Managing a strong portfolio of brands, relationships and ... - Exception!

RE-EVALUATING HOW WE DO BUSINESSRadisson SAS’s vision is to be the market and performanceleader in the markets it serves by delivering consistently on itsbrand promises. With this aim in mind, we have challenged ourselvesto set new industry benchmarks and to redefine whatowners, guests and employees can expect from a contemporaryup-market hospitality operation. Our objective is to bethe best, not just in terms of perception, but also in ways that aremeasurable and meaningful to owners, guests and employees.Radisson SAS has re-evaluated every aspect of how it doesbusiness. Through innovation, investment and team effort, weplan to outperform the rest of the up-market hospitality industrywhen it comes to growth and stakeholder satisfaction. Newchain-wide initiatives aim at raising the bar in real estate optimisation,operational efficiency and marketing delivery.Customer targeting, revenue management, marketing andA genuine commitment to guestcare, delivered by people withshared values and an understandingof customer expectations,is the platform on which RezidorSAS customer relations are built.sales and quality assurance initiatives continue to broaden thebusiness base and increase repeat business. Innovative marketinginitiatives reach the entire spectrum of hotel businessgenerators – from travel agents and corporate travel plannersto frequent individual travellers. These initiatives both increasethe number of room nights sold and help to achieve higher revenuefrom each reservation.Sophisticated business services and state-of-the-art meetingand function facilities will ensure continued success in attractingconference and meetings business. A new “Meetings & Events”concept was launched in 2002 with 10 customer promisesdesigned to turn any meeting into an unforgettable experience.COUNTRY CULTURE MAKES THE DIFFERENCECountry Inn operated 12 properties by the end of 2002. Thisincluded the recently opened Paris Charles de Gaulle property,seven hotels in Germany, two in Vienna and two in London.Through a joint venture, 50 new properties are targeted forRussia within the next 10 years, see more on page 57.All Country Inn hotels have the ambience of a typical countryhome and the friendly service that will make guests feel “athome” instantly. Country Inns offer a combination of environ-ment and atmosphere that is truly special; it starts with theunique architecture and design and continues with the highlymotivated staff trained in Country Culture.Employee satisfaction is high at 4.3 on a maximum 5-pointscale. Customer satisfaction is even higher, scoring at extremelyhigh 9.8 out of a maximum 10.During 2002, revenues from leased and managed propertiesaccounted for 91% of operating revenue, whereas managementand franchise fees accounted for 9%.The Gross Operating Profit (GOP) – total operating revenueless operating expenses – was 43% in 2002 for leased andmanaged hotels.Occupancy was 54%, in spite of the weak global economy.RevPAR (Revenue Per Available Room) for leased hotels wasEUR 59, while for leased and managed Country Inn hotelsRevPAR amounted to EUR 39.For more Country Inn operational data 2002, see table onpage 12.PARK INN – A TOWERING STARTThe first European property to fly the new Park Inn flag was the1,006 room skyscraper on Berlin’s legendary Alexanderplatz –a powerful first step in a very ambitious expansion plan. Somemonths later, a second Park Inn opened in the centre of CapeTown, South Africa, the Park Inn Greenmarket Square.An important third step for the growth of the Park Inn brandwas the addition of 14 Swedish hotels from the Software HotelsGroup in early 2003. Ten of these hotels are mid-market businesshotels with city centre, or suburban locations. The remainingfour are conference hotels, which provide professional conferencefacilities located in, or close to, historical mansions andother heritage properties. Their shared success factors are Joy,Commitment, Personality and Food, their passion for the lattershown through Awards such as “Best Breakfast in Sweden”and “Best Dessert Concept in Sweden”. The hotels will berebranded into Park Inn hotels successively from March, andwill be completely within the Park Inn system from May 1, 2003(see more on page 43).Park Inn will grow while maintaining a strong focus on franchisingservices, thus keeping the needs of its franchisees inmind. Being part of the Park Inn brand will entail more thangaining access to central reservations systems, marketing andsales. It will also mean that the franchisees join a communityof like-minded entrepreneurs, making it possible for them toshare staff, resources and best practice as well as to createbusiness opportunities. The colourful brand logo and brandspecific characters will make the rebranding of existing propertiesa smooth and efficient process.30