US-based hospitality company Carlson and the Rezidor Hotel Group have joined join forces to become the Carlson Rezidor Hotel Group.
While the legal status and ownership for the two companies are to remain the same - Carlson already owns 50.1% of Rezidor - the new group will focus on the management of its brands, the development of its revenue generation engines, purchasing and people development on a global basis.
Until now Rezidor has held the master franchise agreement to operate Carlson's brands - primarily Radisson Blu and Park Inn by Radisson - in Europe, the Middle East and Africa, while Carlson has operated worldwide under Radisson, Country Inns & Suites By Carlson, and Park Plaza brands. Rezidor will also add its Hotel Rezidor brand to the new group.
"Carlson and Rezidor have a long common history and have grown together over the past 17 years," said Hubert Joly (pictured, right), president and chief executive of Carlson. "Going to market as one is a next and natural step. We are leveraging the strengths of two great companies to create value for all our stakeholders."
Meanwhile, Kurt Ritter (pictred, left), Rezidor's president and chief executive, commented: "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 newly formed Carlson Rezidor Hotel Group has a portfolio of 1,303 properties (429 from Rezidor and 874 from Carlson) in 80 countries. Through a number of revenue generation initiatives, the company aims to generate more than $400m in additional revenue and a revpar index increase of more than nine points by 2015.
Joly and Ritter will act as co-chief executive and president of the Carlson Rezidor Hotel Group.
By Janet Harmer
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