CANCUN Steve Miller, evp development and acquisitions for Radisson Hotels and Resorts, reports that the company s acquisition strategy is firmly in place.
Miller joined Radisson a year ago, charged with acquiring properties for the brand in key strategic locations. Since that time, Miller has grown his team from ground zero to eight people, including two vps of acquisition, a senior vp of finance, a development coordinator and a team of feasibility experts to study viable projects.
“Our strategy is firmly in place now to sustain the brand s presence in the top 25 markets,” Miller told HOTEL BUSINESS..
Miller is acquiring and developing properties for Radisson in two ways. One is via a strategic alliance called Radisson Olympus Capital Partners (ROCP), which Radisson s parent company Carlson Hotels Worldwide formed with Olympus Real Estate Partners Corporation last year. The other is through funding that comes from Carlson Hotels Worldwide itself.
Viable projects are first brought to the ROCP team, which determines whether or not it fits their parameters. ROCP has the ability to acquire desired projects outright, said Miller.
If ROCP passes on a project, Carlson will consider whether to put “skin in the game” by investing up to 50% in the property in order to secure a management contract, said Miller.
In each case, Radisson is seeking to secure its flag in destinations where its customers expect to find it, he said.In some cases, Radisson is seeking to be in cities it knows its sister companies like the Carlson Marketing Group (CMG) and Carlson Wagonlit are delivering a good deal of incentive or travel agency business, said Miller. In some cases, these two entities are delivering strong business to Las Vegas, for example, however Radisson does not have a hotel in that city and thereby does not benefit from its sister company s business, said Miller.
If a property is acquired in a location that is highly served by CMG or Carlson Wagonlit, that Radisson property would have the potential to be filled by that business alone, said Miller.
“That is why ROCP teamed up with us,” said Miller, who noted that Radisson is presently 20% into making use of this vertical integration to which it has access.
Cities on Miller s wish list include San Francisco, New York and Chicago.
As for what is next on Radisson s acquisition plate, Miller said, “there are a number of things close to happening. Even with the dip in the economy our strategy is still fully in place.” (4/5/01) Ruthanne Terrero