The Rezidor Hotel Group, one of the fastest growing hotel companies worldwide, is ramping up its ambitious strategic business development programme following positive 2008 half-year financial results, which saw growth in revenue and EBITDA (earning before interest, taxes, depreciation and amortization - a non-GAAP metric used to evaluate a company's profitability margins).
Currently boasting a portfolio of over 100 hotels, with more than 23,000 rooms under development, the Brussels-based group is focusing on the high potential markets of Russia and the Middle East, as part of a revised business model which concentrates more heavily on managed and franchised contracts, and less on financial commitments, as it pushes to make 2008 another record breaker in terms of contracting new fee-based rooms.
And with more than 50 hotels - with almost 13,000 rooms in operation and under development - the Middle East and Africa is at the core of Rezidor’s growth plans. Currently representing 11% of the group’s portfolio of operational hotels, the Middle East share will grow to 17% by the end of 2009.
Furthermore, new properties are scheduled for Dubai, Kuwait - where the first Hotel MISSONI will open in early 2009 - and the African continent, where Rezidor is focusing on industrial hubs, such as South Africa, where three new hotels are under development, and in developing countries like Senegal (Dakar), Nigeria (Lagos) and Ethiopia (Addis Ababa).
“Rezidor is one of the fastest growing hotel companies worldwide and our success is based on an organic business development approach. Starting in Scandinavia and coming via Europe to emerging markets like the Middle East and Africa, we always followed a solid strategy and never left it to chance,” said Puneet Chhatwal, Chief Development Officer (CDO) of Rezidor.
“This strategy has continued this year and between January and end of July we contracted 38 hotels with 9,300 rooms – more than in the full year 2007, which was 53 properties with 8,937 rooms.
“We are clearly setting new standards and our pipeline is now stronger than ever before. We are seeking opportunities in dynamic markets which are less affected by the uncertainties surrounding the global economy.
“This is further combined with our determination to develop close and long-term relationships with owners and developers - a key requisite for us in maintaining Rezidor’s leading market position and is further complemented by our asset-light business model, and also by managing only a few but clearly defined brands,” added Chhatwal.
Having earmarked 2008 as important for hotel openings, Rezidor has launched 15 hotels during the first seven months of this year, including flagships properties such as Park Inn hotels in Moscow and London, the Radisson SAS Resort Tala Bay in Aqaba, Jordan, and the Radisson SAS Hotel Bucharest, Romania.
And upcoming key properties such as the Radisson SAS Hotel Zurich Airport, the Radisson SAS Dokhan Hotel Paris Trocadéro and the Radisson SAS Hotel Sandton Johannesburg, South Africa are scheduled to join the global portfolio by the end of the year.
In Russia & CIS - where Rezidor was the first international hotel company to open a full technical, development, marketing and operations branch office in Moscow - the group currently has 16 hotels with more than 4,400 rooms in operation – and 19 more properties, with approximately 5,000 rooms, under development.
In addition to three Radisson projects in Moscow alone - the 264 room Radisson Hotel Belorusskaya, the 364 room Radisson Olympisky Hotel and the 200 room Radisson Riverside Hotel - Rezidor is active in major cities across the region, ‘where the demand for mid and upmarket hotels is high and the presence of international brands low’, said Chhatwal.
Upcoming projects for both the Radisson SAS and Park Inn brand include locations such as Georgia, Russia, Ukraine, Belarus and Kazakhstan.
“Due to market conditions in emerging markets, we – like any of our competitors – may experience delayed openings. In order to compensate and to balance our risk we are also enhancing our offering in the Nordics and Western Europe, where we select experienced business partners with a solid background,” said Chhatwal.
Besides primary locations, Rezidor is also examining secondary and tertiary markets in Europe, where especially the Park Inn brand – ideal for conversions and franchise contracts – grows fast. Today, 26% of all Rezidor hotels operate under the Park Inn brand; by the end of 2009 this
number will increase towards one third.
About the Rezidor Hotel Group:
The Rezidor Hotel Group is one of the fastest growing hotel companies in the world. The group features a portfolio
of more than 350 hotels in operation and under development with more than 74,000 rooms in 53 countries.
Rezidor operates the brands Radisson SAS Hotels & Resorts, Regent Hotels & Resorts, Park Inn and Country
Inns & Suites in Europe, Middle East and Africa, along with the goldpoints plusSM loyalty programme for frequent hotel guests. Rezidor has signed a worldwide license agreement with the Italian fashion house Missoni, in order to develop and operate a lifestyle hotel brand of the same name: Hotel Missoni.
In November 2006, Rezidor was listed on the Stockholm Stock Exchange. With 42%, Carlson Companies is the main shareholder.
The Corporate Office of the Rezidor Hotel Group is based in Brussels, Belgium.
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