Carlson Rezidor Hotel Group will get a new name next month as part of a strategy to leverage the popularity of its Radisson brand. The company will officially change its name to Radisson Hotel Group (RHG) on March 5 during the International Hotel Investment Forum (IHIF) in Berlin, where it will reveal more details about its new brand architecture.
The move was first announced by company officials at the Rezidor unit’s 2018 Investors Day on Jan. 17. That presentation noted that the pending rebranding would help solve issues within the company’s portfolio—such as overlap, brand definition and standards misalignment—and create a clear selling proposition that would differentiate its flags from their competition.
The new umbrella brand will focus its strategy and investment on the urban and business segment under the Radisson flags with four divisions: Collection, Blu, Radisson and Red, according to the company. Carlson Rezidor also plans to redefine its Park Inn flag to adjust to a midscale target, as well as convert some of that brand’s properties to Radisson.
“Success of our 5-year operating plan means that whenever a guest plans a trip, whenever an investor or owner thinks of a partner, whenever a person wants to work in hospitality–they will all think of our company first,” said Federico González, president and ceo of The Rezidor Hotel Group and chairman of Carlson Rezidor Hotel Group’s Global Hotel Steering Committee, last month.
As part of that 5-year strategy, Rezidor said it will reposition 30 to 35 of its hotels with a total capital expenditure of $172 million to $184 million. The unit also plans to invest $92 million to $98 million in FF&E and key money in new hotels.
The announcement follows an eventful two years for Carlson Rezidor. China’s HNA Group acquired Minnetonka, Minnesota-based Carlson in late 2016, and became Brussels, Belgium-based Rezidor’s majority shareholder in fall 2017. Last May, former HNA executive John Kidd was named Carlson’s ceo.
Rezidor (Carlson’s master franchise) has a portfolio of about 480 hotels in 79 countries across Europe, the Middle East and Africa, while Carlson is focused on the Americas and Asia. Together, the combined company has more than 1,440 hotels in operation and under development under seven brands: Quorvus Collection, Radisson Blu, Radisson, Radisson RED, Park Plaza, Park Inn by Radisson and Country Inn & Suites by Radisson.