Independence Meets Profitability: BWH’s Cooperative Model for Resilient Hotels
Owning a hotel today means balancing tradition with innovation. Guests expect global quality standards, while owners strive to protect the soul of their property and remain profitable in uncertain times. In our conversation with Marcus Smola, CEO of BWH Hotels Central Europe, he explained how BWH Hotels offers a cooperative model that reinvests every euro into its members - providing international reach, smarter sales, and stronger resilience, while ensuring each hotel’s independence remains untouched. As Marcus emphasized, together, independent hotels can grow stronger and more profitable than ever.
Independent hoteliers are often hesitant to join larger groups. How does BWH manage to preserve their independence while still enabling them to play on an international level?
Many independent hoteliers worry about losing their freedom when joining larger groups. This is exactly where the BWH model comes in: economic independence is fully preserved, and operational decisions remain entirely in the hands of the hoteliers. Our model is unique in its structure: internally, BWH operates as a true cooperative with active participation. Hoteliers help shape the organization, take on responsibility, and occupy key governance roles. Externally, we present ourselves as an international hotel group, visible like global chains and offering the same strong benefits: a powerful loyalty program, attractive volume contracts, global contacts, and reliable quality assurance. Additionally, we offer a comprehensive package of sales services that covers all relevant channels, target groups, and markets. This allows hoteliers to gain the global reach and sales power of an international brand without giving up their independence.
You emphasize that all revenues are reinvested into member hotels. Can you give a concrete example of how this model has improved the profitability of an independent hotel in Central or Eastern Europe?
All BWH revenues are 100% reinvested – into marketing and sales initiatives as well as consulting services for member hotels. There is no profit orientation. The goal is clear: to improve the profitability of each individual hotel. A concrete example is our centralized revenue management: instead of hiring their own staff, hotels receive professional all-round support – at significantly lower costs. This measurably increases profitability. Our centrally managed quality assurance system is equally efficient, closely coordinated with hoteliers and outperforming individual solutions.
Many independent hotels are heavily dependent on bookings via OTAs. How does BWH help these properties become more independent?
Heavy reliance on OTAs is a challenge for many independent hotels – and this is precisely where BWH takes targeted action. Our loyalty program with over 60 million members not only provides valuable insights into customer behavior but also directs guests to book directly: exclusive benefits are available only through our own booking channels. Another key point: the best offer is always found on the hotel’s website – all products and prices are available only there. To promote direct bookings, we consistently invest in online marketing, increasing hotel visibility. At the same time, our key account management secures corporate contracts, with net rates accessible directly through companies’ preferred channels.
The result: hotels significantly reduce their dependence on costly OTAs and sustainably lower their distribution costs.
Your current campaign highlights the diversity of BWH hotels. What is the key message you want to convey to independent hoteliers?
The central message of our campaign is: “Join us. Be who you want to be. Grow beyond yourself.” This philosophy reflects our model. We deliberately embrace the diversity of individual hospitality and offer each property a tailored solution. The principle is clear: together we grow stronger – while each hotel retains its unique identity.
You mention a brand contribution of 60%. What does this mean in practice for a small or medium-sized hotel – does it result in a higher ADR, occupancy, or both?
The current brand contribution of 60% reflects the share of revenue directly generated and managed through BWH channels. For hotels, this means additional income – whether through higher ADR, more bookings, or a combination of both, depending on the market and hotel type. This is made possible by our global presence and strong connections with international customers. BWH also offers complete electronic distribution from a single source – across all relevant channels, countries, markets, and customer segments. In addition to increased revenue, this significantly reduces the operational effort required to manage these channels on the hotel side.
This campaign presents BWH Hotels as a partner standing by its hoteliers. How do you ensure that member concerns are heard – and how do you respond with appropriate services?
At BWH, feedback from hoteliers is a top priority – it’s not a side issue but the driving force behind our development. We regularly review our services and always ask: can a hotel provide a service itself, or does a centralized solution offer real added value?
Since we are not profit-oriented, our offerings are solely based on hotel needs. Quality requirements are closely coordinated with members, and services are adjusted accordingly. Feedback flows directly – from the hotels themselves or via the advisory board, which brings the “hotelier’s perspective.” Even fee increases can only be decided by the hotels. Concrete outcomes include new or optional services such as centralized revenue management, HR support for talent acquisition, or professional social media management – all developed from member suggestions. By the way: the final vote on all contract-related decisions worldwide always lies with the hoteliers or their representatives in the relevant committees.
Digitalization and artificial intelligence sound great in theory, but independent hotels often struggle with budgets and expertise. How does BWH make these tools accessible and affordable without overwhelming hoteliers?
Digitalization and AI are challenging for many independent hotels. Together with the procurement experts from our sister company progros, we evaluate providers and suppliers, negotiate terms, test pilot hotels, and analyze results. We then make these findings directly available to our members – including practical training so the solutions can be used immediately. Especially when specialized expertise is needed, pooling interests creates efficiency – that’s our commitment to the hotels.
Many owners fear that brand standards will dilute their local identity. Can you clarify what you standardize and where you draw the line to protect a hotel’s unique character?
Our quality requirements are globally designed to meet guest expectations in each market. Standards and individuality are not contradictory. Standards are based on customer needs, which are generally global or at least continental in nature. Aspects like high-quality mattresses, modern TVs, and high cleanliness standards are considered essential worldwide. At the same time, local identity is not lost. It’s different when it comes to design and furnishings: here, there are deliberately no rigid guidelines. The design is highly individual and serves to convey the local identity. That’s exactly what we want.
Looking at your growth goal – 5,000 hotels by 2030 – what is the concrete benefit for an independent hotel to join now instead of waiting? What is the risk if they don’t join?
The demands on hoteliers are constantly increasing – while the core task of being a good host remains unchanged. The need for expertise, technological solutions, and smart sales strategies is growing. The share of revenue from electronic channels is also rising, requiring continuous learning and commitment. BWH helps hotels meet these challenges successfully. The larger our community, the greater the benefit for each individual hotel: stronger marketing power, higher market share, greater visibility, more loyalty program members, deeper experience exchange, and shared knowledge. Through targeted services, we relieve hoteliers and give them one thing above all: more time for what matters most – their guests. Joining has a direct impact on a hotel’s profitability – the earlier, the greater the effect. So there’s no reason to wait.
Further information available at www.bwhhotels.de, www.bestwestern.de and www.worldhotels.com.