Carlson Hotels, Rezidor Align to Create Carlson Rezidor Hotel Group
- Jan 20, 2012
January 20, 2012
By Barbra Murray, Contributing Editor
It’s akin to a good marriage. Carlson and The Rezidor Hotel Group have come together in a union that will allow them to act as one, while maintaining their own individual identities. The two international hotel companies just formed the Carlson Rezidor Hotel Group, a separate hotel entity created to be a global force in the hotel industry.
Carlson and Rezidor will remain separate legal entities.
The decision to join forces and create a new company was born from a synergy created between Carlson and Rezidor through working together for nearly two decades. The two first teamed up in 1994, when they entered into a master franchise agreement for the Radisson brand in Europe the Middle East and Africa. In 2005, Carlson acquired a 25 percent interest Rezidor, and continued to increase its ownership stake in the company over the years until it became majority shareholder with a 50.1 percent interest in 2010.
Carlson Rezidor makes its debut as one of the largest hotel groups in the world, with a portfolio exceeding 1,300 hotels carrying a range of premier hotel flags across 80 countries. In a prepared statement, Kurt Ritter, president and CEO of Rezidor, explained the new company’s objective. “The goal of this development is to generate more attractive financial returns for the owners and greater value for all shareholders, to be perceived by business partners around the world as one global hotel company, to offer more compelling and consistent value propositions to the guests, and to offer global career and development opportunities to the staff.”
The new company’s financial aspirations entail the production of at least $400 million in additional revenue and a nine-point expansion on the RevPAR Index by 2015. Indeed, industry experts forecast notable revenue increases for the hotel sector in a bevy of major metropolitan areas across the globe; although, those increases are not expected to be as large as they were in 2011. Of the 10 top markets in the Europe and Asia Pacific regions, Hong Kong topped the list with RevPAR growth of 24.7 percent in 2011, according to an early report by STR Global. The hotel research firm anticipates that Singapore will lead the pack in 2012, with estimated RevPAR growth of 9.6 percent, nearly one percentage point lower than 2011’s 10th highest ranking city, Cologne. Overall, RevPAR in the U.S. rose an estimated 6.1 percent, and it is on track to jump 8.6 percent.
Carlson Rezidor will maintain headquarters in both companies’ respective corporate office locations of Minneapolis, Minn., and Brussels, Belgium.