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Carlson Rezidor Hotel Group announces solid results for 2016

The hotel group, now under the control of China's HNA group, achieved a strong performance in 2016 and continues to grow globally, with 77 openings and 122 new projects in its pipeline.  

Hotel Radisson RED Hotel Radisson RED

In addition to overall income amounting to 7.2 billion euros in 2016, the group broke a record in terms of openings since 2009, especially in the Americas. 41 hotels have opened, meaning a 28% increase in comparison to 2015, and 65 new establishments were added to the pipeline. The Radisson and Radisson Blu brands have respectively opened 14 and 3 hotels in Latin America. The new brand of the group Radisson RED also made its debut in the United States. Country Inns & Suites, one of the group's largest brands in the region, broke a record in terms of openings over the past seven years. According to the brands, the Revenue per available room (RevPAR) rose by 3% to 4% in the Americas.

In Asia-Pacific, growth remains steady with the opening of 14 hotels in 2016. The group has grown in India thanks to the establishment of Country Inns & Suites. The Radisson RED brand entered major partnerships in China and Malaysia. The group currently has 16 hotels in operation and 24 in development in China.

Thanks to its Rezidor subsidiary, Carlson has also expanded into key cities of Eastern Europe with 8 new signings including Lithuania, Russia, Ukraine, Georgia and Romania. It has also strengthened its position in Africa thanks to the signing of 10 new hotels in 2016, including 5 Park Inn hotels by Radisson in Angola, and the first Quorvus Collection property in Nigeria.

As of January 1, 2016, Carlson Rezidor ranked 11th largest hotel operator in terms of rooms, with 1,145 properties and 182,521 rooms, according to data published by Hospitality ON.

The group was sold by the Carlson family to the Chinese HNA group, which finalized the acquisition in December 2016. It made an offer to take over the 49% stake of Rezidor Hotel Group, held by minority interests, but the board of directors recommended that shareholders reject the offer as it was deemed insufficient. Given China's foreign exchange restrictions, it is highly unlikely that HNA will be able to increase its offer. Shareholders have until the end of March to accept.