US hotel chain Best Western scouts for franchise partner to expand in India

US hotel chain Best Western is scouting for a new management partner to expand its presence in India, according to three people familiar with the matter, as the company gears up for growth in the country's hospitality sector. 

Eight years after signing on a franchise partner in India, which it calls an "important" market, Best Western has fallen behind targets due to what industry experts say are quality considerations and the absence of a strong sales and distribution network. 

"Best Western needs more focus on the top management to be able to grow the brand in India. The international partners need to give more commitment and attention that this territory deserves," said one of the people, who earlier worked with the company. 

Best Western had inked an agreement with existing master franchise partner Cabana Hotel Management Services in June 2007. At that time, Cabana had planned to invest over $1.2 billion to add more than 100 Best Western hotels and 10,000 rooms in India by 2017 — targets that are likely to be missed. 

While Cabana acknowledged that growth hasn't taken place as planned, it denied that a change of partner was being contemplated. Best Western International, headquartered in Phoenix, Arizona, was noncommittal. 

"We consider India an important market and we will continue our steadfast efforts to meet the hospitality needs of customers in this significant market," David Kong, president and CEO of Best Western International, said. 

A Cabana (Best Western India) official said the company is currently discussing the terms of an extension of its agreement with Best Western International. 

"In terms of the global Best Western development pipeline, India stands at number 4 amongst all Best Western Affiliates internationally," Gaurav Sarin, associate vice president of Best Western India,said. 

While Best Western India's website mentions 25 operational properties with about 1,250 rooms in the country, he said the company runs 29 hotels. 

Sarin attributed the slow signing of deals to the overall slowdown and financing issues facing the hospitality industry since 2010-11. "Signup numbers might be proceeding at a slower clip in the past two to three years compared to earlier. However, it is still much higher compared to other chains."