management is more important than ever."

Worldwide revenue from the Lynx reservation system is up almost six percent, with $1.2 billion projected for year-end, according to Kong. In North America, the year-end projection is $810 million. Year-to-date RevPAR for the brand is up 6.5 percent versus one percent industry-wide, he said.

Canadian BW hotels are up 24.8 percent compared with 10.5 percent for the industry. Best Western, one of only two preferred partners of AAA in the midscale segment, has achieved an average AAA rate of over $105, five dollars higher than its average Lynx rate. The company projects a 29-percent revenue increase, to almost $650 million, from its nearly nine million Gold Crown Club International members.

Kong stressed the importance of international operations and economies of scale: "Instead of 2,200 hotels sharing the cost (for annual website and booking-engine upgrades), we have over 4,000 hotels sharing the cost. In addition, we anticipate deriving $1.6 million in profits from international operations this year." By the end of the year, BW-one of the largest and most respected brands in Asia-will have about 145 hotels on the continent, he said.

In the most recent member satisfaction survey, BW scored 76 percent in overall satisfaction, consistent with the last two years. Counted complaints, Kong said, were down by almost 53 percent for the year. Still, Kong has heard member complaints about inflexibility and "lack of common sense in how the company counts customer complaints and enforces design requirements." To address these issues, all corporate staff will undergo "I Care" training; attend Hotel Operations Training Simulation program; attend GM or voting member training classes; secure one industry certification; and those with no direct hotel experience will work at least a day in one hotel every year.