Rezidor started the year with a good RevPAR development: The group’s Like-for-Like RevPAR increased by 9.8% in January and eight.1% in February. “The key driver for the lift in RevPAR was a rise renowned in most our markets across Europe, the center East and Africa. The amount driven improvement came from various commercial initiatives, and brought about an additional gain of market share”, commented Wolfgang M. Neumann, President & CEO of Rezidor on the group’s Annual Business Conference 2013 in Riga, Latvija.
“The financial system continues to be fragile and unsure. The underlining trend has continued into March, however the month would be negatively impacted by the timing of Easter. We’ll continue to scrupulously monitor the event in the course of the rest of the year. Our initial results reflect the effective execution of our turnaround programme Route 2015”, continued Neumann.
In his key note speech to the five hundred conference delegates – General Managers and company/Area Management Teams – Neumann outlined his strategic focus where talent development and guest delight are the core drivers in pursuit of longer term sustainable profits. He further underlined Rezidor’s commitment to profitable asset-light growth with a focal point on Emerging Markets. All the group’s five signings (1,037 rooms) in January, February and March so far were located in Russia/CIS and Africa, Rezidor’s core markets for future business development. The latest key signing was the Radisson Blu Sheremetyevo Airport Hotel, Moscow (379 rooms, opening in Q2 2014). In early February Rezidor also opened an Emerging Market flagship property: the Radisson Blu Hotel, Maputo in Mozambique featuring 154 guest rooms.
Route 2015 is Rezidor’s guiding light in pursuit of the group’s strategy. The excellent turnaround programme was launched in December 2011 with the purpose to extend the EBITDA margin by 6 to eight percent by the year 2015. The programme puts a powerful specialize in Revenue Generation including: global synergies and activities with Rezidor’s strategic partner Carlson, cost-saving initiatives, accelerated Asset Management and additional growth of the cost-based hotel portfolio especially in Emerging Markets.
Prior to the yearly Business Conference Rezidor’s Leadership Team demonstrated the group’s strong commitment to social responsibility: The 22 executives team – supported by the conference sponsor LG – dedicated a day to support an area orphanage in Riga by painting a subsection of a children’s home.
During the continuing conference Rezidor may also celebrate the farewell of Kurt Ritter, the group’s former President & CEO. Swiss-born hotelier Ritter has lead Rezidor from 1989 to the tip of 2012 and was most likely the longest serving Chief Executive Officer of the hospitality industry. Under his management Rezidor grew from a small Scandinavian company to an international player, and have become a member of the Carlson Rezidor Hotel Group. “Kurt is a legendary leader who has built Rezidor from scratch and has given us our unique culture and image. We can build on his legacy and develop it further on our journey towards improved sustainable profitability”, said Wolfgang M. Neumann.