Professional Documents
Culture Documents
Roland Mouly
Vice President Development V Seminario Internacional de Hoteleria USMP Lima Peru
How the largest hotel company in the world is completely re-positioning its portfolio and targeting a 50% expansion in the next 5 years
th 9
An aggressive global branding strategy & A targeted growth and development tactic
Kurt Ritter
Thorsten Kirschke
Jean-Marc Busato
1962
Curt Carlson Purchases Radisson Hotel in Minneapolis
1986
Pierre Reservation System
1988
Yes I Can! Launches
1989
1991
1992
1994
Partnership Agreement with Radisson and SAS International Hotels
1999
Radisson Gold Rewards Program Launched
2000
New Logo Introduced
2003
Combined Goldpoints Plus Program Launched
2004
Sleep Number Bed Introduced
2005
Express Yourself Introduced
2007
Revenue Optimization Performance Enhancement Services
2008
Carlsons 1000th Hotel Radisson St Martin Goldpoints Plus Global Integration
2009
Radisson SAS Becomes Radisson BLU
GDS Seamless1st Radisson Launch hotel in Canada, Look To Book Radisson Hotel Admiral TorontoHarbourfront
1st
Sale at peak of the market Sale after turnaround Sale of Regent brand
Freed up resources to support growth in hospitality and travel
38
1983 1993 2003 2009
1
1,023
1,059
760
760
2009
1,023
28
8
2008
28
Carlson Hotels Global Portfolio Has Grown to More than 1,000 Hotels in Operation
HOTELS IN OPERATION
847 1,059
336
38
1962
1973
1983
1993
2003
2009
Contracted Pipeline
90
512
80
575
154
49
18
100 200 300 400 500 600
Carlson Hotels Has a Contracted Pipeline of 249 Properties That Reflects its Rapid International Expansion
Hotels in Operation
North America
Contracted Pipeline
71
649
720
317
99
416
61% in North America 71% outside of North America
Asia Pacific
53
73
126
Latin America
40 6 0
4 6
100 200 300 400 500 600 700 800
720
302 43 28 46
43
17 84
25
Regent
Radisson
Park Plaza
Total
*The above numbers include hotels that are owned, managed, leased and franchised by Carlson or by Rezidor.
92
1 16
38 40
29
37
2008
2009
Belief #1: The Market is Coming Back and is Poised for Long-term Growth
REVPAR YEAR OVER YEAR GROWTH RATE 2008-2009
Percent
20 10 0 -10 -20 -30 2008 Europe U.S. Asia 2009
Belief #2: Growth Opportunities Exist in Emerging Economies, in North America and in Europe
GDP BY REGION (USD TRILLION)
74.7 57.2
10.6 14.6 14.5 5.8 19.1 16.2 20.7
Increase 2009-2014
17.5
4.0
5.8
0.7
Rest of the World Brazil, Russia, India, China Japan North America European Union
31.2
4.7 2.3 4.4 9.2 10.7
8.7 5.0
2.9
16.7
4.0
Source: IMF
1999 1999
2009 2009
2014 2014
Belief #4: Strong Brands Will Win Key is the Quality of the Product, the Service, the People
Strong brand performance for guests Investments in brand and assets Strong RevPAR penetration
Carlson Hotels Ambition is to Grow its Portfolio by More than 50% by 2015
TARGET PORTFOLIO NUMBER OF PROPERTIES
1,500 - 2,000 2,000
1,600 1,059
1,200 800 400 0 1997 2003 2009 438 847
1,500
2015
Grow Park Inn as a winning mid-scale brand across theaters in key countries
Continue the push in key emerging economies, with added emphasis on mid-scale
Current Brands Brand Width Currently Compounds the Issue By Market Position and Volume: Relative Positions
Luxury
Upper Upscale Upscale Midscale With Midscale Without Economy The Americas Europe, Middle East, Asia Asia Pacific
Key
Market Position and Volume by Theatre Per Brand Brand Width by Theatre
Upscale Select
1. Establish clear, compelling positioning for each brand 4. Win the revenue battle
3. Accelerate development
Level
RADISSON BIFURCATION
THEATRE BY THEATRE
Theatre Asia Pacific Current Properties Rebrand upper upscale properties Blu Development
Consider rebranding upper upscale properties Blu Launch Blu after critical mass of flagship properties has been achieved
1.
Opportunities ahead
1.
EXCEPTIONAL
UPPER UPSCALE
EXCELLENT
UPSCALE
VERY GOOD
Brand Width
GOOD
GOOD
1.
Service
People
People empowerment
People development People commitment People hospitality
Product
Room styles Technical standards Design style guide Preferred designers Operational supplies & equipment Radisson Radisson Blu
Radisson Hotel Orlando-Lake Buena Vista, Florida Radisson Decapolis Hotel, Panama City, Panama
2.
2.
25%
3. Upgrade properties to new standard 1. Wean out non-compliant properties X 2. Rebrand certain properties to Park Inn and lose a few assets where owner is unwilling to invest
50%
Advanced dialogue
PRODUCT IMPROVEMENT
RADISSON PHILADELPHIA
Renovation Investment USD 7.5 million
Property Performance Actual 2006 2008
2.
2.
RevPAR
USD 90.07
USD 116.79
RevPAR Index
108.1%
15.6%
PRODUCT IMPROVEMENT
ST MARTIN
Brand
Le Meridien Hotel
Independent
Year
2000
2005
RevPAR Index
85
65
The accommodations, overall experience and staff/service was outstanding The hotel is absolutely gorgeous, and the staff were wonderful. We truly loved the hotel and will look forward to going back.
In Operation
Pipeline
800
700 600 500 400 300 200 100 0 1989 1999 2009 2015 180 399 422 512 600
ACCELERATE DEVELOPMENT
ZOOM IN ON NORTH AMERICA
Encourage franchise growth to continue Steer the Radisson destination Manage the flagship properties in key cities Accelerate growth with more resources Invest USD 1.5 billion between 2010 and 2015 Evolve business model Enhance brand equity
3.3.
Managed/Owned Franchised
7%
93%
15% 85%
2010
2015
Grow Park Inn as a Winning Mid-Scale Brand in Key Countries Across All Theatres
Nearly 150 properties in seven years #1 Mid-Scale brand with J.D. Powers BDRC Most Promising Emerging Player 2009 European success Good investment model, fantastic conversion model All the systems, all the tools: Essentials, Brand Port, Design, Standard Operating Procedures, Adding Color to Life
Park Inn
Unknown in Europe six years ago Brand values based on ease of use and functional style
Brand Positioning
Four Seasons
Luxury
Morgan W
Brand Management
First Class
Mid-market
Culture of Service
Economy
Ibis
Budget
Formule 1
Our Values
Friendly
Fun
Vibrant
Un complicated
Brand Visuals
Advertising
Simple Effective Impactful Flexible Adaptable
Great Food
Room Area as % Total Area Ibis Express HI Courtyard 62% 60% 60%
Hampton
Park Inn Ramada Encore Garden Inn Ramada Holiday Inn Novotel
58%
54% 54% 54% 52% 52% 50%
Jurys Inn
Radisson
49%
46%
Note: * Number of hotels in operation and under development dated December 2009 *The above numbers include hotels that are owned, managed, leased and franchised by Carlson or by Rezidor
Krakow
Klosterneuburg
Djerba
Liege Airport
Yas Island
Baku
Where Does Country Inns & Suites Fit in the Carlson Hotels Portfolio?
Luxury
Generation 4
Generation 5
In negotiation Engaged in renovation process (planning, ordering, installing) New (2006-2009) and recently fully renovated hotels
Between 2006-2011 Country Inns & Suites hotel owners will reinvest approximately USD 300 million in the brand in product improvements.
146
Hotels
Product Evolution Status as of December 2009
8.55
8.61
8.72 8.60
7.5
8.44
8.46
8.51
2.5
2. Grow Radisson Blu in Selected Markets: capital cities with Key Money, management and leases. 3. Grow the Park Inn brand in selected international cities initially, then expand. 4. Grow all brands in Mexico (potential for over 100 properties) 5. Establish regional offices for the support of managed and franchised properties
Growing Carlsons brand in the LatAm region: Model will Be Differentiated by Segment
Owned/Leased Radisson Blu Radisson Park Inn Country Inn Managed Franchised
A number of solutions
Lease
Carlson will take the financial risk by guarantying a fixed return to owner, offering key money, etc..
Owner will leverage Carlsons expertise with a contract, performance clauses and possible minimum guarantees
Type of Contract
Franchise
Manage
Owner uses his or her resources to operate and will leverage the Carlsons system: distribution, marketing, advertising, etc..
130
The Cost?
Pricing base program
Urban: $6,640 Ocean: $6,595 Naturally Cool: $10,720 NY Mansion House: $8,670 And Relax: $8,035
Roland Mouly
Vice President Development V Seminario Internacional de Hoteleria USMP Lima Peru