Best Western International MEMBERSHIP FEES 2015

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1 Best Western International MEMBERSHIP FEES 2015

2 Membership Fees Effective December 1, 2014 (in U.S. Dollars) All fees, dues, charges and assessments A. U.S. Membership: Billed and paid in U.S. dollars. B. Canadian Membership: Billed in Canadian dollars based on the monthly exchange rate and paid in Canadian or U.S. dollars. ENTRANCE FEE (One-time fee to accompany application) A. Affiliation Fee: Minimum $42,000 (50 rooms or less), plus $200 for each additional room up to a maximum of 1,000 rooms, plus B. Evaluation Fee: $4,000. ANNUAL DUES Annual Dues are nonrefundable and are charged for each fiscal year. For applications accepted during the year, Annual Dues are prorated from the date the property is activated on the Best Western reservation system. Annual Dues are $1,795 for 20 rooms plus: $60.34 per room for 21 to 50 rooms; $23.47 per room for 51 to 400 rooms; and $2.35 per room for rooms over 400. MONTHLY FEE For Memberships approved by the Board of Directors: (i) prior to December 1, 2014; and (ii) on or after December 1, 2014, that have an ownership structure that consists of a minimum of fifty percent (50%) Best Western Property owners at the time of the Board of Directors application approval, and that elect to pay Monthly Fees in accordance with the following: The Monthly Fee consists of the annual Membership Fee and the Reservation Fee which are due December 1st of each year and are payable in monthly installments by the 15th of each month. For Memberships: (i) approved by the Board of Directors on or after December 1, 2014 that do not have an ownership structure that consists of a minimum of fifty percent (50%) Best Western Property owners at the time of the Board of Directors application approval, or have such an ownership structure but nonetheless elect to pay Monthly Fees as a percentage of Property Room Revenue; and (ii) with a Ten-Year Term: The Monthly Fee is equal to five percent (5%) of Property Room Revenue, billed one month in arrears, payable by the 15th of each month. ADVERTISING ASSESSMENT Effective December 1, 2014 the advertising assessment is $12.06 per room per month. The Board of Directors has the authority to increase the advertising assessment once each fiscal year, with no such annual increase exceeding the greater of (1) two percent (2%) of the prior year s assessment, or (2) the rate of inflation for the previous year as measured by the United States Bureau of Labor Statistics Consumer Price Index (all items for all urban areas). CANCELLATION OR TERMINATION As further defined in Best Western Bylaws Article II, and as set forth in the applicable Membership Application, Members or contingently-approved Applicants cancelled or terminated shall pay to Best Western: (i) Annual Dues and Monthly Fees for the remainder of the applicable term; and (ii) the cost of all goods and services provided by or ordered through Best Western for which payment has not yet been received. Additionally, a Ten-Year Member shall pay to Best Western a pro-rata amount of the Development Incentive based upon the number of months remaining in the Ten-Year Term. Membership Fee $1.58 per room per day for first 25 rooms plus: $1.44 per room per day for 26 to 50 rooms; $1.32 per room per day for 51 to 100 rooms; $1.30 per room per day for 101 to 150 rooms; $1.26 per room per day for 151 to 400 rooms; and $1.26 per room per day for ten percent (10%) of rooms over 400. Reservation Fee For the first 12 months of activation, a new property will be charged $0.15 per room per day up to and including 400 rooms and $0.15 per room per day for 10% of rooms over 400. After 12 months of activation, the Reservation Fee will be based on the number of room nights booked through the reservations system for the previous 12 months. PG Membership Fees - U.S. & Canada

3 The following tables provide a brief explanation of various fees, charges and credits. Since these tables are not all-inclusive, please refer to Best Western s Regulatory Documents for any additional fees, dues, charges or assessments. MARKETING AND RESERVATION DISTRIBUTION SERVICES Global Distribution Systems (GDS) Fee Fee for reservations booked through GDS and $7.50 per booking GDS internet travel sites Third Party Internet Booking Fee Fee for reservations booked through third party $4.40 per booking internet booking site via Pegasus, HBSi, etc. DerbySoft Booking Fee Fee for reservations booked through DerbySoft $2.00 per booking Performance Based Marketing (PBM) PBM Fee Rebate Member Web Booking Commissions Travel Agent Commissions Reservation Call Transfer Program (optional) Best Western Rewards (BWR ) Fee BWR Enrollment Fee Rebate BWR Elite Member Property Recognition Program Commission charge for reservations which result from digital opportunity Rebate of PBM fees charged for reservations resulting from digital opportunity once a property s fiscal year-to-date PBM fees reach 100% of the property s total fiscal year advertising assessment Commission charge for reservations your hotel receives from North American Best Western hotels and/or international Best Western hotels Commission credit for reservations your hotel sends to North American Best Western hotels and/or international Best Western hotels Pass-through commission charge for travel agent reservations. Commission varies by Travel Agent and agreement. Optional program fee to have calls transferred from your hotel to Central Reservations. Hotels not participating that have calls transferred are also subject to a fee. Fee for BWR points or airline program miles issued by your hotel to BWR members (10 points issued for each revenue dollar) One-time rebate of BWR fee imposed when enrolling a new BWR member Fee for BWR Customer Care agent in Phoenix to respond to and resolve a complaint related to BWR Elite Member recognition requirement on first contact 10% of room revenue for each reservation received from a digital opportunity 100% of the PBM fees charged in a fiscal year that exceed the fiscal year advertising assessment for that property 10% of room revenue for reservations from N.A. hotels 5% of room revenue from international hotels 10% of room revenue for reservations to N.A. hotels 5% of room revenue to international hotels Commission on room revenue Participating hotel: $75 per month, plus $3 for each transferred call over 50 calls in a calendar month Non-participating hotel: $3 for each call transferred $ per point issued 5.5% of room revenue for newly enrolled BWR member with valid address, up to 5 nights stay; 2.75% of room revenue for newly enrolled BWR member without valid address, up to 5 nights stay Fee per occurrence ranges from free to $100 based on number of complaints per fiscal year and hotel size 2015 Membership Fees - U.S. & Canada PG 2

4 MARKETING AND RESERVATION DISTRIBUTION SERVICES Free Night Vouchers Best Western Travel Card Credit for BWR free night voucher redeemed at your hotel Credit for travel cards redeemed at your hotel If 95% occupied, credit of 90% of ADR. If less than 95% occupied, credit of $30 or 30% of ADR (whichever is greater). If 300 free nights consumed in a fiscal year, additional credit of $15 or 15% of ADR (whichever is greater). Amount of travel card redeemed less 10% commission Cooperative (Co-op) Membership Fee Charge for travel cards sold or reloaded at your hotel. Related commission is credit to your hotel. Fee for regional Best Western Member Co-op marketing efforts Amount of travel card sold or reloaded is charged; related 10% commission is credited Fee per month per room varies based on Co-op BestCheque Fee for administering the centralized travel agent commissions program $0.71 per commissionable transaction BestCheque Consortia Marketing Program Fee for reservations received from Consortia partners $2.25 per net room night reservation booked Commission Junction AAA/CAA Official Appointment Fee Central Bill Revenue Commission charge for reservations which result from a banner ad placed on a publisher s network Annual fee for licensing rights to the AAA or CAA logo for use on promotional materials, websites and signage Credit for reservations revenue booked by tour operators and corporate accounts through the Central Bill program 10% of room revenue for each reservation associated with banner ads Annual fee ranging from $412 to $1,175, which includes a 50% discount, based on room size of hotel Central Bill reservation revenue credited monthly to your account PG Membership Fees - U.S. & Canada

5 INFORMATION SERVICES AND PROGRAMS High-Speed Internet Access (HSIA) (optional) Two-Way Maintenance and/or Installation Optional program fee for hotels using the Best Western HSIA solution One-time fee for installation of Two-Way system and monthly maintenance fee for technical support $65 per month, for the first 50 rooms, plus $1.25 per month for each additional room over 50 rooms, plus $1.50 per minute for HSIA support calls $1,500 one-time installation fee $65 per month maintenance fee Very Small Aperture Terminal (VSAT) or Satellite Dish Clear Commerce Store Front Set Up Charge (optional) Fee for VSAT, a system-wide, private, hotel level network, which allows for sending and receiving secure LYNX reservation messages from Best Western s worldwide network to North American Best Western hotels One-time fee for set up of Clear Commerce Store Front to view and manage settlement of advance payment and deposit (non-cancellable) reservations $65 per month $149 one-time fee EDUCATION AND TRAINING, CUSTOMER CARE AND OTHER Online Housekeeping Supervisory Training Fee for online housekeeping supervisory training and certification program Cost recovery fee billed annually Online Front Desk Training Fee for online front desk training program Cost recovery fee billed annually Tools For Success Fee for online and other education and $24.91 per month training resources provided to the hotel Customer Care Non-Response Fee Fee charged if a Member does not acknowledge a billing or miscellaneous file with the guest within two business days $75 per occurrence Customer Care Per Complaint Fee Above.34 Customer Care First Contact Resolution Fee Fee for complaints above the permitted guest complaint ratio of.34 Fee for Best Western Customer Care agent in Phoenix to respond to and resolve customer service and accommodation complaints on first contact $50 per occurrence; $300 per occurrence for hotels under a conditional extension for excessive customer complaint ratio Fee per occurrence ranges from free to $100 based on number of complaints per fiscal year and hotel size 2015 Membership Fees - U.S. & Canada PG 4

6 EDUCATION AND TRAINING, CUSTOMER CARE AND OTHER Convention Meeting Attendance District Meeting Attendance Member Market Area (MMA) Assessment Property Revenue Manager (PRM) Program (optional) Revenue Management (RM) Training Revenue Services Property Visits (optional) On-Boarding Program - Service and Support Paper Guest Satisfaction Survey Charge for one Convention registration per year, whether or not attended Charge for one district meeting registration per year, whether or not attended Fee to cover costs of MMA program Fee charged to hotels that participate in the optional program for experienced and certified PRM services Fee charged to new hotels, reaffiliations and auto-transfer hotels for utilizing Best Western Revenue Management training to fulfill Revenue Management training requirements Fee charged to hotels that participate in the optional Revenue Services Property Visit Program for experienced Best Western Revenue Manager hotel visits Fee for training and other on-boarding services and support provided to new hotels Fee for hotels that participate in the optional Paper Guest Satisfaction Survey program $724 in 2015 $405 per property in If a voting member represents more than one property in a district, property will be billed the full registration fee and additional properties will be billed at a rate of $255 per property $160 annual fee per hotel Per month fee based on size of the hotel: $1,100 for 1-75 rooms $1,200 for rooms $1,300 for rooms $1,500 for rooms $1,600 for rooms $1,750 for 401 or more rooms $4,000 charge billed in six monthly installments beginning on the first month of service Pricing varies by program services $4,000 charge billed in 12 equal monthly payments of $ $67 per month PG Membership Fees - U.S. & Canada

7 Best Western International Each Best Western branded hotel is independently owned and operated. Best Western and the Best Western marks are service marks or registered service marks of Best Western International, Inc Best Western International, Inc. All rights reserved. Printed in the U.S.A. 2/

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