Carlson Becomes Majority Shareholder of The Rezidor Hotel Group
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Carlson Becomes Majority Shareholder of The Rezidor Hotel Group
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Category: - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-05-20
Transaction Increases Carlson's Ownership Stake in Rezidor to 50.1%
Carlson, a privately held, global hospitality and travel company, announced today that the company has acquired additional shares of The Rezidor Hotel Group AB (REZT.SK), listed on the OMX Nordic Exchange in Stockholm. The acquisition brings Carlson's total ownership of outstanding shares in Rezidor to 50.1%.
Hubert Joly, president, chief executive officer and director of Carlson, said, "We see great value creation potential in Rezidor, and believe that both companies will benefit from continued collaboration on global brand strategies, enhanced customer offerings, revenue generation and consistent global growth."
Carlson's relationship with Rezidor dates back to 1994 when the two companies signed a Master Franchise Agreement for the Radisson brand in Europe, the Middle East and Africa (EMEA). Subsequent agreements expanded Rezidor's franchise rights to include the Carlson brands of Country Inns & Suites By Carlson, Park Inn and Regent. Carlson acquired 25 percent ownership in Rezidor in 2005, and increased ownership to 35 percent in 2006, 41.7 percent in 2007 and 44.4 percent in 2009.
Rezidor, which has been listed on the Stockholm Stock Exchange since November 2006, has enjoyed dramatic growth since signing the original agreement with Carlson in 1994. At that time the company had 29 properties. Today, the Rezidor portfolio has grown to over 390 hotels with over 84,000 rooms in operation and under development in more than 60 countries in EMEA.
"Rezidor and Carlson have worked extremely well to grow the business together, and I am pleased by the confidence expressed by Carlson's investment in the company," said Kurt Ritter, Rezidor president and chief executive officer.
Securing additional shares in Rezidor is consistent with Ambition 2015, Carlson's strategy to increase its investments in the hotel business and expand its hotel portfolio to more than 1,500 hotels around the world by 2015. "We will continue to build on the strong relationship we have established with Rezidor over the past 16 years," Joly added.
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