Rezidor SAS Hospitality, the Brussels-based subsidiary of the SAS Group, jointly announced with US-based Carlson Hotels Worldwide, that …
Rezidor SAS Hospitality, the Brussels-based subsidiary of the SAS Group, jointly announced with US-based Carlson Hotels Worldwide, that they have completed the strategic agreement, originally announced in March, 2005, which results in an enhancement of their long-time franchise partnership into a shareholder agreement.
Carlson Hotels has now acquired a 25 percent shareholding in Rezidor SAS from SAS Group in return for renegotiated commercial terms of the parties` current Master Franchise Agreement (MFA). The MFA is the agreement between Rezidor SAS and Carlson by which Rezidor manages Carlson Hotel brands in Europe, the Middle East and Africa (EMEA). These brands have included Radisson SAS, Park Inn, Regent International Hotels and Country Inns & Suites.
Since the agreement was originally announced, the companies have moved forward to seek closer cooperation in key business areas such as sales, distribution, marketing and communications.
Background
Rezidor SAS first signed an agreement with Carlson in 1994 for the first class Radisson brand. The combined brand, Radisson SAS, which was created from that MFA, has been the vehicle that has turned Rezidor SAS into one of the fastest growing hotel management companies in the world today.
The success of this initial Radisson SAS partnership then led Rezidor SAS and Carlson to sign a further multi-brand MFA agreement in 2002 that added three other Carlson brands to the Rezidor SAS portfolio – Regent, Park Inn and Country Inns & Suites. This has proven to be another significant success that has seen the high volume mid-market brand Park Inn, grow from zero to over 60 properties in just two years in the EMEA region; while also facilitating the re-launch of the luxury brand Regent, with Rezidor SAS adding two new landmark hotels, in Berlin and Zagreb, to the global Regent portfolio.
As a result Rezidor SAS has grown from 29 Radisson SAS hotels, when the original agreement was signed in 1994, to now having in total 252 hotels open or under development.
This new deal has an option for Rezidor SAS to use the Carlson brands to 2052, an increase of twenty years on the previous agreement. It will now bring the two companies even closer together and allow for stronger brand alignment on a global basis.
The deal also gives Carlson two seats on the six-member board of Rezidor SAS.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
