Carlson Rezidor Changes Name & Embraces Organizational Transformation

Carlson Rezidor Hotel Group today changed its name to Radisson Hotel Group. The new identity, according to the company, leverages the international recognition and equity of Radisson to enhance the group's brand awareness and marketing efficiency across its portfolio. But the change also serves as a broader signal of the organizational transformation that's been underway since the group was acquired by HNA Tourism Group, a subsidiary of Chinese conglomerate HNA Group, back in December 2016. Post-acquisition, HNA Tourism Group owns 100 percent of Carlson Hotels and approximately 70 percent of Rezidor Hotel Group.

Radisson Hotel Group president of the Americas Ken Greene said Radisson Hotel Group is a 50-year-old company in its infancy. "It's the first time we're a global company," he told BTN before the name change announcement. "[Rezidor Hotel Group] and [Carlson Hotels] act as one big company. Both boards have appointed a global steering committee. They set strategy as one global strategy." That five-year strategy leans heavily on leveraging the value of the Radisson brand. It also looks to optimize the group's portfolio, streamline operations, invest in new technology systems, enhance the group's value proposition and align team members across the organization.

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Federico Gonzalez, president and CEO of Rezidor Hotel Group and chairman of the Radisson Hotel Group global steering committee, called Monday's news the start of an exciting era as the Radisson Hotel Group strives to become "a top-three hospitality company in the world." It's currently the 11th-largest hotel group globally, featuring eight brands with more than 1,400 hotels in operation and under development.

The Tech

As competitors like InterContinental Hotels Group, Choice Hotels International and Wyndham Worldwide switch to cloud-based global reservations systems, Radisson Hotel Group, too, plans updates to its technology stack.

Chief commercial officer of the Americas Charles McKee told BTN the group is looking to create a unified platform that brings together all its systems, including global reservations and property management, in order to enhance its capabilities around data. "It's all about the data, right?" McKee said. "The more we can access data and use it through personalized marketing and improving the customer experience, the better off all the brands will be and the better off the customer experience will be. So the approach we're taking is a very deliberate, very integrated approach."

To develop the technology, McKee said the organization is leveraging its own internal resources and is working with a partner that the company is not ready to disclose.

Greene added that Radisson Hotel Group has a chance to leapfrog some of its competitors because of the relative simplicity of its hotel network: "We haven't grown over the years through major acquisition. All our brands and all our properties are on one system today, the same system. … As we move and migrate to an entirely new platform, we have the ability to do things that others that are a little bigger just can't accomplish."

In addition to the back-office systems, Radisson Hotel Group also is revamping what customers "see and feel" using Radisson's consumer-facing digital platforms. "It is a major transformation from an IT perspective," McKee said. The company will launch a new version of its brand.com website this year, as well as an enhanced meetings and events offering, Radisson Meetings.

The Brands & Development

While Radisson Hotel Group has a small brand portfolio compared to the larger players in the hospitality space, McKee told BTN that for the time being, it's not looking to add brands. Instead, the company is revitalizing and repositioning its existing portfolio.

The company in June will launch the premium Radisson Collection to replace Quorvus Collection. The Park Plaza brand will be altered to make it more attractive to high-end international travelers. And Country Inn & Suites now includes "by Radisson" as part of its branding.

The Radisson brand will be refreshed in the Americas and Asia/Pacific with a new logo, updated product designs and guest experiences. It also will enter EMEA in the upscale segment. "Outside of the United States, the reputation of Radisson is really quite phenomenal," Greene said. "To shine it up in the U.S. doesn't take a lot of work. It's just execution. We have wonderful awareness."

The company has updated the Radisson Red logo and released a new product definition, intending to grow the brand across EMEA and the Americas.

Radisson Blu is a continued favorite for expansion with the group. Though the brand has approximately 300 properties worldwide, they sit mainly in EMEA and Asia/Pacific. "I think the biggest opportunity for us is to establish Radisson Blu in the key marketplaces across the Americas," Greene said.

Radisson Hotel Group chief development officer for the Americas Terry Sanders said target markets include Los Angeles, San Diego, San Francisco, Seattle, New York, Dallas, Miami, Boston, Sao Paulo and Rio de Janeiro.

The Loyalty Program

The company has relaunched Club Carlson as Radisson Rewards. Members still benefit from members-only direct booking rates and exclusive perks. Radisson Rewards for Business is aimed at professional partners, including meeting and event planners and travel agents.

Radisson's loyalty play, too, will benefit from technology investment, as the company plans new customer relationship management, loyalty and campaign management platforms.

The Leadership

It's worth noting that with Radisson Hotel Group's change in ownership came a change in leadership. Gonzalez assumed his role as CEO of Rezidor Hotel Group in May, replacing Wolfgang Neumann. Greene, McKee and Sanders, too, are each less than a year into their respective positions. "It's a whole new company, a whole new leadership team," Greene said. "We have brought a lot of new talent into the organization to mix with really great people who've been part of the company for a long time."

McKee said the commercial team, too, has seen an influx of talent. Among the newcomers is former Wyndham Hotel Group executive Ross Hosking, who has served as VP of sales and distribution since late last year.

The Ownership & Potential Financial Headwinds

HNA Group has been one of the biggest players in the global dealmaking space of recent years, spending tens of billions on acquisitions and investing in a number of major companies, including Hilton and Deutsche Bank. Now, however, the company has found itself in the spotlight for its financial troubles.

The company said last week it intends to sell all or some of its 25 percent stake in Park Hotels & Resorts, the real estate investment spinoff from Hilton that formed last year. Park Hotels CEO Thomas Baltimore confirmed on the company's recent earnings call that it was in talks with HNA about the matter but declined to comment further. The sell-off and an overdue fuel bill owed by HNA to China National Aviation Group have fed suspicion that HNA is on shaky financial footing, having accrued $100 billion in debt, according to Bloomberg.

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During Rezidor Hotel Group's recent earnings call, a reporter asked Gonzalez if he was monitoring HNA's financial troubles. "Our job as management is: We work for a board of directors and for all the shareholders and in that sense it does not affect today our day-to-day operations or even the five-year plan," Gonzalez said, adding that it's not the job of management to monitor the financial situation of its shareholders.