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BUILDING A NEW

FUTURE TOGETHER
CORPORATE PRESENTATION 2017
Radisson Collection Hotel, Royal Mile Edinburgh

ABOUT THE REZIDOR


HOTEL GROUP
Rezidor Hotel Group Rezidor is a member of the Radisson Hotel
Group, 11th largest hotel group in the world.
AB (publ) (REZT), Through a master franchise agreement with

45,000+
publicly listed on Nasdaq Radisson Hospitality, Inc. USA – Rezidor
369 HOTELS Stockholm, Sweden, is
operates and develops Radisson Collection,
Radisson Blu, Radisson, Radisson RED, and
81,100+ ROOMS Park Inn by Radisson, across EMEA; along
I N O P E R A T I O N TEAM MEMBERS one of the largest hotel with the Radisson Rewards loyalty program
companies in Europe, the for frequent hotel guests. Since 2016,
149 NATIONALITIES Middle East & Africa. Rezidor also owns 49% of prizeotel.
1 0 3 H OT E L S
The Rezidor Hotel Group features a portfolio
23,600+ ROOMS TOTAL REVENUE of 472 hotels with more than 104,000

967.3
UNDER DEVELOPMENT rooms in operation or under development
in 78 countries across EMEA. The Rezidor
IN Hotel Group and its brands have 45,500
78 COUNTRIES team members across EMEA. Rezidor has
an industry-leading Responsible Business
AC ROSS EMEA MILLION EUROS Program and is named one the World’s Most
Ethical Companies by the US think-tank
Ethisphere since 2010.

Rezidor is headquartered in Brussels,


Belgium.

For more information, visit;


www.rezidor.com
www.radissonhotelgroup.com

REZIDOR CORPORATE PRESENTATION 2017 © 2018 The Rezidor Hotel Group. All rights reserved 1
MESSAGE FROM THE PRESIDENT & CEO
OUR VISION IS TO BECOME ONE OF THE

TOP THREE
H OT E L C O M PA N I E S
2017 has been a strong year for international
travel, as well as for Rezidor. We delivered
Radisson Hotel Group is our new go-to-
market corporate umbrella brand and
are Brands & Products; Marketing, Sales and
Revenue Management; Portfolio Management;

IN THE WORLD
several key milestones in 2017, including the company name, created to capitalize on Cost Advantage; Best Systems; Scale; and
opening of 5,000 rooms with 7,500 more a strong partnership between Radisson Organization, Talent & Responsible Business.
in the pipeline, winning one of the “World’s Hospitality, Inc. and Rezidor Hotel Group AB.
AND THE COMPANY OF CHOICE Most Ethical Company” distinction from We are focused on making Rezidor more
Ethisphere since 2010, and maintaining The new identity aligns both organizations relevant and more profitable. This needs a
FOR GUESTS, OWNERS & TALENT.
Radisson Blu’s leading position as the into an even stronger partnership and new value proposition, an improved guest
IF WE ARE SUCCESSFUL, largest upscale brand in Europe (as per the builds on the powerful international equity experience, finding the right way to sell and
ONE DAY – WHENEVER A GUEST 2018 MKG Hospitality ranking). of Radisson. Together with Radisson communicate our brand promise, Every
P L A N S A T R I P, W H E N E V E R Hospitality Inc. and Rezidor’s Board Moment Matters, along with a portfolio
AN INVESTOR OR OWNER THINKS We reported solid business results, growing of Directors, we have created a Global of quality hotels that meet consumer
OF A PARTNER AND WHENEVER like-for-like revenue with MEUR 38.3 (4.0%) Steering Committee that I am honored to expectations. We will succeed by building
A PERSON WANTS TO WORK IN supported by a RevPAR growth of 4.8%. chair. The committee is made up of equal trust with our guests, owners and team
HOSPITALITY – THEY WILL THINK OF representatiion from both companies. members. We have a strong future ahead
During 2017, we made significant progress of us with an exciting new global brand

RADISSON
developing our five-year operating plan, a Currently, the 11th largest hotel group in the architecture and strong plan to capture the
comprehensive strategy which is aligned world, Radisson Hotel Group consists of full potential of the portfolio across the world.
with our partner Radisson Hospitality, Inc. eight hotel brands with more than 1,400
(former Carlson Hotels). It has been an hotels in operation and under development. I would like to thank everyone, who has trusted
HOTEL GROUP FIRST intense transition year, where numerous in the new Radisson Hotel Group, for their
activities and significant efforts have been Our vision is to become one of the top enthusiasm and support. Together with our
made by both companies. three hotel companies in the world, and the owners, partners and team members, we are
company of choice for guests, owners & going to achieve great things and deliver great
We are making good progress towards talent. To achieve this vision, we will focus hospitality moments to our guests worldwide.
our goals, renewing brands experience on being a True Host and Best Partner, and
implementation, repositioning our hotels, delivering our signature promise of Every
and investing in revenue management and Moment Matters across all brands,
in information systems. all markets and all areas of business.
FEDERICO J. GONZÁLEZ
One of the first and biggest achievements With an ambitious vision and a solid plan, PRESIDENT & CEO,
of the five-year operating is the launch of we are ready to deliver on seven focus areas THE REZIDOR HOTEL GROUP
Radisson Hotel Group (replacing Carlson that Rezidor’s Board of Directors and the CHAIRMAN OF THE GLOBAL STEERING COMMITTEE,
Rezidor Hotel Group). management team has committed to. These RADISSON HOTEL GROUP

2 REZIDOR CORPORATE PRESENTATION 2017 3


COMPANY HIGHLIGHTS

CONTENTS
FEDERICO J. GONZÁLEZ
REZIDOR
01 ABOUT THE REZIDOR HOTEL GROUP
APPOINTED
PRESIDENT & CEO
THE
ANNOUNCES A RADISSON
H O T E L G R O U P
02 MESSAGE FROM THE PRESIDENT & CEO OF REZIDOR
AND CHAIRMAN OF THE
F I V E -Y E A R L AU N C H E S AT 2 0 1 8
05 COMPANY HIGHLIGHTS GLOBAL STEERING COMMITTEE O P E R AT I N G P L A N AT IHIF & ITB IN BERLIN
06 FINANCIAL PERFORMANCE OF RADISSON HOTEL GROUP I N V E S TO R S DAY
09 INTRODUCING THE FIVE-YEAR OPERATING PLAN
10 OUR VISION
12 STRATEGIC DRIVERS & KEY FOCUS AREAS
14 OUR GLOBAL BRAND ARCHITECTURE
17 BRANDS & PRODUCTS
36 MARKETING, SALES & REVENUE MANAGEMENT
42 PORTFOLIO MANAGEMENT & COST ADVANTAGE RADISSON RED OPENS IN RADISSON BLU REMAINS RADISSON COLLECTION
45 BEST SYSTEMS
46 SCALE CAPE TOWN
LARGEST UPPER

HOTEL BRAND IN EUROPE


UPSCALE
LAUNCHES
52 ORGANIZATION, TALENT & RESPONSIBLE BUSINESS
64 OUR HERITAGE
66 AWARDS & ACHIEVEMENTS
68 CONTACTS

L A U N C H O F REZIDOR IS
RADISSON WORLD’S MOST ETHICAL
HOTEL COMPANY
5,000 ROOMS OPENED
7,500 ROOMS SIGNED
R E W A R D S SINCE 2010
4 REZIDOR CORPORATE PRESENTATION 2017 Park Inn by Radisson, Brussels Airport 5
FINANCIAL PERFORMANCE
We report solid 2017 results. The EBITDA margin increased by 0.2 It has been an intense transition year
percentage point to 8.5%, despite a number with numerous activities and significant
Like-for-like revenue grew of one-off items linked to the five-year efforts being made to analyze our key WE REPORTED SOLID
with MEUR 38.3 (4.0%),
2017 RESULTS
operating plan and change of ownership. opportunities and build a solid plan. In
Excluding one off items, the Adjusted 2018, we have started to implement the
supported by a RevPAR EBITDA increased by MEUR 10.6 (12.1%) plan and we are making progress towards
growth of 4.8%, driven by to MEUR 98.2. the goals set, investing in brands and AND HAVE SET THE STAGE FOR A
experience implementation, in repositioning
the strong performance
in Eastern Europe and the
During 2017, we have made significant
progress developing our five-year
our hotels, in revenue management and in
information systems. The core components STRONG 2018
operating plan, a comprehensive strategy of the plan were shared at the Investors THAT WILL GENERATE VALUE
good development in Rest which is aligned with our partner Radisson Day in January 2018.
of Western Europe and Hospitality, Inc. (former Carlson Hotels). FOR OUR SHAREHOLDERS,
HOTEL OWNERS & INVESTORS
the Nordics.
MEUR FY 2017 FY 2016 CHANGE % KNUT KLEIVEN
DEPUTY PRESIDENT & CHIEF FINANCIAL OFFICER,
THE REZIDOR HOTEL GROUP
REVENUE 967.3 961.2 6.1 0.6%

EBITDA 82.1 79.3 2.8 3.5%

EBIT 14.7 3.0 11.7 390.0%

PROFIT/LOSS 4.4 26.4 -22.0 -83.3%


FOR THE PERIOD

EBITDA MARGIN 8.5% 8.3% 0.2 pp –

EBIT MARGIN 1.5% 0.3% 1.2 pp –

6 REZIDOR CORPORATE PRESENTATION 2017 Radisson Blu Hotel, Zurich Airport 7


INTRODUCING THE
FINANCIAL HIGHLIGHTS 2017 FIVE-YEAR OPERATING PLAN
In 2017, a detailed diagnostic of the As we leverage the opportunities that we asset management strategy and culture that
ON A LIKE-FOR-LIKE BASIS, EBITDA INCREASED BY EBIT INCREASED BY
7,476 (8,200) Rezidor’s key strategic areas was carried
out, with the objective of identifying
identified in the diagnostic of our business,
we have built a robust action plan to tackle
will help optimize our portfolio – from both a
customer service and financial performance
REVENUE INCREASED
MEUR 2.8 MEUR 11.7 opportunities for improvement and growth. issues and take necessary actions for perspective.

BY 4.0%
R O O M S
The same diagnostic was carried out growth. Our first milestone is the creation

(3.5%) TO
C O N T R A C T E D
(390.0%) TO simultaneously at Radisson Hospitality, Inc. of our new umbrella brand, Radisson Hotel We are strengthening the collaboration
5,039 (5,585) (formerly Carlson Hotels). Group, allowing us to leverage the global between our corporate and area support
SUPPORTED BY LIKE-FOR-
LIKE REVPAR GROWTH MEUR 82.1 MEUR 14.7 ROOMS OPENED AND The diagnostic identified issues and
recognition and brand equity of Radisson,
drive awareness and increase efficiencies of
offices to identify further cost reductions in
our operations.
FOR LEASED AND opportunities that highlighted the need our marketing spend. We are redefining our
MANAGED HOTELS OF 4.8%
AND THE EBITDA MARGIN
INCREASED BY 0.2 PP TO
AND THE EBIT MARGIN
INCREASED BY 1.2 PP TO
4,195 (1,655) for a step change in the company’s global brand architecture, brand awareness We are also further redefining our
performance. To address the issues, a five- strategy, and brand experience to drive procurement model through a concrete
ROOMS LEFT THE SYSTEM
8 . 5 % . ADJUSTED EBITDA 1 . 5 % . A DJ U S T E D E B I T year operating plan was developed and consistency through four essential pillars – sourcing value contribution implementation
I N C R E A S E D B Y I N C R E A S E D B Y approved by Rezidor’s Board of Directors Brilliant Basics, Memorable Moments, Local plan.
in October 2017. The plan was presented to Experiences and Feel at Ease.
REVENUE INCREASED BY MEUR 10.6 (12.1%) MEUR 10.2 (22.3%) the Investors community in January 2018. Also, under consideration is the new leasing
MEUR 6.1 (0.6%) TO M E U R 9 8 . 2 TO M E U R 5 6 .0 We are implementing an integrated accounting standard – IFRS 16, effective
T H E B O A R D O F We have full support of our Board of Marketing, Sales and Revenue Management 1 January 2019, which will replace IAS 17
to MEUR 967.3 DIRECTORS PROPOSES Directors. The execution of the plan is in strategy by geography and brand. We will Leases. IFRS introduces a single lessee-lease
THAT NO DIVIDEND IS our hands with the funds and tools to strengthen our focus on top global feeder model, replacing the operating and finance
deliver it. markets, adjust our funding models across lease classification and eliminating off
TO B E PA I D F O R T H E
BASIC AND DILUTED CASH FLOW FROM different brands and theaters, and build an balance sheet accounting. The new standard
FINANCIAL YEAR 2017, Rezidor aims to deliver Revenue Growth efficient support structure. will have an impact on Rezidor’s financial
E A R N I N G S P E R OPERATING ACTIVITIES HOWEVER THE CURRENT
PROFIT FOR THE PERIOD of 6-7% on an annual basis. The EBITDA statements and we are currently estimating
S H A R E W E R E A M O U N T E D T O DIVIDEND POLICY REMAINS Margin is expected to reach 13-15% by the We are soon launching a new multi- the impact based on 52 hotel lease contracts
D E C R E A S E D BY
EUR 0.03 (0.15) MEUR 72.4 (33.9)
end of 2022. brand digital platform that will enable with fixed rent, 16 office leases and a limited

MEUR 22.0 As part of the new global brand


us to increase direct online sales. We are
redefining the pricing strategy, transforming
number of other lease contracts. We will
make the transition to IFRS 16 by applying

(–83.3%) TO
architecture launch, Rezidor will reposition the revenue management organizations, the modified retrospective application
30-35 of its hotels with a total Capex of optimizing the portfolio and improving and recognizing the cumulative effect as
€140-150 million. The company will also revenue through asset refurbishments. an adjustment to the opening balance of
MEUR 4.4 invest €75-€80 million in fixtures, furniture,
equipment and key money in new hotels. These initiatives will enable us to become
retained earnings.

The renewed expansion strategy will focus more profitable and purposeful, and position Over the next few pages, you will read a
on opening 13,000 new rooms and as part our business for the future. more detailed presentation of the strategic
of a renewed asset-right growth strategy, drivers and seven focus areas of our five-year
Rezidor will also focus on entering new We are moving forward with a new, truly operating plan.
lease agreements in mature markets. global hotel operational model and dynamic

8 REZIDOR CORPORATE PRESENTATION 2017 Radisson Blu Hotel, Dubai Media City 9
OUR VISION
Our vision is to become Our global vision will be supported by two
strategic drivers:
Our vision is to maximize returns for
shareholders who place their trust in
OUR VISION IS
one of the top three hotel
companies in the world • We will deliver memorable experiences
that make us more meaningful than
Rezidor, with the following goals in mind:
TO BECOME
and the company of choice any other hotel company - every day,
ONE OF THE

TOP 3
for guests, owners and everywhere, every time. We will make De live r Reve n u e G row t h
Every Moment Matter with flawless
talent. We will know we are service provided with passion offering
of 6–7% on an annual basis
guests memorable experiences and
successful when we are the making our guests feel special.
preferred choice whenever Rea c h E B I T DA M arg i n
a guest plans a trip, an • We will be a true host and best partner of 13–15% by end of 2022 H OT E L S C OMPA N IE S
by building on our value creation capabilities.
owner thinks about a We will be the preferred choice for
investors who will be supported by a Add 1 3,0 0 0 m o re ro o m s
IN THE WORLD
partner or investment, or motivated team who will help them with
someone wants to work efficient management tools and unique into operations across EMEA
solutions for a profitable growth.
in the hotel industry.

10 REZIDOR CORPORATE PRESENTATION 2017 Radisson Blu Hotel, Lyon 11


Radisson Blu Hotel,
Dubai Waterfront

TWO STRATEGIC DRIVERS SEVEN KEY FOCUS AREAS 1.


BRANDS & PRODUCTS

Our new group-wide global corporate


identity, Radisson Hotel Group, leverages
the powerful, international brand equity
of the Radisson name to drive awareness
in the marketplace, increase marketing
efficiency across the global portfolio and
offer exceptional experiences to make
Every Moment Matter for guests, owners
1 and talent. Every Moment Matters will be
the new signature service philosophy of the
BRANDS &
company and all its hotel brands.
7 PRODUCTS 2
ORGANIZATION, MARKETING, The new go-to-market name, Radisson
TALENT, SALES, Hotel Group, capitalizes on a strong
MEMORABLE TRUE HOST RESPONSIBLE
BUSINESS
REVENUE
MANAGEMENT
partnership between Radisson Hospitality,

MOMENTS BEST PARTNER Inc. (formerly Carlson Hotels) and Rezidor


Hotel Group AB (publicly listed on Nasdaq
Stockholm, Sweden and headquartered
Delivering truly Being a true host and the MEMORABLE in Brussels, Belgium) who has master
memorable best partner by building MOMENTS franchise agreements to develop and
experiences that on our value creation TRUE HOST 3 operate several brands across Europe, the
6
make us more capabilities so guests, BEST PARTNER PORTFOLIO Middle East and Africa.
SCALE MANAGEMENT
meaningful than any owners and talent see us
other hotel company, as their preferred hotel Currently, the 11th largest hotel group in
the world, Radisson Hotel Group is made
every day, everywhere company.
up of eight hotel brands with more than
and every time. 1,400 hotels in operation and under
5 4 development. The launch of the group’s
BEST COST new identity is a significant milestone in a
SYSTEMS ADVANTAGE five-year operating plan that will transform
the business and position it to become
the preferred choice for guests, owners,
investors and talent.

12 Park Inn by Radisson Manchester City Centre 13


leveraging the richer architecture in order investment of over €200m in development
2. to maximize ADR potential. in both theaters and a significant amount of
MARKETING, SALES & The optimization of the portfolio will
funds for leases in Rezidor.

OUR GLOBAL BRAND PORTFOLIO NEW BRAND ARCHITECTURE REVENUE MANAGEMENT include the termination of unprofitable We will grow our portfolio by:
and non-strategic hotels with low • 13,000 rooms across EMEA by 2022
performance or misalignment with the • 54,000 rooms across the Americas and
LUXURY The new value proposition will raise on a company’s standards. Asia Pacific by 2022
WELCOME TO THE EXCEPTIONAL yearly basis, revenue above inflation, with
a significant positive impact on EBITDA. We have developed a bespoke Owners
UPPER UPSCALE
Value Proposition, and expansion plan –

FEEL THE DIFFERENCE


The launch of the new global brand, 4. by brand and market. We have defined
UPSCALE Radisson Hotel Group, and the definition of
the new brand architecture, positioning and COST ADVANTAGE the appropriate products, business
model, investment strategy and resources
refreshed products will deliver a differential considering costs and return.
UPPER MIDSCALE
guest experience for each brand.
SIMPLY DELIGHTFUL A new and optimized operational model
MIDSCALE The awareness and brand image will be at both corporate and hotel level is already
bringing cost advantages, thus enabling
improved through increased investment in
customer-facing activities. In addition, a competitiveness. The transformation of the 7.
ENJOY IT!
ECONOMY
loyalty program linked to the new company procurement model will drive additional ORGANIZATION,
name and experience, Radisson Rewards, savings for the company and for the hotels.
TALENT & RESPONSIBLE
SELECT SERVICE FULL SERVICE has been launched in March 2018. This is
topped with a new digital strategy and
BUSINESS
SMART, ENGAGING SERVICE enhanced web and mobile capabilities.
5. With the purpose of empowering the vision
The sales, pricing and revenue management
strategies will be redefined and optimized, BEST SYSTEMS of the group, a strong Human Resources
strategy, will be deployed, with Talent,
FEEL GOOD focusing on increasing top line.
Culture and Responsible Business as three
The implementation of all initiatives will key pillars. We will ensure that all initiatives
be supported with the construction of a are in compliance with our industry-
scalable first-class IT platform and tools to leading Responsible Business and Safety &
I LOVE THIS COUNTRY deliver the vision of the group. Moreover, it Security standards. The group will continue
3. will aim to bring a significant competitive to invest in its reputation management
PORTFOLIO advantage in the hotel industry. strategy through effective media and crisis

AFFORDABLE HIGH DESIGN


MANAGEMENT management trainings of all corporate
leaders and general managers, and drive
employee engagement through powerful
The current portfolio will be optimized 6. and modern communication tools.
through a repositioning and rebranding
plan aimed at increasing guest experience,
SCALE
revenue and profitability.
Our approach will be focused only on
We have identified 500 hotels globally organic growth and in achieving a higher
(100 across EMEA) that will be rebranded quality portfolio. We have a plan with an

14 REZIDOR CORPORATE PRESENTATION 2017 15


LOC
AL
ASE EX Radisson Blu Hotel Sandton, Johannesburg Park Plaza London Park Royal
E

PE
T

1
LA

RI
7 2

EN
FEE

6 3

CES
GUEST 5 4

EXPERIENCE
PILLARS
1. BRANDS & PRODUCTS
ENJO

Bringing
consistency across
all brands and
YM

markets

S
SIC
EM

BA
OR

A Hormuz Grand, Muscat A Radisson Collection Hotel Park Inn by Radisson Riga Valdemara
BL N
T

EM LIA
OM IL
ENTS BR

16 REZIDOR CORPORATE PRESENTATION 2017 prizeotel Hanover-City Radisson RED Hotel, V&A Waterfront Cape Town 17
WELCOME TO THE EXCEPTIONAL

Radisson Collection™ is a unique assortment of


iconic properties. While the character of each
hotel feels authentic to its locality, all offer the
ultimate template for contemporary living; united
by bespoke design and a collection of exceptional
experiences across dining, fitness, wellness and
sustainability.

OWNER VALUE PROPOSITION


Allows individual identity, limited
conversion costs, flexible contracts Hormuz Grand Muscat, Oman, A Radisson Collection Hotel Radisson Collection Royal Mile Edinburgh
NUMBER OF KEYS
100 - 400
POSITIONING
Premium Lifestyle / Affordable Luxury
LOCATIONS
High profile locations in major, capital
cities and exclusive leisure destinations
PRODUCT
Urban / Resorts
DESIGN STYLE
Authentic Local Influence / Living
Design / Vibrant Social Scene

www.radissoncollection.com

14
18
HOTELS AT LAUNCH Symphony Style Kuwait, A Radisson Collection Hotel Radisson Collection Royal Copenhagen Radisson Collection Strand Stockholm 19
FEEL THE DIFFERENCE

Radisson Blu® creates memorable experiences in


stylish spaces. By paying close attention to the
small details that make a big difference, we inspire
unforgettable experiences with every stay.

OWNER VALUE PROPOSITION


Largest upper upscale brand in Europe,
lower cost of development than competition
NUMBER OF KEYS
150+
Radisson Blu Resort & Spa, Gran Canaria Mogan Radisson Blu Hotel, East Midlands Airport POSITIONING
Upper Upscale
LOCATIONS
Key locations in capital cities, airport
gateways and major leisure destinations
PRODUCT
Urban / Airport / Resorts / Serviced Apartments
DESIGN STYLE
Memorable / Stylish / Purposeful

www.radissonblu.com

400 90,452
HOTELS ROOMS

20 Radisson Blu 1835 Hotel & Thalasso Cannes Radisson Blu Hotel, Frankfurt Radisson Blu Hotel, Kayseri 21
SIMPLY DELIGHTFUL

Radisson® enables guests to find balance in


their hotel experience – with relaxing spaces,
thoughtfully considered details
and unexpected delights.

OWNER VALUE PROPOSITION


An efficient business model, simple
to build and conversion friendly
NUMBER OF KEYS
150 - 200
POSITIONING Radisson Hotel Dakar Diamniadio Radisson Hotel Dallas North-Addison
Upscale
LOCATIONS
Locations in capital and secondary cities,
with a mix of airport, urban, suburban
and convention locations
PRODUCT
Urban / Suburban / Airports
DESIGN STYLE
Modern and timeless design with
a Scandinavian influence

www.radisson.com

217 39,658
HOTELS ROOMS

22 Radisson Exhibition Center Shangai Radisson Admiral Hotel Toronto-Harbourfront Radisson Hotel Dakar Diamniadio 23
ENJOY IT!

Radisson RED® presents a playful twist on


conventional hotel stays, offering hangouts
with a casual feel, buzzing social scenes and
bold design personality.

OWNER VALUE PROPOSITION


Stands out of the crowd, efficient operating
model and simple design turnaround
NUMBER OF KEYS
100 - 250
Radisson RED Hotel, V&A Waterfront Cape Town Radisson RED Brussels POSITIONING
Upscale select service
LOCATIONS
Central and gentrified new locations
in vibrant, urban destinations
PRODUCT
Urban (select service)
DESIGN STYLE
Boldly Playful / Confidently Simple
/ Naturally Casual

www.radissonred.com

19 3,539
HOTELS ROOMS

24 Radisson RED Concept Radisson RED Hotel, V&A Waterfront Cape Town Radisson RED Brussels 25
SMART, ENGAGING SERVICE

Park Plaza® hotels’ trend-setting designs capture


the energy and style of each individual location.
An upscale hotel brand for business and leisure
travelers, offering stylish guest rooms, outstanding
meeting spaces and dedicated staff who offer
reliable service that is flawlessly delivered.

OWNER VALUE PROPOSITION


Recognized as the third largest international upscale/
upper upscale brand in London
NUMBER OF KEYS Park Plaza London Waterloo Park Plaza Cardiff
200+
POSITIONING
Upscale / Upper Upscale
LOCATIONS
Capital cities and key business
and leisure destinations
PRODUCT
Urban / Resorts / Airport
DESIGN STYLE
Unique / Cosmopolitan

www.parkplaza.com

41 8,578
HOTELS ROOMS

26 Park Plaza Nuremberg Park Plaza Berlin Kudamm Park Plaza Westminster Bridge London 27
FEEL GOOD

Park Inn® by Radisson delivers stress-free


experiences, good food and upbeat environments.
We positively lift our guests’ moods for a
happy stay – with clever use of color, inspired,
contemporary design, and friendly, personalized
service with surprising, feel-good extras.

OWNER VALUE PROPOSITION


A cost-effective brand with lower capital
investment translating higher returns
Park Inn by Radisson Riga Valdemara NUMBER OF KEYS
150 - 350
POSITIONING
Upper Midscale
LOCATIONS
Conveniently located in capital and secondary
cities, near airports and railway stations
PRODUCT
Urban / Airport / Suburban / Serviced Apartments
DESIGN STYLE
Positive / Inviting / Connected

www.parkinn.com

203 35,847
HOTELS ROOMS

28 Park Inn by Radisson Dammam Park Inn by Radisson Brussels Airport Park Inn by Radisson Frankfurt Airport 29
I LOVE THIS COUNTRY

Inspired by a sense of belonging, community


and shared experiences, Country Inn & Suites®
by Radisson delivers a heartfelt experience
through inviting design, products and services
so that all guests feel like they are welcome
and that they matter.

OWNER VALUE PROPOSITION


A modern and adaptable prototype
with broad consumer appeal
NUMBER OF KEYS Country Inn & Suites by Radisson, Asheville Westgate, NC Country Inn & Suites by Radisson, Bloomington at Mall of America, MN
80 - 120
POSITIONING
Upper Midscale / Limited Service
LOCATIONS
Primarly suburban, rural markets with
limited urban and airport locations
PRODUCT
Suburban
DESIGN STYLE
Contemporary Architecture /
Warm / Approachable

www.countryinns.com

538 43,260
HOTELS ROOMS

30 Country Inn & Suites by Radisson, Springfield, IL Country Inn & Suites by Radisson, Bloomington at Mall of America, MN Country Inn & Suites by Radisson, Goa Candolim 31
AFFORDABLE HIGH DESIGN

prizeotel is a cool, high design hotel concept


affordable to all. Every bold and distinctive detail is
designed by top New York designer Karim Rashid,
ensuring every prizeotel is a signature brand hotel.

OWNER VALUE PROPOSITION


Lease driven brand with limited investment
and unique, awarded design
NUMBER OF KEYS
125 - 400
prizeotel Hanover-City prizeotel Hamburg-City POSITIONING
Modern Economy
LOCATIONS
What started in the German port city of Bremen has
continued in Hamburg and Hannover, with plans for
other cities in Germany, Austria, Switzerland and beyond
PRODUCT
Urban / Airport / Suburban
DESIGN STYLE
Urban Flair / Distinctive

www.prizeotel.com

10 2,285
HOTELS ROOMS

32 prizeotel Hamburg-City prizeotel Hanover-City prizeotel Hanover-City 33


OUR FOOD &
DRINKS BRANDS
26 North Restaurant & Social Club, Friendly, informal and unpretentiously Ochaya Asian Grill developed by Michelin- Perfectly simple. Simply perfect. The
inspired by the food from the Italian. The atmosphere of Filini star chef Yves Mattagne, a contemporary buzzwords of a fresh and vibrant grill and
farms, fjords and forests of Norway. is a noisy buzz with memorable and refined take on traditional cuisine bar with no pretensions. A menu that’s
Unashamedly local, born in Norway’s Mediterranean overtones. Pizza from Japan, China, Vietnam, Korea instantly recognizable with a design
food capital of Stavanger and oven, deli stage, communal table, and Thailand combined in the theater moving in the same direction – bar and grill
Our Food & Drink concepts rolling south. Boards and plates for booth seating and organic materials. of sharing ‘tapas’, the robatagrill and counter, concrete flooring and exposed
sharing, we take this social thing Simply cooked Italian food, based steam jets. The Asian interior and design brick, chalkboards as part of artwork,
consider the brand and seriously – great food in a very casual on carefully chosen ingredients. features are based on intimate seating, variable seating, booths, banquettes
property in which they are setting, in a very Viking way. show cooking, the tea library, calligraphy,
symbolism and ‘tattoo’ imprints.
and club tables and splashes of color.

located and bring bespoke


experiences across our
portfolio. A contemporary local bar – born in the fair
Born in the heart of Minnesota, our city of Dublin – with all the warmth and
modern, yet classic, FireLake Grill friendliness of traditional Irish hospitality in
Radisson Hotel Group brings a bespoke Bocca Buona is unashamedly Italian
House and Cocktail Bar offers the The OUIBar+ KTCHN is the food, drink a stylish setting with dark timber, deep red
portfolio of established partners, a flexible and simplistic in approach. It celebrates
best of the Midwest’s great food and and social hub. The menus are created and brown leather banquettes and booths,
approach of working with specialists and the Italian way of living and brings a
drink heritage: open-flame cooking from local, seasonal products so guests communal tables and a natural-stone open
well-thought-out criteria for selecting the warm, crowdy and noisy ambience of
and deliciously creative mixology. can experience the taste of the city. fire. There’s an understanding of service, of
right food and drink partners and concepts. the Italian street and a lively bustle into
The décor features rough weathered the importance produce… an understanding
the restaurant. Bocca Buona style is
timber, white tile and copper combined of food, design, music, art, literature,
Our Responsible Business heritage is as relaxed and informal in a casual, fun,
with herringbone and mosaic tile, conversation, history and heritage.
important in food and drink service as it unexpected, humorous and stylish way.
classic leather upholstery and
is elsewhere in the business. We strive
chain-linked drapery. Flame-kissed,
to buy locally and in-season to reduce
carefully selected local and artisan
our carbon footprint, and we aim to
produce give indigenous flavors Bavarian heritage, authentic Munich
reduce food waste and keep packaging
with a simplicity of preparation. design with layers of the now present
to a minimum. Additionally, we source
sustainable food and drinks and buy Inspired by Peter Blake’s ‘about collage’ an instantly recognizable bräuhaus with Verres en Vers is our respectful, thoughtful,
responsibly-produced product wherever exhibition presenting journeys, both copper brewing decoration, variable exciting and modern interpretation of a
we can. real and imagined, which reveal spaces and an emphasis on beer, big food, traditional French brasserie, complete
his fascination with the surreal and music, dance and fun in true Bavarian with dark timber, floral wall coverings,
comedic opportunities presented Our Larder & Lounge offer a consistent style. Paulaner comes as a Bräuhaus or a mosaic floor tiles, leather-clad booths
by the use of collage. Collage, the selection of great quality food, drink, Wirtshaus without on-site micro-brewery and banquettes, directional lighting, wine
brasserie, is synonymous with Blake’s design and service – with a large serving beer imported from Paulaner cabinet and chunky candles for light effects
works: quintessentially British, degree of flexibility. So both reflect a or brewed at a nearby Bräuhaus. and aroma. Enjoy wine, often in magnum
iconoclastic and full of humor. highly individual sense of place, while and beer at its roots. Seasonal, ‘just-in’ plats
delighting with Radisson Blu’s renowned du jour, Sunday brunch and fruits de mer
and stylish sophistication - plus our on show along with oils, breads and cheese.
unique Yes I Can! service ethic.

34 REZIDOR CORPORATE PRESENTATION 2017 35


INDIA

OUR TOP FIVE


FEEDER MARKETS

MARKETING, SALES
1
7 2

& REVENUE MANAGEMENT


6 3

5 4

According to the latest more important than ever. In today’s highly We have introduced new guest experience
mobile world, customers want to connect pillars that span across our eight
UNWTO World Tourism with a brand on different level than they international hotel brands including:
Barometer, destinations have before, and brands have new ways Brilliant Basics, Local Experiences, OU R N E W U M B RE LLA UNITED KINGDOM
to do so. Building awareness and loyalty Memorable Moments and Feel at Ease - GERMANY
worldwide received 1.1 billion means creating brands that are relevant all empowered by our Yes I Can! service GLOBAL CORPORATE BRAND,
and engage customers where they are. philosophy and a consistent delivery of
international tourists in the experiences.
R A D I S S O N H O T E L G R O U P,
first ten months of 2017. As an important step in furthering our
commitment and building our brand in To bring our vision to life, we have
AND A POWERFUL
This strong momentum is the hearts and minds of people, we have realigned our powerful Commercial Wheel BRAND ARCHITECTURE
expected to continue in invested in rebranding to Radisson Hotel based on business intelligence to help drive
2018 at a rate of 4%-5%. Group, a major milestone in our five-year
operating plan to become a top three hotel
personalization and profitability.
WILL
HELP US BOOST OUR
company and the preferred choice for We are creating a unified, global multi- B R A N D AWA R E N E S S
Research proves that in today’s world of guests, owners, investors and talent. brand platform, Radissonhotels.com
relevance and purpose, brands are more to bring together all our brands and
AND DELIVER MORE
important than a business plan. A brand is
how customers perceive a company and is
As part of our new alignment, Radisson
Hotel Group is built on the equity and
commercial websites into one global hub.
Additionally, our newly created global sales MEANINGFUL
CHOICES
the blueprint of a business and its leaders. global awareness of our leading brand, teams will now serve all customers with a
Radisson, to create more awareness and truly holistic approach, cross promoting
Our industry (travel, tourism and marketing efficiencies that ensure the hotel brands, properties, and products
hospitality) is crowded. Everyone is
fighting for the same space of recognition
highest standards of customer service.
We have also launched a newly refreshed
across the network. RUSSIA
FOR OUR GUESTS U.S.A.
but aiming for ultimate differentiation. loyalty program, Radisson Rewards With this powerful combination of people
New disruptors like Airbnb and Luxury (formerly Club Carlson), and our newly and technology, we are embracing the
Retreats are changing the way people named meetings & events offering, changes in the marketplace and aim to ERIC DE NEEF
think about travel and hospitality. Speed Radisson Meetings, both of which will deliver a system contribution of 70% EXECUTIVE VICE PRESIDENT &
GLOBAL CHIEF COMMERCIAL OFFICER
and consolidation are confusing the instantly elevate awareness and alignment by 2020. RADISSON HOTEL GROUP
marketplace and having a strong brand is to our portfolio.

36 REZIDOR CORPORATE PRESENTATION 2017 37


Our Commercial wheel is designed to:

CREATE DEMAND OPTIMIZE RATE Our Commercial Strategy is I N T E


We help to increase our reach and profitable revenue by As the world of data analytics evolves, we are continuing
powered by a dedicated team S L
partnering with online travel agencies and other third to migrate to a business intelligence model to better S L
parties. With a robust and successful rewards program, analyze performance, identify potential opportunities of experts including Brands, E I
meetings offerings, recognizable brands and an expert and/or challenges and evaluate associated activities and Sales, Revenue Optimization & G
panel of advisors, the possibilities for growth are endless. solutions to ensure a decision is made that will drive total

N
We’re here to help create engaging conversations that profitable revenue. Distribution, Marketing, Loyalty,

E
Digital, Social Media, Loyalty and

I
drive loyalty and passion for our unique offerings.

N
Communications & PR, to bring

S
innovative and integrated ideas

B U

C E
to drive higher levels of customer CON T R I BU
EM
LEVERAGE GUEST EXPERIENCE engagement, loyalty, growth and

TI
T
SYS

ON
DRIVE MEETINGS & EVENTS To ensure the optimum guest experience, we consistently ultimately profitability – for our
We’ve realigned our Sales and Distribution resources deliver our brand promise every day and leverage our
globally to deliver a clear strategy across our brands customer experience management initiative to form
owners and investors.

SYS
ON
to drive profitable revenue and put our customers center stronger relationships with our customers. We provide
We are committed to the digital movement

TI
stage. Our team includes 160 sales employees across an integrated communications and PR strategy, including

T
EM

B U
C E
in travel services because we believe that CON T R I BU
12 sales offices throughout the world focusing on Business unique content across all media and social channels that
personalization is the biggest differentiator in
Travel, Meetings & Events and Leisure segments. This team shares a consistent brand message and corporate purpose.
a crowded marketplace. Whether our guests
focuses on putting meetings and events at the center of Our multi-platform campaigns will drive stakeholder
are booking an important meeting, relaxing
what we do, and will ensure steady revenue growth from engagement and position us as an industry leader.

S
at one of our restaurants or just looking for a
this sector. Radisson Meetings will offer a robust program
comfortable night of sleep, we are committed
for meetings and events designed to make every event

I
E
to delivering the highest level of personalized
unique for our clients. We also deliver world-class sales

N
service and memorable moments across G
training and development for your employees to E
every touchpoint. I
encourage personal growth, manage performance S
and retain team members. L
CAPTURE ONLINE BUSINESS L S
Our team of digital experts will help create innovative I N T E
multi-channel campaigns that will share relevant news and
content to drive customer engagement across all channels.
We will help choose the best web-based platforms, mobile
sites and applications to drive direct online business and
optimize online revenue by increasing traffic on our brand.
com websites.

38 REZIDOR CORPORATE PRESENTATION 2017 39


We’re excited to introduce At Radisson Hotel Group, By the end of 2018, we
Radisson Rewards, replacing we know that whatever will be launching a unified,
Club Carlson. the occasion, the stakes global multi-brand platform,
Radisson Rewards provides members
are high, so we are as Radissonhotels.com, to bring
with an enhanced experience from time of committed as you are to together all our brands and
booking to check-out and every moment
in-between. Members enjoy Member
make your event one to commercial websites into
Only Rates, have access to exclusive remember. one global hub.
benefits, and earn towards free nights
across the Radisson Hotel Group Putting people at the heart of the process, This includes a global, multi-brand
portfolio of hotels globally. and driven by our signature promise to booking site for customers, and a global
make Every Moment Matter, we treat reservations and property management
every meeting as more than just a date system to enhance our capabilities around
in the calendar. Whatever the objective, data, pricing and loyalty, and offer an
guests can trust Radisson Hotel Group’s industry-leading booking experience
passionate team members to be there to our guests.
every step of the way. Listening to their
needs. Sharing their concerns.
We are also excited to introduce a new Celebrating their successes.
name in rewards for our professional
partners, Radisson Rewards for Business. With Radisson Meetings, we have thought
As a Travel Agent, Meeting and Event about all the details that truly make a
Planner, or Executive Assistant, members difference, so guests can expect more.
will earn valuable points toward rewards
for bookings at all our Radisson Hotel
Group brands.

40 41
Radisson Collection Royal Copenhagen

1
7 2

6 3

5 4

PORTFOLIO MANAGEMENT
& COST ADVANTAGE
OPERATIONAL EXCELLENCE
WE ARE MOVING FORWARD WITH A

This past year has been Looking ahead, we are moving forward and operations teams and its commitment TRULY GLOBAL
with a new, truly global hotel operational to flexible hospitality solutions for our
transformational, as we put HOTEL OPERATIONAL MODEL AND
model, a dynamic asset management owners and investors. Leveraging these
forth an extraordinary effort strategy supported by a Yes I Can! culture
that will help optimize our portfolio – from
strengths in successfully executing the
five-year operating plan, will allow us to
DYNAMIC ASSET
in generating value for both a customer service and financial grow beyond mere cost-efficiencies and MANAGEMENT STRATEGY

OPTIMIZE
performance perspective. truly deliver operational excellence.
our clients, shareholders, THAT
hotel owners and other Rezidor will continue to invest in its leased We are focused on optimizing space and WILL
hotels. We plan to invest between material planning and design, so that every
stakeholders (internal and €140-€150 on following initiatives that will inch of our properties is profitable. We will OUR PORTFOLIO AND
external). We have a solid
five-year operating plan that
boost revenues and bring cost-effciencies
across the entire group:
grow our revenues in room, Food & Drink,
Meetings & Events, and other areas, that HELP DELIVER
• Implement a repositioning plan for can elevate guest experience. A better
will position us for the future selected leases alignment across corporate and area PROFITABLE GROWTH
• Renegotiate, exit and extend lease offices and grass-root operations, will
and make us the preferred contracts, as appropriate allow us to share best practices – effectively
choice for guests, owners, • Improve GOP performance in leased, and efficiently – across all our properties, CHEMA BASTERRECHEA
EXECUTIVE VICE PRESIDENT
managed and franchised hotels irrespective of the contract type.
investors and talent. & CHIEF OPERATING OFFICER
THE REZIDOR HOTEL GROUP
We are confident that this strategy will We are reshaping our company,
significantly improve our financial repositioning our portfolio and
performance. We expect it will lead to a introducing a performance driven culture
total EBITDA impact of €48-€52 million. to successfully shift to a renewed operating
model. I am confident that our new vision and
Our operating plan capitalizes on Rezidor’s strategy will help our teams in making Rezidor
international experience of its leadership even more competitive and profitable.

42 REZIDOR CORPORATE PRESENTATION 2017 43


1
7 2

6 3 1
7 2
5 4
6 3

PORTFOLIO
5 4

MANAGEMENT BEST SYSTEMS


We have developed a comprehensive and step change IT program,
which allows integration between platforms, flexibility and scalability.

We have an approved plan to invest significant Capex and Opex in


new Property Management and Distribution Systems, CRM and Loyalty
platforms, campaign management, and overall IT platforms to ensure
MORE THAN we are ahead of the curve and provide an advantage when it comes to

100
marketing, sales, operations and development.

HOTELS
OUR CURRENT STATUS OUR PLAN

ACROSS EMEA Time to launch 10-14


6 – 8 Months
ARE GOING TO BE major capabilities Months

REBRANDED
OR REPOSITIONED
Cost for new
capabilities

Sell products/services
beyond the room
5-10x
Ind. Avg.

+
At Market

+++

Support local languages


+ +++
for global scale

Owner’s competitive
+ +++
advantage

Opex efficiencies + +++

44 REZIDOR CORPORATE PRESENTATION 2017 45


1
7 2

6 3

5 4

SCALE
PORTFOLIO EXPANSION STRATEGY
O U R A S S E T- R I G H T S T R AT E G Y
MEANS THE RIGHT
TRANSACTION Rezidor enjoyed strong As announced at the Investors Day in
January 2018, Rezidor is embarking on a
In addition to the shifts in the business
model and market focus, Radisson Hotel
FOR THE RIGHT PARTNER growth in 2017 signing circa renewed Asset-Right growth strategy. Our Group launched a new brand architecture
7,500 rooms and opening focus is to rejuvenate mature markets while that includes extended stay solutions
AND RIGHT LOCATION. continuing to accelerate in emerging ones. for core brands. Service apartments of
another 5,000. Since 2012, Radisson Blu and Park Inn by Radisson
IT SIGNALS OUR the company has opened Rezidor is returning to signing more along with renewed proposition for
agreements in strategic European Radisson RED, will be launching in 2018.

COMMITMENT over 123 hotels and currently


has a pipeline of over 100
markets. The leases and contracts with
commitments will strengthen the group’s Overall, Rezidor will reposition 30-35
current business model to stimulate its of its hotels with a total Capex of
TO CONTINUOUS INVESTMENT hotels with 23,000+ rooms. growth in the markets where economy is €140-€150 million. The company will
IN KEY booming and institutional investors are also invest €75-€80 million in fixtures,
becoming increasingly prominent. furniture and equipment (FF&E) and
MATURE MARKETS To accelerate growth and create scale,
key money in new hotels.

FLAGSHIP HOTELS Rezidor will focus on both existing and new As part of our expansion strategy, we
AND

partners in eight key target markets across are making the company and brands
EMEA: four mature (UK, Germany, Poland even more relevant to investors. We are
and Italy) and four emerging (Turkey, building an investor value proposition
ELLIE YOUNES Russia, South Africa and the United Arab that puts investment partners’ interests
EXECUTIVE VICE PRESIDENT Emirates). We will aim to add 10–20 hotels at the heart of our expansion strategy. We
& CHIEF DEVELOPMENT OFFICER
THE REZIDOR HOTEL GROUP to each market over the next five years. believe in long-term relationships based
on trust and accountability for mutually
beneficial outcomes.

46 REZIDOR CORPORATE PRESENTATION 2017 47


Radisson Red V&A Waterfront, Cape Town
HOTELS & ROOMS PER COUNTRY
OPERATED & DEVELOPED BY THE REZIDOR HOTEL GROUP

Map Country Hotels Rooms Map Country Hotels Rooms Map Country Hotels Rooms
57
68
21
1 Algeria 2 306 28 Hungary 4 924 55 Qatar 1 583
51
29 2 Angola 5 654 29 Iceland 3 401 56 Romania 3 868
19

17 7
3 Armenia 1 142 30 Iraq 1 290 57 Russia 38 10,192
31 38
75
49 41 4 Austria 4 451 31 Ireland 10 1,559 58 Rwanda 2 453

8
25 53 5 Azerbaijan 1 248 32 Italy 4 628 59 Saudi Arabia 39 10,578

22
42 16 63
60
46
74
6 Bahrain 2 574 33 Ivory Coast 1 261 60 Senegal 2 393
4 56 34
69 28 64
61
7 Belarus 1 200 34 Kazakhstan 2 429 61 Serbia 1 236
14 76 37
24
32 8 Belgium 15 2,059 35 Kenya 3 534 62 Sierra Leone 1 162
54 71
67 5
27 3 9 Cameroon 1 150 36 Kuwait 3 428 63 Slovakia 2 409
70
44
15 10 Cape Verde 1 240 37 Kyrgyzstan 1 181 64 Slovenia 1 237
47 39
30
1 36 12 11 Chad 1 175 38 Latvia 8 1,791 65 South Africa 12 2,486
40 18

6
12 China 1 360 39 Lebanon 2 312 66 South Soudan 1 158
59 55 13 Congo 1 178 40 Libya 2 507 67 Spain 3 665
72
43
11
52 14 Croatia 1 183 41 Lithuania 6 978 68 Sweden 16 4,021
10
60
15 Cyprus 2 285 42 Luxembourg 1 99 69 Switzerland 8 1,567

62 66
20 16 Czech Republic 3 599 43 Mali 1 190 70 Tunisia 5 1,238
26
50
73
17 Denmark 7 1,766 44 Malta 2 581 71 Turkey 22 4,109
33
9
23
13
18 Egypt 4 1,246 45 Mauritius 3 382 72 UAE 20 5,199
58 35
19 Estonia 4 1,380 46 Moldova 1 143 73 Uganda 1 195
20 Ethiopia 4 689 47 Morocco 1 198 74 Ukraine 5 1,062
21 Finland 8 1,754 48 Mozambique 1 341 75 United Kingdom 36 7,375
22 France 16 2,833 49 Netherlands 5 1,281 76 Uzbekistan 1 111

2
48 23 Gabon 2 446 50 Nigeria 7 1,402 77 Zambia 1 142
77
45
24 Georgia 7 1,179 51 Norway 25 6,352 78 Zimbabwe 1 245
78
25 Germany 35 8,652 52 Oman 5 856
26 Ghana 1 207 53 Poland 15 3,370 Grand Total 472 104,750
65
27 Greece 2 471 54 Portugal 1 221

48 REZIDOR CORPORATE PRESENTATION 2017 49


prizeotel Hamburg-City

EUROPEAN HOTEL RANKING N O R D I C S

EUROPE'S 10 LARGEST UPSCALE BRANDS

RANK BRAND GROUP HOTELS ROOMS R E S T O F


W E S T E R N
E U R O P E
1 Radisson Blu Radisson Hotel Group 186 44,452 E A S T E R N
E U R O P E
2 Hilton Hilton Worldwide 124 34,841

3 Marriott Marriott International 92 22,941


N O R D I C S E A S T E R N E U R O P E
4 Crowne Plaza IHG 84 19,427

5 Melia Melia Hotels International 66 17,459 M I D D L E E A S T,


A F R I C A & 59 HOTELS 130 HOTELS
6 Clarion Choice 100 16,537 OT H E R S
14,294 ROOMS 29,256 ROOMS
7 Sheraton Marriott International 53 15,157
In the Nordics, we continue to be the largest We are by far the largest hotel company in
8 Thon Thon Hotels 78 11,267 international operator. Moving forward, we Eastern Europe. Poland continues to be a
will introduce Radisson RED® and luxury key focus country. Our growth plan for the
9 Maritim Maritim 36 10,189 brand, Radisson Collection, in capital cities. region is based on an asset-light model,
We adopt an asset-right model on this with selective commitments and a focus
10 Steigenberger Deutsche Hospitality 43 8,238 continent, including management contracts, on leveraging our new brand architecture
franchises, leases and industrial investments. across the region.

EUROPE'S 10 LARGEST MIDSCALE BRANDS

RANK BRAND GROUP HOTELS ROOMS R E S T O F W E S T E R N M I D D L E E A S T,


E U R O P E A F R I C A & OT H E R S
1 Best Western Best Western 1,150 82,074

2 Holiday Inn / Holiday Inn Express IHG 514 75,082 142 HOTELS 141 HOTEL S
3 Mercure Accor Hotels 560 64,281 28,442 ROOMS 32,758 ROOMS
4 Novotel / Suite Novotel Accor Hotels 284 47,626 2017
With a clear asset-right model, we have The Kingdom of Saudi Arabia and the

28 5,039
5 NH Hotels NH Hotel Group 308 45,936
OPENINGS
identified around 50 cities in Western Europe

HOTELS

ROOMS
United Arab Emirates remain key strategic
where we would commit. Our new focus destinations, and our focus is on the delivery
6 Scandic Scandic 217 41,247 countries are the UK, Germany and Italy – of our strong pipeline. Across Africa, we will
and our expansion is predominantly through

7,476
expand the network further to defend our
7 Park Inn by Radisson Radisson Hotel Group 91 18,465
SIGNINGS 24

HOTELS

ROOMS
organic growth. Our new brand architecture leading position.
offers various opportunities for investors –
8 Sol Melia Hotels International 48 17,672 notably the Radisson®, Radisson Collection
and Radisson RED.
9 Quality Inn / Quality Hotel Choice 120 16,974
ACROSS 78 COUNTRIES
10 Kyriad / Kyriad Prestige Jin Jiang / Louvre Hotels 251 15,561

SOURCE: Global Hotel Ranking by MKG Hospitality-ON dated January 2018.

50 REZIDOR CORPORATE PRESENTATION 2017 51


1
7 2

6 3

5 4

ORGANIZATION, TALENT
& RESPONSIBLE BUSINESS OUR BELIEFS
Radisson Hotel Group’s This unified approach and a holistic, We have developed initiatives and We deliver memorable
integrated thinking helped us recognize programs aimed at creating inspiring
culture has been its biggest our common beliefs – seven powerful leaders and exceptional professionals moments every day,
differentiator since it was statements to inspire and empower us to within our teams, while also attracting the everywhere, every time
deliver on our signature, Every Moment top external talent to our organization.
established. Since 1960, our Matters:
first and foremost focus is • Competitive pay and benefits We enjoy serving with
• We deliver memorable moments every • Learning and development opportunities our “Yes I Can!” spirit
on customer service and day, everywhere, every time • Allowing employees to do what they do
• We enjoy serving with our Yes I Can! spirit best every day
bringing a Yes I Can! attitude • We grow talent, talent grows us • Career and life fitting together We grow talent,
to everything we do. • We are many minds, with one mindset • Creating meaning and purpose in their
talent grows us
• We value open and direct interactions work
With the five-year operating plan launch, to build trust • Optimizing individual strengths
we are committed to evolving into a new • We believe anything is possible We are many minds,
organizational culture to help deliver our • We have fun in all that we do As one of the world’s most ethical
vision of becoming a company of choice for companies, we will continue to act with one mindset
talent. Building on a strong culture made Our people and culture are at the core of responsibly in all we do and provide
up of our unique workforce, we will strive our success and future. Delivering the right opportunities for our employees to give
to ensure our guests are 100% satisfied people, with the right skills, at the right back and bring passion to our Responsible
We value open and direct
and so are our team members. time is fundamental to an agile workforce Business actions – Think People, Think interactions to build trust
that can evolve and adapt to our ever- Community and Think Planet. We have
To understand where we are and how we changing needs. team participation from every hotel, every
will transform for the future, we conducted brand and every country in our portfolio We believe anything
several workshops, more than 50 interviews, Leveraging on our core People, Talent & and are making a significant difference is possible
1,300 surveys and several face-to-face Culture strategy, we will act as the principal to the lives of our people, and the
meetings with global leadership teams and agent for organizational and cultural communities in which we work and operate.
executives to gain essential insight and data transformation. We have fun in
input from all our team members around all that we do
the world in all roles.

52 REZIDOR CORPORATE PRESENTATION 2017 53


Radisson Blu Hotel, Berlin

DIVERSITY & INCLUSION

Balanced leadership Age pyramid Learning & Development Safety & Security
The Rezidor Hotel Group continuously By the end of 2017, more than 200 of our
WOMEN MEN 14% of the workforce is aged
develops employees at every level to hotels were certified by Safehotels Alliance
below 24 years old – a high
Total Total reach their full potential. The Mentor – AB, which certifies hotels against their
percentage compared to the
Employees1 Employees1
Mentee program is designed to identify own, independent ‘Global Hotel Security WE ARE BUILDING ON OUR STRENGTHS
20,039 25,504 previous year.
and develop high potential talent to Standard’ – giving guests, buyers, and W I T H G R E AT M O M E N T U M
44% 56% 26.6% of the employees are aged
between 25-30 years old.
become General Managers. travel managers reassurance that certified
hotels have been audited against an AND EXCITEMENT
Leadership Leadership As part of the key objective of reaching independent standard.
positions2
47
positions2
246
31.1% are aged between
31-40 years old, a very similar
balanced leadership, the program STEPS AS WE UNIFY OUR
has been launched. It is meant to develop Rezidor’s “Communicate, Collaborate,

16 % 84% percentage to last year (31.4%). women who have potential to grow in our Contribute” security strategy has made us GLOBAL CULTURE
17% of the employees have ages organization. The aim of the program is leaders within the hotel industry. In 2017, we
between 41-50. either expansion of responsibilities or role have held the Chairman’s post of the OSAC TO D E L I V E R O N O U R
44% of the total Rezidor Hotel Group workforce are
women, of which 16% hold senior leadership positions. 8.9% are aged between 51-60
promotion. Hotel Security Working Group; we have
contributed to workshops on soft target
SIGNATURE PROMISE,
2.2% are above 61, all similar The Business School, our learning platform, protection by the Global Counter Terrorism EVERY MOMENT

MATTERS
numbers to 2016. is in line with the vision, brand values and Forum; and we have been on a panel at the
1
Full time equivalent. General Manager, District Director, Regional Director
2

and members of the Business Leadership Team. goals of the company. Courses offered launch of their best practices for public-
Nationalities are changed, updated, removed or private partnerships that was a side event
added based on business needs. It helps to the UN General Assembly.

AGE1 2017 (%) 2016 (%) The Rezidor Hotel Group counts
us to gather employees from across all
geographical areas and hotels, positively
AND REMAIN THE
Below 24 14 4.62
with employees from 149 different influence revenue, quality and value and E M P LOY E R O F C H O I C E
nationalities working for the offers a though-provoking, stimulating and
Between 25-30 26.6 373 company. enjoyable time for all who take part.
IN THE HOSPITALITY INDUSTRY
Between 31-40 31.1 31.4
Between 41-50 17 16.1 IÑIGO CAPELL
1
Data refers to full-time employees EXECUTIVE VICE PRESIDENT
Between 51-60 8.9 8.6 2
Please note that number for 2016 of & GLOBAL CHIEF RESOURCES OFFICER
4.6% is for the age category “below 20” RADISSON HOTEL GROUP
Between 61-65 1.8 1.7 3
Please note that the numbers for 2016
Above 65 0.6 0.5 of 37 is for the age category “between
21-30”

54 REZIDOR CORPORATE PRESENTATION 2017 55


RESPONSIBLE BUSINESS
At The Rezidor Hotel Group, we are committed
OUR SUCCESS IS GROUNDED IN OUR
to caring for our people, our communities
PURPOSE, VALUES and our planet. We believe this is essential
AND CONDUCT. to running a thriving business and our
responsibility as global citizens.
DEMONSTRATED EACH DAY THROUGH

OUR RESPONSIBLE As travel and tourism continue to become more accessible, serving
BUSINESS PRACTICES. responsibly is more critical than ever.

W E TA K E G R E AT P R I D E I N 2017 has been a successful year for our Responsible Business program,
BEING ONE OF THE with positive engagement from our 45,500 team members across
EMEA. We won three major awards and several recognitions for our

WORLD’S
three focus areas; Think People, Think Community, Think Planet.

At the same time, we redefined our Responsible Business plan for the
next five years, as part of the company’s overall five-year operating plan
MOST ETHICAL COMPANIES and launch of the Radisson Hotel Group.

SINCE 2010
INGE HUIJBRECHTS
GLOBAL VICE PRESIDENT,
RESPONSIBLE BUSINESS
RADISSON HOTEL GROUP

56 REZIDOR CORPORATE PRESENTATION 2017 57


We believe in the potential of young people Our globally recognized Safety and We are proud that we were able to make We remain committed to reduce our We have committed to the International
and are focused on helping them improve Security program is based on decentralized a difference in more than 500 communities carbon, energy and water footprints. Since Tourism Partnership 2030 hotel
their employability skills. To do this, we empowerment of the hotel teams, across 80 countries in EMEA by donating 2015, we have reduced our energy footprint industry goals. We will help to reduce
worked with the Youth Career Initiative, an supported by an online self-assessment one million EUR in cash and in kind by 8% and our most recent Think Planet carbon footprints in line with the
organization that partners with hotels to linked to our library of best practices. and volunteering over 32,000 hours Efficiency award went to the Radisson Blu COP21 requirements, to practice water
build promising futures for young people. Safehotels Alliance AB verifies the hotels’ of community work. Hotel, Marseille, for saving 31% on energy stewardship, foster human rights and
We also continued our work with Park Inn Safety and Security performance annually use in the last five years. In addition to this, promote youth employment.
by Radisson hotels by creating several and has independently certified 209 of our We continue to support SDG 6, 8, 10 by 100% of the energy used in 40 hotels in
murals together with world known artist hotels at the end of 2017. helping to bring safe drinking water to France and the Nordics is renewable. As we aim to become a top three hotel
and educator Joel Bergner, which won us communities in need. Since we started company in the world and a preferred
the UNWTO award for innovation. Over the next five years, we will continue our cooperation with the international In 2017, we won the IMEX Sustainability choice for guests, owners, investors and
to put an emphasis on welcoming and water charity, Just A Drop, we helped Award for water mindfulness. The carbon talent, we celebrate our industry-leading
We have also won the World’s Most Ethical caring for our guests in a safe and secure 17,500 people with safe drinking water footprint of all meetings and events at commitment to Responsible Business.
Companies award by Ethisphere since 2010. environment. We will make sure that all in water-scarce countries. Our guests Radisson Blu is now automatically offset
our talent and partners respect and fully helped us in doing so, by contributing for all our clients and booking agents. The five-year Responsible Business
We continue our focus on fighting Modern comply with our principles of Business through towel reuse and/or choosing operating plan focuses on making even
Day Slavery through an awareness toolkit Ethics in our hotels and across our entire to suspend housekeeping services. For the next five years, our aim is more meaningful impact with our Think
for hotels that includes guidance on value chain. Safety and Security remains to decrease our carbon, energy and People, Think Community, Think Planet
due diligence in the recruitment process a top priority in all of our hotels. We will continue to provide a work water footprint by another 10%, and initiatives while contributing to the bottom
including code of conduct for recruitment environment where our team members minimize waste. line and enhancing our ability to deliver
agencies. We work with HR teams to can grow, succeed and make positive memorable moments to all our customers.
perform a structured risk assessment contributions to the communities
of our supply chain. where they live and work. In over 1,000 The five-year Responsible Business
destinations around the world, we will operating plan focuses on making
partner with organizations that work in meaningful impact with Think People, Think
our communities to provide basic human Community and Think Planet initiatives.
needs such as food and shelter.

Please refer to the full Responsible


Business Report 2017, for more details

58 REZIDOR CORPORATE PRESENTATION 2017 59


REPUTATION MANAGEMENT
& STAKEHOLDER ENGAGEMENT
MOMENTUM – The Group Magazine
The company’s online communication portal serves as a streamlined
Rezidor’s Corporate Press & Media Relations communication channel to reach all internal and external stakeholders.
MOMENTUM combines the strategy, purpose, content and appeal of
Communications, PR & The Communications and PR team a corporate blog, group’s newsroom and houses the employee social
Reputation Management supports building brand awareness and networking channel combined in one beautiful magazine. MOMENTUM
provides continued updates and changes about the transformation and
team is committed to reputation management through powerful
information sharing among all company participants. MOMENTUM is open
storytelling, around the business growth
facilitating effective and strategy, executive messages and TRUST IS A PRECIOUS COMMODITY, for everyone on https://momentum.rezidor.com. Employees can access a
communication and a social media profiling, updates on ongoing A N D A S C O M M U N I C AT I O N & more confidential level of information through a personal login.
and new initiatives and campaigns,
meaningful dialog – internally employer brand, and much more to elevate REPUTATION ADVISOR
and externally – around the the company’s profile and ranking in the TO T H E L E A D E R S O F O U R
hotel industry. The team reaches a global
five-year operating plan. audience through media and influencer
B U S I N E S S & I N D U S T R Y,
outreach, social media and traditional WE HELP BUILD A
POWERFUL
This is achieved though initiatives that
media amplification across industry,
strengthen the values and beliefs on
business and lifestyle outlets.
which the company culture is based while

N E T WO R K
protecting and enhancing the group’s
reputation internally and externally.
Effective and purposeful communication Corporate Communications
is vital to achieving this goal. Our O F I N F L U E N C E R S A N D
communication leaders around the world In 2017, Rezidor successfully interacted Social Media A D V O C AT E S , I N T E R N A L LY A N D
work to build the organization’s profile with the investment community through E X T E R N A L LY, T O E N S U R E O U R
as a leader; and, ultimately, support ongoing communications, quarterly The social media strategy consists of a segmentation B R A N D S & L E A D E R S
business goals that contribute to our earnings and an Investors Day announcing between corporate and brand channels to target news
enterprise value. The team works to build the five-year operating plan. The Financial and stories to all types of audiences. The Radisson Hotel A R E A L W AY S C R E D I B L E ,
and communicate credible and consistent Communications team helped navigate Group social channels announce corporate news such as T H O U G H T P R O V O K I N G,
messages to key stakeholders – employees, through moments of transition, delivering a business development, financial performance, strategic
RESPONSIBLE & AUTHENTIC
guests, owners, team members, media and consistent and credible corporate narrative developments, leadership updates and recruitment, Renovating a masterpiece
IN THE H O S P I TA L I T Y INDUSTRY
influencers – through a variety of internal to the market, engaging with financial awards and honors, brand and marketing campaigns, new The Radisson Collection Royal Hotel,
and external channels. analysts and business media and cultivating product launches, and other key milestones. For examples, Copenhagen renovation project.
a growing shareholder base. The group the corporate Linkedin, Twitter and Instagram regularly
maintains an award-winning website and recognize the role of our Hotel General Managers and RENU HANEGREEFS-SNEHI
VICE PRESIDENT,
channels all vital IR communication through their teams, and the important work they do to deliver CORPORATE COMMUNICATIONS,
www.rezidor.com. our promise Every Moment Matters to our guests. PR & REPUTATION MANAGEMENT
THE REZIDOR HOTEL GROUP

60 REZIDOR CORPORATE PRESENTATION 2017 61


Crisis Communications Radisson Talks Employee Awards Programs Radisson moments on
& Issues Preparedness Radisson Talks are monthly open forums We hold annual awards to recognize the
Instagram – created by
To prepare the global network for any type
at corporate offices, where a head of a commitment and success of our employees. team members
department or functional leader hosts We have distinct categories covering:
of crisis response, Rezidor’s Corporate
the team for an informal get-together, Employee of the year, General Manager of The corporate Instagram,
Communications, PR & Reputation
over breakfast or lunch, to present the the year, Diversity & Inclusion Award and @radissonmoments, specifically covers
Management team developed a bespoke
key priorities, initiative updates, progress Young Leader of the year. Selection process employee stories with the purpose of
guide that can be accessed securely by
reports and other highlights with ample for each award varies between peer and giving a voice to our employees. Our
any employee who needs help to handle a
room for Q&A from the teams. Depending management nominations. corporate Instagram’s reason to be is for
significant issue. It provides step-by-step
on the subject and relevance, the Corporate employee advocacy and recognition. We
guidance to make sure that our General
Communications team (may) also have recently started our “Star of the week”
Managers handle incidents sensitively at a
broadcast the Radisson Talks through a initiative, meant to recognize on a weekly
local level and that our Business Leadership
webcast to other areas and countries. basis our most popular employee. His/
Team and Executive Committee have
her story is amplified through corporate
access to strategic resources when an
LinkedIn and Twitter channels to drive
executive response is required. Additional
awareness on our employer brand.
trainings, quarterly webinars, immersion
sessions, train the trainers and executive
committee/area leaders crisis simulations
are carried out regularly.

Internal Communications We believe that positive internal


engagement is critical to generating
To continue fostering the exchange of external brand awareness. Each week, our
ideas and information with employees, the Social Moments Matter newsletter covers
company promotes various communication the best stories on our corporate and brand
channels that push out information about social media channels with the purpose of
internal programs and initiatives including engaging and encouraging employees to
LOOP and Social Moments Matter which share their stories through their own social
are, respectively, a bi-weekly and weekly media accounts. This also ensures that no
newsletter for employees. one misses out on what’s happening in our
social media eco-system.
LOOP is designed to be a call to action for
General Managers and includes relevant In this transformation year, with the
information from the Corporate Support launch of the five-year operating plan
Office. LOOP ensures that all corporate and Radisson Hotel Group, internal
messages are aligned, well-coordinated communications also provided company-
and distributed timely so our General wide updates by the Chairman of the
Managers and the operational teams can Global Steering Committee to all global
focus on the important tasks of serving our theaters and all leadership functional areas
guests. LOOP is the one and only email that through videos, FAQs, message houses,
goes from the corporate office to General presentations, intranet, websites, and
Managers, so they know when and where leadership face-to-face meetings.
to access critical information for their
operations.

62 63
• The Rezidor Hotel Group
completed initial public offering • H
 NA Tourism Group acquired
on Stockholm Stock Exchange Carlson Hotels, Inc.  • R
 adisson Hotel Group launched

OUR HERITAGE
(replacing Carlson Rezidor Hotel Group)
• SAS International Hotels • Carlson increased ownership in • T
 he Rezidor Hotel Group
at IHIF Berlin
signed agreement to manage The Rezidor Hotel Group to 35 entered the economy segment
Radisson hotels in EMEA percent with a 49% stake in prizeotel • A
 new global brand architecture
• Radisson SAS brand became launched
• C
 arlson increased ownership in

2006
Radisson Blu • R
 adisson Collection launched (replacing

1994 2016
The Rezidor Hotel Group to 51
• First Hotel Missoni opened in percent Quorvus Collection)
• SAS International Hotels
Edinburgh • Radisson brand launched in EMEA
became The Rezidor Hotel • C
 arlson and The Rezidor Hotel
Group Group go to market as Carlson • C
 ountry Inns & Suites by Carlson

2009
• The Rezidor Hotel Group Rezidor Hotel Group becomes Country Inn & Suites by
• Carlson
 and SAS International acquired franchise rights to • C
 arlson Rezidor is named Hotel Radisson
Hotels brought Radisson® Regent Hotel & Resorts, Park Group of the Year at Worldwide • R
 adisson Rewards launched (replacing
brand to Europe Inn and Country Inns & Suites Hospitality Awards Club Carlson loyalty program)

1986 2002 2012 2018

1960 1999 2007 2014


• The Royal Copenhagen, the
world’s first designer hotel
opened
• Carlson Hotels launched its
guest loyalty program
• Carlson increased ownership in The
Rezidor Hotel Group to 41.7 percent
• C
 arlson Rezidor announced
new luxury brand Quorvus
Collection 2017
1987 2005 2010
• Carlson bought 50 percent of • C
 arlson Rezidor announced
the Radisson Downtown Hotel, new upscale lifestyle select
Minneapolis brand Radisson RED • F
 ederico J. González became
Rezidor’s President & CEO and
Chairman of the Global Steering
Committee
• Carlson launched Country Inns • Carlson acquired 25 percent • R
 adisson Blu became Europe’s • H
 NA Tourism Group announced a
& Suites® By Carlson of The Rezidor Hotel Group largest upscale hotel brand mandatory public offer to acquire
all Rezidor shares
• P
 ark Inn became Park Inn by
Radisson
• R
 ezidor named one of the most
ethical companies in the world

64 REZIDOR CORPORATE PRESENTATION 2017 Radisson Collection Royal Copenhagen 65


Symphony Style Kuwait, A Radisson Collection Hotel

AWARDS & ACHIEVEMENTS

Radisson Blu remains

EUROPE’S
Radisson Blu wins

IMEX-GMIC BEST
Michelin-star, Restaurant Alcron
at the Radisson Blu Alcron Hotel,
Radisson Royal Hotel, Moscow
& Flotilla Radisson won the annual 52
LARGEST PARTNERSHIP INTERNATIONAL HOTELS
Prague recognized as the

SUSTAINABILITY
MARKETING BEST
UPPER-UPSCALE AWARD
RESTAURANT BUSINESS WIN
HOTEL BRAND CAMPAIGN IN THE 2017 IN THE U.S. NEWS
TRAVEL AWARD
FIRST FEMALE 2016 TRIP ADVISOR
from Business Traveler Russia & CIS Awards & WORLD REPORT
IN THE HOTEL TRAVELERS’ BEST HOTELS
REZIDOR IS SAUDI GENERAL MARKETING CHOICE AWARDS RANKINGS
WORLD’S MANAGER
MARAM
AWARDS
Park Inn by Radisson’s “Trolls on the Loose”
AWARD
18 AWARDS
MOST ETHICAL KOKANDI WINS WORLD TRAVEL
AWARDS 2017
HOTEL Best Hotelier Award Radisson Blu wins Radisson Blu wins

THREE
CAPITAL
COMPANY
SINCE 2010
Grand Travel Awards 2017 Norway

BEST CONDÉ NAST


MAGAZINE’S
BEST BRAND UNWTO
INNOVATION
TOP 10
AIRPORT HOTELS
INTERNATIONAL READERS’ CHOICE LABEL
HOTEL CHAIN AWARDS AWARD
in France
AWARD
for Park Inn by Radisson
IN THE WORLD
BY THE INDEPENDENT
RADISSON BLU
LONDON STANSTED
Independent Online

66 REZIDOR CORPORATE PRESENTATION 2017 67


SOCIAL MEDIA
CHANNELS CONTACTS
RENU HANEGREEFS-SNEHI
Vice President
Corporate Communications,
Group PR & Reputation Management
www.linkedin.com/company/radisson-hotel-group/ renu.snehi@radissonhotels.com

Employees LUCIE CARDONA


Director
www.instagram.com/radissonmoments/
Corporate Communications,
PR & Reputation Management
Guests and other External Stakeholders lucie.cardona@radissonhotels.com
www.instagram.com/radissonhotels/

Group
www.twitter.com/radissongroup

Guests and other External Stakeholders


www.twitter.com/radissonhotels

Guests and other External Stakeholders


www.facebook.com/radissonhotels

Group
www.youtube.com/radissonhotelgroup

© 2018 The Rezidor Hotel Group. All rights reserved


68
rezidor.com

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