Best Western Hotels & Resorts faces a contraction crisis. The hotel chain operates roughly 10 percent fewer rooms than it did in 2019, a significant decline that reflects broader industry challenges and franchise model pressures. CEO Larry Cuculic has unveiled a strategy to reverse this trend through expansion into upscale segments and international markets.

The chain's shrinkage stems from pandemic-era closures, franchise consolidations, and increased competition. Rather than rebuild its budget portfolio, Best Western is pivoting toward premium positioning. The strategy involves launching and acquiring upmarket brands that command higher room rates and attract affluent travelers willing to pay for quality accommodations.

International expansion forms the second pillar of Cuculic's turnaround plan. Best Western aims to grow aggressively outside North America, particularly in Europe, Asia, and emerging markets where lodging demand remains robust. This geographic diversification reduces dependence on saturated domestic markets and taps into growing middle-class tourism in developing regions.

The shift reflects broader hotel industry trends. Major chains like IHG, Marriott, and Wyndham have increasingly concentrated on upscale and luxury brands, which generate stronger margins and customer loyalty than budget properties. Budget chains face pressure from direct-booking platforms, alternative accommodations like Airbnb, and guests' willingness to trade down during economic uncertainty.

Best Western operates through a franchise model, meaning it relies on third-party operators rather than owning properties directly. This structure accelerates growth but also creates vulnerability. When franchisees struggle or exit, the company loses rooms. Cuculic's upmarket strategy targets franchisees with deeper pockets and stronger operational capabilities, potentially creating a more resilient portfolio.

For travelers, this repositioning means fewer Best Western budget options in familiar markets but more premium choices under Best Western's expanding luxury banners. International travelers will encounter expanded Best Western presence