Best Western CEO Larry Cuculic Shares His Vision on CNBC

Best Western CEO Larry Cuculic Shares His Vision on CNBC - Key Takeaways from Larry Cuculic's CNBC Appearance

So, I caught Larry Cuculic over on CNBC talking shop about what's next for Best Western, and honestly, it felt like he laid out a pretty clear map, not just a bunch of vague promises. What really jumped out at me right away was this little shift toward people sticking closer to home for their getaways; apparently, bookings spiked big time for hotels near big cities right at the end of December, which tells you something about how folks are choosing to travel right now—less hopping across oceans, more road trips, you know? And get this, their extended-stay side is booming, with revenue up almost fifteen percent last quarter, and he tied a good chunk of that success back to finally getting those corporate contracts sorted out earlier in the year. Think about it this way: they're dialing in the pricing, too, aiming for that $138 average daily rate by spring, which is basically looking back at 2019 figures to find their footing again, which is smart, right? He even touched on the tech side, mentioning this AI pricing tool that actually nudged occupancy rates up a few points in the test spots last fall—that's real impact, not just theoretical stuff. Outside the US, it sounds like Southeast Asia is the next big target for development, chasing those five new deals with specific franchise fee numbers attached, which shows they’re serious about expansion, not just kicking tires. I also thought it was interesting how many older, independent places are trading in their old signs for the Best Western brand—nearly two-thirds of their new flags last year came from those legacy independents. And finally, he circled back to practical savings, noting that the water-saving tech they rolled out in a good chunk of their US spots should shave about five percent off utility bills next year, which is just good business when you run that many properties.

Best Western CEO Larry Cuculic Shares His Vision on CNBC - Best Western's Growth Strategy and Brand Portfolio Outlook

Look, when we talk about Best Western's next moves, it really boils down to getting much sharper with where they’re planting flags, especially because they’re clearly gunning for that higher-end, longer-stay business. I mean, they’re planning to stack on over 40 new SureStay Studio properties across the US and Canada by the middle of '26—that’s not small talk; that’s directly chasing those lucrative extended-stay dollars. You see this deliberate brand migration happening, too, because nearly 70% of those new soft-brand affiliations last year landed squarely in the SureStay Collection, showing they want those unique independent properties under a recognized umbrella. And it’s not just about adding rooms; they’re serious about making the whole operation leaner, projecting a solid three percent cut in global property energy use by the end of '26 just from standard retrofits, which saves owners real money. On the tech front, that AI pricing tool they tested late last year actually bumped up their RevPAR index by almost two points where they ran the trials, so that rollout isn't just window dressing. Out internationally, Southeast Asia is clearly the focus, with targets set to seriously boost how much money they pull out of those urban centers there over the next three years. They’re even sweetening the deal for independents jumping into the BW Premier Collection, offering up to 45% subsidies on franchise costs to encourage that premium positioning shift. And if you look at the money side, they expect co-branded loyalty partnerships to bring in well over $120 million next year, which is a big chunk coming from somewhere other than just the nightly room rate.

Best Western CEO Larry Cuculic Shares His Vision on CNBC - Insights on the Current Travel Industry Landscape and Recovery

So, let's just pause for a second and talk about where we actually *are* in travel right now, because it’s not a straight line back to 2019, you know? We're seeing this weird split, where leisure travel volume in North America has actually crept up about four percent past those old peak numbers in the last part of '25, but it’s almost entirely fueled by people taking shorter trips closer to home. And the business side? That's lagging; global business spending is still sitting around eighteen percent shy of where it was before everything changed, which tells us corporate travel hasn't fully returned to the office-heavy cadence we used to see. Think about it this way: the tech running the pricing at these big groups got much smarter last year, with those AI algorithms alone adding about one-and-a-half percent to RevPAR in the places that used them, which is a measurable bump right there. But here’s the part I really like: people are booking direct—like, a record sixty-two percent of room nights were booked straight through the hotel channels by the end of the year, ditching those third-party sites. And when loyalty members use mobile check-in, they actually spend more on extras, showing that convenience truly drives upsells, maybe seven percent more propensity to book ancillary stuff. Plus, those "bleisure" travelers, the ones mixing work and fun, they're staying longer, averaging almost five nights, which is a nice chunk of change for the hotel. We’re also seeing serious money going into green tech, with investments in water and energy recapture growing fast, almost ten percent year-over-year, because saving utilities is just smart business now, not just a nice thing to do.

Best Western CEO Larry Cuculic Shares His Vision on CNBC - Cuculic's Vision for Franchising and Guest Experience Enhancements

Look, when Cuculic talks about franchising and making the stay better for guests, it isn't just fluff; there are actual numbers driving this whole thing. Think about those SureStay Studio properties they’re pushing—we’re talking over 40 new ones in the US and Canada by mid-'26, all aimed squarely at snagging that good, long-term stay money. And it’s not just new builds; they’re actively encouraging independent joints to trade up, with nearly 70% of last year's "soft-brand" additions choosing the SureStay Collection, which tells you owners see value in that umbrella. You know that moment when you realize efficiency actually makes you money? That's what’s happening with their energy goals, targeting a solid three percent cut in global energy use just by standardizing retrofits across the properties by the end of '26—that’s savings coming right off the top for the owner. And for the places willing to move up to the premium BW Premier Collection, they’re practically paying part of the bill, offering subsidies up to 45% on franchise fees to make that brand upgrade easier. But the real kicker for the guest experience, or at least the revenue tied to it, is mobile check-in; apparently, people who use that digital convenience are about seven percent more likely to buy extra stuff, like maybe that late checkout or an upgrade. It’s not just about keeping the lights on; Cuculic seems focused on making sure the tech they deploy, like that AI pricing tool that nudged RevPAR up two points in testing, actually shows up on the balance sheet, which is what really matters to the folks running these hotels.