How to Finance a BW Premier Collection Franchise: Keep Your Name
By Anthony Cornella
A BW Premier Collection franchise loan usually finances an upscale independent hotel that wants the reach of a global reservation and loyalty system without giving up its own name and personality. BW Premier Collection is a soft brand from Best Western, so the financing questions center on acquiring or refinancing an existing hotel, funding renovations and preserving working capital, rather than building a prototype from the ground up.
US Professional Funding is not affiliated with, sponsored by or endorsed by BW Premier Collection or Best Western; the names are used only to describe the business. Figures and terms in the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and owners should review the current Franchise Disclosure Document (FDD) and agreements with a qualified franchise attorney and accountant.
BW Premier Collection Franchise Loan at a Glance
- Concept: a soft brand for upscale and boutique independent hotels, introduced by Best Western in 2015.
- Identity: each hotel keeps its own name and character while joining the collection.
- Fee approach: Best Western has described a pay-for-performance fee structure for the collection; confirm current fees in Items 5 and 6 of the FDD.
- Investment: depends almost entirely on the hotel’s purchase price or existing debt and the scope of any renovation; confirm the franchisor’s Item 7 estimate in the FDD.
- System support: access to Best Western’s reservation system, websites, sales team, revenue management tools and the Best Western Rewards loyalty program.
- SBA Franchise Directory: listed under code S8757, with notes on management agreements and transient revenue explained below.
What Is BW Premier Collection?
Best Western introduced BW Premier Collection in 2015 as a soft brand targeting upscale and luxury independent hotels. The company describes it as a carefully curated collection of upscale hotels in destination markets, where each property’s identity is tied to its locale rather than to a uniform brand look.
How a soft brand works. A soft brand lets an independent hotel keep its name, design and service style while adding the distribution, loyalty program and sales support of a large hotel company. The hotel is usually marketed as part of the collection, so guests can book it through the brand’s channels and earn and redeem loyalty points there.
Why owners join. Best Western positioned the collection as a way for independent hotels to reduce their reliance on online travel agencies. Members gain access to the company’s websites, global sales team and revenue management system, along with its loyalty program.
A note on branding. Best Western’s website notes a planned change in the naming of its brand family, expected in January 2027. Confirm current brand names and agreement terms with the franchisor before you sign or close.
How lenders view it. In a BW Premier Collection franchise loan request, lenders see the hotel as an upscale independent property with brand-level distribution. They underwrite the hotel’s own performance, location and condition first, then consider how the brand affiliation supports occupancy and rate. Because the hotel keeps its identity, lenders also look closely at what happens if the affiliation ends. Our article on branded vs. independent hotels covers how affiliation affects value and financing.
BW Premier Collection Costs
Joining a soft brand rarely involves a new build, so total cost depends on the hotel itself. Use the current FDD to confirm each category below.
Initial fees. Item 5 states any application, affiliation or initial fee, when it is due and whether it is refundable.
Hotel acquisition or refinancing. For a buyer, the purchase price of the hotel is by far the largest piece. For an existing owner converting, the main question is whether existing debt can stay in place or should be refinanced.
Renovation and property improvements. The franchisor may require improvements to meet its quality expectations before or after joining. Read about hotel PIP financing for brand-required renovations.
Technology and onboarding. Connecting to the reservation system, property management integrations, training and signage tied to the collection.
Working capital. Payroll, utilities, insurance, property taxes and reserves for seasonal swings.
When you review Item 7 and your own budget, confirm these lines:
- Application or affiliation fee
- Hotel purchase price or refinance of existing debt
- Required renovations, furniture, fixtures and equipment
- Technology, reservation system connection and onboarding
- Signage and marketing materials
- Training and travel
- Professional, legal and closing costs
- Working capital and reserves
Ongoing Fees and How They Affect Your Loan
Best Western has described the collection’s fee approach as pay-for-performance, meaning hotels pay for business the brand delivers. Item 6 of the FDD lists the actual fees, which may include reservation, loyalty, marketing and technology charges.
How lenders factor these costs in. Performance-based fees rise and fall with the bookings the brand delivers, so lenders will model them against projected brand-sourced revenue and test the hotel’s debt service coverage under conservative assumptions. Owners should show how much revenue is expected from brand channels versus direct and other sources.
Franchisor Requirements for Owners
Best Western selects hotels for the collection, emphasizing quality over quantity. Confirm current criteria directly with the franchisor. Owners should expect review of:
- The property: location, quality, guest reviews, amenities such as dining and meeting space, and physical condition.
- The ownership: financial strength and hotel experience.
- Management: who will operate the hotel and under what agreement.
Lenders apply their own standards on top of the franchisor’s, typically including an equity contribution, liquidity after closing and hospitality experience.
Ways to Own a BW Premier Collection Hotel
Converting a hotel you already own. An existing independent owner joins the collection. Financing may cover renovations, technology and working capital, or a refinance that consolidates existing debt. See our hotel debt refinancing options.
Acquiring a hotel and joining. A buyer acquires an independent upscale hotel and applies to bring it into the collection, often combining the purchase with a renovation plan. Our hotel acquisition financing page explains how we approach these deals.
Buying a hotel already in the collection. The franchisor must approve the new owner, and the buyer may need to sign a new agreement and complete any required improvements.
Financing Options for a BW Premier Collection Hotel
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can be considered for smaller hotel acquisitions, renovations and working capital, within program limits.
SBA 504 loans. Hotels are real estate-heavy, which makes the SBA 504 program a natural fit for acquisitions and major renovations of owner-operated properties.
Conventional term loans. Larger upscale hotels may exceed SBA limits. A conventional business loan sized to the hotel’s cash flow and appraised value may be the primary financing.
FF&E financing. Furniture, fixtures and equipment such as guestroom furnishings, restaurant and bar equipment, fitness equipment and technology can be financed separately.
Working capital and lines of credit. Destination hotels often see seasonal swings. A line of credit can bridge slower months and fund pre-season staffing. Explore hotel working capital options.
Seller financing on acquisitions. A seller may carry part of the price. A seller note is typically subordinate to the senior loan, and SBA rules may limit its structure.
SBA Loans for BW Premier Collection Owners
The SBA Franchise Directory lists brands whose agreements have been reviewed for SBA eligibility. A listing clears the franchise relationship but does not approve any borrower or hotel.
Directory listing. BW Premier Collection appears under code S8757 with two notes:
- Management agreements: if the owner also uses a third-party management company, the lender must review that agreement to determine whether the owner and manager are affiliated. The owner is not eligible if the management company is, or is affiliated with, the franchisor.
- Transient revenue: the hotel is eligible only if more than half of its revenue in the prior year came from guests staying 30 days or less at a time. For a start-up, projections must show the same.
In plain terms, the hotel must operate mainly as a short-stay hotel, and its management cannot be tied to the franchisor. Owners of properties with large long-stay or residential components should check this early.
Program basics. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Many upscale hotels are larger than that, so a BW Premier Collection franchise loan may lean on SBA 504 or conventional financing. Read about SBA loans for hotels for more detail, and use our SBA loan calculator for early planning estimates only.
How Lenders Evaluate a BW Premier Collection Deal
Personal credit and financial history. Lenders review credit, tax returns and personal financial statements for owners, and personal guarantees are typical.
Net worth and liquidity. Hotel lenders want to see an equity contribution plus reserves for renovations, seasonal slowdowns and capital needs.
Hospitality experience. Experience running upscale hotels, or a qualified management company, carries significant weight.
Business plan and projections. Projections should show occupancy, average daily rate and revenue per available room by month, food and beverage income, and expected brand-sourced bookings. Assumptions about the brand’s contribution should be realistic and supported.
The FDD and agreement. Lenders review the term, termination rights, transfer provisions and fees. A soft-brand affiliation that can end on short notice affects how lenders view the hotel’s long-term revenue.
The real estate. An appraisal, environmental review and property condition report are typical, along with review of any ground lease.
Historical financials. For an existing hotel, expect several years of profit and loss statements, monthly operating reports and tax returns.
Renovations and FF&E
Upscale independent hotels compete on design and guest experience, so renovations are a recurring part of ownership. Typical projects include guestroom and bathroom refreshes, lobby and restaurant updates, meeting space improvements and technology upgrades. Owners should plan a capital reserve and know whether the franchisor will require improvements on joining or on transfer. Financing renovations alongside an acquisition, rather than afterward, often protects liquidity.
Growing a Portfolio
Because the collection is built around distinctive independent properties, owners typically grow by acquiring other upscale hotels and bringing them in one at a time. Lenders financing an additional hotel look at the existing portfolio’s performance, combined debt and the depth of management. Our hotel real estate expansion page explains how we finance growth.
Real-World Scenarios
An independent owner converting. The owner of a boutique hotel joins the collection to gain loyalty and reservation access, financing a guestroom refresh and technology upgrades with a term loan and FF&E financing.
A buyer acquiring and repositioning. A hotel investor buys an upscale independent property, uses an SBA 504 loan for the real estate and plans the application to join the collection as part of the business plan.
A hotel with long-stay guests. An owner whose property hosts many extended stays reviews revenue mix with a lender before applying for SBA financing to confirm the transient revenue rule is met.
Common Mistakes to Avoid
- Assuming brand affiliation will carry occupancy without a realistic projection of brand-sourced bookings
- Overlooking the SBA transient revenue rule for properties with long-stay guests
- Using a management company tied to the franchisor and expecting SBA eligibility
- Underbudgeting renovations required to join or remain in the collection
- Ignoring agreement termination terms that affect long-term value
For more pitfalls, read the hotel loan mistakes that cost owners the most.
Next Steps to Finance Your BW Premier Collection Hotel
Step 1: Contact the franchisor. Request the current FDD and confirm eligibility for your property.
Step 2: Review the FDD and agreement. Focus on fees, term, termination, transfer and any required improvements with your attorney and accountant.
Step 3: Gather the hotel’s financials. Assemble historical statements, monthly operating reports and a property condition report.
Step 4: Build projections. Model occupancy, rate and brand-sourced bookings conservatively.
Step 5: Talk with a financing specialist. Compare SBA 7(a), 504 and conventional structures before you commit.
Step 6: Apply and coordinate approvals. Align lender approval with the franchisor’s acceptance and any renovation timeline.
BW Premier Collection Franchise Loan FAQs
What is BW Premier Collection?
It is an upscale soft brand from Best Western that lets independent hotels keep their own names while gaining access to the company’s reservation system, loyalty program and sales support.
How much does it cost to join?
Costs depend on the hotel’s purchase price or existing debt and any required renovations. Confirm initial and ongoing fees in Items 5, 6 and 7 of the current FDD.
What fees does BW Premier Collection charge?
Best Western has described a pay-for-performance fee structure for the collection. Item 6 of the FDD lists current fees.
Is BW Premier Collection eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S8757, subject to notes on management agreements and transient revenue.
What does the transient revenue rule mean?
More than half of the hotel’s revenue must come from guests staying 30 days or less at a time, based on the prior year or, for start-ups, projections.
Can I use a management company?
Yes, but the lender must review the management agreement, and the owner is not SBA-eligible if the management company is, or is affiliated with, the franchisor.
Can I convert my independent hotel?
That is the core purpose of the collection. Best Western reviews each hotel for quality and fit.
Can I get a BW Premier Collection franchise loan for an acquisition?
Yes. Acquisitions can be financed with SBA 504, SBA 7(a) or conventional loans depending on size and structure.
Can I finance renovations and FF&E separately?
Yes. Renovations can be included in acquisition financing or funded with a separate term loan or equipment financing.
Does the franchisor offer financing?
Check Item 10 of the FDD for any financing the franchisor offers. Most owners arrange their own loans.
Final Thoughts
BW Premier Collection gives upscale independent hotels a way to keep their identity while gaining brand distribution. Owners who model brand-sourced revenue conservatively, plan renovations early and confirm SBA eligibility under the directory’s notes give themselves the strongest footing with lenders.
US Professional Funding helps hotel owners and buyers finance acquisitions, renovations, refinancing and working capital. Learn more about our franchise financing and hotel and motel financing solutions.
