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Rezidor SAS reports positive results

Even after one of the industry`s toughest years on record, European hotel group Rezidor SAS<.> Hospitality has reported its seventh consecutive year…

Even after one of the industry`s toughest years on record, European hotel group Rezidor SAS<.> Hospitality has reported its seventh consecutive year of growth in numbers of hotels and business volume, with 2001 operating revenues up two per cent over 2000 to MEUR 379.

Continued expansion in key markets

In 2001, group-wide revenues* reached MEUR 1,090(1,035). By the end of 2001, Rezidor SAS included 160(146) hotels in operation and under construction in 38(38) countries. Ten hotels have been opened and/or converted under the Radisson SAS brand, including locations such as St Petersburg, Bratislava and Sofia. In addition, 21 agreements to operate or license hotels have been entered into during the year, including hotels in Frankfurt, Paris, Bordeaux, as well as Stansted and Zurich Airport.

Name change

On October 1st, 2001, SAS International Hotels changed its name to Rezidor SAS Hospitality. The new name reflects a new direction for the company. Having evolved over a number of years, it took a decisive step when Malmaison was added in 2000, which positioned the company as a multi-brand organisation.

Strong resilience

Even though business during 2001 was below 2000 performance, it has gradually picked up again. Hotels in capital cities have been affected more negatively than hotels in secondary cities and those with a high portion of US related business have suffered more than hotels mainly catering to the domestic market. Furthermore, hotels with a high convention and group business have more difficulties than those with mainly individual customers. Hotels that have not experienced any negative business trend in 2001 are those who cater only to the

individual domestic traveller, such as the Malmaison hotels in the UK.

Financial performance

In 2001, income before tax was MEUR 22(68), which includes the gain from sale of property of MEUR 7(31). The hotel at Manchester Airport, which was sold in 2001, will continue to be operated under a long-term lease agreement by Rezidor SAS under the Radisson SAS brand.

Occupancy levels for the group (Radisson SAS and Malmaison hotels), for comparable units, remained high at 68(69)%. Average Room Rate (ARR) dropped just two per cent to EUR 105 and Revenue Per Available Room (RevPAR) fell by three per cent to EUR 71 (adjusted for currency fluctuations).

Kurt Ritter, President & CEO for Rezidor SAS Hospitality, says: I am very satisfied with the continued consistent growth and financial performance in our company and feel that we are well on the way to become one of Europe`s leading hospitality management companies, with a focused collection of high-performing brands in various market segments. He adds: During the difficult times in the hospitality industry last year, we focused on adapting costs in order to reduce the negative impact of such a dramatic change in the market place.

* Revenues in owned, leased, managed and franchised Radisson SAS and

Malmaison hotels

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.