NEW YORK— Baltimore’s Inner Harbor is the site of a new 439-room Radisson hotel. The property, which was formerly a Hilton hotel, was converted to the Radisson flag last month. The project was funded through a 50-50 partnership with Olympus Partners. At a recent event held in New York, Jay Witzel, president of Radisson Hotels & Resorts, said that the strategic investment alliance with Olympus has given Radisson the ability to acquire more hotels for conversion and management within key U.S. markets. Through the partnership, Radisson plans to add 20 to 30 domestic hotels to its portfolio, which will be funded on a case-by-case basis. In addition, Radisson is investing in company-managed projects through capital from its parent company, Carlson Companies. Most recently, Carlson put up the funds for Radisson’s new 545-room Philadelphia property, located in Rittenhouse Square, which is scheduled to open this month. Radisson Hotels & Resorts also reported that it has surpassed 424 hotels with over 100,580 rooms in 59 countries. “The year 2000 was a record year of growth and sales achievement,” said Witzel. He noted that system-wide revenue rose 9.2% last year, and that on-line booking revenue through www.Radisson.com rose 70%. “We are continuing to enhance the value of the Radisson brand by focusing on key distribution channels, including our website, and through consumer and corporate travel partner networks,” he said. In addition, Kurt Ritter, president/CEO of Radisson SAS Hotels & Resorts, reported the major expansion plans for the brand throughout Europe, the Middle East, and Africa. Since the creation of Radisson SAS Hotels Worldwide in 1994, the brand has grown from 29 hotels in 11 countries to 146 hotels in 38 countries. Revenues meanwhile have risen from $270 million in 1994 to $1 billion last year. In addition, in order to position the management company for further growth, an internal group was established in 2000 called the SIH (SAS International Hotels) Group, which is also a subsidiary of Scandinavian Airlines Systems (SAS). As part of its expansion plans, the SIH Group purchased the brand and expansion rights of the Malmaison chain from Wyndham International last year. SIH will manage the Malmaison portfolio, which consists of five hotels plus two under construction, under a 20-year operating agreement. “We plan to grow Malmaison to 25 hotels by 2003,” said Ritter. He also added that the two brands, Malmaison and Radisson SAS, will continue to operate separately, under their respective names and that with the addition of Malmaison, SIH Group has established itself “as a multi-branded company.” The SIH Group is also looking to develop a new three-star brand, according to Ritter, that will “offer volume and larger growth potential.” He noted that Radisson SAS fills the upscale, four-star segment; Malmaison fits into boutique brand niche, but currently the company does not manage a mid-scale flag. “We need a three-star brand,” said Ritter. He also stated that Radisson SAS, which started in Scandinavia where the bulk of its portfolio is, will also be seeing some added competition in the coming years, particularly with the possible acquisition of Scandic Hotels AB by the Hilton Group plc. “Radisson SAS has been the only global operator in Scandinavia,” said Ritter. “But we knew this time was coming.” He added that the addition of global chains like Hilton, Sheraton, and Marriott to the Nordic region is going to “raise the level.” “We’ve enjoyed our time alone, but now other winds are blowing and we’ll have to adapt to that,” said Ritter. Scandic is currently one of the largest hotel operators in the Nordic region, with 152 hotels in 10 countries.
