The excitement continues at Rezidor as we move into the next phase of our transformation. The past year has seen stand out performance, a truly powerful rebranding and the launch of a new operating plan that will set the stage for our continued growth into the future.
As travel continues its worldwide growth and becomes more accessible, we have a larger sense of responsibility that comes with the changes in our industry and the environment around us. The digital revolution is opening unprecedented areas of opportunity and has changed the nature of how we host and serve all our stakeholders.
At the heart of this change is Radisson Hotel Group, a new go-to-market name and global umbrella brand (replacing Carlson Rezidor Hotel Group) that capitalizes on a strong partnership between Radisson Hospitality, Inc. (formerly called Carlson Hotels, Inc.) and Rezidor Hotel Group AB (publicly listed on Nasdaq Stockholm, Sweden and headquartered in Brussels, Belgium) who has master franchise agreements to develop and operate certain brands across Europe, the Middle East and Africa.
This past year Rezidor accomplished many important milestones including the opening of 5,000 rooms with 7,500 more in the pipeline, appointing Maram Kokandi, the first Saudi Arabian woman in the world to become a Hotel General Manager and winning a “Most Ethical Company” distinction from Ethisphere for the eighth year in a row.
At the same time, it has been a transformational time, our majority owner, HNA Tourism, and our Board of Directors approved the Steering Committee’s five-year plan, a strategic framework and detailed operational plan, made up of 25 business initiatives to help realign and build our business for the future. Our rebranding is a milestone in that five-year plan and sets the foundation to reach our goal to become one of the top three hotel companies in the world, and the company of choice for guests, owners & talent. To reach this goal we will focus on being a True Host and Best Partner and continue to deliver on our signature promise Every Moment Matters.
With this ambition guiding us, we set out to face the challenges of a business plan built around seven major areas that will transform every part of the business and include all the deliverables which the management team has committed. They are Brand & Product, Marketing, Sales and Revenue Management, Portfolio Management, Organizational Talent & Reputation, Best Systems, Cost Advantage and Scale. Each is supported by specific initiatives and rigorous methodologies which we are executing carefully.
In conjunction with the alignment around the Radisson brand equity, the Radisson Hotel Group has restructured its brand architecture and redefined guest experience pillars to be implemented across all eight brands: (1) Brilliant Basics (2) Memorable Moments (3) Local Experience (4) Feel at Ease.
The brand portfolio ranges from accessible luxury to modern economy with updates including:
- RADISSON COLLECTION™
WELCOME TO THE EXCEPTIONAL
Radisson Collection will replace the company’s Quorvus Collection brand. The Radisson Collection will launch in June 2018 as a premium lifestyle collection designed for our exceptional hotels.
- RADISSON BLU®
FEEL THE DIFFERENCE
Radisson Blu will continue delivering a personalized experience in stylish and contemporary spaces with continued expansion to major cities around the world.
Radisson will now be introduced in EMEA to serve the upscale segment. The brand will be refreshed in the Americas and Asia Pacific, with changes to its logo and visual identity, product design and guest experiences that will focus on delivering Scandinavian inspired hospitality.
- RADISSON RED®
Radisson Red has rolled out a new product definition and updated logo with robust growth planned across EMEA and the Americas.
- PARK PLAZA®
SMART, ENGAGING SERVICE
Park Plaza is a contemporary hotel brand that is being re-worked to make the brand clear and relevant for high-end international travelers.
- PARK INN® BY RADISSON
Park Inn by Radisson will continue to expand its footprint around the world and provide contemporary, upbeat and colorful properties located in major cities and near airports.
- COUNTRY INN & SUITES® BY RADISSON
I LOVE THIS COUNTRY
Country Inn & Suites, by Radisson recently announced a new naming convention adding “by Radisson” to align the brand with the master brand and will stay true to its brand essence of country warmth.
AFFORDABLE HIGH DESIGN
Prizeotel will continue to grow across EMEA to serve the modern economy segment.
The new brand architecture will also enable new customer-facing benefits and commercial drivers including Radisson Rewards™ a refreshed global loyalty program (formerly Club Carlson SM), where members enjoy member only rates, have access to exclusive benefits and earn towards free nights. Radisson Rewards™ for Business will drive engagement with professional partners including meeting and event planners, travel agents or executive assistants across all brands. Our newly named meeting & events offering, Radisson Meetings™ is an enhanced meetings and events offering designed to make every event unique with fully-equipped spaces, on-site contacts and carefully designed menus and later this year we will launch our new multi-brand digital platform an industry-leading online booking experience to guests and professional partners, will also launch later this year.
In terms of business development, we are embarking on a renewed Asset-Right growth strategy. Our focus is to rejuvenate mature markets while continuing to accelerate in emerging ones.
Rezidor will return to signing more agreements in strategic European markets. The leases and contracts with commitments, will strengthen the group’s current business model to stimulate its growth in the markets where institutional investors are becoming increasingly prominent.
To accelerate growth and create scale, Rezidor will focus on both existing and new partners in eight key target markets across EMEA: four mature (UK, Germany, Poland and Italy) and four emerging (Turkey, Russia, South Africa and the United Arab Emirates). We will aim to add 10 – 20 hotels to each market over the next five years.
In addition to the shifts in the business model and market focus, Radisson Hotel Group launched a new brand architecture that includes extended stay solutions for core brands. Service apartments of Radisson Blu and Park Inn by Radisson along with renewed proposition for lifestyle brand Radisson RED, will be launching in 2018.
Overall, Rezidor will reposition 30-35 of its hotels with a total Capex of €140-150 million. The company will also invest €75--€80 million in fixtures, furniture and equipment (FF&E) and key money in new hotels.
We are focused on increasing revenue growth and this needs a new value proposition, an improved guest experience, finding the right way to sell and communicate our promise, Every Moment Matters, along with a portfolio of quality hotels that meet consumer expectations. We succeed by building trust with our guests, owners and team members.
At the heart of Radisson Hotel Group is our signature, Every Moment Matters. It is how we do business and who we are at the core. We ensure our success by aligning our 95,000 global team members around our cultural beliefs.
- We deliver memorable moments every day, everywhere, every time
- We enjoy serving with our “Yes I Can!” spirit
- We grow talent, talent grows us
- We are many minds, with one mindset
- We value open and direct interactions to build trust
- We believe anything is possible
- We have fun in all that we do
I couldn’t be more excited about our future and together we are going to achieve great things!
* PK’s World Travel Monitor, an annual survey analyzing the outbound travel behavior in more than 60 countries worldwide, covering over 90 per cent of the global outbound demand.