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Best Western

Best Western

The total investment to open a Best Western franchise ranges from $510,000 to $2.8M. The initial franchise fee is $50,000.

What is the Best Western franchise?

Best Western Hotels & Resorts operates under BWH Hotel Group and offers an international franchise model for independent hotel owners. The brand began in 1946, when California hotelier M. K. Guertin, who had 23 years of lodging experience, created an informal referral network among independent California hotel operators. Best Western is headquartered in Phoenix, Arizona, U.S. The latest available franchise data lists 751 total Best Western units, all franchised, with zero company owned locations. BWH Hotel Group added WorldHotels through its 2019 acquisition and had more than 4,300 properties across over 100 countries and territories as of October 2025. Other sources state that Best Western licenses its name to over 4,500 hotels worldwide, or even over 4,700 hotels globally. The global hotels market was valued at USD 1,071.49 billion in 2024 and is projected to grow at a Compound Annual Growth Rate of 9.2% from 2025 to 2032, reaching USD 2,166.55 billion. Best Western therefore offers access to a large lodging category through an established system and an operating model that permits local market adaptation. PeerSense provides independent franchise research and does not represent the brand's marketing claims as lending advice or a financing approval.

The global hotels market, which forms the main category for Best Western, was valued at USD 1,071.49 billion in 2024 and is forecast to reach USD 2,166.55 billion by 2032 at a Compound Annual Growth Rate of 9.2% from 2025 to 2032. Other research estimates the market at USD 2,080.57 billion in 2025, growing to USD 3,931.42 billion by 2034 at a CAGR of 7.54%. A separate report valued it at around USD 1,376.40 billion in 2023 and projected approximately USD 2,993.90 billion by 2032, reflecting a CAGR of roughly 9.14% from 2024 to 2032. Demand is supported by renewed international travel and tourism, rising disposable income in emerging economies, and continued need for dependable accommodations among leisure and business travelers. Best Western focuses on destinations including Latin America, the Middle East, and Asia Pacific. Hotel operations require significant capital and benefit from established reservation, marketing, and operating systems. Best Western became part of BWH Hotel Group after the 2019 WorldHotels acquisition. Wider market forces include globalization, digital travel planning, and demand for more personalized guest experiences. The brand's ability to serve local market needs is part of its response to these conditions.

The stated initial Best Western franchise fee is $50,000. Other sources report initial fees from $4,000 to $63,000, while 2022 figures show upfront fees from $64,200 to $127,550. UK franchise materials cite an initial cost of £47,000. Franchise investment estimates range from $510,000 to $2.80 million in the provided franchise data. Other research reports ranges of $566,165 to $30,146,095, $6,126,015 to $32,493,745, and $573,050 to $26,594,338. A 2022 report lists total investment from $6,130,275 to $12,658,075, while UK franchises cite minimum total investment of £420,000. Cost depends on the property format, location, new construction or conversion, and brand tier. The minimum investment is reported as below the Hotels, Resorts sub sector average of $8.4 million to $9.3 million. Minimum cash required is listed as $2,545,000, with the amount affected by construction costs and location. UK materials also mention a £225,000 reservation fee. Royalties are typically 5% of gross sales, with general ongoing fees reported from 4% to 8% of gross sales. The national advertising contribution is usually 1% to 3% of sales. BWH Hotel Group acquired WorldHotels in 2019 and was previously a nonprofit owned by franchisee members as of 2018. Larry Cuculic has served as Best Western President and CEO since December 2021.

Best Western franchisees manage the main functions of a hotel, including guest services, reservations, housekeeping, maintenance, and food and beverage operations when those amenities are offered. The data does not specify staffing requirements or labor models, although the operating structure requires personnel across several departments. Portfolio examples include Vīb Hotel by Best Western Phoenix Tempe, which opened in 2022 as the company's first corporate owned hotel, and Best Western Premier, which launched in Europe and Asia in 2002. Initial training generally lasts approximately two weeks at a Best Western corporate facility and covers operating and brand standards. An owner orientation program and regional workshops address marketing, sales, customer satisfaction, and operating procedures. Franchisees also receive access to an online education portal and knowledge base. Ongoing support includes reservation networks, global marketing programs, technology platforms, online booking channels, collective purchasing, and the Best Western Rewards loyalty program. These resources support bookings, repeat business, procurement, and guest service. The available information does not confirm territorial exclusivity. Franchise fees generally provide access to proprietary systems, training, intellectual property, and often territorial protections. The model can accommodate owner operators and potentially multi unit owners, but no specific multi unit requirement is stated.

Franchimp rates the brand 1/10 for earnings transparency. The global hotels market is projected to reach USD 2,166.55 billion by 2032. Best Western has over 4,500 hotels worldwide according to some sources, while BWH Hotel Group operates across over 100 countries and territories. The BWH Hotels portfolio added nearly 100 new hotels during the first half of 2025. Its development pipeline exceeds 200 hotels and 15,000 keys, with a five year North Star goal of 5,000 hotels globally. The company plans to have 70 properties in the Middle East by 2027 and has 20 hotels signed in Saudi Arabia. Its global brand recognition, growing unit count, and expansion plans provide market signals, but they do not replace property level financial analysis.

Best Western's international expansion began in Canada in 1964, followed by Mexico, Australia, and New Zealand in 1976. Best Western GB entered the United Kingdom in 1978 and now has over 250 locations. Best Western Europe has over 360 hotels. Best Western Premier launched in Europe and Asia in 2002. The 2019 WorldHotels acquisition brought Best Western into BWH Hotel Group. Larry Cuculic became President and CEO in December 2021. In 2022, Vīb Hotel by Best Western Phoenix Tempe opened as the company's first corporate owned hotel. BWH Hotels welcomed nearly 100 new hotels in the first half of 2025 and has a pipeline of more than 200 hotels and 15,000 keys. Its five year North Star objective is 5,000 hotels globally. Current development priorities include Latin America, the Middle East, and Asia Pacific. The company aims for 70 Middle East properties by 2027, with approximately two thirds planned for Saudi Arabia. Saudi Arabia had 20 signed hotels, including 12 active and 10 upcoming, as of May 2025. Growth is also reported in India, Thailand, and Vietnam. BWH Hotels planned to add a seventh hotel in Pakistan in 2025 and open three hotels in Thailand and Vietnam in November 2025. Best Western also relies on technology platforms, reservation systems, supply relationships, and Best Western Rewards to support operations and repeat business.

A suitable Best Western franchisee is generally an individual or group with hospitality knowledge, management experience, and an understanding of local market conditions. Hotel management, real estate development, or another service oriented business background may be useful, although the specific required experience is not stated. The brand's model for independent owners favors people who can remain involved in their communities and adapt a property to regional demand. The development pipeline suggests possible opportunities for single unit and multi unit owners, but no explicit multi unit requirements are provided. Franchise territories span over 100 countries and territories. In the United States, one source reports 1,801 franchised Best Western locations, while another reports 1,770 total U.S. locations as of 2026. North America has more than 2,000 Best Western hotels. Expansion is focused on Latin America, the Middle East, and Asia Pacific, including Saudi Arabia, India, Thailand, Vietnam, and Pakistan. Saudi Arabia had 20 signed hotels, with 12 active and 10 upcoming as of May 2025. The time from signing to opening depends on whether the project is a new build or conversion and on local regulatory requirements. The franchise agreement term is not available. Renewal, transfer, and resale provisions would be reviewed in the Franchise Disclosure Document during due diligence.

Loan Activity Score

41/100

SBA Default Rate

9.0%

Active Lenders

275

According to its Franchise Disclosure Document or public business records, Best Western has 702 locations, all owned by franchisees. Public SBA loan records show 275 lenders made 882 loans to franchisees of Best Western. PeerSense calculates Best Western's score as 41 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2021 Franchise Disclosure Document.

Franchising since 1946 · 702 locations

Investment

$510,000 to $2.8M

Franchise Fee

$50,000

Total Units

702

702 franchised

Loan Activity Score
High
41
SBA Lending
12
Lender Quality
7
Transparency
9
Reach
10
Momentum
3

Proprietary PeerSense metric

Fair
Capital Sources
275SBA lenders

Distinct lenders in public SBA records for Best Western

882

Total SBA loans

$1.4M

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

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SBA Lending Activity for Best Western

Loan Activity Score Breakdown

Major Brand (100+ loans)

High Confidence
41out of 100
Fair
Market Momentum3/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety12/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence7/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency9/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint10/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

9.0%

vs 10.8% peer avg

SBA Loans

882

Total Volume

$1267.3M

Active Lenders

275

30 selective

States

49

vs. SBA Sector Average

+1.8%lower default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Low SBA default rate (9.0%)
702 locations nationwide

Data Insights

Key performance metrics for Best Western based on SBA lending data

SBA Default Rate

9.0%

1.8% below peer avg

SBA Loan Volume

882 loans

Across 275 lenders

Lender Diversity

275 lenders

Avg 3.2 loans per lender

Investment Tier

Premium investment

$510,000 to $2,800,000 total

Best Western: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2016

53 approvals. The best year on record for Best Western.

Top SBA State

Texas

161 SBA financed Best Western locations, the densest operator footprint.

Average Loan Size

$1.4M

Median $1.1M. Use as a sizing anchor when modeling your own Best Western unit.

Lender Concentration

9.2%

Highly Diversified

Share of Best Western approvals captured by the top 3 SBA lenders.

Best Western's SBA lending pipeline peaked in 2016 (53 approvals). Operator density is highest in Texas with 161 SBA financed locations. Average funded ticket sits at $1.4M, with the median at $1.1M. Lender mix is highly diversified: the top three SBA lenders account for 9.2% of approvals. Borrowers have leverage to shop multiple credit boxes.

Payment Estimator

Loan Amount$408K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$5,279

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Best Western, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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Best Western

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman