Rezidor Increases Cost Reductions and Maintains Asset-Light Growth Strategy as Market Conditions Worsen
Rezidor's Year End Report 2008
“Industry RevPAR is expected to continue to decline further in 2009. In order to meet an increasingly weaker market we have extended our existing cost cutting programme to a level of annual savings of around MEUR 30 and are constantly monitoring the need for additional reductions”, Ritter added.
“Rezidor continues with the long term strategy to focus its growth on fee-based managed and franchised contracts to reduce risk in the portfolio. 2008 was a record year for new hotels to be built or converted to one of Rezidor’s brands, and over 90% of these contracts were fee-based. 6.500 new rooms, another new record, were opened in 2008; more than 93% of which were fee based”, Ritter continues.
“By the end of 2008 Rezidor had a contracted pipeline of more than 22,000 rooms out of which 88% were managed or franchised. While the turmoil in the financial markets may result in some reduction to that pipeline, it is nonetheless a significant asset to the company when the rooms come into operation”, Kurt Ritter concludes.
This press release comprises information which Rezidor Hotel Group AB (publ) is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 08h30 CET on 11th February 2009.
About the Rezidor Hotel Group: The Rezidor Hotel Group is one of the fastest growing hotel companies in the world. The group features a portfolio of more than 360 hotels in operation and under development with over 76,000 rooms in 55 countries. Rezidor operates the brands Radisson SAS Hotels & Resorts, Regent Hotels & Resorts, Park Inn and Country Inns & Suites in Europe, Middle East and Africa, along with the goldpoints plusSM loyalty programme for frequent hotel guests. Rezidor has signed a worldwide license agreement with the Italian fashion house Missoni, in order to develop and operate a lifestyle hotel brand of the same name: Hotel Missoni. In November 2006, Rezidor was listed on the Stockholm Stock Exchange. Carlson Companies is the main shareholder. The Corporate Office of the Rezidor Hotel Group is based in Brussels, Belgium. For more information on Rezidor, visit .