Expansions & Renovations

Carlson Sets New Strategy for its Radisson Brand

New Guest Room Concepts, New Restaurant Concepts and New Service Concepts

ORLANDO, FL -(March 3, 2010) – As part of its Ambition 2015 plan, Carlson today unveiled a comprehensive strategy for its Radisson brand. As one of the world’s leading brands, Radisson® is being positioned to deliver vibrant, contemporary and engaging hospitality characterized by the Yes I Can! service philosophy. The positioning is being supported by a series of innovations including new room concepts, new restaurant concepts and a series of new service concepts focused on the guest experience. The strategy for Radisson will entail an investment program of up to USD 1.5 billion in North America, focused on establishing flagship hotels in key U.S. cities and on upgrading the existing portfolio.

Carlson Hotels Ambition 2015 Strategy
At its Global Business Conference Carlson Hotels announced Ambition 2015, its global growth strategy. Through this strategy, the company wants to be known for its innovative and vibrant spirit reflected in the quality of its segment leading brands around the world. It aspires to be the number one hotel company to work for and to invest with. It aims to expand its portfolio by at least 50 percent by 2015 to more than 1,500 hotels in operation.

“We believe this is a great time to invest in the hotel business. With Ambition 2015, we have a comprehensive and compelling strategy to build the business,” said Hubert Joly, president and chief executive officer, Carlson.

Ambition 2015 will focus on four priority growth initiatives including:

  • Expanding Radisson as a powerful, globally consistent first-class brand.
  • Accelerating the growth of Country Inns & Suites By Carlson in four key markets: United States, Canada, India and Mexico.
  • Growing Park Inn as a winning mid-scale brand across theaters in key countries.
  • Continuing to grow in key emerging markets, with greater emphasis on mid-scale.
  • The strategy entails continuing the growth in key emerging economies such as Brazil, Russia, India and China, where it has gained significant strength.
  • For example, Carlson is the largest and fastest growing international hotel company in India with 79 hotels in operation or contracted at the end of 2009.
  • These strategies will be supported by investments in marketing, sales, distribution and technology.

As part of its Ambition 2015 strategy, Carlson Hotels expects to increase the contribution from brand websites to 30 percent of revenue and to double the number of members in its goldpointsplusSM loyalty program.

“With 422 hotels in operation and 90 in the contracted pipeline, Radisson is one of the most well-known and fastest-growing brands in the world, delivering market leading guest satisfaction and achieving superior RevPar penetration internationally,” said Hubert Joly, president and CEO of Carlson. “We have crystallized the success formula for the brand, improved it and are using it as the foundation for its future development.”

As part of this strategy, Carlson announced the global roll out of five new room concepts - And Relax, Naturally Cool, New York Mansion, Ocean and Urban. All of the concepts share a vibrant and contemporary design, the use of bold colors and lighting, and a comfortable feeling.

The global strategy also includes two new restaurant concepts. Filini will offer an upscale, sophisticated Italian cuisine, while rbg is a bar-and-grill concept in an inviting, contemporary setting.

The strategy also introduces a range of service concepts covering the key touch points of the guest experience including, for example, Business Class and three-hour laundry. Business Class will offer customers the best available room, breakfast, turn-down service, upgraded bathroom amenities, a daily newspaper and other amenities depending on the market.

As part of this strategy, the Radisson brand will be tiered across the upper upscale and upscale segments. Radisson Blu will be applied to the upper upscale segment and Radisson “Green” will be applied to the upscale segment. Both will share the same brand essence - vibrant, contemporary and engaging - the same style and many of the service concepts. The differentiation will primarily be location based - key location in a primary city versus a secondary market. It will typically be reflected in the level of investment that goes into the property.

The strategy will include the implementation of the brand’s new global standard operating procedures, a new quality assurance program and intensive training programs. The strategy will be supported by investments in marketing, sales and distribution as part of the overall Carlson Ambition 2015 plan.

“We have seen the power of the brand internationally and the very attractive return from renovating to the new standards,” Joly said. “The brand is poised for significant growth around the world and we expect to grow the portfolio to at least 600 hotels by 2015.”

About Carlson Hotels
Carlson Hotels is a leading global hotel company with more than 1,060 locations in 77 countries. Its brands include: Radisson®,Country Inns & Suites By CarlsonSM, Park Inn®,Park Plaza® and Regent®. Carlson Hotels is part of Carlson, a global hospitality and travel company. For more information, please visit www.carlsonhotels.com.

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