Ex-Western Bonanza Inn fees drop 71%, sees bookings climb via Magnuson brand conversion
September 22, 2014
Located in the heart of Yuba City, California, the Bonanza Inn Magnuson Grand Hotel has been part of the Magnuson family for almost five years. Back in August of 2009, Anthony Propps, the owner of the 121-room Bonanza Inn, decided it was time to leave Best Western and take back control of his hotel by switching to the Magnuson Brand.
While he was with Best Western, Propps was constantly being told to make unnecessary upgrades. He just couldn’t keep up with their constant demands.
“Customers just want comfortable beds, clean rooms, and great prices,” stated Mr. Propps, “Best Western was telling me to push my rates higher, and we are not in a market that allows that.”
At this point, he decided it was time to step out and look for something else. While other chains seemed feasible, only Magnuson Hotels provided him with the freedom and opportunity to run his hotel successfully, the way he wanted to. He loved the fact that the CEO, Thomas Magnuson, spoke to him personally.
“Tom told me that most owners just want to step up and take control of their hotel,” said Mr. Propps, “The fact that one of the founders of the company was taking the time to talk to me was so unique.”
Today, the Bonanza Inn Magnuson Grand Hotel is saving thousands of dollars and increasing their bottom line. According to Mr. Propps, he saves at least 144,000 dollars a year with Magnuson Hotels compared to when the hotel was a Best Western. The hotel drives a higher average room rate and much more reservations than before.
Driving the rapid growth of 400 Best Western conversions to the Magnuson brand are Magnuson’s recent certification to the US Franchise Registry, the national listing of brands approved by the US Small Business Administration (SBA). Hotel brands approved receive a streamlined process, and faster approvals. On average Hotel owners average weeks to months off their loan process, and guarantees fully backed by the SBA.
SBA approval expedites loan processing and improves relationships with SBA Lenders. The SBA guarantees 75% – 85% of the loan, which lowers risk to banks, increasing willingness to provide loans to concepts that are listed. As many banks are nervous to make loans in an unstable economy, they know that an SBA guarantee offers security.
Total 2014 YTD Magnuson Hotels brand growth has risen 40% over same period 2013, and the 400 Best Western conversions are particularly notable as it represent an amount equal to 20% of Best Western’s North American portfolio.