Best Western in financial puzzle
Hotels consortium Best Western has hit back at suggestions that its New Zealand business has financial problems.
Speculation suggested Best Western New Zealand had frozen more than £300,000 (nearly NZ$1m) owed to its hotels to save itself from a dire financial situation. Several members were also thought to have left the chain.
Lindsay Sandes, chief executive officer of Best Western New Zealand, denied this.
He said: "We have a couple of disgruntled members. One purchased a property that had an investment in shares in our firm and he wanted that investment paid out immediately.
"In the other case the hotel was getting more than a 2,000% return on its investment in Best Western. The people there felt they could get that on an independent basis and they made the decision to leave."
When Sandes joined the company in December 1998, one of his key tasks was to restructure its finances.
David Hayes, chief executive of Best Western in the UK, said he was unaware of Best Western having financial difficulties anywhere.
He said: "The hotels are owned by a membership and have an affiliation with Best Western International. There is no reason why any problems they may have (in New Zealand) will affect anyone else in the world."
