When BWH Hotel Group’s President and CEO, David Kong announced his retirement in September this year, it took most people by surprise. One of the industry’s longest running CEOs, he had joined Best Western Hotels & Resorts in 2001 and was named CEO three years later. During this 20-year journey, he transformed the company and formed BWH Hotel Group. His exit will, understandably, leave an indelible mark on the entire hotel industry.
As the incoming President and CEO, Lawrence ‘Larry’ Cuculic is well aware knows he has big shoes to fill, when he takes charge in December 2021. Calling Kong a visionary who transformed BWH Hotel Group into a global hospitality powerhouse, he pointed out that despite the hardships endured during the pandemic, the organisation is in the strongest financial position in the company’s history – all thanks to Kong’s far-sighted strategies.
“We continue to celebrate tremendous successes, including industry-leading guest and hotelier satisfaction and record-breaking RevPAR growth. I intend to continue building on our many successes by increasing brand revenue delivery to our hotels, ensuring we are well-capitalised, increasing scale in a responsible manner, and continuing to provide superior care to our guests,” Cuculic announced. “Importantly, I want our hoteliers to know that we are a family that stands together, shoulder-to-shoulder, when times are tough, and our guests to know that when they enter our hotels that they will be welcomed and their expectations will not just be met, but rather will be exceeded.”
THINGS IN THE WORKS
While preparing for his new duties, Cuculic is gearing to hit the ground running. As BWH Group’s SVP and General Counsel, he had the opportunity to develop a deep understanding of the organisational structure, the needs of its hoteliers, and how the company can best drive results to its small businesses. Moreover, he also oversees the Call Center, leads the HR department and supports the development efforts – all of which has armed him with global brand-level experience.
Over the past 12 years that he has been associated with BWH Group, Cuculic has seen it grow from that a single brand into 18, spanning every market segment – from economy to luxury, including lifestyle and extended stay hotels. During this same period of time, its hotels underwent a complete brand logo refresh while its hoteliers were investing heavily in their properties through the company’s Design Excellence Program.
Recalling those days, Cuculic stated, “The brand logo refresh and the Design Excellence Program ensured our guests knew that when they stay at our hotels, they will experience a property that is contemporary, clean and well maintained. Throughout this time, we have delivered on our promise of providing superior customer care and our commitment to driving revenue to our hoteliers. As a result, we have enhanced our brand image and celebrated a record-breaking number of industry awards and accolades across the globe.”
He is also proud of BWH’s culture, where member inputs in the form of a ballot is considered before any significant decision is undertaken. The company calls itself an association of members united for the benefit of the Best Western family, which is built on the principle of ‘member helping member’. Cuculic believed that this has cultivated a unique culture centered around its spirit of caring. “I firmly believe that our membership structure is our greatest strength,” he reaffirmed.
A LOT OF PROMISE
When Cuculic was announced as BWH Group’s incoming president in October, he made six promises to assembled members. The first was to hear and consider their voices. He pledged that in January, he will travel and conduct a listening tour to have an honest and open dialogue with members, and understand what the company is doing well and what it can do to improve.
Different brands appeal to different guests, like Best Western Resort Country Club, which offers a great escape for the entire family.
Elaborating about this, he said, “I have had the privilege of working with our hoteliers for over 12 years and have always been focused on helping them, which will certainly continue. My listening tour will provide an opportunity for me to foster an open and honest relationship. I will always respect the voice of the member and look forward to working collaboratively with our membership to drive even greater success for BWH Hotel Group.” While the board of directors, Kong and he recently met with the organisation’s European partners, Cuculic hopes to conduct similar meetings in Asia when regional travel resumes.
BWH Hotel Group’s Incoming President and CEO, Lawrence ‘Larry’ Cuculic, with the company’s Board Chairman, Ishwar Naran (left).
In addition to making a commitment to “work hard with honesty, integrity and fairness,” and to lead by example, his other assurance was that the company’s leadership team will be focused on driving superior
revenue to its members. Elaborating on how he will ensure this in a clearly outlined gameplan, Cuculic stated, “We will deliver on our promise of driving superior revenue to our members by strengthening our loyalty program, additional wellthought marketing programs with appropriate return on advertising spend, increasing brand revenue delivery, and driving our development efforts across key markets across the globe.”
THE WORK STARTS NOW
Keen to fulfill his responsibilities to all stakeholders, Cuculic has decided to start with a clear agenda. He revealed that BWH Group is not considering adding any new brands to its portfolio at this time. Instead, it is focused on putting the right brands in the right markets to meet existing consumer demand in each region. These would include urban and dense suburban representation.
“Our strategy is to leverage our reputation among hoteliers and developers as being the brand that can deliver revenue because we resonate with consumers and provide hoteliers with industry leading programs and support for value,” he clarified.
The company’s Board of Directors recently engaged a thirdparty agency to evaluate its performance. The consumer research concluded that the more guests stay at BWH Hotel Group properties, the more likely they are to return. Cuculic maintained that this reputation is why developers and hoteliers will continue to join the brand.
Moreover, the hotel major is aggressively developing its successful soft brands – BW Premier Collection, BW Signature Collection, and the WorldHotels Collection. “We have recognised that there is a place in the BWH Hotel Group network for hoteliers that want their independence but also want to leverage our well-established revenue driving platforms,” he said.
A WHOLE NEW WORLD
Earlier this year, WorldHotels celebrated its 50th anniversary with a brand refresh that comprised new logos and updated vision and mission statements under the overarching ‘A World Reimagined’ theme. The brand invested in extensive research to gain a greater understanding of the luxury and lifestyle traveller and what motivates them in contemporary times.
Recognising the differing desires of the lifestyle traveller, WorldHotels recently created a new brand, WorldHotels Crafted.
It interviewed key stakeholders, conducted a global member survey, and identified the best way to evolve. The refresh was then designed to enhance its brand storytelling and ensure each WorldHotels collection has its own identity and personality.
Elaborating about this, Cuculic said, “WorldHotels has always been at the forefront of innovation, and
this year we recognised a need to adapt our branding to align with the evolving digital and media landscape.
We believe the refreshed branding will play a critical role in helping the brand and our hoteliers maintain a competitive edge, especially as we emerge from the pandemic.” Under the new branding, the company will leverage WorldHotels’ five-decade expertise and continue to lean into BWH Hotel Group’s resources to achieve greater success.
This will be achieved through a multi-pronged approach wherein it will continue to focus on driving superior revenue to its hoteliers and expand its portfolio of offerings in premier global destinations, while providing exceptional travel experiences to its guests.
BWH Group’s WorldHotels Collection comprises a group of luxury properties, like the Stamford Plaza Auckland, which are in some of the world’s most picturesque holiday locales.
Recognising the differing desires of the lifestyle traveller, World- Hotels recently created a new brand, WorldHotels Crafted. These ‘crafted’ hotels offer distinctive and localised experiences that appeal to guests who seek a unique stay that can only be found at hotels with surprising personalities.
“Independent hotel owners and operators are who make World- Hotels unique. We are proud to offer these hoteliers the perfect balance of creative freedom and a trusted alliance and partnership. Every hotel is provided with access to unparalleled systems and support through BWH Hotel Group. WorldHotels properties gain access to BWH Hotel Group’s award-winning rewards programs, robust digital presence, premier partnerships, and global sales team,” Cuculic reaffirmed.
While BWH Group does not have a WorldHotels property in India currently, he believed it is just a matter of time before this status quo changes. He is hopeful that the company will be fortunate to have hotels recognise the strength of, and benefits associated with, its distribution platform, its ability to drive sales to WorldHotels Collection properties.
Moreover, they can piggyback the WorldHotels Rewards program that leverages the strength of the affiliated Best Western Rewards program and its 47 million loyalty program members. This program boasts of 47 million members worldwide and the brand has evolved the program, which includes the launch of Pay with Points. It gives members greater access to travel regardless of how many points they have in their accounts. Consumers who do not have enough points for a free room can discount their room rate by using BWR points.
As the company looks to the future and grows its brands across the globe, Cuculic assured that it will ensure that growth is thoughtful and measured. Different brands appeal to different guests and this is where BWH Group is a good space. Its strength of 18 provides development opportunities, which it will leverage to increase revenue delivery to our members. This will allow it to remain a top-notch institution, whether it is in terms of profitability, governance, employee satisfaction or guest appreciation.
