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Lodging

Reinvigorating Radisson: Renovation, Groups & Meetings Are Vital

By Julie Sickel / April 06, 2018 / Contact Reporter
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Last month, the Radisson Hotel Group announced its new identity, replacing its previous Carlson Rezidor namesake. The board of Rezidor Hotel Group AB, too, is expected to adopt the branding soon by switching to Radisson Hotel Group AB, according to Rezidor president and CEO Federico Gonzalez.

It's a move that John Kidd—COO and CEO of Radisson Hospitality, formerly Carlson Hotels—said will "drive awareness, increase efficiencies and deliver more memorable experiences" for guests. But adding the Radisson name to its loyalty program and attaching "by Radisson" to a number of its other brands instills a new urgency in improving the Radisson name, which doesn't have the same clout in the U.S. and the rest of North America as it does in other global regions.

The J.D. Power North America Hotel Guest Satisfaction Index Study has ranked the flagship Radisson brand at the bottom of the upscale heap for at least the past seven years. The well-regarded upper-upscale Radisson Blu brand has more than 300 properties outside North America but only two in the U.S.

RELATED: J.D. Power's 2017 North America Hotel Guest Satisfaction Index Study

The challenge isn't lost on Radisson's executive team, however. Radisson Hotel Group president of the Americas Ken Greene said at the company's recent Americas Business Conference in Orlando that it needs to elevate the quality of the Radisson product, meaning its upscale hotel brand. "We have to do this to ensure that we have a consistent Radisson guest experience," he said.


Let's face it: We are only as good as our worst property."

Radisson Hotel Group's Ken Greene

Out with the Old …

The first step in the process to revitalize the Radisson upscale brand is to exit old product. "Let's face it: We are only as good as our worst property," Greene said. "By the third quarter of this year, we anticipate that 10 to 15 percent of the Radisson system will be asked to depart."

Those with a long memory may recall the Ambition 2015 plan, introduced in 2010, to improve the Radisson brand. As part of that initiative, the company renovated existing Radisson properties across North America and removed underperforming properties.

In its drive to once more revitalize Radisson, Radisson Hotel Group is inviting its best owners to participate in a renovation loan program. The new aesthetic for renovated hotels will be decidedly Scandinavian—featuring clean, modern design with neutral colors—to meet the brand's new tagline: Simply Delightful. An estimated 160 Radisson hotels currently in operation and under development are expected to feature the new design.

Radisson Hotel Group also is looking to grow the Radisson Blu brand aggressively in the U.S. It just signed a contract for a new-build Radisson Blu in Anaheim, Calif., due to open in the summer of 2020, along with a new-build Radisson property in New York City's Times Square, due to open in spring 2019.

… In with Groups & Meetings

One of the broader goals of the Radisson Hotel Group is to bring into its properties guests who spend more money and cost less to acquire. Part of that strategy is to grow groups and meetings business.

Radisson Hotel Group global chief branding and commercial officer and EVP Eric De Neef told BTN that any of the group's brands that sit in upscale or above will play a role in driving that business, including Radisson Collection, Radisson Blu and Park Plaza. But the upscale Radisson brand has a particular role to play. According to Radisson Hotel Group chief commercial officer for the Americas Charles McKee, 25 percent of Radisson's business comes from meetings and events and the company is looking to grow that segment's portion of the pie.

Paramount will be the upcoming umbrella Radisson Meetings product, which will span the organization's brands and set new positioning and delivery standards. Additionally, as part of improvements to its tech platforms, Radisson Hotel Group is developing live-booking capabilities for groups via Web and mobile platforms. It also is deploying new forecasting and revenue management tools for group business.

Note: Radisson Hotel Group provided meals and accommodations during lodging editor Julie Sickel's attendance at the company's Americas Business Conference.

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