Carlson, Rezidor Launch Hotel Group

Carlson Hotels and Rezidor Hotel Group have partnered together to create The Carlson Rezidor Hotel Group. This joint venture will make the entity one of the world’s biggest hotel chains with a portfolio of 1,300 properties in 80 countries. The partnership includes the Radisson, Radisson Blu, Park Inn by Radisson, Park Plaza, Hotel Missoni, and Country Inns & Suites by Carlson^SM brands.

The ownership structure and legal status of Carlson and Rezidor will stay the same, but The Carlson Rezidor Hotel Group will provide better management and alignment across its brands around the globe. In the meantime, the partnership will open up new staff development opportunities and revenue. A key initiative will be to seek partnership projects with event management and business travel agencies, like Carlson Wagonlit Travel and the fast growth of Carlson’s loyalty programme, Club Carlson. The Carlson Rezidor Hotel Group is targeting more than US$400 million in additionally generated revenue, as well as a RevPAR Index growth of over nine points by 2015.

This official partnership has been in the making for over a year, according to Carlson chief operations officer Thorsten Kirschke, who is also president of American operations. The two groups met in summer 2010 to talk about how to market their ambitions to developers and owners most effectively. They came to the conclusion that now is the time to go out to market and do business as a single company. Further collaboration during the last two years has brought them to this point. Before that, their collaboration was very loose, but this has been tightened and atriculated for their joint plans. This isn’t about cost efficiency but more about creating and maximising value for shareholders, business partners and owners.

Carlson president and chief executive Hubert Joly says that the two companies have a lengthy history and have evolved over the last 17 years together. Going to market as a single entity is the next, natural step, he added. Rezidor president and chief executive Kurt Ritter commented that their goal is to produce more appealing financial returns for hotel owners and more value for shareholders. They also aim to offer global career and development staff opportunities, more consistent and compelling value propositions for guests, and to be viewed by business partners everywhere as one global hotel group.

During the announcement, both executive teams for Carlson and Rezidor were in Chicago for a leadership meeting. This announcement follows reports last week that Rezidor is restructuring its regional operation offices in Europe, Africa and the Middle East. The group separated responsibilities for its core Raidsson Blu and Park Inn by Radisson brands for area vice presidents.