The Rezidor Hotel Group announces its 5-Year operating plan at the Investors Day
Today, at its 2018 Investors Day in Frankfurt, Germany, Federico J. González, President & CEO of The Rezidor Hotel Group AB (publ) (REZT:STO) & Chairman of the Global Hotel Steering Committee of the Carlson Rezidor Hotel Group, together with his Executive Committee, will provide a detailed overview of the company’s business strategy and operating plan over the next 5 years.
Rezidor, currently the sixth-largest hotel group in Europe, will build on its already strong competitive position in the EMEA region, while leveraging its strategic partnership with Carlson Hotels to further strengthen its powerful brands. It also aims to align its global brand portfolio around its leading brand, Radisson, to drive the expansion plans, and marketing, commercial and operational initiatives.
“Over the next five years, we will build on our unique service heritage of making every moment matter for our guests, owners, shareholders and employees by being a true host and best partner,” says Mr. González. “Success of our 5-year operating plan means that whenever a guest plans a trip, whenever an investor or owner thinks of a partner, whenever a person wants to work in hospitality – they will all think of our company first.”
On 17th January, Rezidor’s Executive Committeewill present an insight-based concrete operating plan built on 25 business initiatives focused on Portfolio Management; Brand & Product; Marketing, Sales & Revenue Management; Organization, Talent & Reputation; Best Systems; Cost Advantage and Scale.
Based on a thorough diagnostic and analysis of the current performance and future upside of the business, Rezidor aims to deliver Revenue Growth of 6-7% on an annual basis. The EBITDA Margin is expected to reach 13-15% by the end of 2022. As investments are needed to successfully achieve these targets, the performance will be modest over Phase 1 of the operating plan (2018 – 2020) where basics of growth will be put in place. Higher growth can be expected between year 2021 – 2022.
As part of the new global brand architecture launch,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. The business development strategy will focus on net opening of 13,000 new rooms. As part of a renewed asset-right growth strategy, Rezidor will also focus on entering new lease agreements in mature markets.
Rezidor’s Investors Day will include presentations from Knut Kleiven, Deputy President & Chief Financial Officer; Chema Basterrechea, Executive Vice President & Chief Operating Officer; Eric de Neef, Executive Vice President & Global Chief Commercial Officer; Elie Younes, Executive Vice President & Chief Development Officer; and Iñigo Capell, Executive Vice President & Global Chief Resources Officer.
This release contains information that Rezidor HotelGroup AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below at 7:30am CET on January 17, 2018.
Investor Relations Contacts
Knut Kleiven, Deputy President & CFO
Pablo Corrales Diaz, Director, Strategy & Analysis, Business Development
Renu Snehi, Vice President Corporate Communications, PR& Reputation Management
Lucie Cardona, Director Corporate Communications, PR & Reputation Management
About The Rezidor Hotel Group
The Rezidor Hotel Group is one of the most dynamic hotel companies in the world and a member of the Carlson Rezidor Hotel Group. The group features a portfolio of 479 hotels with over 106,000 rooms in operation or under development in 79 countries.
Rezidor operates the core brands Radisson Blu® and Park Inn® by Radisson in Europe, the Middle East and Africa (EMEA), along with the Club Carlson loyalty program for frequent hotel guests. In early 2014 and together with Carlson, Rezidor launched the new brands Radisson RED (lifestyle select) and Quorvus Collection (luxury). In 2016, Rezidor acquired 49% of prizeotel. Rezidor has an industry-leading Responsible Business Program and was named one the World's Most Ethical Companies by the US think-tank Ethisphere.
In November 2006, Rezidor was listed on the Nasdaq Stockholm, Sweden. HNA Tourism Group Co., Ltd., a division of HNA Group Co., Ltd. — a Fortune Global 500 company with operations across aviation, tourism, hospitality, finance and online services among other sectors – became the majority shareholder in December 2016.
The Rezidor Hotel Group and its brands employ 43,700 people in EMEA and is headquartered in Brussels, Belgium.